Is Anyone Using Options In Their Shortsale Process?
If you are, please can you give a detailed explanation about the process and how it is working for you.
Please no theory, I want only those who have successfully performed a shortsale with an option to post details about the process.
Those of us who are yet to do one can post questions so that we can get an informative discussion going.
thanks
[addsig]
It is the only way the broker gets paid.
If you search county record and find a candidate for a short sale, go for it direct.
So if the lender insists on a listing have the sellers list their home with your friendly realtor and submit a purchase contract with the short sale packet to the lender? Should you also add your option in this SS packet? Now that the home is listed with the seller how do you find a retail buyer?
Normally you would work on the SS and in the mean time list the property (as seller) with a POA or option to find a buyer. But now the property is already listed with home owner as seller. Do you ask the realtor to keep showing the property?
The answer can get lengthy . . . but I will keep it short.
Yes. Send in the short sale package with the option contract (this is the P&S agreement). File the Notice of Option. This gives you the right to list, market and sell the property. Put on the MLS after the BPO.
If the bank comes back with a discount that makes sense for your company, then buy the house. If the bank returns a number that is not favorable, then continue negotiations while the real estate agent looks for an end buyer.
Note: this method does not work with FHA lending for the end buyer.
[addsig]
I noticed you mentioned putting it on the MLS after the BPO is done, could you explain why to do this? Do you think the list price influences the BPO? I look forward to hearing your thoughts on this.
Yes, the list price most definetly influences the BPO/appraisal. A generally successful approach is to explain what your offer is and what the banks formula for exceptance is. Most appraisers if they like you will want to help you as best they can, long as your not asking for the ridiculous. For example.. " The offer is 500k on this. This bank will generally except 85% of the BPO. Would be amazing if it were to be within their guidlines.. (wink wink, smile)"