Help! Divorce situation--would like to entertain SS
I have a situation where the title & mortgage is in the husband's name. The husband left 2 years ago and now the wife and kids are living in it. This was set for sale tomorrow, but the husband's attorney got a matrimonial stay for 30 days. It is currently about 2 years in arrears.
The appraisal is coming in at $265k. The 1st is Chase at $133k. The 2nd is Option One at $50k. The wife's aunt is pre-approved to purchase this for $250k . I'd like to step in, negotiate a short sale with the 1st and 2nd and then immediately sell this to her aunt for $250k via simultaneous close.
The husband is extremely vindictive towards his wife. My selling point to him is that he will net more with me involved (coming in with a short) than he would with a straight sale to the aunt.
There probably isn't much profit in this considering the husband knows he can sell it for nearly full price. I'm probably going to have to settle for splitting whatever I'm able to discount, assuming I get a decent BPO, but then again, I have the buyer lined up.
Does anyone see any problems here? Is this as straight forward as I see it? Thanks.
Hi Microchip,
Welcome aboard.
You have a total payoff of $183k, is this correct?
The appraisal came in at $265k.
The difference is $82k!
Why would the lien holders give any $ away with this amount of equity built in?
Your buyer is pre-approved for $250k, that still leaves $67,000 up for grabs.
Obviously the house is in good shape to come back at $265k.
The problem with the SS is that you need to show a negative appraised value and a reason for the lien holders to consider discounting the liens. i,e. financial hardship on the sellers part and their inability to pay.
But even with that there's so much $ over the payoff amount I don't think they'd consider it.
The owner could simply list it with a Realtor at 5% and still net $54,000 give or take a few hundred if it sold for $250k. or even price it to sell fast and still come out with a nice chunk of change...
Does the husband know that the Aunt wants to buy the house? The only thing they need to do is a FSBO and close.
If not.....
You could put an option to Purchase on the house and if the Aunt has any $, sell your option to her for say..$10k then tell the husband to do the FSBO with the aunt for $240k. or....
Negotiate with the owner that if you get a quick sell for him he'll split the net proceeds (cash back) with you at closing for about $33k each! but in this situation, you really need to protect yourself in order to get paid. Have an agreement/contract drawn up that states your interest in the sellers cash at closing and have it notarized and recorded.....
Hope this helps,
Clif
Shorts are done all the time on homes with lots of equity in them. Some lenders do 80-82% of the BPO. It is very BPO driven and further discounts can be gained if repairs are needed.
The key to my involvement is to negotiate a short. Otherwise the husband sees no value in my participation. He can sell directly to the Aunt for $250k.
My selling point to the husband is the potential of getting more cash generated from a short pay.
I hope this clarifies my question. I wanted to know if simo or double close would be the solution here assuming a short sale was accepted.
Thanks.