OK so does foreclosing by court action affect the short sale process different than the process of a trustee sale does? Are the lenders more or less likely to short when using court action?
Its all a matter of time. Sometimes, in judicial jurisdictions, the process takes longer. There is a greater window for the homeowner to sell, and the pending foreclosure is a matter of public record.
Yes, Find an attorney who will do a double close on the property. If you did the SS right you should have it under contract to buy for X. you find a buyer an dhave that buyer set up a closing and you double close. pay the loan off with his funds. this is how i do my deals
My personal philosophy is that I will offer whatever I want regardless of whether the realtor or the bank gets upset. The worst anyone can do is say NO!!
The method you have used is the best method. I believe offers should be made om what works best for the person making the offer, not based on what the bank or the Realtor will accept.
Now of course, you might need to look at your expenses again and make sure that you are not being too cautious, and you might want to look at your profit to see what minimum you are willing to accept.
At the end of the day, only you can determine whether an offer makes sense or not for you. Not the bank and definitely not the realtor. And remember, always be prepared to WALK AWAY if necessary.
Good Luck.
JS.
P.S. Someone on this site wisely said: "If you are not ashamed of your offer, then it means you are offeriong too much". I like to make offers that I am ashamed as much as I can.
BERCO -- I would not be concerned about you writing the PA and not your friend who attempted the SS some time ago. Within nearly every mortgage company there are seperate departments for Short Sales and for REO (Bank Owned) properties. The loss mitigator who rejected the SS is most likely on the same REO administrator who is handling the sale currently.
It depends on the current market. Your offer may be lower because houses have come down in the area. Any time you make an offer you need to go on current comps. What will change is that the bank will loose more money becuase they have to deal with a realtor. But this is not your problem. Offer what you want to pay for the property.
A lender who forgives debt should, but does not always issue an IRS form 1099. Failure to issue subjects the lender to a nominal fine. However, it is immaterial whether the lender issues a 1099 or not... the seller whose debt has been forgiven is required to report the income. In most cases, the income can be proven exempt from tax, but it must be reported and treated. Failure to report can result in fines, penalties, extra interest.. etc.
Thank you Short Sale Pro for answering my question. I already know that other info about insolvency and bankrupcty, my question was how often do you actually see this. My attorney did not mention the fact that they have to count the loss as income regardless of a 1099 is filed or not. It makes sense. Guess I better hope most these people are insolvent. As far as "kicking them while there down" If you read in pretty much any major newspaper from Sunday May 6th you will find a great article talking about this issue and the bill that is coming up in hopes of stopping this.
OK so does foreclosing by court action affect the short sale process different than the process of a trustee sale does? Are the lenders more or less likely to short when using court action?
Its all a matter of time. Sometimes, in judicial jurisdictions, the process takes longer. There is a greater window for the homeowner to sell, and the pending foreclosure is a matter of public record.
Yes, Find an attorney who will do a double close on the property. If you did the SS right you should have it under contract to buy for X. you find a buyer an dhave that buyer set up a closing and you double close. pay the loan off with his funds. this is how i do my deals
My personal philosophy is that I will offer whatever I want regardless of whether the realtor or the bank gets upset. The worst anyone can do is say NO!!
The method you have used is the best method. I believe offers should be made om what works best for the person making the offer, not based on what the bank or the Realtor will accept.
Now of course, you might need to look at your expenses again and make sure that you are not being too cautious, and you might want to look at your profit to see what minimum you are willing to accept.
At the end of the day, only you can determine whether an offer makes sense or not for you. Not the bank and definitely not the realtor. And remember, always be prepared to WALK AWAY if necessary.
Good Luck.
JS.
P.S. Someone on this site wisely said: "If you are not ashamed of your offer, then it means you are offeriong too much". I like to make offers that I am ashamed as much as I can.
First American title published a report on the price difference between the failed trustee sales and the REO sale price.
The economist based the FMV on Automated valuation models.
BERCO -- I would not be concerned about you writing the PA and not your friend who attempted the SS some time ago. Within nearly every mortgage company there are seperate departments for Short Sales and for REO (Bank Owned) properties. The loss mitigator who rejected the SS is most likely on the same REO administrator who is handling the sale currently.
It depends on the current market. Your offer may be lower because houses have come down in the area. Any time you make an offer you need to go on current comps. What will change is that the bank will loose more money becuase they have to deal with a realtor. But this is not your problem. Offer what you want to pay for the property.
Seconds will do them even if they are current
Always start low. The worst case scenario is that they will counter.....
Unfortunately, many, if not most appraisers reach to justify the sales number presented to them.
[addsig]
It is my understanding that the lender is required to 1099 any cancellation of debt.
If the borrower is insolvent or in bankruptcy, then the IRS does not require the cancelled debt to be included in taxable income.
A lender who forgives debt should, but does not always issue an IRS form 1099. Failure to issue subjects the lender to a nominal fine. However, it is immaterial whether the lender issues a 1099 or not... the seller whose debt has been forgiven is required to report the income. In most cases, the income can be proven exempt from tax, but it must be reported and treated. Failure to report can result in fines, penalties, extra interest.. etc.
Thank you Short Sale Pro for answering my question. I already know that other info about insolvency and bankrupcty, my question was how often do you actually see this. My attorney did not mention the fact that they have to count the loss as income regardless of a 1099 is filed or not. It makes sense. Guess I better hope most these people are insolvent. As far as "kicking them while there down" If you read in pretty much any major newspaper from Sunday May 6th you will find a great article talking about this issue and the bill that is coming up in hopes of stopping this.