Found Motivated Seller....now What???
Ok there's a house for sale near me. Seller is getting foreclosed on so there is obvious motivation to sell. Not to mention she's moving. FMV is around 72k based on comps. House needs some TLC but mostly paint, carpet, cabinets and flooring. Nothing major, and the major appliances are alright. The seller still owes around 70k for the thing so there's no equity in the deal. The realtor suggested doing a short sale, but I have very little knowledge of how to do that save for what I've read on here. Do I have other options other than a short sale? I'm willing to give that a try if the numbers work out and it would be worth my time. Any thoughts?
You could try to get the owner to talk their price down. Secure it under contract and find a buyer at the FMV. In order for this to work you have to make sure the house is under market value.
Your REA gave you good sound advise.
Lori
[addsig]
For my information, why is a short sale good sound advice?
Quote:
On 2004-05-06 14:16, Rhea wrote:
For my information, why is a short sale good sound advice?
The FMV is 72K and the owner owes 70K, The buyer would be better off having bank take a lower payoff with having to foreclose, put on market, pay holding costs and more attorneys
Lori
[addsig]
I agree with Lori on the short sale. Another option would be to make up her back payments, take the house subject2, and put someone in the home rent to own. You take out some of the profit up front, some in the middle, and depending on the appreciation rates in your area, some on the end. Just a thought.