Short Sale Question?
I have to submit a counter offer with the short sale package to Country wide. This is my first deal and I want to make sure that I cover everything.
Will last year's property taxes and the special water/sewer assessment be paid by countrywide or should I figure that cost into my net sheet?
I need to know because It is $2113.00 + $6777.00 to cover those two items. That's a lot of Do Re Mi.... I need to know If I should reflect that in my offer or use it as a negotiating point.
Rob,Find out if the property taxes and insurance are escrowed. As far as the sewer assessment this would probably be paid directly to the county water and sewer authority.
Those items will be paid, one way or another, before clear title can pass.
If the lender takes it back as an REO, it would have to be paid before they liquidate.
When devising a short sale, you must have a firm grasp of (and be able to defend) the as-is, fair market value of the premises. From that, you must forecast the mortgagee's anticipated costs to continue the foreclosure, execute the forced public sale, take back into it's REO inventory, hold, market, and liquidate.
O.K, I'll consider it as an anticipated cost to be covered by the Mortgagee. Right? Can I just put in the contract as "...to be free of all liens and encumberances"?[ Edited by robpaddock on Date 02/15/2004 ]
Your Contract to Purchase is but one component of the short sale application/Proposal.
The mortgagee doesn't much care what you put in your Contract with the Seller.
Their only interest is in their net recovery.
The application for short sale consideration and accompanying Proposal must articulate the lender's anticipate net recovery... and the factual data that is in support of your proposal.