Short Sale Candidate?
Would like opinions on whether this deal would be a realistic candidate for short sale, and what method might be best at getting the short sale approved. I normally purchase outright in cash but this house is very nice and I would like to try a short sale on it if its feasible.
House comps at $250K, 1st mortgage is Washington Mutual for $189K VA Loan, Second mortgage is Household Finance for $48K home equity line, so total leins is $237K. House is spotless, in excellent condition and been maintained nicely with top of the line options for its price range so no way to deduct for repairs, etc. I could have seller sign a sales agreement with an offer of say $200k subject to third party approval. Then see how the banks respond, or I could go the long route and get short sale packages and make offers etc. I asked my real estate attorney who is kind of old school he wasnt representing me or being paid just giving me his opinion, he says make the $200k offer get it to the title company and get the deal on the table get escrow opened up and going and bona fide, thus put the ball in the banks court to proceed with a guaranteed deal on the table or let them be the ones to counter or say no deal. He thinks it lends credibility when the deals ready to go and not subject to any finance contingencies because I would pay in cash the $200k. Any opinions or advice?
House comps at 250k and 237k in liens. Neither woudl short sell because of the equity in the property after both liens were paid. Might go subject to and try to find a buyer for it. But definately not a short sale canditate.
If the house is spotless and is already at market value, why would the seller need any assistance in selling the house? What service are you providing for them? Couldn't they just put the house up for sale and pay off their liens?
I'm a newbie and am very curious how this works. Thanks.
Shuefu,
Because there is only a $13,000 margin in sellers eyes the seller doesnt feel he can sell himself and guarantee a sale before foreclosure. He also doesnt have enough of a margin to factor for $4450 in state excise tax (1.78%) cant afford closing costs of around $2000. If co-op with realtor at 3% realtor fee of $7500.00. If full sale using realtor, realtor fee would be $15000 at 6%. As I posted seller is not looking for money he's looking to save his credit. Neighboring property comps are way undervalued because there are no houses going for sale in this particular subdivision and houses are appraising and selling for higher due to the fact that there are few houses that come up for sale. I will list it for around $269,950. Seller get what he wants which is to avoid foreclosure I get what I want which is a resonable profit.
Sounds great if you have the time before the foreclosure sale date. Short sales take some time, why wouldn't you just show up at the sale date and buy the house for 189,000 bid up from there and take the house over? [ Edited by Doogie on Date 07/25/2003 ]
Anyone know about quit claims? I have a 2.5 acre parcel of land next to my property the owner wants to get rid of. The property has a clean title, any idea on the verbage needed for the document?
Doogie,
I'll pass on what was told to me on another topic of mine regarding quit claims. They are normally used to remove clouds on a title. Im told you want to have the person sign you a warranty deed. I've found excellent versions of warranty deeds at officemax in some of their legal contract books. Hope this helps
Keep it Simple!
Take your $200,000 in cash and buy the property at the foreclosure sale.
Hope This Helps,
Mrs. Meltzer
If the owner is looking to save his credit and wants to move fast, why not a subject2 or lease option? This moves quickly and his credit is saved. Sounds like value added to me.
[addsig]