Is This Even A SS?

If this question seems elementary please forgive me. But I'm just getting into REI and this would be my first deal. I have someone who is 5 mths behind on her mtg. FMV is 165k, she owes 140k and wants to receive the equity .If I am successful with the short sale, will the homeowner know how much the lender has agreed on as I see where that would be potentially problematic.
Any advice on how I should proceed or if I should even proceed.
Thank you in advance.

Comments(8)

  • myfrogger26th July, 2004

    The homeowner will know what she is selling the property for because you sign a purchase agreement.

    If you can convince the seller to sell for what she owes you have some possibilities.

    If fair market value is $165 and she wants $140+$25=$165k then how do you make money??

  • TheShortSalePro26th July, 2004

    In answer to your question, it's only a short sale if the mortgagee agrees to accept less than they are owed on the mortgage.

    Shorts are tough when there is a perception of equity...

    The question you must ask yourself and answer is:

    Would the mortgagee be made whole by pursuing the foreclosure.. and what can I do to influence their decision to accept my Short Sale Proposal
    [addsig]

  • arborlis26th July, 2004

    Five months behind and wants the equity? I would let them know that the law will be knocking on the door soon and (s)he will be lucky if thieves dont steel her belongings.

  • feltman26th July, 2004

    you are working for her if you pursue a short sale and are thinking about giving her equity - there is almost NO chance of the mortg co allowing her to even get u-haul money if they are taking a loss

    tell he she is being unreasonable and let her come around, or move on.

  • ladydhoo26th July, 2004

    Many thanks to all for responding. I'll keep negotiating with the homeowner and hopefully she'll come around real soon.

  • alegrier26th July, 2004

    You must make it clear that the lender will not allow the seller to receive any funds at closing. Also, as a side note in your negotiation emphasize the fact that you are helping him/her out of foreclosure and that is worth more than the equity that they will not even receive if the property does indeed foreclose. Best Wishes!

  • ladydhoo26th July, 2004

    Thanks Alegrier.

  • scarywoody2nd August, 2004

    This might be a good subject to deal. Selling the house through a realtor is going to eat that equity up and if the house goes into foreclosure she gets nothing. About a 1/4 is owed in backpayments. I'd maybe offer her something for her equity, but not much.

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