Step-by-step Short Sale completed in 2 1/2 weeks!
Man o man was this easy or what?
1. Found a property in Foreclosure (10 mos. in arrears)
2. Prop. had 2 liens. (Did Tract & Judge. search $75. bucks)
3. 1st was $125.133.17 (Foreclosing lien),
2nd $30.866. (The Junior/Jeopardy lien)
Total debt = $156,999.17
4. Buyer found me through my advertising.
5. Buyers max. loan amt. = $147k
6 Negotiated with 2nd lien holder based on the auction coming up soon and we had a buyer with a max. loan amt. $147k.
" It's my understanding that your loan will be wiped out if the prop. is sold at auction, is this true? yes"
7. Showed fininacial hardship from the sellers in the Short Sale package + closing costs, my fees and the appraisal came in at $153k as is. (already lower than the payoff amt.)
8. I offered a payoff amt. of $131k. They balked saying they needed at least $20k.
9. I came back with "because of the fees involved and the urgency of this deal, my buyer can only offer $135k to make this thing work. (again mentioning the wiped out lien and the auction coming up soon!)
10. The next morning I called before they opened and left the message, "Hello, this is Clif, just wondering what decisions you've made on the Anders prop. in Plainfield.....and ah...I really need a decision on this today...you can fax me at --- --- ---- or call me at --- --- ----.
11. I came home a few hours later to find a fax with the approved amt. $19,000 less than the original lien amt....I sent a "Thank you very much for your cooperation" letter.
12. I then received all the paperwork from the sellers about their prop. from their original purchase.
13. Took these papers over to my attorney and placed a lien on the prop. for services rendered in the amount of $10,000....(attorneys fee = $75 bucks)
14. Had the buyers attorney set up the Purchase Contract with the seller. My Attorney is for the seller (knowing about my lien on the prop.)
15. At closing, the buyer and seller will settle and the difference between the buyers max. loan amt. $147k and the payoff $137k is ........yours truly. $10,000 (from my lien)
The buyer came in and paid all the closing costs, title insurance and other fees associated with getting the prop. cause she was getting it for nearly $12,000 less. (because of her max. loan amt.....would've been more if her loan was less but she needed the larger amt. for repairs and other costs involved).
She really wanted it...!
(Motivated Seller and a Motivated Buyer!)
Maybe I should start a course on "the 15 steps to cool cash with foreclosures"
My story for the day
Clif
Hi Clif,
Congrats on the quick and easy short sale!
Have a question for you:
Did the bank have any problems with you replacing your name with your buyer's name for the closing? Since you were the one negot. the short-sale payoff.
Thanks sblack,
I didn't have to replace my name with anyone's.
I stated in my posts that the bank buyer's lender did not want me apart of the deal...That's the reason why I placed a lien on the property.
The lien holder knew I was an investor...
Clif
clif
thanx for posting this article. my question is: What if your buyer backed out? Would you have to remove your lien? How does the seller feel about another lien on the property? Are they cool because they were already losing it?
thanx in advance
Cool story. Maybe I didn't understand the part about the 2nd lien. How much did the 2nd settle for?