What Are My OPTIONS? Short Sales Foreclosure Bankruptcy?
I have questions regarding Short Sales. If I have a first with a balance of $348K and a second with a balance of $86K in arrears of $21K totaling $455K. Comparable sales say my property value is $385. What are the ramafacations if we sold the property for less than we owe? We have debts outside of the home and have contemplated filing Chapter 7. If we sold the property for less than owed, would we be able to file the balance in a chapter 7. For instance if we sold it and paid off the 1st and arrears but the second went unpaid, could the second be put into the chapter 7 bankruptcy?
Also would we be able to sale the property to someone we knew or an investor and possibly purchase it back from them later at whatever purchase price they give me? I would appreciate any information you may have available on this topic.
In order to do a short sale you will have to have lender cooperation - in your case the first is covered pretty well by the property value so they will probably not be willing to accept a short payoff. The burden will be on the second mortgagee to accept next to nothing. You should contact their loss mitigation department to discuss.
As far as selling to someone you know so you might eventually repurchase the property, you can do that but the sale price to the buyer will have to be at market value supported by an appraisal or broker price opinion. The lender is going to work to minimize their loss.
Hello all, Have you heard about www.forclosuresdaily.com ? they charge about 85 a month and are heavily hitting my area right now? They sponser gurus to come in and speak and try to rack you in that way.. I did explore the site via a 1 day trial and it was easy to navigate and seemed to have a myraid of forclosures but I am not to sure about how old the info is... What is the best way to find pre - forclosures or best site to find them through?
Thanks,
Great info thanks so much.. I think foreclosuresdaily is actually based up in your area... Have you used Jeff Kallers loss mitigation team up there at all? What has been your most effective way of approaching homeowners?
Thanks again!
We do the traditional mailers and some door knocking, but our specialty is purchasing at the Courthouse.
What does your loss mit group do for you?
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Well since I am reletivly new to foreclosures they help me by doing the following... The group that I use are actually ex - loss mitigators for banks and I would call them with the deal and they would in turn call the bank and negotiate a short sale on my behalf and would be compensated by a fee usually 30% of profit ( they say due to their experiance they negotiate at least that amount over what I would be able to ). I have not started to use this group yet but thought it would be a good idea for me to use them for a while until I learn the steps needed to negotiate with the bank myself. What are your thoughts on this type of transaction?
Vernia,
Please open the store and share!! thanks for the reply also.. What is the best way to get started in foreclosures? I am new to this as I stated and the loss mitigation thing sounded good to me but I would like to learn the best way to hit the ground running. I am going to sign up for a foreclosure website and check the lis pen as well. What should I be doing to be sucessfull here?
Thanks
Try calling the lender and foreclosing attorney and explaining the situation. Better yet, have your title agent call them. They might consider postponing the sell.
Thank you all for your quick responses. I feel much better about proceeding. I will take your suggestions and not panic. I am glad I stumbled upon this website. I have gleaned a lot of wisdom in just a few days. Thank you again.
it is my understanding that you will be responsible for the IRS and State if they redeem. which they usually do not. if they do you are now the lien holder. the state almost never redeems, the IRS, very rarely. if they do not then you should make a fair profit.
good investing
For a definative answer, you really need to talk to a Title Company in your state about the County and
State liens.
The Federal lien normally has a 120 day Right of Redemption, which I have never seen them exercise
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1. Just show up.
2. Yes, they will only give you the minimum bid.
3. The lender sets the minimum bid by adding the foreclosure fees to the principle balance as well as any late payments etc.
4. No.
5. Yes that is true.
6. Title is conveyed via a trustee’s deed and there is no redemption period.
7. Sure you can.
You do not have to hold the property for 180 days and it is fairly easy to get title insurance.
If the bank doing the foreclosing notified the IRS during the foreclosure process then the IRS liens do not attach. If they did not then the IRS could demand payment.