Is This A Possible Shortsale ?

Comments(6)

• 
  linenw7th October, 2004

  This may be a short sale but there is not too much of a deal here. You might get it reduced a little but there are better deals around. You also have to get this house out of the bankruptcy., or have the trustees approval to purchase it. It seems to me that it is a lot of work for a little profit. Just my two cents.
  
  Art
  
  Quote:
  On 2004-10-07 21:08, ksmntci wrote:
  Got a lead today, the house assessed at 96k, the comps are coming at 110k.
  There is a 1st of 86k, 2nd of 22k. The arrearages; 1st =10k, 2nd is 3k. The owner is in ch13. Cannot make payments because the owner is very ill and just wants to get rid of the house. The house is vacant.
  There are no repairs on the house. In fact the roof , carpet, painting are all new.
  Since (86+22+10+3) 121k is owed and the house could be FMVd at 110k, 11k more is owed on this house.
  
  Is this a good short sale candidate?
  Pl. comment.
  
  Thanks
  8-)

• 
  myfrogger7th October, 2004

  Let me see if I understand you correctly...
  
  The 1st's payoff is $96k and the 2nd's payoff is $25k for a total payoff of $121k.
  
  This is likely a good candidate for a short sale. The only problem that most fail to realize that short sales are cash intensive as when the bank says run you better be close to the bank or you won't get there in time.
  
  I have limited cash and limited financial resources. Here's how I run a short sale:
  
  1. Show the property and find a buyer
  2. While doing this negotiatiate a short sale
  3. Have your buyer pre approved so when your short sale is approved you a ready to close.
  4. Double-close OR take the property sub2 and close later.
  5. Collect your money

• 
  ksmntci7th October, 2004

  Now the deal looks like this;
  
  Things that don't help SS;
  1) No repairs
  2) FMV about 100k (sorry about previously mentioned 110k). Doesn't help to get 1st discounted!!!
  
  Things that helps SS;
  1) Owner in ch13
  2) About 10k in arrearages on 1st and 3k on 2nd
  3) Owner is very ill. Sold all the rental properties and this is the last one. Wants to get rid of this because of the medical problem
  4) Even if the property sold for full price of 100k it is still upside down by 21k.
  
  I am planning to offer 2nd, about 2.5k.
  Don't know what could be done to get 1st to take a discount . Any ideas??????

• 
  ksmntci11th October, 2004

  Met with the owner. The picture is little different.
  1) The arrears remains the same
  2) The owner is current from Aug onwards. Paying towards the arrears to BR trustee
  3) About 8-10 k in repairs
  
  Now since the owner is current on 1st and 2nd since August, (but still has arrears of 1st and 2nd) will the banks consider a SS.
  Now with all the arrears and repairs; the cost of the house;
  86k+22k+10k+3k(1st and 2nd, principal and arrears) +10k (repair), i.e 131k, but the house is worth only 100k.
  So this is upside down by 31k.
  
  I believe I can offer 2nd only 2k and since there are repairs(roof which is 1 yr old is wavy, needs ceiling in all the rooms, carpet, paint, need some siding repair, mold present) and owner is very ill, I can also short the 1st.
  
  How can I approach a SS on this.
  
  Thanks
  Any comment/input is very much appreciated

• 
  TheShortSalePro11th October, 2004

  I don't think that the mortgagee(s) will entertain your short sale attempt. The bankruptcy prohibits the mortgagee(s) from collection activity. A short sale is a form of collection activity.
  
  You've got no deal unless/until the homeowner's bankruptcy is dismissed or discharged.... or the automatic stay has been lifted.

• 
  ksmntci13th October, 2004

  www.Mr.TheShortSalePro,
  One of the banks I talked to said, they would require trustee's permission before closing, without which they cannot close. However they would start the SS process once I submit the SS package.
  
  Could you pl. advice how to go about with this SS?
  
  Thanks