Help with preforclosure or short sale
I am new to this and i will try to keep it short. i have a friend and her 80 year old mother that is getting ready to go to foreclosure. The house is in nice condition and valued at between 110,000- 115,000. I had hoped to short sale this property but, I am not sure how to handle it since I do not have the funds to pay off the bank and i figured they would want the money right away . My plan was to offer around 59,000 to the bank
The balance owed on the mortgage is 78,000. She currently owes 6 payments of about 4900. The idea thing would be to bring her current and resale the house since she does not want to live there but , yet they have no where to go and no money. i am searching desperately for these people and i want to find a short term investor that wants to earn his money back quickly within 60 - 90 days.
We have to move quickly since I think we may only have 2-3 weeks left before the bank takes over. please email me if someone out there can help. debrantley@yahoo.com">debrantley@yahoo.com
Thks!
Your numbers don't support a short sale, and nothing happens that quickly.
There is no incentive for the foreclosing mortgagee to accept less than they are due. They'll be made whole by completing the foreclosure and selling the property as an REO. No risk of loss, no incentive to sell short.
Could you elaborate as to why the numbers don't support a short sale?
[ Edited by Julieann on Date 05/31/2003 ]
The house is worth more than the loan balance. No incentive to take less. The bank can take the house back and sell it themselves or the house may be bid up at auction giving the bank all of the money owed.
Tom
Why short sale? Sounds like if the house in good condition and the value is actually $110 - 115K, then you would have a fairly decent profit with out the short sale. Is there another issue? How did you come up with your figure of $59K?
You get the point, right? Short sale situations are high LTV situations. LTV=loan to value
If the homeowner owes $97,500 on a house worth $100,000, the bank will be willing to talk about a discount.
Your subject is just not "short sale" material. Be happy with paying off the mortgage and having immediate equity.
have a good one...