Unsecured Note And A Short
Working a short with C-wide and they are asking the Seller to carry an unsecured note with no interest for the difference and if he agrees they will approve the short sale
The sales price is 90% of the appraisal they ordered and both loans are with C-wide, the first is being paid in full and the 2nd is being shorted.
Why are they being so difficult or should we call their potential bluff?
Do you think in a worst case scenario the amount of the note and/or length of term can be negotiated?
Is the accepting of an unsecured note good or bad for a Seller in the overall picture?
Thanks
(1) is this a owner occupied or investment property?
(2) when did they get the new mortgage and how many payments did they make?
(3) what is the difference in the appraisal price and the loan amount?
(4) what was the hardship and did you have all the short sell package to sent Countrywide?
Bankruptcy would also probably erase this unsecured debt, if thats a possiblility for your client.
in order for a loan to me considered valid by the IRS, a valid interest rate much me charged. If not the IRS will assess a rate.
imputed interest
Definition
Interest considered by the IRS for tax purposes to have been paid, even if no interest was actually paid.
Why do people bother to ask a question and then never come back with any answers, updates, or additional input?
You tell them!
I appreciate the input.
I called them on the note and stated the seller would be unable to accept it and I am awaiting an answer, hence no update as of yet.
Realtor contracts / agent.
much appreciated!
A new tactic looking for funds from the old borrower
Simply a Bluff , I have done many short sales w/ countrywide and never have they asked for it.
I do however submit a full package using legitmate
contracta and forms. I always use Freddie Mac form
1126 "statement of Assets in all my deals. They
are approved by all banks.
Be aware that cost for mechanical issues on an apartment building could sink your ship in the end. What may seem to be a good deal now could be your biggest mistake.
Make sure you get a good inspector (for HVAC, Plumbing, Electrical, etc.) out there before buying.
I would ask that the contingency start once the SS is approved by the bank, and ask for access to the property while the bank is considering the SS.
You might buy some time this way.
I feel that your Purchase contract was not submitted. Did you provide proof of funds and / or a Loan Approcal letter. Resubmit your offer at a lower price and take off the contingencies if any. t
GMAC request a notarized Authorization to negotiate
the deal. Then it just standard short sale requirements email me if you need help I can email you the standard short sale requirements