Lender Guidelines for short sales
What percentages can you expect a lender to short sell with regard to the loan value or FMV. I've heard FHA will short sell at 92% of FMV and FNMA will short sell at 94% ect?
What effect does mortgage insurance have on the lenders decision to accept?
Thanks
Ellihue2,
FHA and FNMA may sell for 82% of FMV, but it is your job as a foreclosure investor to do all you can to make the bank's perception of FMV as low as you can. There are several techniques, some passive and others more "agressive".
Painting a clearer picture for us newbies lol!
Ellihue2 is saying they’ll discount a 100K single family home to $92,000-$94,000 which poses a problem. He wouldn’t be able to flip that because retailers want to buy at a 20% discount ($80,000)
Cdaigle is saying that they will discount to 82% and lower ($82,000). The retailer would want to buy at $80,000 man everything I’ve read or observed says we should be trying to get that one for 75K and sell for 80K so we can make 5K!
The banks are bojangaling with that 90% and higher nonsense LOL!
I can’t wait to get into short sales!
ROFLMAO! Why didn't anybody say anything about my numbers! I just read an article where Dwan says you could get the bank to discount a 100K home to 55K
Wholesale and Short sale calculations are different interesting. I just need to get there course and I'll be straight.[ Edited by Future-Multi-millionare on Date 03/17/2003 ]
With pre-foreclosures, you should be able to obtain a property at 40% below market value. Like they said, you have to give the lenders the perception that the property is worth less than what it is. Work on your negotiating skills and set a limit of what is acceptable to you (20% below market?).
Tanya
Ok, I really need to ask this. What if it's a pretty house in good shape and is already in foreclosure? What would be a suggested % of FMV then? Thanks for your help.
Why would a retailer only buy at 80% FMV? What is wrong with buying a property at 65% of FMV and then turning around and selling it for 100% FMV? Is this legal? Do most people who do this just try to turn around a quick profit and sell it to a wholesaler? I would want to try to buy at a lower discount and then sell it to the end buyer.