Confused In Dallas
Hi guys,
Question here. What does a sub-to short sale transaction look like? Here are the details. I have taken a property subject to its existing mortgage i.e. Executed, notarized and recorded warranty deed.
The property has FMV of 180K with a remaining balance of 137K. With the possibility of being shorted down to about 120K. (Short sale pending from works of a previous investor) I beat him to the deed 
I have interested buyers and I am curious as to how this transaction should pan out without the bank knowing that I am selling the property at retail.
Is this where the double close would come in? What should this transaction look like?
Signed,
Confused in Dallas
[ Edited by shephia on Date 03/12/2005 ]
I know someone has encountered this situation... Any takers?... Ryan and Zin, what do you guys think?
umm. confusing yes. my brain must not be running in "confusing title situation mode"
i almost wish you had taken title in a trust. the problem i see is that you have already recorded the deed to your company i presume. yes double closing wouldve been the ideal situation but you already closed on it, so i dont know how it will pan out if the bank wants to see the preliminary hud, which cant show that your buying because you already own it correct? in a typical double close, it should show that the money is coming from you to cash out the bank, when really its coming from your buyer. since you already have title i dont know if the hud can show that your the buyer. maybe a very creative attorney can figure it out. or if your really confident in the deal and the bank accepts a short, cash it out with hard money and then turn around and sell to your new buyer.
my best suggestion would be to look for a buyer at that full market price and if you can some how get the short accepted with the present circumstances then it will just be a bonous. as it stands if you get a f.m.v. buyer you will make some money on it. obviously its always nice to get that extra profit though.
you might be better off having the SSP answer this one.
I was thinking just dont worry about the short and try to get a buyer at FMV. This way it doesnt matter if the short is accepted because you will still have a payoff. One thing that doesnt make sense is that if you took it "sub-to" then you made up the back payments? if so they will not short that i dont believe. what would be their incentive? Just get a Payoff statment sent to you and close with your new buyer.
It sound like you will make some good money just by doing that
i dont believe he/she ever mentioned making up the back payments. that was your "assumption" aking title subject to the exsisting mortgage doesnt necessarily mean making up back payments. but that is another option if you truly cant get the short to go through. make up the payments and look for that f.m.v. buyer. unless of course you have enough time to not make up the payments, but you will incur more fees that way.
sorry i know none of this answered your original question. hopefully someone who has been in that situation will explain how to handle it.
since you are from Greenwich you must have been in this situation, no? You must be sooooooo rich. you live next to Trump? or do you life with Trump? You his side kick?
Trump no longer lives here. he lost the greenwich house in the divorce settlement with the first wife. but yeah we still play golf on the weekends
shepia, make sure you talk to a competant trust attorney before making any sudden moves, you just might be able to pull it off. i know alot of people do take title before the short is accepted, but i havent talked to anyone who has recorded it, accept trusts of course.[ Edited by ZinOrganization on Date 03/16/2005 ]
oops, not a trust attorney because you didnt take title in a trust. just a competant attorney, that in itself is hard to find. screen him/her by asking if they have ever dealt with investors who do short sales. good luck