Flipping Victim Looking To Short Sale
I am the unfortunate victim of property flipping (the illegal version) and am looking to count my losses.
The investment property was appraised at $70K last yr when I purchased it. Actual value is close to $20K. The bank, Nat City, tells me they're going to write it off and my best bet is to short sale.
How should I go about this? I'd like to recover at least a few thousand, but at this point, I'd be happy just getting the property off my hands.
What's to stop me from selling the place for $10K and telling the bank I could only get $7K for it?
I'm open to any suggestions.
Before the lender will release it's security interest, it will have to be satisfied that the property is sold at it's as-is, fair market value.
You won't see a nickel from the sale, and may be held responsible for any deficiency.
My guess is that they'll demand to see your bank statements from when the property was first acquired... just to make sure you didn't pocket a pile on the front end.
[addsig]
oh ...I have to say im not really educated in this area, but I have to ask..
who did the appraisal at 70K when the value is 20K
Isn't there a question of sorts here?
Somebody should be held accountable as Im seeing it?
Intersting :-
Well, apparently, the guy who sold me the house had his own appraiser. I found out through a deed search that he only paid $20K for it one month prior. I've since contacted the appriasal board for the state of MI and reported her. The FBI is also investigating.
hmm, sounds fishy, but then good for you if it is!
...might just work out yet
don't give up!!
Djones, why do you think the house is not worth 70k? Just because he purchased the house for 20k doesn't necessarily mean it is not worth 70k. He might just found a motivated seller and got a really good deal.
"What's to stop me from selling the place for $10K and telling the bank I could only get $7K for it? "
The bank will want a copy of the hud 1 statement when you sell the house. They will be looking to see if you get any funds. If you do then they will not go through with the short sale.
Maybe the previous owner made a lot of repairs? I buy houses for 20k and sell for 55k after rehab. I bought one for 27k, rehabbed it, listed for 90k and sold for 70k.
If the house was truly only worth 20k when you bought it then you need to become a more educated buyer. Real estate is a buyer beware industry. Always do your own appraisal and inspections (or pay someone to do it for you) . Did you have a Realtor?