need urgent help with USDA short sale attempt
I am trying to get a short sale from USDA. They are telling me that there is no way they will do it without the seller taking on the responsibility of repaying the short amount.
Has anyone tried this with USDA?
Are there any circumstances that will make USDA take a short sale and not leave the seller hanging?
I seriously doubt I can get the seller to agree to repaying any part of the debt to facilitate a short sale.
Need some advice, time is running out.
Chalk this up to 'tuition.' Though this might not qualify as a potential short sale, there may be other techniques that would work.
The more complete your understanding of acquisition techniques, the more success you will enjoy.
I am not too excited about trying to reinstate the loan. The condition of the property ( needs carpet, vinyl and interior paint) and cost of reinstatement outway the amount of money I would get down from a tenant buyer or contract buyer.
The house is not worth more than about $70k or $75k and USDA wants $46K for a pay off. I could wholesale it to another investor for probably $50k, but I don't know if I have the time to pull it off.
My hope was to get a shortsale at $35k and borrow enough above that to pay closing and refurbishment. There would still be $20k in equity and my loan would not exceed 70% LTV (perfect hard money situation).
If you have any suggestions as to how else this would work I would love to hear them.
Not every opportunity qualfies for a short sale. If your estimated payoff vs. FMV is accurate, why would a mortgagee agree to accept less if they would be made whole via foreclosure? Answer: They wouldn't. Why would the Seller agree to forfeit his equity in your favor? Answer: He shouldn't.
This isn't a short sale opportunity. Don't waste your time, or the Homeowner's time. You should encourage the Seller to sell at the FMV. Then move on.
ShortSalePro,
Can you please expand on what a good short sale opportunity would be?
The numbers don't seem unreasonable to me.. especially from some of the articles and posts that I've seen here..
I undersand your points, why would the banks discount if they could get full after forclosure.. Banks aren't in the business to sell houses, they hold and sell paper..
Why wouldn't the seller give some or most of his equity away? If he doesn't his credit is gone!!
Please let me know what your short sale criteria is. I have never done one of these, but I'm very curious on how to pull one off professionally.
Thanks!
Bginvestor
You state: "Banks aren't in the business to sell houses, they hold and sell paper.."
Banks, or more accurately, mortgage loan servicers, are not in the business of losing money. Their professional staff of asset managers weighs each Short Sale Proposal on it's own merit. A short sale is not justified in this case... irrespective of what you might read of this, or other, boards.
You state: "Why wouldn't the seller give some or most of his equity away? If he doesn't his credit is gone!!"
That's simply not true.
Shortsale,
Ok, can you enlighten us with what a good short sale would be and under what conditions???
Thank you for sharing the knowledge...
Bginvestor
There are scores of posts about shorts...check the archives from this, and other foreclosure related sites.... search word "short sale"
On or about March 15th I anticipate the release of, "A Short Sale Primer" written for real estate brokers.... and/or those that possess an understanding of real estate transactions and mortgage finance.