First Short Sale, MAYBE.
I have a potential deal where the seller is in BR. The bank already has the keys to the property and will foreclose May 6th.
FMV=$182k
!st = $132k
2nd = $42k
loans totaling $174k
The seller doesn't care about the foreclosure as he is charging off the mortgage. I would like to initiate a purchase subject to the bank accepting $xxx,xxx.xx then negotiate a SS with the lender. XXX Bank has both the 1st and the 2nd so I might be able to get a significant discount off the 2nd. If I can get the bank to accept my offer, I would then like to assign a fee to the contract and flip it to another investor.
Would this be a good transaction for my first SS? Details, tips, hints anyone?
[ Edited by dmbaker on Date 04/10/2004 ]
The scenario you have described won't happen.
You might be able to negotiate a discount with the second mortgagee... but your Purchase Contract with the Seller must first be approved by the bankruptcy trustee OR, the bankruptcy trustee would have to abandon it's interest in the property....
Then, before your Offer could be approved by the mortgagee(s), you would have to demonstrate your ability to complete the transaction.(preapproval/prequal letter, letter of credit, bank statement)
Mortgagees are not inclined to pay an entreprenurial fee to a contract flipper.
[addsig]
My RE attorney said that once the stay is lifted I am free to negotiate with the mortgagee for the balance owed. So XXX bank's attorney submitted the motion and has had the stay lifted in order to proceed with foreclosure. The foreclosure has been put on public notice so it has to have been lifted. Is my attorney not correct? What am I missing? Once the stay is lifted by the bank, this situation is just a bank foreclosing on the property right?