How To Shortsale A Perfect House?
I found a house that is very nice inside/out.
#'s
Loan balance 180K
Outstanding balance $20K
FMV $204K
No equity and I'm talking to the owner about a shortsale. My question is...how do I convince the bank to shortsale a house that could probably sell for FMV. I'm guessing to them...legal costs. holding costs. and selling costs would be factored in. Also the money tied up in this loan until the house is sold. Any other suggestions?
I haven't looked, but I'll ask real quick. Would it be wise to have the owner sign a sales contract pending a short sale? How do i word this in instead of puttign a sales price. Also is having her give the bank oral permission to discuss the loan with me good enough or do i need to get a limited power of attorney document signed and faxed to the bank?
TIA all,
Jeff
A simple Letter of Authorization from the mortgagor to the mortgagee will suffice... you need nothing as formal as a limited power of attorney.
The art of preforeclosure short sale negotiation requires that you use whatever information that's available to denigrate the mortgagee's perception of the property's as-is, fair market value.
I can't recall having been in a home that has had no deferred maintenance...
Look beyond 'very nice' roll up your sleeves and, with the discerning eye of a home inspector.... find what's not so very nice.
Most mortgagees require specific, restrictive language in contracts before they approve the terms of the proposed transaction, basicially, "sale subject to ss approval, no proceeds to seller, sold in an as-is condition, escrows released to mortgagee," and more or less depending upon the mortgagee's criteria.
Why wouldn't you include a sales price in your contract? That suggests to the Mortgagee that you have no idea what it's worth... and you are looking for their guidance as to what the sales price should be.
To be successful in short sale acquisition, you'll need to learn to find a balance between what the property is worth (to you) and what the lender would be willing to accept. You can only try to control the lender's position (your compelling, fact driven Proposal). You've got to be able to control and defend your position.
Decide upon a sales price. Support your decision. Defend your decision.
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