PLEASE HELP (1ST SHORTSALE
Hello. This is my 1st deal. I've bought the shorsale guide on this site ($54) and lou brown has some shortsale documents (not much info though).. anyway
Property in New Jersey
SFR
Lender M&T mortgage
Payoff figures: $140.5k (principle $125.6k) good through 3/31/04
Mother and daughter on deed.. Mother filed bankruptcy 1-2 yrs ago.
Extensive damage to internal (furnace blew up.. kitchen totally gutted etc.)
repair estimate $50k (+/- 8k)...
I have:
cover letter
hardship letter
power of attorney
letter of authorization
contract (between seller and my cash investor):
OFFER PRICE - $57.5K (not FHA/VA loan)
warranty deed from seller (to my self personally)
photos for repairs (no contractor estimate yet)
proof of funds from cash investor
Non-official comps (I'm not a realtor) but sale price of home on street $139k (Aug. 2002)
I know i need:
HUD-1
BPO (coming from lender)
Do I need?
official MLS comps?
Pay-stubs from seller?
Financial Statement from seller ?
W-2s from seller?
Also,
Is there a formula I should use when making offer (is it too low for bank 2 consider, even though there's alot of damage ot property.. I'm using the figures based on sale price of $139k, but it's probably higher than that .. i.e. some other .25 mi comps on other streets are at $179K...
I know someone who only submits realtor contracts and includes commissions on HUD-1 and does well with acceptance of his package. Do I need to be concerned about not having the property listed?
I would love to chat w/ someone about this w/ experience.. I really want send the best package possible, but feeling a little green.. Please help..
:-?
Thank you...
Anthony!!
**Please See My Profile**
At this point, I suggest that you devote your attention to confirming the property's as-is, fair market value.
For the short to be considered, you'll have to defend your opinion of value supported with factual data... including several contractor's estimates to restore the property to an inhabitable and/or marketable condition.
Once you can ascertain and defend it's value, you can the factor the mortgagee's anticipated costs pursuant to a reasonable offer...
Your list indicates that you have a lot of pieces to a puzzle.... but you may have more than one puzzle to deal with. It isn't easy to effectuate a short sale... then flip/assign the deal to another.
If the Offer is approved, how will you structure the transfer of mortgagee approval to your buyer? Do you anticipate a double closing? Do you have a cooperative title company/lender to facilitate a double closing? A well defined exit strategy is essential if you are not going to take title in your own name.
[ Edited by TheShortSalePro on Date 03/29/2004 ]
Thank you for the response..
I have it such that an associate investor is in contract with the seller... however, I have the deed... do think it's wise to take that approach? .. i'm not concerned about the integrity of the associate (close friend of mine)..
I think having a list of estimates is a good suggestion.. I will look into that..
I don't currently have the seller's financial statement info.. would it be wise to use 'estimated information'.. not sure how i would 'estimate' the W-2s or tax returns though.... Please advise...
Thanks..
AJB
The Seller makes application for short sale consideration, and provides/discloses all aspects of their finances and hardship.
You'll need the Seller's cooperation throughout this process.... power of attorney/deed or not.
I wouldn't mention that you have snatched the deed from the homeowner as that can, and oftentimes does jeopardize the short sale approval.
I hope you have started the process and are not waiting to get every peice perfect before you start. When is the sell date?
Call the bank, get the loss mitiation department and FAX the authorization letter ASAP. Ask at that time how long it takes for the FAX to get into the system. Meaning when can you call back. Also at that time ask them to FAX you a SS package.
When you call back, ask what is their SS process, what is the turn around, any questions you have about the package, do they have a formula from the BPO to determine an acceptable offer, have they already done a drive by appraisal, and try to schedule a BPO now.
Definately want low comps for the BPO and to send in with you package. But influencing the BPO agent is the single most important aspect of the deal.
Do not worry about these thing unless they are required in the SS package. Pay-stubs, Financial Statement,
W-2s from seller?
Brenda
Thank you all for your response..
One question: When do you make a request for the BPO? Do you ask before you submit your package, after you submit, or do you wait for the bank to schedule it for you?
Thanks again.. best regards..
Anthony
If you are lucky, the mortgagee will accept your Opinion of Value as gospel, and won't perform their own BPO.
They'll generally order it once they are notified that there is a pending request for an application for short sale consideration.... or, upon receipt of the application.