Newbie Questions- Is This A Pre-foreclosure?
Met a nice realtor the other day. She told us of a listing that expired. Checked it out and became interested. 3-story renovated victorian home. still needs new roof. seller moved out of town, asking price was just over 100k, now down to 85k. He's getting a divorce in Jan. but realtor checked with the bank and the mortgage is 85k. So, do we just forget about this since we haven't personally talked with seller yet. Would discounting the mortgage be an option?
Newbie here:
What is discounting a mortgage and how does it work in this situation?
If the mortgage is 85K and he is willing to sell for 85K then it will probably be a type of short sale. The owner will have to bring money to the closing to cover his costs. It's not a preforclosure until the bank has given notice of their intent to forclose and it is posted in the paper or at the county court house.[ Edited by Sandbahr on Date 12/04/2003 ]
The first thing you need to do is contact
the owner and see if you can strike up some sort of a deal.
There are many options available. But, with out some sort a a deal with the owner they're all just hypothetical pipe dreams.
First thing I would do is see what its worth..JMO
Benny
[addsig]
Well, guess what guys..we called realtor to get more info. She said let me call the seller and see what he's going to do now, and if he wants me to hook you up with him. Well, yes, you guessed right...she claims she called the bank and they told her it would take 85k to take care of mortgage and she could show it to us if we wanted. Sounds like he listed w/her again and 'they' shot us out of the saddle!
thats a boot!! well, really you were askin for it when you didnt do it yourself now. i mean, she is a realtor and thats how she makes her money... so she was only doin her job... i'd be pissed if i were you too but hey, we're only human, we gotta eat and sleep.
my .10c
[addsig]
I agree with Benny. Before you can make any decision, you need to know the as-is value of the property. If the property isn't worth $85K in it's present condition, but, with some modest repairs be worth much more... it may be worthwhile to pursue this as a possible short sale.
A loan need not be in foreclosure to be a short sale candidate. It helps, but it's not an absolute.
Much depends upon the type of loan, the age of the loan, who owns the loan, who services the loan, and the mortgagor's unique circumstances. Read Prequalify a Short sale Candidate. It's on TCI. If you can't find it, PM me.[ Edited by TheShortSalePro on Date 12/05/2003 ]
Ahab,
Your right, it is our fault...we should have tried harder to find the owners # to call him oursleves. I'm done with realtors! She lied to us, basically. Lesson learned!