Newbie Doing Short Sale
I'm looking for advice from an Investor who has experience dealing with the Short Sale Process. I went down to the court house, collected the Les Pendances, look at the file, found the house, and did comps to find out it's worth about 60k more than the principle note. The owner owes the bank 6k in back payments, and his Principle Amount is about 94k. This situation would be a quick flip. The similar houses in the area are selling about about 160k. Where do I go from here, and how does the process work ? Do I now contact the bank ? Any info. would help. Thank you
Chad
Where is Berlin, VT? Anywhere near Poultney?
I'd suggest that you read as much as you can. I'll recommend an essay,
" Prequalify a Short Sale Candidate" which is available on this Site.
[addsig]
Berlin is about a 30 minute drive from Poultney. Once I have the paperwork, and the bank realizes that I have sufficient funds to get them there money. Would you recommend calling the bank and trying to negotiate? How do you usually do a short sale deal?
Chad,
Let me get this right, you said in the first part of your summary. The house was worth 60K, then you said homes selling in the area were 160K. Which is it?
Well it sounds if wanted to buy this house, you need to go to find out when the auction is, call to the courthouse for rules with forclosed properies and how much money you need to bring. But you know the lender will be there beding up to 94K or whatever to make there money back!
Good Luck,
Lance
A preforeclosure short sale requires an agreement between you, and the seller... subject to the mortgagee' sapproval.
Start with the Homeowner. Go into Contract subject to ss approval.
If your Offer is less than what is owed, you'll need the Homeowner to request (from the lender) an application for short sale consideration.
As the Homeowner completes the application, you'll devise your Proposal to the lender.... your Proposal should be factual, and compelling.
Assuming all other criteria is satisfied (borrower hardship, etc.) approval &/or rejection will be predicated upon the confirmed, as-is value of the property.
With about $60K in equity... what would be the lender's motivation to accept less if they are all but assured that they would be made whole at a foreclosure sale?
Read up on how to prequalify a ss candidate.
_________________
Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 05/07/2004 ]
Thank you for your info. The only problem is that the homeowner doesn't want to leave his house. He's not making any payments, and inevitebly I guess the bank will have to go through the foreclosure process to get him out. I was just wondering If I can save them the time and $$ from going through that process by paying them what they are owed. They get there money, and I get a great property. I know it seems too fairytaleish. So what i'm understanding is that if the homeowner doesn't want to leave his house and do a short sale, I can't do anything about besides making a bid at the foreclosure auction?
If you have the cash... and can risk a lengthy foreclosure process... why not try to purchase the mortgage via an assignment? You would step into their (the mortgagee's) shoes and complete the foreclosure.
Worst case scenario is that eventually you would get your money back.