Short Fuse Short Sale! Dec. 29th Help!
I've never done a short sale but I received a call today from a seller who has a house going to foreclosure on DECEMBER 29th! It's a 2 flat with 2 bedrooms and 1 bath in each unit. She owes $77,000 and the place might be worth that or a little more, maybe $90,000. In any event, both she and her deceased mother are on the deed but the mortgage is in her mother's name so she has no credit at risk and is willing to do a subject to. She wants $5k for herself (But obviously, under the circumstances, she will take less). Plus, she is about $5000 behind (even though the payments on this livable two flat are $500 per month!)
There are enough low property values for 2 flats in this neighborhood ($50's-60's) that it seems a short sale would be possible. Then I can flip.
Anyone have any ideas of the surest way to get the mortgage company to delay the sale? She said that she has been talking to the mortgage company but they want her to show them how she intends to get current or pay off the mortgage. I basically have until Monday to do so. The woman will probably do anything I ask her to. I remember someone saying that sometimes just getting the seller to give you a deed and going to the mortgage company with it will sometimes cut through all of the requirements of showing hardship, etc.
I'm meeting her tomorrow. What forms should I take with me?
I am open to suggestions and would really appreciate any help
Hate to say it, but it is unlikely that you can push anything through the mortgage company between now and the 29th. there is just not enough time.
If you want to try, First get it under contract, and for a bunch less than 60k. Then call the lender and try to get someone who can actually talk about the deal.
Goodluck!
You do not have enough time, especially with the holidays, to get the short sale done, and you would need to do one, as you know, because the equity just isn't there.
If you could do a lease option FAST and get a large deposit from tenant/buyer, that could cover arrearages and you could create your equity over time.
With the holidays and under a week to go, you should talk to an attorney and see if there is a way to stall the auction.
Good luck, Dave
It is risky but there might be a way. If you do a quick title search today, do it yourself and don't forget to check the taxes, have her sign a quit claim tomorrow and record it tomorrow. Send enough money to the bank to bring the loan current. This might be expensive because you've got to send it overnight or same day delivery. Once that is done, call the bank and let them know that the loan is now current. This should give you enough time to flip the house.
One question for you though; Do you think that the profit is worth the risk?
Good Luck!
Not enough time to do anything. Let it go and keep looking. Time is not on your side this time!. Creative investors are good, but I dont think these even enough time to get the bank interested in the Short sale. Good luck
How much time should he have given himself to do a short sale? In my area the notice of default is published about 6 weeks out. Then to get a hold of the seller leaves about 4 weeks. Can a short sale be done in that time?
James,
Yes... if you contact a seller and close a deal within a couple of weeks of the NOD, you have plenty of time.
The NOD is a prelude to the actual petition for foreclosure. Depending on your state laws, it can take a few months from the formal petition to much longer for the actual auction to occur. I'd become familiar with the foreclosure process in MN, but you probably have several months from the NOD.
CZ
Only way to stop sale without curing loan is Bancruptcy. If the seller is willing to do this, you will have plenty of time to discuss short sale with the lender. This may not be the best thing for seller but it sounds like it's Foreclosure or Bancruptcy.
By the way. If she does file Bancruptcy, make shure you get her under contract fast. She may find another buyer.
Good luck,
Mike A
Doesn't sound like an attractive enough deal to make a short-notice attempt. I'd walk and move on with the given info. Not being pessimistic, just realistic.
With the holidays a short sale in this short a period is going to be www.tough.The amount the mortgage co. will discount depends on the lenght of seasoning of the www.mortgage.If the mortgage is under 3 years old do not expect over a 10% discount.You may be able to get the mortgage co. to postpone the auction by paying a part of the default.You have to understand banks and mortgage co,'s are in the lending of money,not owning real www.estate.If you can show the mortgage co. that you are serious they may give you some extra time.An idea if there is a multi-family zoning in the neighborhood you may be able to split the units and form a www.condominium.Then try and sell each unit in the 50-60K range.