Properties with Equity
I am looking for a little clarification...... I am currently working with a homeowner that is in the foreclosure process. She has been in the home for about 10 years and currently owes approx. $63K. FMV is 95K. She is looking to get some money out of the "deal".
#1 Shouldn't I take the time to approach the bank for a possible short sale?? Or do banks only discount when there is no equity? I thought Dwan stated to always make the additional phone call to see what they may or may not be willing to do.
#2 What is the most profitable and effective way to get the homeowner some of the equity they built up in the house over time (10years).
#3 Are the banks always / usually willing to do a 30 day close?? I would like time to locate another investor / assigns.??
Thank you..
Quote:
On 2003-04-01 18:43, tab wrote:
I am looking for a little clarification...... I am currently working with a homeowner that is in the foreclosure process. She has been in the home for about 10 years and currently owes approx. $63K. FMV is 95K. She is looking to get some money out of the "deal".
What does the house look like?? If it is in bad shape, all you would need is to get a handymans estimate on the property.
#1 Shouldn't I take the time to approach the bank for a possible short sale?? Or do banks only discount when there is no equity? I thought Dwan stated to always make the additional phone call to see what they may or may not be willing to do.
This deal you have equity in. There isn't a reason for the bank to do a short sale on the property unless it is in bad shape. Even if the property is out of date that would also account for rehabbing work.
#2 What is the most profitable and effective way to get the homeowner some of the equity they built up in the house over time (10years).
Give them some cash at closing.
#3 Are the banks always / usually willing to do a 30 day close?? I would like time to locate another investor / assigns.??
When is the auction date?? On a couple of our properties we got them right after the Sherriff handed them the papers so it was longer than 30 days.
Thank you..
Whenever a property we are buying is in foreclosure or the homeowner is behind in payments, even with equity, we always make "one more phone call" to see if the bank is willing to entertain a short sale.
If you want to give a homeowner some form of payment over time, then one way to do that is to create a bill of sale for items you are purchasing from them (i.e., appliances, lawn equipmt, furniture, etc.) and pay them in the form of a note.
Upon the bank's acceptance of a short sale, 90% of the time, they will give you 30 days to close. During that time, you can obtain financing or advertise and wholesale your property to another investor. Good luck with your deal! Sharon
I hate to thread hi-jack, but can one wholesale a short sale without first paying the bank their money? I pretty sure the bank would have to have their money first, but figured i'd ask . Thanks, Tim
Do we "bump" on this board? If so, bump