Need To Buy Some Time On A Possible Short Sale.
Had a homeowner call me this afternoon. They are 3-4 months behind on their payments. They have found another place to lease and just want out.(They need 3k to get into the other place.)
I checked the records online and Option One Mortgage has already started the foreclosure proceeding and the house is scheduled to go to public sale on Aug 16th.
Her are the stats Loan payoff as of 7/1//04
Original loan Balance $48k
Current Loan balance $65k includes all kinds of legal fees and junk fees 9k interest.
ARV 75-85k (based on recent sales)
original monthly payment $518 month
current monthly payment $900 month
Interest rate 12%
I was thinking about taking this "subject to" and then sell on Contract for Deed if the #'s work but I don't know how much it is going to take to bring the loan current?
Plan B is to do a "Short Sale".
What can I do to buy these poor people sometime?
If I do a Short Sale-these people can not receive a dime from me- but then they can't afford to move into their new place and will be Homeless. How have you all dealt with this?
Jim
What's the house worth in it's as-is condition?
Do you have cash or a loan commitment to complete the short sale acquisition?
The public foreclosure auction can be postponed if you can demonstrate an ability to close quickly... or, the Sellers can seek an attorney to advise them about a possible Chapter 13 to delay the proceedings... but that probably would obstruct short sale negotiations...
I have not seen the house yet (It's 1 hour drive from me) but based on what I can read over the phone and my research on MLS a conservative estimate would be 75k
I am sceduled to see it Thursday. That is when "Option One "is going to have the information on amount to bring the Loan current. (Option One has to contact the Attorney.)
I have financing waiting to go with a lender (5.5 %ARM)
Why is Wells Fargo also named on the case?
Have you had any dealings with "Option One"
Option One forecloses on a LOT of their loans. They have very liberal lending guidelines and give out high LTV loans. Their Loss Mitigation department is rather easy to work with, however. If you can talk to someone there who knows what they are doing, they should be able to give you some time, not much, to negotiate the deal.
This is what I plan on doing when I meet with these owners on Thursday-tell me if I am leaving anything out?
Take pictures of property
Get 3 comps of sales in last 12 months
make repair list
Get Hardship letter from sellers.
Get letter signed to release authorization.
what am I missing?
without an executory contract for sale... you don't have anything that could be used to postpone the sale.
[addsig]
Where would I get an "Executory Contract For Sale"? to postpone this sale that is going to happen in 14 days?
I have an entire drawer full of different types of contracts -but not that one.
Would these words be written on a Standard Contract?
Jim
an Executory Contract, opposite of an executed contract, is one in which something remains to be done... is not fully completed, but contingent upon the occurance of some event (like short sale approval).
[addsig]
When filling out the contract and writing the parties names who do I put as the seller: the current owners names(Mr. and Mrs....)
Option One(Loan Servicing company )
Or Wells Fargo the other party name in countyy records on pre foreclosure records?
Can this be done on a standard Florida Bar/Florida Realtor contract for Sale and Purchase?
Jim
Seems that you may need to read some more about real estate transactions before you jump into the complex arena called, mortgagee approved preforeclosure short sales...
One can't sell what one doesn't own.
To answer your question with a question, "who owns the property that you wish to buy?"
[addsig]
Your question about wells fargo looks like their might be a second. The only reason someone is named as a defendant is that they have a lien on the property. Better check that out as well as any tax liens.
The first is usually not the only problem!
[addsig]
Thanks.
I am ordering a preliminary title search today.
Could it be that Option One is the Loanservicer for Wells Fargo?
since the Original Loan Amount was 48k
would it be wise to just go ahead and offer the full 48k one the ss ap is submitted?
(sellers now owe 61k with all fees attached)
FMV 75k
The as-is fair market value rules... and is the basis for any offer you submit... the amount owed is usually immaterial.
You must ascertain and defend it's value in a compelling and fact driven Proposal.
When I need more time to work out a deal on a preforeclosure in brief I will do one or all of the following:
I first get the home under contract subject to a work out with the lender.
I have the homeowner deed the subject property into my trust.
I then have many options such as:
Bring the note current
"When I do this the home owner must sign a note for said amount and I will take a 2nd or 3rd position"
I may have the homeowner file a petition of bankruptcy in an effort to effect an order of stay against creditors and this allows me an average of 60 days to get this deal worked out. The homeowner never follows through with the bankruptcy therefore in most cases the bankruptcy will not show up on their credit records.
And the list can go on with this area of creative real estate transactions.
This is based upon my own personal experience and in no way is legal advice or the like of!
This type of creative real estate transactions should not be undertaken without in-depth knowledge!
Quote:
On 2004-08-04 06:55, TheShortSalePro wrote:
Seems that you may need to read some more about real estate transactions before you jump into the complex arena called, mortgagee approved preforeclosure short sales...
One can't sell what one doesn't own.
To answer your question with a question, "who owns the property that you wish to buy?"
I agree with you shortsale pro .
Thank you all for your input on this.
Shortsalepro,
If the title search comes back today without too many stains on it I am going to need your help/primer to have any attempt at completing this transaction with the lender. How can I best reach you?
(I am much better versed in the Subject Too area.) The Short sale process is very new to me..but hey you have to start somewhere. I have been studing this forum for a few months now.
I have been standing on the edge for quite sometime now I just need to take the jump (This site makes the jump a whole lot easier)
Jim
Jim