Possible Deal.
I have a seller that is highly motivated. She is facing foreclosure. She owes $87k (77k 1st to WAMU; 10k 2nd to previous owners) and the house is worth 92k. She says that she will walk away from it for what she owes. The house doesn't need much work. Maybe some flooring and paint. Her total monthly payments are $887 PITI and it would take $9500 to have her loan reinstated. I understand that there is not a lot of equity here and I don't have the funds to take the house sub2 so just wondering if anyone has any other ideas on how to make this profitable through a short sale. What other information would I need to get to see if this is a possible deal?
Thanks for any creative advice.
Kris
New Orleans
Be prepared to buy the private second mortgage...
The key to any short sale is to determine the property's as-is, fair market value.
Is is really $92K? Have you looked into every nook and cranny to identify potential problems that could exact an adverse impact upon marketability?
[addsig]
A short sale is the best way in your case to build equity in the property, unless WAMU will sell you the discounted note (which if I remember right, they do not do). As an investor, sub2 makes no sense here. I agree with SSPro that you need to be prepared to buy the second, but I have had good luck with short sales where the second is owner financing. When faced with getting nothing, or gettin a little, they generally choose a little. In fact, if you promise a little, but get them a little more in the end, they will also probably write you a glowing testamonial.
Also, if you have not done a short sale before, I know SSPro has a book on it that is on sale right now. Also, Dwan and Sharon at www.1234closures.com. Both sources offer a wealth of information.[ Edited by bnorton on Date 09/07/2004 ]
Thanks for the plug, BNorton... I'd like to send to you a complimentary copy of TheShortSalePro's
"Glossary of common words used in the practice of Real Estate, and selected Essays"
[addsig]
You are welcome SSPro.