Help With Short Sale
I am interested in buying a property before the sale date. There is a 1rst and a 2nd. Do ineed to put a short sale package together for both banks? Do I write one offer? please help
I am interested in buying a property before the sale date. There is a 1rst and a 2nd. Do ineed to put a short sale package together for both banks? Do I write one offer? please help
Bianca:
You have not provided us with enough details about your deal to answer your question. Nevertheless, he is a generic answer. If the house is worth more, in its present condition, than the amount owed on the first, then focus your proposal on the second. If not, then you would do one for each.
I am sorry Jorge,
Maybe I am missing something. Why dont you try to short sell both loans no matter what?
Neither wants to go to foreclosure.
N.
Thank Thank YOU
If the 1st mortgage is already in foreclosure, they typically will not do a short sale in states where there is a short foreclosure time. (Such as Georgia and California)
WHY?
Because they already plan to get the full amount of their mortgage or the home. There is no reason for The mortgage company to deal with you.
However, the Second Mortgage will be WIPED OUT during the foreclosure sale. Most times, they WILL deal with you and give you a substantial discount on the note. Some money is better than no money.
Once again, foreclosures are different for each state. I know for a fact this works in California and Georgia.
Hope This Helps,
Mrs. Meltzer
Bianca:
If the house has an as-is FMV which is greater than the amount owed on the first mortgage there is no incentive for the lender to short sale that loan. This is because they will recoup their money at the judicial sale. The second mortgage, however, is the one in jeopardy. That lender will have to either participate in the foreclosure initiated by the first or risk being wiped clean. Thats why it might make no sense to send in a proposal to each.
[ Edited by jorge121 on Date 08/02/2003 ]
Mrs Meltzer
What paper work is needed by someone when tryin to short sale .. Im new to that avenue and have a lead with a home with 2 liens . I was thinking on trying to short sale the 2nd before the auction date . which is about 5 weeks away.
Can you tell me what forms are needed and where can I get them. Im in new york .
Best Regards,
elite
Elite Props,
My experience has shown me that each mortgage company has different requirements.
If you call the loan mitigation department, they will tell you exactly what they need.
Almost all Morgage Companies will ask for ...
Settlement Statement or HUD1
Sales and Purchase Agreement
Hardship Letter from the seller
The mortgage companies do not usually ask for these things, but I suggest you include them
BAD pictures of the home
Cost of repairs (to justify your offer)
LOW comps in the area
I've even had mortgage companies ask for the following from the seller ...
Pay check stubs
Copies of the past 2 years tax returns
Hope This helps
Mrs. Meltzer
Mrs. Meltzer is right. beside that, there might be other legall consequences for buying defaulted 1st place notes for the reason of aquiering equities.
Mrs. Meltzer, how do you know the laws in CA? Do you buy here or you lived here in CA?
Bianca, you are a wholesaler from SD? I am in LA and am interested in tackling this Asuza deal or whatever you might have comming. Why don't you drop me a PM line so I'll learn more about both, what you have and what you do?
omega1
Omega,
I am not sure you are going to get any replies this thread was posted over 4 months ago.[ Edited by MrMike on Date 12/19/2003 ]
Was high in "Topics 'N Comments" roaster and I didn't check the last posting date.