Help! Old Realter Newbie Investor
what is the usual time frame to close a short sale - get approval etc?
I Have a home owner who isn't behind on pmts but needs out asap - can i file a mech lien on his prop for the equity while i do a few repairs in stead of buying it first - thereby selling the home sooner than the usual 90 day fha waiting period and saving interest, closing fees etc? it is practically ready to sell as is
are short sales specific to bank loans or are fha loans a likely prospect as well?
I have a seller with a 80/10/10/ loan - will the second mtg present a problem with a short sale? The mtgs are with the same company - will that allow me to use one ss package? a divorce is involved as well - is past child support attachable or does it have to be in the form of a lien to be attached to property?
thanks,
TK –realtor
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Question: what is the usual time frame to close a short sale - get approval etc?
Answer: This is not an item that we can place in a box. It depends upon the lenders volume of foreclosure related cases, how many shortsale offers pending, who the lender is and on we can go.
Answer: In most of my cases 2 weeks is more than enough time.
Question: Have a home owner who isn't behind on pmts but needs out asap - can i file a mech lien on his prop for the equity while i do a few repairs in stead of buying it first - thereby selling the home sooner than the usual 90 day fha waiting period and saving interest, closing fees etc? it is practically ready to sell as is
Answer: Filing a mech. lien just to control the property as an investor/realtor would most likely get you in front of the ethics committee.
Question: are short sales specific to bank loans or are fha loans a likely prospect as well?
Answer: Short Sales are basically the same on both ends, when it comes to government guaranteed loans the lender is a little less motivated than a direct lender because of the guarantee. A lot of what ifs play into the short sale and its approval.
Question: I have a seller with a 80/10/10/ loan - will the second mtg present a problem with a short sale? The mtgs are with the same company - will that allow me to use one ss package? a divorce is involved as well - is past child support attachable or does it have to be in the form of a lien to be attached to property?
Answer: Yes a 2nd and 3rd mortgage can be a problem in the short sale process if they are unwilling to discount. If they are with the same lender they will sometimes combine and yes than one short sale package can combine the mortgages.
Since a divorce is pending it is imperative that all parties agree on the sale if not this most likely would not be a deal.
Normally child support is attachable to an asset so a good title search is recommended.
Keep in mind that in doing a short sale normally funds to the homeowner can not be visible to the lender.
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title search brings up another question - anyone ever buy an investment home without title ins? Is a good search sufficient for a home you may only own for a few months? Also do you buy homowners insurance, builders risk or another form? thank you so much for your help. I have been a realtor for over 10 years and hav learned so much from this forum about investing in the last week!
In an outright real estate purchase I always get title insurance to protect my investment.
I never buy homeowners insurance as my properties are not owner occupied but I do get builders risk insurance to protect my investment.
I see no reason not to protect my investment, as I have no interest in loosing money or even taking the risk too.
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