Overfinanced
How do you all deal with people who call you and tell you their property is worth 160k and they are either lying or really off? This is what a caller told me, but after looking the FMV was only $135k. She said she owes $150k so would like to get that much. Do you assume a person is overfinanced or just plain out lying? What do you do if they are overfinanced?
Say thanks but no thanks. You could do a short sale. Most lenders will not short unless the loan is in default. House should also be in need of rehab to make a good short sale deal. If you can not find equity in a deal it is not worh buying in my opinion. You if can get it for zero down or very little and lease/purchase to make a few hundred per month you may want to buy and hold for a few years and hopefully it will appreciate in value. If they are upside down and current and a nice house just say no.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Do you write letters?
Many people are totally unrealistic about what their house is worth or they are not motiviated but would sell if you are crazy enough to pay a certain amount. I write letters, so when people call me back they are being kind to reply to my letter, so no matter what they say I try to be nice and thank them for calling. With that said, you still have to handle all sorts of calls. Try asking them how they arrived to their perceived value or price. For the above market price peole I tell them what the highest sales price and average sales price for the neighbor is according to the property appraisser site. For the people who just want retail pricing I tell them that the most I could pay for that house would be X. My spill is something like "what I bring to the table is an all cash, no hassle quick sale, and the house can be any condition - because of that I do not pay inflated retail prices. If you have plenty of time and a pretty house then we probably will not be a good match." I just lay it on the line.
Brenda
Unmotivated owners have a house for sale. Motivated owners need to sell. Sometimes they will "stretch the truth" in order to get rid of the property.
Example: A woman wanted to sell me her equity in a property soon to be foreclosed. I asked her for financial documentation. She said all paperwork was packed away, but "I'm an honest person & I wont lie to you".
She didn't lie, She only understated the amount she owed on the 1st ans 2nd mtgs by about 20%. Bottom line-negative equity.
You listen to what they have to say and then it's up to you to do your own due diligence or pay the price.