Shorting A VA?
okay here is the case. Lady just received the Lis penden notice. The house is 10k in backpayments/fees. its a VA loan. she owns 112,00 on it. she will pretty much walk with a couple of grand. The house sits right now worth 190k-215k. i would like to short this. what should i offer the bank for this. honestly i would buy it for what they owe on it but should i short it for about 100k? If the bank sends out somebody for a BPO and it comes back higher than what they owe. say 160k will they not short it for 100? what should i do with this? i will try and fund it with a private lender. if anybody can reccommend one that would be great. its def. 65%LTV.
1st of all the bank will not short this loan because there is way, way too much equity.
2nd of all you are crazy not to buy this house. 58% of fair market value is not bad at all! Hell you could simply make up the 10k back payments and sub2 the thing.
I wouldn't second guess the deal here if your numbers are firm.
If your numbers are correct you should have already bought the place. You're likely to end up negotiating yourself right out of a deal. If you were the bank would you sell it for 100k?