Possible Shortsale? Only Have 1 Month...
Guy calls saying He just got the Foreclosure notice yesterday. Sale to take place on Feb 6th.
Home worth 200k, he owes 153k 1st & 20k 2nd.
Last 4 payments missed, they are 1900 per month together. Plus attorney fees.
Told him to let me call him back tomorrow.
What are the possible options available?[ Edited by verbatim on Date 01/14/2004 ]
There is enough time provided you have CASH to close. I am working on my first short sale right now and there is an auction scheduled Jan 30th. Even more this property is in NYC and I'm doing this all from Iowa.
So far:
Jan 4th--was contacted by homeowner
meantime worked to collect paperwork and learn how to do a short sale (I learn fast!)
January 8th--contacted 2nd mortgage holder
January 12th--contacted 3rd mortgage holder
January 13th--3rd mortgage holder approval
January 14th--2nd mortgage holder approval
January 14th--finally got in touch with correct person at 1st mortgage holder. Sent in Net sheet and contract/offer
I didn't have to fax any information other than authorization to release information to the 2nd and 3rd mortgage holders. They were both very easy to work with!
I'm assuming the first mortgage holder will be more difficult. After reaching the right person I had to keep repeating what I wanted and persisted until the rep told me to fax over info. He was giving me something about how some time period expired, etc. I just called him on his BS even though I'm not 100% sure if I was right or he was. I just kept repeating that I'm an all-cash buyer and I'll close within 2 weeks. I reminded him about his bonus for doing a short sale for HUD. I think he was giving me the BS to see if I was someone with experience or not. Confidence is key because as I said before, this is my first short sale! I have a knack for business though.
My buyer I have lined up will close with all cash. It takes some work and creativity. I have probably put 8-10 hours into this total. I don't like dealing that far away and I surely don't like negotiating short sales when the other factor is that I need a buyer. I just got lucky here.
Getting paid for the services is a different story. I had the buyer sign an agreement to pay me. I know I cannot collect if push goes to shove, but my main intention was to help this homeowner and learn how to do a short sale. Ended up that everything is going smoothly and I've learned a lot so when i find a deal around my area I can take it!
Well this is a full of my 2 cents so GO FOR IT! You just have to be persistant and never let a day go by without calling them. I did a lot of talking by fax so they have it in writing to put in the file. We finalized the details over the phone.
GOOD LUCK!
Hi Verb,
If a short sale is done properly, it should be completed in 30 days or less. Sometimes you will be dealing with a large bank that has an enormous amount of defaulted loans, and in this case, you can probably expect to add more time to your scenario.
It is not imossible to get one done in 3 weeks or less, but I will be honest with you . . .these dont happen all of the time.
If it doesnt work out for you to get a short, (depending on the type of loan, investors, etc), the bank may open the bidding amount at the sherrif sale for far less than the delinquent balance!
Best of Success!
BAMZ
smack that second up to settle for $5k.. then you have a property you paid $158 for thats worth $200K ....
if i do smack the 2nd down to 5k, how much will the attorney fees be[estimate]?
Best case scenario i can talk the 2nd down, take the 1st over sub to with some kind of forebearance agreement so i dont have to pay the 8k in arrears, & find someone to buy or l/o it.
How possible is that?
Verb
Hi Verb,
Although it is very possible to do what you have propsed, there is no guarantee. If I were you I would be searching on a regular basis to add a few Private Money Partners to your call list. If you have just a few, it does not matter if you would have to pay the arrears, because you can use your PMP for that.
Best of Success!
BAMZ
Thanks Bamz
h