Can An Owner Profit From A Short Sale?
Can an owner profit from a Short Sale?
I know this may sound like a contradiction, but it also seems possible if you can convince your lenders to set a SS price before hand... And then go find a buyer who is willing to pay more.
Has anyone done this, or can you instruct me on how to approach my lenders?
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Here's my situation:
-- Banks believe my house has a FMV or $290K., less commissions, fees, etc.
-- My first is $260K and my second is $40K, and I owe $8K in taxes for 2004..
-- I think the solution lies with the second mortgage holder, because they will loose their entire position if I declare bandruptcy... and my lender's DO believe it's coming to that, so I believe they will be willing to accept a SS in lieu of me filing for bankruptcy.
Quetions: PLAN A
1) How do I approach my lenders to either get them to agree to a SS before I present them with a buyer; or
2) How do I get my lenders to discount their note?
==== Or would this approach be better to go with:
PLAN B
1) Agree to a Short Sale up front.
PLAN C
1) Quit claim the house over to the buyer for a fee and let them buy it in a SS from the banks.???
All comments or angles of attack will be appreciated.
The short answer is "No, the Seller cannot profit (monetarily) from a preforeclosure short sale."
But there are always exceptions to the rule.
I'm curious why you think "because they will loose their entire position if I declare bandruptcy"
Generally Short Sales are arranged by the buyer, not the seller, but a cooperating seller can sure help. And though it technically violates the SS "owner/seller can't profit" rule, there have been cases of the buyer paying, in a separate transaction, rather high prices for furniture, W/D, etc. that the owner/seller chooses to leave behind.