First meeting with homeowner
At the first meeting with the homeowner, I got an authorization to release info, got a hardship letter and took some pictures of the property. I'm getting ready to put together the hardship package, but do I need anything else from the homeowner at this point? Do I have to pay them anything to make the deal binding?
What are you trying to accomplish? What is your Agreement with the Homeowner?
If you have asked that the Homeowner enter into a written agreement with you, perhaps a Contract For Sale of Real estate, it's customary to provide consideration... even $1 would suffice.
Initially, I don't prepare Contracts for Sale.
I prepare an Offer to Purchase. It spells out what each party must do before we enter into a Contract For Sale.
It formalizes the due diligence process, and paves the way for a Contract For Sale.
I'm trying to work a short sale. So I would create an offer to purchase the home at the amount I plan to offer the bank, and give the homeowner a $1.00 down payment?
You could do that. Do you have all the other stuff you'll need? For example, do you know what the property is really worth? Do you have a short sale application from the mortgagee(s)? Do you have an idea of what else is on title (judgments, etc.) Do youhave the full cooperation of the Seller?
I have a fair idea of what the property is worth in repaired condition, and they don't have a second/third, etc. I'll have a title co. check the title for other leins. And the seller is on board. I just needed to know what has to happen to lock the seller in so that someone else can't come along and take the deal.