listing a short sale...
I've read where lenders will always require a BPO before rendering a decision. My question is, do they always require that the property be listed
for a period before they will let it go to a short sale?
Questions:
1. If so, who is generally responsible for getting the property listed. Will it be me (doing so on behalf of the seller), or the lender making the arrangements?
2. If the lender wants a listing before a decision,..Do you list the price of the house in 'as is condition', or full ARV price to cover the sellers mortgage balance?
The seller owes $86,000 on a house worth maybe $78,000 ARV. (125% re-fi) The house was vacated by renters and shows poorly. I offered $35,000 as an opening bid on the property. Any suggestions on where a list price might fall?
Prior to making a determination on an application for short sale consideration, and subsequent proposal, at a minimum they'll order a BPO, or a full appraisal by a certified appraiser. Most lenders also will require that the property be listed by a licensed real estate broker. Only the Homeowner (or Homeowner's attorney) can engage the services of a broker to list the property.
If the mortgage loan is an FHA insured loan, and the owners have vacated the premises, you should know that an FHA requirement for short/preforeclosure sale relief is that the premises be owner occupied.
Along these lines, I have spoken with a Seller that is in the foreclosure process and has her house listed already. I'd like to try a short sale. How should I approach/handle the Realtor? (I'm also licensed).
The pros might disagree with me, and I might get crucified here, but if it were me I'd go straight to the bank and try to negotiate your sale. Let the agent know you'll do all the work; they might just need to write up the contract. I'd go around them but yet keep them in the loop... don't give them the control unless you know that they know how to handle a short sale. It's also tough because you're licensed so it's most likely an ethics violation to go around the agent... hmmm...
I'm sure the agent will be happy to do as little work as possible and still get paid. Request an authorization from the seller for you to be allowed to speak w/the bank directly and just do your thing.
That's my own personal opinion.