Need short sale info and possible alternative
I really hope someone can help me with this situation.
Here's the deal. A person in pre-foreclosure responded to one of my mailings. Because the person is $14,000 in arrears I was not able to do a sub2 deal so I decided to bird-dog this for another investor. Well, the seller signed a contract and an "authorization to release" form with me on the 27th of February. My investor decided to do a short sale so I contacted GMAC and they tell me that they need the property to be listed and they want a copy of the HUD-1 statement, a copy of the listing agreement, a copy of the pre-qual letter for the buyer and a copy of the purchase and sale agreement. At this point, as of March 5th, 2003, my investor has still not faxed me the HUD-1 statement or the copy of the purchase and sale agreement.
The A.R.V. for the property is 126,150 and it only needs touch-up paint and the carpet needs to be cleaned. The seller is a truck driver and he was rarely in the property. The property was built in 2000, it's 1642 sq. ft. and it is a 3/2 in absolutely great condition.
I've already faxed some of the short sale package papers to GMAC but I'm still waiting on these other important papers. The seller REALLY, REALLY wants to put this behind him and I do too so is their anything else I should/could look at in lieu of a short sale? As if you couldn't tell already, I'm new to the short sale process.
This property is scheduled to be auctioned on the 1st of April.
You should have waited to send the complete short sale package, so that the bank doesn't lose any of the papers. As for the investor, did you sign an agreement with the investor for a bird dog fee? If so, then call him every day, every hour on the hour, tell him, "I'm going to keep calling every hour on the hour until you get back to me." That might give him a push to hurry up and get the paperwork to you.
If not, you should contact him immediately and let him know that you will be completing the deal yourself or finding another investor if he doesn't get the necessary forms by tomorrow. If you need a HUD-1, then check out this post Need a "net sheet". As for the contract for purchase or sale, I thought the seller signed it with you?
I think you need to get the investor on the ball, let him know he needs to get the paperwork done ASAP.
Tanya
Thanks for your response!
I must apologize. I was typing the letter as I was trying to rush off to a meeting.
Originally, the seller did sign a contract with me. Then, when my investor decided to do a short sale, I found out from GMAC that they require a HUD-1 and a copy of the purchase and sale agreement so we had to get the property listed, fill out a HUD-1 and a purchase and sale agreement with my investor as the buyer and not me. We decided to do it that way because he wasn't sure if his private money lender would provide me with a pre-qual letter. As of right now, I have a verbal agreement with my investor. There is a contract to sign we just have not signed it yet.
Thank you so much for the link to that other post with the HUD-1 statement info. I forwarded that to my investor. I actually spoke to him earlier tonight and he said "I just need a fill-in-the-blank PDF document." Well the Lord has honored his request and used you to be a blessing. Thanks again!
The reason I sent part of the package was because I felt like I had to send something since he was taking so long. I included a note on the cover page that the HUD-1 and purchase and sale agreement would be sent shortly. I did realize that it was not the best thing to do to send it piece-meal. Do you recommend that I send the entire package again?
You may want to send the entire package again, just to make sure there aren't any issues about "missing papers."
You're welcome.
Tanya