Short Sale With 3 Different Lenders Same House. HELP!!!!!
I have property that the seller has agreed to short sale. It has 3 liens. We agreed to short the 2nd and 3rd and bring the first current. The first is 25K, the 2nd is 65K, the 3rd is 15K. ARV 100K. The 2nd and 3rd sent me full short sale packets. I want to negotiate discounts without having to fill out complete packets with preliminary HUD 1s. How do I do this if I can? Can someone please help?
I am somewhat experienced in real estate investing however am working on my first ever short sale. I negotiated pretty simply without any paperwork other than a authorization to release information on both the 2nd and 3rd. These were both done in a matter of a couple of days.
I am somewhat limited here but as i understand it in my area and Utah there are several things that are needed and a HUD 1 is one of them.
Generally you need a POA to talk to the lenders.
A hardship letter (if bankruptcy is mentioned as a possibility that is good)
A hud 1
A contractor's estimate of what will be required to bring the house to marketable value etc.
A contract or sales agreement between you and the lender.
I would suggest getting the shortsale primer here on this site as an excellent start and you can download it and read it tonight!
HUD Forms can seem pretty intimidating at first. I suggest you visit the easyhud website. Practice filling in the form with a deal you previously closed. You'll get the hang of it quickly.
It's a great tool.
[addsig]
Hi Darthethan,
Generally a 2nd or 3rd mortgage require much less information to facilitate a short sale. However, they are still going to want a HUD-1 so that the can visualize how much total, that they can expect from the short.
If they have sent you a full short sale package, chances are that you will need to complete the entire package, as well as a Hud-1.
If it was easy, everyone would be doing it. But once you do a couple of them, it becomes very easy! You may have to follow their rules, but it is well worth it!
Best of Success!
BAMZ