Another Successful Short Sale
Happy Holidays to everyone:
I must say that this has truly been a wonderful holiday season for me. Besides the usual Christmas cheer and family moments my business has been doing great. This morning I closed another short sale deal. I submitted the initial short sale package to Fairbanks on November 21st and was approved a short sale of $38,500 on an original mortgage of $63,335.97. The house was appraised back in June for $72,000. At first I was not sure if the bank would accept my offer because it was almost $25,000 below the current loan amount. I learned that it was best to make a lower offer and if necessary increase the price. I didn't hear back in from Fairbanks until December 16th. I must admit that I thought that they rejected my offer because it was too low. They told me that a BPO would be calling me to schedule a walk through of the property within the next 2 days. I spoke to the BPO the same day and met her at the property the next day. Although the BPO would not disclose what numbers she would report back to the bank, I got a good feeling that she would come in around $45,000-$50,000. That number was still higher than my offer but when I spoke with Fairbanks I followed what I have been learning and informed the lender that this was the best offer they would get because the neighborhood is declining and the repairs were more than $18,000. Today I got my acceptance letter. I already have a buyer for the property for $54,000. That is a $15,500 gross profit margin. To say that I have only been doing this for about 5 months I am pleased. This is my fourth deal in that period. If you are not already please do a few short sale deals, you won't regret it.
Great job noirmodels!
Collect your check, and on to the next one!
BAMZ
It's so nice to hear a good story. Congrats to you and keep up the good work!
I'm working on one now and needed to read something encouraging. Thanks for the post.
was the 63,335.97 balance including fee and back payments?
Yes, that number represents the back payments and penalties.
Was your offer the net value to the lender, or do you have to pay some closing costs?
Good job,
Bginvestor
I passed the closing costs to person I sold the property to. Since they were getting such a great deal, paying the closing costs were not a problem. You must be able to do a double closing for this to happen.
Yeah, I have tried the double closing on two deals. They work. Did you learn your information from Ron or John Locke? I have been using the e-book from ****Must Reach Freshman Investor status before posting URL's***. It has helped me understand the double closing much better. Check it out if you haven't. Good Luck.