Is This A Possible Shortsale?
The owner is going to file for ch7. Had filed ch13 , withdrew it and filing for ch7 now in the next week. House is worth about 115k. Reparis - cosmetic about 5k.
1st - 64k
2nd - HELOC - 24k
Not behind in pmt.
The 2nd is with Bank of America.
The owner wants 15k.
The total cost is; 88k+5k(repair)+15k+5k closing and holding cost. This totals up to 113k and there is no equity.
However if the 2nd is shorted to say 10% and convince owner to take 10k, then there is a deal, since there will be 21K+5K +2k = 29k.
My question is, can the 2nd be shorted when the owner is not behind payments. Is the fact that they are filing for ch7 a motivation for the 2nd to short.
Any input is sincerely appreciated in advance.
Thanks
Could somebody provide some opinions please??
Thanks
A few things:
1. Anything is possible but it is likely that the mortagee will consider a short sale proposal if the loan is current
2. We don't have enough information to help you prequalify this as a short sale. What is the as-is fair market value?
3. You will need to have the court approve any sale of the property for someone in bankruptcy.
Like I said in my posting, the FMV is 115k
As was stated, the bankruptcy will make this 'deal' more complicated... shortsale or not.
In my opinion, based upon the info provided, this is not a candidate for short sale.
First of all, in a short sale, the Seller is entitled to ZERO proceeds. A lender won't accept less if the Seller sees a nickel.
Secondly, the first mortgagee is on solid ground and probably won't consider a short. There is sufficient equity to cause the second mortgagee to be made whole if the property is sold at auction, there isn't really any reason for them to agree to accept less.
[addsig]
I appreciate your response on this.
In that case, how would you handle this deal, if you want to wholesale this? Or isn't this a wholesaleable at all?
May be a good lease option? Even so, because it is in bankruptcy, how would you handle this?