short sale
hi everyone,
I need some Idea to me close my first short sale. Thanks in advance.
I got lucky to meet one guy he have an fourplex. maket value $192000 he owe ocwen bank $162000. right now he just late this month. He just send money to Ocwen on 20 of this month. He don't want to keep fourplex anymore because his wife just run off with another guy and he can not keep up with the payment. The fourplex have 2 vacant unit.
He did deed the property to me already. currently have no behind payment. He have 2 late payment in pass year.
Here is my questions
1/ When will be the best time for me to contact the bank to do the short sale?
2/ what do I need to do for getting ready for this short sale?
Please give me some idea. Thank for any help. 
Much more straightforward if you simply purchase the property for what is due.
Unless your estimates of the property's as-is, fair market value , and/or amount owed are inaccurate this doesn't seem to be a short sale candidate.
I mean can I let the property late for one more month and start to call the bank and deal with short sale?
is there any problem with this.
Generally, the payment would need to be 60 days in arrears for the bank to be seriously interested, although they may entertain an offer after 30 days if there are appropriate circumstances. At any rate, the seller gave you the deed to the property to avoid more late payments. It would not be ethical for you to intentionally create more late payments, hurting his credit, so you can short sale the note. It sounds like you have a great subject to deal! I would rent everything out and sit back and collect the cash!
Greetings
Melton is correct. this does not sound like a short sale deal.
if he has deeded it to you you can either rent it out, re-fi it and pull cash out, or wholesale it to another investor for a fee.
i would however check the titile.
was it a wife that left? or a girlfriend?
if it was a wife you may need her signature to truly have ownership. in most states it's "One to buy, Two to sell" as far as married couples go.
check it out.
wholesaling it may not be an opton just yet because another investor may be looking for more of a spread (the difference between market value and what's owed)
but if you rent out the other 2 units(and consider section 8 tenants for gaurenteed payment) then you may be able to cash flow very nicely.
you should consider it.
also check-out all the john loke/subject to information posted here.
hope this helps
AB
[addsig]
Thanks for everyone reply. The reason I want to do short sale is the interest is so high at 11.85% & they will charge 15% more when you pay off the loan early.
I don't have good credit enough to refi it. I did research every thing fine on title it only have tax late on title but it was paid off by the bank. So I think, the best way I should do is Short sale. This way I can resale it for more money.
Please give me some more Idea about short sale
How can I get ready for it when I wait for one more month. it should be 60 days
what do I need to do for ready when time is come to make it 100% success.
Thanks for any Idea
toiyeudoi,
Maybe I'm missing something here. You say you have the deed. Did you record it yet or are you just holding on to it? There is also at least 30K of equity and may be too much for a bank to entertain a short sale.
Also, the guy needs to be prepared to prove he actually has a hardship preventing him from making payments. I would be nervous if I were you. Has this guy even agreed to you screwing up his credit? It doesn't sound like a very bright idea. Maybe you should spring for a course and learn a little more before diving in.
Keep us posted !
He is agree for me to do it for 2 reason.
1/ he did have 3 late 60days about 7 months ago but he was keep up with it.
2/he did deed the fourplex to me I just hold on to it have not record it yet he do not want this loan stay under his name any more. Because when he run credit check to buy another home it show up on his credit and he was not qualify to buy another house. So he just want to get loan off his credit report.
So any help Thanks
It's important to understand the theory of short sales, and to be able to prequalify a short sale candidate.
As I indicated in a previous post, I don't see a short sale here. You should consider another acquisition technique.
Coming soon to this site: A Short Sale E-Primer
Purplemillionair
I love how if you just log on to this site you can learn a little something in a second to make things so much clearer
you said "one to buy two to sell" a small phrase to think of as soon as you lay eyes on the seller