How Would A Pro Handle This Deal?
I was contacted by a homeowner in GA who is 3 months behind and in early forclosure. He is willing to walk away with nothing as long as the forclosure is taken care of. What the bank is asking for is 7K less then the appraised value. How would you seasoned pro's handle this?
Jamie 
Verify fair market value and verify loan balance with the bank by requesting a payoff. You'll need signed authorization to release information.
You may consider doing a short sale on the property as the bank may be intersted in letting the property go for less than what it owed. 3 months behind isn't likely long enough yet.
Taz:
You need to actually verify what the bank is considering the appraised value to be. They could be going off of an appraisal 6 months to a year ago and it could be very low... Run comps.
I would personally try to short sale it. The shortsalepro offers a great course on here. 7k behind appraised value is not a great deal...
Best Regards,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 09/14/2004 ]
You need to short sale this one. But beware, GA foreclosures are quick.
Need a little more info...7K below FMV can be alot if the house is worth 50K...or next to nothing if it's a 200K house. Personally if I can't snag a foreclosure (VA or bank owned) for at least 10% under appraisal I won't touch it. Generally though I end up dumping back about 4-10K of my own money for materials to get it nice again and I do all my own work. So if it's turn key now 7K would probably get me in the deal. Last one I did I got for 73K and ithe bank apprasial came in at 84k and that crazy appraiser wouldn't count a 220 sq ft room because it only had one vent in it...whatever is all I had to say on that one as the comps put it at around 94K. It needs the usual paint and carpet cleaned and new appliances to get it up to speed. Minor stuff considering some I had to start by gutting them out and starting from scratch....ahh the smell of cheap!
deed it to you and pay up loan and rent it out till you build equity. This will help there credit.
Thank you all for replying to this post. You have all been very helpful.