Will This Short Sale Work?
FMV in good condition: 140k
the house needs about 10k repairs to get to fmv
the loan payoff is about 118k
thoeretically there is 12k equity but I don't think things will workout if I buy and gross 12k. After realtors fees and suprise expenses and if it sits very long I won't make a dime. Is it possible to SS this house? It looks really bad in a lot of places, so I can show the bank some bad pictures. Also it was in forclosure but we bailed them out with 5k that we could put as a 2nd lien or something. next payment is due in Feb. What do you think?
Once you can determine the as-is, fair market value.. and be able to defend that value as it comes under the intense scrutiny of those who have been asked to consider accepting less than they are due..... you probably have a good short sale candidate.
To be successful more times than not, there is a bit more to the process than simply showing the mortgagee a few pictures.
In addition to the mortgagor's boilerplate application, you should prepare a compelling and supportive Proposal to accompany the application. Be in control of the facts, and the process.
I agree that you may have a good short sale candidate. On the other hand,, you might have a good lease purchase property. If you can put the money in to fix it up, and get some back on a deposit, and hold it for a year while someone makes the payments, then you cash out at highest possible value.
If you hold it longer, stands to reason that it might go up. (although I know from personal experience that real estate does go down most unexpectedly!)
Sounds like you bought subj.-to, could be a good deal!
Shelly