Short Sale Procedure
I have just made an offer to buy a house thru a short sale. I have been told by the original owners that it would be accepted. My question is...who does all of the title work, gets the appraisal, etc. me or the bank? What is usually paid for by each party?
Thanks
The only ones who can proclaim that the terms and conditions opf a proposed short sale has been approved.. is the mortgagee... and must be in writing, and must articulate the terms of acceptance.
As far as who does what... just follow what is customary in your jurisdiction... as you would in a typical real estate closing.
Your real estate attorney (hint) should be able to guide you.
I know people here st pete,fl who do short sales and work in low poverty areas,reason is easier to convice bank there are more problems with the property ,also exsisting mortages are still low ,and houses have greater equity when you refi. (quote)
How are you presenting yourself? Are you the buyer, a friend, working with the realtor, or what? When you have multiple loans with the same rep, you have to be careful from the start what you state as your relationship to the morgagor.
The buyer.
If I remember correctly, my loss mit rep at Aurora did not want to do business with "investors". For some reason, if you present yourself as a landlord that like that much better than investor. I guess they just do not want somone making a quick and easy buck. Makes them realize that they could have gotten more.
Can you use a land trust in TX. Sometimes i am the buyer, but usually I am "working with the realtor" if a realtor is required, otherwise I am a "friend of the owner". I usually buy them in land trusts so the trustee is unknown. At least you could not tell by my signature. My hard money lender does not care how I take title.
Brenda
I found out the loss mitigator is investor friendly , which leads to my next question. Since the loss mitigator is handling both, should I only discount the 2nd mortgage or both?
To answer your question... Depends on what the house is worth... Do your analysis and come up with the offer that you are willing to give them. Generally, though having two mortgages does cause the lender of the second to be a bit more flexible, and generally just a token payment is required.
If the house is in rough shape, then give them the offer as such, if the house is in perfect shape, you will have a hard time dicounting anything off. AS I say, it all comes down to what case you can show the lender, to WHY they need to discount the house, verses taking it back, and loosing more than what you offered.
Hope that the message I intended was communicated.
[ Edited by joel on Date 07/16/2005 ]
[ Edited by tjgroup on Date 07/24/2005 ]
[ Edited by tjgroup on Date 07/24/2005 ]
Shortsale Pro what would you do?
Shortsale Pro what would you do?
Shortsale Pro what would you do?
How do you expect an answer when giving no information. No you just want a wild guess? If the house is worth 20k and the first is 40k and the second is 30k the answer would be very different than a house worth 100k and the first is 60k and the second is 20k.
What is the payoff on each liens?
What is the AS-IS value?
What are the cost of repairs?
What is the After Repair Value (ARV)?
"What is the best way to handle and discount my offer?"
I think that question could be interrupted many different ways. Sorry if I did not interrupt the way in which you intended. But I am not a mind reader.
Again, to answer your very general question, we need more specific information.
Brenda
Thanks SS Pro