What Did I Do Wrong & How Do I Fix IT?
Here's how the deal is going... Sent out postcards received a reply. The seller loves me. She signed the Authorization To Release Info form. She trusts me...
I used a Property Fact Sheet to gather pertinent info: Name, Address, SS# Motgage Co: Countrywide, Acct #, Loss Mit's Ph# 1-877-744-7691X9559 and Fax# 1-805-306-7094, PITI, Insurance Co. She is behind $773.96/mo for a total of 6 mo.($4643.76) Fourth foreclosure in 4 years. Filed Bankruptcy last year to stop a foreclosure with Washington Mutual before she refied with Countrywide.
I did my due dilegence Back Taxes 2003 $2131.00. Special Water/Sewer Assessment $6777.03. Title search at Courthouse: no 2ND position or other encumberances. Got three comps, 2 high repair estimates and some really great bad digital pics.
Exit Strategy: Assignment Of Contract to my friend, a weathly retired 52 yr old with nothing to do and $2M to do it with. He will only go up to $45K My cut is $5K (Cash) Her cut is $3K (Cash). She has to move out Or she can stay until June no Cash. He saw the place and loves it great location.
So... I called loss Mit, faxed Authorization To Release Info., low ball offer of $31,599.00 (approximately half of approximate payoff) on Wisconsin WB11 Offer to Purchase form, sent them a copy of the Statement Of Outstanding Amounts Due Sanitary District (Water/Sewer Assesments) and Copy of Back Taxes Owed. And a fax letter stating that I have a plat and some other info. That I have been through the house top to bottom and can email digital photos. Please provide me with an email address to send them to for review. The property is facing forclosure and the seller must sel ASAP. etc...
I have yet to do a net sheet. I don't even know how. I just know from doing the math on a calculator total profit for Jim is $68,725.00 after closing costs, fee's, fix-up, and payoff. and that's if I go from $31,599.00 to $47,900.00 in negotiations( If I get that far). FMV $70,828.00 sell at $155,900 AFTER FIX UP...
I talked to loss mit and they told me the home owner has an income of $3400/mo. (#2K from SS for her three oldest kids, Dad died 5 yrs ago, and 600/mo Child Support for her 2ND youngest and $400 for her youngest). He told me that I would have a hard time proving hardship. oops. This is my first deal and I havent a clue.
I asked for a short-sale package and he said he would pass it to the supervisor and she would review it. He told me to get a hardship letter ready. I don't even Know what comes in a short-sale package. He wouldn't give me his last name. He just said David C. He wouldn't even give me her first name. Why? I was cordial, and acting on the behalf of friend who's house I want to buy so she doesn't ruin her credit.
So now what? They haven't faxed me a short sale package(It's been a week for heavens sake. I signed the Offer To Purchase. The seller is worried because we're getting close to the 19TH Of Feb. (D-Day).... Sigh....Grrr
Rob Paddock
[ Edited by robpaddock on Date 02/12/2004 ]
CALM DOWN. That is first. This is going well. You actually sent everything needed for a short sale. They dont have to fax you anything. Now. bug them remind them of the sale date. Let them know you have cash. Give them every incentive to contact you by next week.
Rob,
A lot of things need to fall into place when doing a short sale as you are finding out.
Don't make any promises that you can't keep! You don't know if you'll be able to close. They don't all work out.
Getting ahold of the banks can be the worst part of doing a short sale. I have faxed a request to a lender five days in a row with several messages and still she has not responded. They are just swamped sometimes..
Good luck,
Bginvestor
Ask the SELLER to call the Lender for the info you need. They will probably respond faster.
You can get a net sheet from www.easyhud.com
$20 for 1 net sheet. You input the info and it figures everything for you.
Julie
Quote:
..... total profit for Jim is $68,725.00 after ..... FMV $70,828.00 sell at $155,900
You are going to try to sell this over DOUBLE FMV??
I didn't quite understand that point either...where does that difference in $70k to $150k come from?
Ryan J . Schnabel
If the FMV is around 70k why would you sell it for 150k?
In my experience, the key to pushing a short sale through is getting on the phone with the loss mit rep EVERY day. Make sure you are dealing with the one who can make decisions and call, call, call, call.
Don't be too much of a pain in the butt, just enough of a pain to prod them along. Make them believe that YOUR short sale is a high priority to them.
-rup
70K is what's it's worth now. After rehab it will be worth $155,900 give or take
Try to take this in the best way. This is almost entirely a compliment
If you are doing anything wrong that I can see, it is your overanxious tone.
It may be just here on the website.
Definitely Dont do that on the phone with the bank.
Act like you have all the bases covered. I dont recommend anyone lie, but behave in a way so that everyone thinks you have done this before.
Dont be pompous like you are the saviour of the world, but it DOES NOT HURT TO ACT LIKE YOU ARE HELPING THEM.
"Have you seen the house!" "And that is nothing compared to what is going to happen after it is vacant and the people in the neighborhood get to it."
One week is not a long time to wait at all.
Be prepared for last minute heroics.
Dont panic. Dont let anyone see/hear you panic.
Sounds like you are doing fine.
The clock is ticking and you dont have anything to lose by calling everyday. Just behave appropriately
good luck,
N.
Hi Rob
Is the current lender coutrywide? If so they have a financial short sale package that they will usually only send out to the owner of the house/borrower. They also like 2-3 weeks to review the package, usless you are very close to the sale date in which case they will call you back right away.
Do get worried, I have been waiting weeks to hear back on some of my deals and then others get back to me in days.
Hang in there
Rachelle
Rob, The Short Sale may still be approved, without proving a "long term" Hardship. Show the Bank what hit the homeowner behind in the Short Term and let them know they'll not catch up, but will file BK and stay on board a year or so, "with their big wherewithall ", to ride it out, if that's what the Bank wants.
The Bank may not approve a waiver of the Deficiency Judgement. Going through with a Short Sale on the house and the homeowner filing BK on the judgement would make sence, to me, that would be better for everyone, if it comes to it.
Talk to them, as above, and the Bank can get a fax from you every view hours, if they want. You'd be glad to, for a few grand.
Go for it,
Alan