Short Sale On NEW Home ?
Working a deal in Texas, House was built 9-05
1st mtg 147k, 2nd 36k Appraised in 05 $187k.
3mo behind now.
The problem is that in order to influence BPO we need low comps. This is the only home in the new subdivision and others being built around it is going for 200k +.
We are checking on a possibility of new appraisal since no comps are available
Our plan of attack is to discount the 2nd for 1k - 2500k
Here are my questions
How to handle the BPO and shortsale in this situation of no Comps.
Do you think the 1st would discount and if so how would you present the case to them as no repairs are needed other than bad color choices in home and Layout of living room is weird.
Thank you as this is my first post to you all.
Rob
"The problem is that in order to influence BPO we need low Comps"
You need accurate Comps, not necessarily low Comps. You need to know the same information the lender will have. Your edge is that you have access to the property, and can articulate and quantify deficiencies.
If the home is new, then concentrate on market conditions to denigrate value and/or marketability.
If the second will/would be made whole or substantially whole via foreclosure, why would they agree to accept $2,500?
True we need accurate comps and being in a new subdivision with the only house built how do you get that?
Re the 2nd. Our angle is that the 2nd will not be made whole at foreclosure as the avg Sale by 3rd party bidders is around 76% ltv
How would you go about that?
rob
Comps are comps... as close in size, condition, and utility as may be found to the subject... be they next door or miles away.
If I were the asset manager, I would consider joining the lawsuit as Plaintiff, or biding up to an acceptable exposure... and prepare to take the property subject to the first and sell on the open market.
New homes are only good for subject to in my opinion.
One of the items needed from the mitigator is a Listing agreement. How do you get around this if the property is not nor has not been listed?
Rob
In the process of doing that, I have realtors who will provide comps and list it once the BPO is done but how do I overcome this particulare request from the mitigator? Thanks for your info
Rob
Call up your real estate broker buddy, and ask him/her to list the property at a defendable, fire sale asking price.
I will do that but does the listing agreement need to be on the MLS?
Does it also have to be from the original seller? As we now have the property conveyed to land trust?
Also Just got off phone with Option One the 2nd and they say the investor is not accepting short pay at this point because home is not in foreclosure. What are they talking about the home is now 4 mo behind?
Any ideas on this?
Thank you
Rob
I have done a SS on new homes in the past. Depending on your market they can still be profitable deals.
You are out only your time and the payoff can be large, the last two I did net was over 40K on homes worth less than 210K
[addsig]
2nd wants: offer and our own appraisal sent with hud 1, P&S agreement, Proof of Funds and Listing agreement.
She Commented that the info on the account stated that the investor backing the loan (wmc) has not defined if they would accept shortpay.
What in your opinion does that mean after all they are in 2nd?
Is it common for the 2nd to want an Appraisal not a BPO? They said we could send one of our own.
Does the Hud 1 and P & S need to say $1000.00 on it or include the first?
thanks for your help
Rob
What exactly is a BPO? Who orders one?
BPO is simply Brokers Price Opinion of the value of the property.
Loss Mitigator will order this either on their own before foreclosure or if you request it after sending them authorization. BPO is the biggest influence on a shortsale. Review the posts their is alot to be said about bpo.
Robert