Short Sale Candidate?
I have a deal in which the owner owes $143,000 ($119K 1st mortgage, $20K 2nd mortgage, $4K back taxes) and is 6-7 months delinquent, facing foreclosure. The house is probably worth about $190K. Clearly there is some equity in this deal. Would it even be worth asking the bank about a short sale or not? If not, what type of deal should I put together? Thank you.
Questions to ask:
1) are the Sellers willing to walk away from that equity?
2) do you have the financial capacity to purchase the property?
The second mortgagee might be willing to consider accepting less than they are contractually due....
[addsig]
Hi, First a short sale is like a yes or no question. So, Always, Always try the short sale first. If you can get in the house look for the following, lead and black mold. The banks hate those two words. And these two things will work in your favor when you present your offer.
With a short sale it does not have to be extremely lower than the mortgage due. It could be ten to fifteen thousand less. Bank will foreclose on any property however, it is not something they want to do!
Put your offer in. If they don't except it try another offer. When it reaches your highest and best offer and they still don't accept... move on....(Usually it don't get that far.) Hope this helped!
Pam