SS And Listing
How do you handle the situation when the property in question is listed on MLS. Its a good short sale case, but the seller does not want to loose the chance of a buyer coming thru MLS (!!).
Loans: 208 countrywide+ 12 FC = 220K
3 months behind
Listed at 245K
I am not sure if you tell the seller to cancel the listing. You dont want an active listing when the BPO comes thru?
Also, can I sign a contract with the seller while its listed?
If the notice of default has been filed, chances are that the listing will remain in effect until the property go to sale.
Talk to the realtor that has the listing and find out if the house is being offers as a short sale. If the answer is yes, then question the realtor. Ask the realtor if they have been in contact with the mortgage company. Does the realtor have the short sale package ready to submit to the mortgage company? If you find out that the realtor has no experience in short sales, then pass. If the realtor has experience in short sales, then make your offer through the realtor. Deduct the 5%, that the realtors are going to get, from you personal net sheet.
"Also, can I sign a contract with the seller while its listed?"
It depends on what type of listing agreement they have signed.
What are you looking to do with the property? Are you going to buy it or are you looking to flip it?
This was a situation where seller called from my marketing. Ideally I want to get a short sale approved and wholesale the property.
Many people list the property while the short sale is in progress to have a buyer ready. I am told I can list the property with a POA. In this case say the property was worth 250K; I would list it at 215K to find a quick buyer; hope the bank takes 190K so I have some profit after the 4% for realtor and closing costs.
This was a situation where seller called from my marketing. Ideally I want to get a short sale approved and wholesale the property.
Many people list the property while the short sale is in progress to have a buyer ready. I am told I can list the property with a POA. In this case say the property was worth 250K; I would list it at 215K to find a quick buyer; hope the bank takes 190K so I have some profit after the 4% for realtor and closing costs.
I am puzzled, he called you but did like or understand the pitch about a SS?
Is this a "Next" situation if the seller will not cooperate.
He called me to sell the property; at the meeting I went thro the numbers and suggested we work on a short sale. They have signed all the docs I need
How are you planning to flip the house? How are you going to market to an end buyer? Will you have an investor (cash or hard money) or retail (traditional mortgage) end buyer?
I am guessing that you did not understand the investor.
Both mortgages attach to the house and you will not be able to sell the house to a traditional home buyer if you do not payoff both loans.
Who is the second mortgage company? If it is a judgement, you could negotiate for them to release the property from the judgement so that the house could be sold. But if it is a mortgage, I have never heard of a mortgage company releasing the lien.