Reducing Risk in a Shortsale
I bought the course No equity=no problem at a RE conference and have read the material on shortsale and discounting a mortgage. I do have some questions though.
1. When doing a short sale, if I don't have 60000 to pay off the loan at closing, what is the process I should take to hurry up at find a buyer? And if I find a buyer, is it a double closing that I do from buying the house from the seller and then selling it to my buyer? What happens if the lender agrees to the short sale but I don't have a buyer lined up? What should I do in that scenario?
2. I have an LLC that holds the title of the properties that I buy. In the sales contract, will the lender be less likely to agree to the shortsale if I say that my LLC is the buyer rather than my personal name?
Hi there... there is not much risk to you in a short sale. If you can't close, the bank just pulls its offer.... no biggie. The homeowner is hurt though. We always have back-up plan which is to close ourselves if we have to.
Most banks will give you at least 30 days to close. This is plenty of time to find a buyer and wholesale the property. Find an investor friendly title company and they will walk you through the double closing process.
We short sale and then wholesale one deal a week. You can too....I'll help you.
By the way.... best of luck to you! Be certain you listen to our CD's... they are VERY advanced!!
Dwan