Does This Short Sale Have Potential?
I just put an offer on a single family property in Jacksonville, Fl that needs about $8,500 in repairs. The ARV after repairs is about 158K. The current loan balance is a conventional with about 141k and is now 4months behind and the property is currently vacant. It is listed with a realtor for 6.5% commission. It has been on the market for about three months now. I offered 136k which after a full realtor commission would net the lender about 126k. Here are my questions. 1. Since neither the selling agent or my buyers agent have ever done a short sale, should I try to step up and offer to try to work the short if the seller is willing? 2. If the current owner filled ch 7 bk in 99 and it was discharged, can he now file ch 13 to stall the looming sale? 3. Should I be offering less (129) even if I want to live in it? Any other ideas?
If you plan to live in this house it might be a good deal,but I would offer less. The worst they can say is no. As far as this being an invesrment property the margin,after repair cost is too thin.
The Bankruptcy would be a double edged sword. Yes it would stop the foreclosure proceedings, but most mortgagees won't negotiate/won't approve a short sale while the property is protected under bankruptcy.
PS. I don't know what's up with the hyperlinks in the text of my reply... but I don't endorse this advertisment.[ Edited by TheShortSalePro on Date 01/30/2004 ]
I concur with shortsalepro. Is the perceived FMV as is at this point more than the balance owed on the mortgage?