Getting An Extension On Foreclosure?
I have a pre-forclosure prospect that I am about to put a contract on. The problem is that the foreclosure auction is 8 days away.
I am going to contact the lender (CountryWide) tomorrow and see if I can get them to postpone foreclosure for 30 days. I am in Texas and foreclosure auctions are the first Tuesday of every month.
I plan to submit the purchase contract and a pre-approval letter for the purchase loan.
Has anyone done this before? Which department at CountryWide do I contact? Any advice?
Thanks.
You will probably need an authersation to speak to them first.
Your best bet is the Loss Mitigation Department and you will need for the owner to contact them first and possibly fill out a form that gives them permission to talk to you.
Ask them what they need for them to postpone the foreclosure so you can close. What worked for me was to put up non-refundable cash that would go to the payoff of the loan if the transaction closed within the alloted time. I got 30 days and closed on day 29!
Good luck on this.
Ed
good idea! did you finance thru a bank in 30 days or a private lender
kimesha,
I got a HELOC on my home since I thought it would be easier. It always takes considerable time for me to get most of my loans.
You definately want to contact Countrywide asap. It sometimes takes 48-72 hours for them to get the authorization in the computer. In most cases the purchase agreement and proof of funds is all you need. They need to have a good reason to postpone the auction 30 days and purchase contract and proof of funds is definately a good reason. The key to this is talk to the right department and get the ball rolling.
Have the investor do a cash out refinance to get his money out of the houses. Put them after than into a land trust, with you as the beneficiary. After a few months, you do a refinance, and when you do, put them into your name.
Thank you jam200! I knew someone would have a creative suggestion.
Have you done this before? Worth the effort?
No the units are actually in better condition than most and they are on the average to large side. If they are actually worth less than of course the appraiser is going to take that into account but these are just a below market deal.
I always enjoy your advice Commercialking! Thank you.
Ok, well I thought I would follow up and let the board know the solution I came up with and ended up using.
Since there were 4 properties I went ahead and wrote 3 of the contracts for about 90% of the market price. The fourth property I am buying for $1. This way only one property is significantly below market and will be discounted by anyone looking at the transaction.
Thank you for all of the other suggestions. They were really good.
Quote:
On 2005-04-28 17:32, btaylor52 wrote:
Ok, well I thought I would follow up and let the board know the solution I came up with and ended up using.
Since there were 4 properties I went ahead and wrote 3 of the contracts for about 90% of the market price. The fourth property I am buying for $1. This way only one property is significantly below market and will be discounted by anyone looking at the transaction.
The other option is to buy all four units on one deed. As such, each building will show up on the property appraisers site as having sold for the full amount of the contract, in effect four times what you actually paid.
Thanks for the response. The guy at the VA office extended the sale date another month.
First Texas is a Judicial & Nonjudicial Foreclosure state.
Texas also allows Deficiency Judgments.
The following links will help with understanding the VA process.
http://www.homeloans.va.gov/pdf/final%20report.pdf
http://www.homeloans.va.gov/paytrbl.htm
Also, form 26-1805 Request for Determination of Reasonable Value is normally used.
Good luck on your short.
[addsig]
This is awesome, thanks.