First Deal, Need Advice
Just found my first property. Owner previously spoke with country wide prior to him responding to my flyer. Owes 139K including arrears and CW said they would accept a SS for 130K if he could find a buyer. I did my due diligence, and then sent in authorization to release and asked for short sale packet, and they said they don’t have such a thing and they don’t use them anymore? Was I asking for the wrong info or what. They told me their about a month out until they would review my offer, I’m sure their busy with a million other shorts but does this seem right. They said to fax “banks statements, tax returns, pay stubs, pre-approval letter,hud-1, and purchase agreement” and then they would assign a agent for me to speak to.
FMV is around 145 to 150K. My Offer was for 80K (Does this seem low), needs 15K in work.
Does it seem like I’m heading done the right path or not. Any comments would help a bunch
Thanks everyone
80K is a long way from 130K. Even with the work do you think there is a reason that the seller can not achieve more? Has CW made any noises that they will accept something less then $130K?
Granted what they say first is never the final deal.
I am assuming that you have the credit, income and cash to make this deal work in short order if you get a number at or just above your price. This is correct, right?
John
[addsig]
I agree that my offer of 80K is long way from 130K, but this is my first offer. Maybe the question I should have asked was should I have discounted the price of 15K in repairs off of the 139K due on loan, or whats the typical way of doing a short, remember this is my first deal and I’m still learning so please excuse my ignorance.
My credit, income, and cash is not a problem, so I’m reayl concentrating on how to structure the deal.
Thanks for the response
:-D
Whatever isn't written is rotten. So he said/she said isn't to be taken too seriously.
You must determine the as-is, fair market value as this will be the basis for all negotiations. You must be able to defend that determination for it will be challenged.
In addition to the boilerplate application, you should devise a factual, and compelling proposal that will accompany the application, and speak for you in your absence.
It's OK to jump thru hoops, but do it your way. I would never simply FAX the info that they request. I usually FAX a letter of transmittal telling them what to expect in the application, and Proposal via FedEx (provide tracking). This gives them what they are asking for, but keeps you in the driver's seat.
If the property has a confirmed value of $135,000, your offer of $80,000 will be summarily dismissed.
can you get a BPO/CMA/Appriasial of the property in as is condition. That is hard to argue.
But it maybe summarily rejected as well.
I had 2 contractor bid and a BPO that a place tried for last yr. was was worth 350 and not the 450 being asked.
The offer was rejected and we where kindly asked not to submit another offer.
130/145 is way too thin in my mind esp. if 1st timeer and 15K could turn into 25 very easily.
"can you get a BPO/CMA/Appriasial of the property in as is condition."
Is that a question? If it is, the answer is most assuredly, yes. A commonly accepted definition of an appraisal is an opinion of value of a particular property at a specific moment in time.
Not tomorrow. Not after repairs are done. But today. This very instant. An appraisal is a snapshot.
[addsig]
$80,000 is a good offer your not working for free. I have gotten even bigger discounts than that,so it never hurts to www.ask.IF YOU DON'T ASK THAN YOU CAN'T BE TURNED DOWN.
From here you can come up if need be. But if you offer to much going lower is very hard. Get the repair info,value AS IS.
Show them retail back out repairs,sales commis,marketing cost, That is the numbers. Than ask for a discount because of THE CONVENICE OF THE SHORT SALE. Your taking it out of there hair.