Questions For SSP
I purchased your Primer several months ago and it didn't see this particular situation addressed.
Is it possible to do a short sale when there is only one mortgage?
I've just started my marketing campaign and I've gotten two calls now with almost the same situation:
First mortgage at or just over the FMV.
Little to no repairs needed.
No second mortgage.
5+ months in arrears
How can I help them? Is a short sale possible in these circumstances? Or is this a situation where the home is best acquired after foreclosure via auction or REO?
I was entertaining the idea of trying to buy the note at a discount. Is this a viable way to help this person?
"Is it possible to do a short sale when there is only one mortgage?"
Preforeclosure short sales are possible when one or more mortgages encumber the property...
In fact, your job may be easier since you'll only have to negotiate with one lender.. instead of multiple lienholders.
Beginning with the as-is, fair market value, project the mortgagee's costs to continue the foreclosure, acquire the property via foreclosure, evict, hold, and liquidate the property. That info will become the basis for you roffer.
shortsalepro,
I am new to REI as well. I have the above situation all the time. seems to me the overfinance is the norm here in MI. But does ss need some kind of situation to make it more acceptable or should I say appeal to the bank? Like needs repair, harkship...How successful the ss normally be? I am going to start doing ss. Any help is greatly appreciated.
sharon
I posted an essay on TCI awhile ago entitled, "Prequalify the SS Candidate"
Generally, the loan must be delinquent, the Borrowers must have experienced an involuntary hardship and remain unable to bring the loan current... or sell at an amount needed to payoff the loan.
Sure, it helps if the property is in need of repair..
It's the job of the 'short sale facilitator' to convince the mortgagee that the home's as-is value is less than their information suggests...
See another essay entitled, "Something, Something BPO..."