Here is one I got from a member of our local REI club here in AZ. I don't know if it will work for EVERYONE, but it may be a good starting point for you. You can edit it to your needs.
Anyone else plese feel to critique it. I would like some feedback.
ABC Mortgage Bank
Attn: Loss Mitigation Rep.
Re: Loan #12345
Dear Mr. Jones:
As you know Sue and Bill Brown own the property located at 123 XYZ ST, Anytown, USA and are facing foreclosure. I am interested in buying their house, but they owe far more than the property is worth in its’ present condition. Their attorney is advising them to file bankruptcy, but they don’t want to drag this on any longer. Their wish is to sell the house to me, save their credit from foreclosure, save you the hassle of having to complete the foreclosure process, and move on with their lives.
After much consideration, I am willing to purchase the property from them. However, because of its poor condition I cannot offer market value. The property needs a lot of work to bring it up to current market standards. I called a Realtor in this area and asked for the current market values and have based my offer accordingly keeping in mind the necessary repairs. Based on the area comps, you can see that Bob and Sally now owe ABC Mortgage Bank far more than their property is worth.
My offer is $40,000 cash as payment in full inclusive of all fees, taxes, etc. I am prepared to close in 30 days. However, this offer is contingent on ABC Mortgage Bank to waive any deficiency judgment against Sue and Bill concerning the shortage.
Attached is the authorization to release, contract for purchase, net sheet, photos of the property, contractor’s estimate of repairs, comparable sales in the area, and my proof of funds letter. Please review the attached documents and respond at your earliest convenience. We urge you to accept our proposal and move for a quick closing on this property.
Thank you for your cooperation. I look forward to working with you to help the Sue and Bill.
I use a much shorter straight-to-the-point letter:
RE: Loan No. 123456 (Joe and Jane Smith)
Dear Mr. or Mrs. Contact Person**Always find this out!!**:
Thank you for the information you faxed to me***I had them fax me a payoff and VOM***. What information do you need from me in order to accommodate my short payoff request?
We have a number of things to consider which you may or may not be aware of:
1. The first mortgage is delinquent and has initiated foreclosure proceedings. Sheriff's sale is set for June 1, 2009
2. The value of the property is substantially less than the balance owed on the property.
3. In the next upcoming months the property is able to be redeemed for unpaid property taxes, thus removing all liens.
4. There is a considerable amount of repairs needed for the property.
5. The first mortgage servicing company has indicated that it will be following FHA guidelines in servicing this note which drastically limits the amount junior lien holders can receive for payment.
6. A title search has indicated eight (8) liens on the property which must be satisfied before the property can be transferred, all of which require a short payoff.
I respectfully request an approval for a payoff in the amount of $1,000.00 to be paid within 45 days. I ask that the approval not be specific to a certain name because I will likely purchase the property in an LLC.
Thank you for your time,
Here is one I got from a member of our local REI club here in AZ. I don't know if it will work for EVERYONE, but it may be a good starting point for you. You can edit it to your needs.
Anyone else plese feel to critique it. I would like some feedback.
ABC Mortgage Bank
Attn: Loss Mitigation Rep.
Re: Loan #12345
Dear Mr. Jones:
As you know Sue and Bill Brown own the property located at 123 XYZ ST, Anytown, USA and are facing foreclosure. I am interested in buying their house, but they owe far more than the property is worth in its’ present condition. Their attorney is advising them to file bankruptcy, but they don’t want to drag this on any longer. Their wish is to sell the house to me, save their credit from foreclosure, save you the hassle of having to complete the foreclosure process, and move on with their lives.
After much consideration, I am willing to purchase the property from them. However, because of its poor condition I cannot offer market value. The property needs a lot of work to bring it up to current market standards. I called a Realtor in this area and asked for the current market values and have based my offer accordingly keeping in mind the necessary repairs. Based on the area comps, you can see that Bob and Sally now owe ABC Mortgage Bank far more than their property is worth.
My offer is $40,000 cash as payment in full inclusive of all fees, taxes, etc. I am prepared to close in 30 days. However, this offer is contingent on ABC Mortgage Bank to waive any deficiency judgment against Sue and Bill concerning the shortage.
Attached is the authorization to release, contract for purchase, net sheet, photos of the property, contractor’s estimate of repairs, comparable sales in the area, and my proof of funds letter. Please review the attached documents and respond at your earliest convenience. We urge you to accept our proposal and move for a quick closing on this property.
Thank you for your cooperation. I look forward to working with you to help the Sue and Bill.
Sincerely,
I use a much shorter straight-to-the-point letter:
RE: Loan No. 123456 (Joe and Jane Smith)
Dear Mr. or Mrs. Contact Person**Always find this out!!**:
Thank you for the information you faxed to me***I had them fax me a payoff and VOM***. What information do you need from me in order to accommodate my short payoff request?
We have a number of things to consider which you may or may not be aware of:
1. The first mortgage is delinquent and has initiated foreclosure proceedings. Sheriff's sale is set for June 1, 2009
2. The value of the property is substantially less than the balance owed on the property.
3. In the next upcoming months the property is able to be redeemed for unpaid property taxes, thus removing all liens.
4. There is a considerable amount of repairs needed for the property.
5. The first mortgage servicing company has indicated that it will be following FHA guidelines in servicing this note which drastically limits the amount junior lien holders can receive for payment.
6. A title search has indicated eight (8) liens on the property which must be satisfied before the property can be transferred, all of which require a short payoff.
I respectfully request an approval for a payoff in the amount of $1,000.00 to be paid within 45 days. I ask that the approval not be specific to a certain name because I will likely purchase the property in an LLC.
Thank you for your time,
Signed
These are awesome. Thank you so much for sharing. Certainly they give me somewhere to start.
Anyone else want to share theirs?
watch out for state to state gotchas.
Hi Myfrogger,
What is you rate of success with this letter. Thanks for sharing! also maybe be obvious but what is VOM?
Yes, what is a VOM and what is meant by "watch out for state to state gotchas"
There is no need to worry about what state you are in at this point. The purchase agreement may vary state to state but this is simply negotation.
VOM is Verification of Mortgage which basically gives me the monthly payment, interest rate, escrow info, etc...