May 3rd Sale Date (your Opinion Please)
Hello all. We have 2 deals on the table that are scheduled for sale on the same date. Both owners want to save credit & walk away. How would you proceed?
owner #1 needs 1500 to move on,
owes 80k + 9600 arrears/fees, needs approx $5k in work, comps are 120k; trying to negotiate a short sale, but bank & attorney are giving my partner the runaround.
owner #2 owes 95k, 4600 arrears/fees w/5k lien (some sort of old bill), comps between $125-$133k, recent appraisal in @ $133k, good condition; again bank & attorney are giving my partner the runaround.
It was suggested we pay the arrears, place a lien on the prop & negotiate w/the bank thereafter (??). What are the worst case scenarios here? Both are in GA.
Worst case scenario - you pay the back payments and place a lein on the property and then you lose all your money when the property goes to foreclosure. That is of course unless you want to payoff the first. In my book that is not an option (make up back payments out of my pocket or redeem 1st).
Keep trying to get through to the bank, although I usually like to allow for at least 3 weeks, preferrably longer to execute a short sale. Even if the bank approves the short sale by the end of the week, do you have everything you need to complete the deal lined up?
Ryan J. Schnabel
Yes, we can complete the deals if the bank is willing to negotiate -- sec 8 & other investors are on standby. I knew paying the arrears was not the answer, but just wanted other opinions. Thanks.
You say that bank and attorney are giving you the run around? Are you talking to the loss mitigation department directly? Have you completed a short sell package? Why are you talking to the attorney? And lastly, have you ever previously done a short sell?
Brenda
My partner is handling that & I didn't want to micro-manage, but I see I will have to make sure he is talking to the loss mit rep & obtains the package. Rehab/new construction is my area of expertise. Any tips on how to proceed w/loss mit rep? I've never done it, but I see I may need to take over.
I am a friend of John Smith. As you know, he is in forclosure. I am trying to negtiate a short payoff. Can you connect me with the Loss Mitigation department. Do you have their direct number?
Hi, is this the loss mitiation department. I am a friend of John Smith and trying to negotiate a short payoff. He is overwhelmed with his current situation and has asked me to help him sell his house. I faxed my authoirzation letter to you yesterday. Do you have a short sell package that you can FAX me. Do you think that the bank would consider a short sell on this property. Have you had a drive by appraisal yet? Is there a sale date yet? (review each item listed on the short sell package and get their opinion about how necessary it is). Thanks for your help. How is the best way to get back with you. What is your direct line, name, FAX, and email. What is the number I can FAX my completed package. After I FAX it, how long should I wait to follow up?
Brenda
Brenda,
You is da man!!! (so to speak)
I am finding that more and more lenders are doing actual appraisals in my area vs BPO's -
Short sale packages, at worst, are the same. When it gets down to the wire, like this week in GA. and TX., I just put my own package together thusly:
Contract to Sell/Purchase - fully executed
Proof of Funds
Estimated Hud 1 or Net Sheet
Financial Statement of Borrower
Hardship Letter
Repair Estimates
Comps or Appraisal
Digital Pics of Property
Fax cover letter telling MY STORY on why the property should be sold at my offered price and how desparate my client is to reconcile providing that the lender does not seek a definciency judgement.
Some lenerders require a 2 or 3 month listing but will sometimes wave that req. for a SOLID OFFER> sometimes you have to be a little tricky and tell the foreclosure dept or loss mit dept. that they f*c$ed up - especially if it is an FHA loan. Whatever it takes to at least, get the deals pulled from the auction block. Dig?
Hope this helps and I didn't leave anything out.
C- :-o
Thanks so much!!!!!
abit confused here-- thought to short sale the amouont owed should be at or greater than market value? yet both your deals have 20K+ in equity !
Because of the condition of the house, the current market conditions, and how much is owed, a short sell is really his only option.
My position? I am a friend helping John. If a short sell can be negotiated I might have an interest in the property. I am a landlord and am able to pay cash. Also, I am a renovator of homes and this home really needs some work. But if it does not work out for me, I am still on board to help John find another buyer. I really want to help John because he has really gotten a raw deal this past year and needs the help.
Brenda