First Short Sale
Ok the first time I posted this it was deleted I'm told because I had the cap loc on ok well I was excited, I still get excited over a good deal and yes it is hard to hold it in sometimes
I have made contact (no, no contract yet) with a home owner that has a home who is in a divorce situation. Both parties just want out of the property. Mortgage is with Beneficial 4 yrs ago approx. stopped and looked in the windows today not much damage that I can see; most appears to need some sprucing up. I also dropped in the mail this am an information release form to the sellers this am.
I was told to purchase Short Sale Primer, however due to budget restraints at this time the price of this is out of reach for me. My question is on the initial call to the mortgage company should I have a signed contract and if so what kind of price should I offer them? The FMV of home is approx $110,000 - $120,000. According to public records dated 02/20/04 Balance: $102,919.54, Interest: $23,346.75, Attorneys Commission: $6,313.31, Total: $132,579.60 house is set to go to auction on July 21, 04
Any help/suggestions is greatly appreciated
Thanks
Terry
Once you have written permission from the Homeowner, you can contact the mortgagee and ask about their policy on short sales.
They may or may not respond to your request.
You must ascertain the property's as-is, fair market value. That will be the basis for your Offer. Before making such an offer, you had better be quite sure about the condition of the property.... and have a well thought out exit strategy.
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Ok so if you put in the sales agreement that if the mortgage company is unwilling to do a short sale the contract is null and void?? would this do for an exit
Thanks
Terry[ Edited by TLHynicker on Date 06/10/2004 ]
That is one way an exit may do.
The other is to primarily you, yourself have more than one option should the lender reject your initial offer.
A rejection sometimes simply means you have to find another creative way to make the deal work if it is beneficial to you.
of course, the contract would be subject to lender, short sale approval.
by way of an exit strategy... i was thinking more long term
like what are you going to do if the mortgagee says yes
how are you going to close the deal, what will you do with it once it's yours...
how will you cash out.
that's an exit strategy.
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My Credit isn't that bad now if I need to just place a mortgageon it, but I was thinking more of flipping to a rehabber
How long is this process normally take. This property is going to the auction block on July 21
Terry[ Edited by TLHynicker on Date 06/11/2004 ]
It's best to have your mortgage preappoval in your pocket before youpursue a preforeclosure, short sale acquisition. The preapproval letter will most likely be required in your Proposal.
Rule of thumb... subject to change is to allow at least 45 to 90 days from submission of completed application/proposal to formal, short sale approval.
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