Short sale snag?
I've been working on a property for about 2 months now with Chase Man. The 1st is at $48,000 the 2nd is $10,000 but already negotiated down to $1500.00. The property is only worth the value on the first. We submitted our short sale pkg. and had the auction date postponed. This is a FHA loan. Per HUD, Chase had to order an appraisal which came in at $35000 (we pointed out all the repairs that needed done). Now, they say the property has to be listed for 90 days at or around the appraised value...again per HUD. Our home owner is a realtor, should we have her list it, and if so, at what price? Should we submit our offer in right behind the listing agreement. We meet with the homeowner tomorrow morning...need advice. We feel we negotiated an auction postponement and potential short sale and now we need to list it and offer it to everyone else. However, the homeowner does need to accept the offer...so , ours can be the only accepted offer. We can flip this property to other investors in the low $40s. We hope to get it around $30000. Any advice would be greatly appreciated.
Thanks!
You might have the realtor list it at or around the price that the bank wants them to. However, have the realtor put it in MLS as a pending sale. This way, no one else will pay attention to it or have an option to buy it.
The bank will probably just want to see the listing agreement, and the status on the MLS probably will not be requested.
Make sure that the homeowner has fully completed a short sale package for the 1st mortgage company. After a short time, have the realtor re-submit your offer to the bank.
Best of Success
BAMZ