What Is Short Sale Exactly?

Comments(9)

• 
  nebulousd12th November, 2003

  until someone elaborates on your question, it is nothing more then taking a house in the pre-fore. stage, talking to the lender and asking them if they are willing to discount the balance as a pay-off.
  
  Example, house in pre-foreclosure with a 100K balance on the loan.
  House is worth 105K and needs some repairs.
  You talk to the bank and they agree to accept 50K as a payoff.
  You give them 50K, get the deed, and then do with it as you please. wholesale, retail, occupy it, rent it, and the list goes on and on.

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  iamhappy12th November, 2003

  Imagine I don't have the money to pay the bank in full (imagine that!!) what is a good way to come up with the money to pay the bank? A hard money lender? Can you assign the contract before close? Any other suggestions?

• 
  nebulousd12th November, 2003

  The bank would end up giving you a payoff letter..it just has on it the they agree to accept $XXk amount and you have 30 days to get it to them.
  
  You advertise a handyman special, say in our case 65K
  
  So now you found a buyer willing to give you 65k, you owe the bank 50K, you do a simutaneous closing with the bank. walk away with 15k minus any closing cost.

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  iamhappy12th November, 2003

  In a short sale, do you talk to the homeowner first or do you first go straight to the bank and try to negotiate a deal? If you go right to the bank, what do you do about the homeowner living in the home?

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  hibby7612th November, 2003

  Talk to the homeowner first. The bank requires that you have their consent.
  
  Hardmoney, partners, HELOC, revolving personal line of credit, private money, credit cards, assigment, wholesaling, etc. I have heard of banks lending you the money so that you can buy the property before it goes to foreclosure.
  
  Just a few thoughts.

• 
  DeeLewis14th November, 2003

  How do you do a simultaneous close on a short sale? Is that the same as a double close? The simultaneous close that I'm familiar with is carry back a 2nd mortgage.
  
  If you don't have the cash to close the deal, but find someone to flip it to, how do you do that without getting your wires crossed with bank? Could someone explain in detail or Private Message me.
  
  thanks,
  
  Dee

• 
  amynewbie15th November, 2003

  i have found properties with taxes not paid. does this qualify for a short sale.
  
  so i talk with the owner first, then the bank. i have sent out letters to the houses and no response. was hoping the letters would get forwarded.
  
  do i get the banks name from the mortgage document, since the owners name is still on the tax records
  
  i am stuck here, finding leads and don't know next step??
  
  
  amynewbie

• 
  TheShortSalePro19th November, 2003

  In answer to your question "does this qualify for a short sale?"
  
  Perhaps the threat of a tax sale could motivate the mortgagee to consider accepted a discounted payoff... but not necessarily. Several conditions must be present to warrant short sale consideration.
  
  Would the threat of a tax foreclosure be sufficient motivation for a homeowner to want to sell? Sure. But not necessarily.
  
  Read "Prequalify a Short Sale Candidate"
  Email me and I'll send it to you in word.

• 
  molotov19th November, 2003

  What if there is a 2nd on the property? Do you start the short sale process with that lender (usually a smaller principle), thereby increasing the headroom (potential profit) between the market value of the house and what is owed?
  
  Molotov