First Short Sale Deal!!
Hello REI,
I came across a pre-foreclosure property where the owner owed about $160,000. The comps showed about $250,000 to $300,000 in this area for this type of property. I had an apprasier go out and take a look at it and he discovered the property was in bad shape and probably was worth only about $150,000 to 160,000. The owner will like to continue to say but what to avoid foreclosure on the property.
So, since this property is only worth about what the owner's owe, I decided to try a short sale deal on this property. This is my first time doing this so I need some advise. I have talked with the homeowners and explain the situation. I lock up the property under contract with a clause stating this agreement is contingent on the lender accepting the short sale. I have an Authorization to Release Information on file with lender. I initially done this to get the pay off amount.
So now I need to call the lender. Can anyone give me any advise on how to handle this? And do anyone have an example of a Short Sale packet that you have use to send to the lender?
Thanks!
Hello,
I would read the other posts here and see how they did their short sales. There is lots of info here, you just have to read about it and I am sure you will find your answers. This site is the most informative site I have found and there is always updated info here. Good luck and happy reading.
Hi Jmart2221,
The first thing to do is to bring the homeowner back to reality. If they house is in bad shaper, they are behind in payments, they are in a financial hardship, and the property value has fallen . . . . . you need to kindly share with them that they will need to Relocate! Staying in the house is not an option.
If their hardship is over and they can get the money to reinstate or do a forebearance, then you can make a new decision and help them keep their house. But before you go into this deal, make sure that you know and the homeowner knows what you both are working towards!
As for the Short Sale package. . . the bank may have their own that the homeowner must complete. Call them to find out what is required from them to consider a SS. Here are some general items that you will need:
A) Authorization to Release form
B) Purchase Offer Agreement
C) Hardhsip Letter
D) Hud-1
E) Letter of Intent ( why you r are seeking a discount)
F) they may also require financials on the homeowner such as, previous 2 years of tax statements, recent bank statements, and or recent paystubs.
They bank will tell you what they require though. Hope this helps!
Best of Success!
BAMZ
I understand what I need to do. Thanks for your responds.