Go ahead... ask

Comments(4)

• 
  robertmichon26th February, 2003

  How do Chapter 13 and 7 affect what you do when you're trying to buy a property?
  
  How often do you let the seller stay in the house, and under what conditions?
  
  Thanks!

• 
  bginvestor26th February, 2003

  Short,
  
  Yes, I have a few specific questions about short sales.
  
  1) How much in your opinion/or experience, do you feel you can short sale (percentage wise) a 1st loan? What would be an average?
  
  2) What do you present to the loan officer to convince them that they should short sale to you?
  
  3) If the banks agree to a short sale, do they require CASH only to pay off the loan or do they also allow a new conventional loan to pay off the loan?
  
  Thanks in advance,
  
  Bginvestor

• 
  TheShortSalePro27th February, 2003

  1)How do Chapter 13 and 7 affect what you do when you're trying to buy a property?
  
  AAA: If a mortgagor is in bankruptcy, just about any proposed contractual transaction must be pre-approved by the Bankruptcy Trustee. Even a listing agreement must be approved for it to be valid. Most mortgagees won't consider accepting a short sale proposal unless/until the mortgagor's bankruptcy is either discharged, or dismissed.
  
  2) How often do you let the seller stay in the house, and under what conditions?
  
  AAA: I do not recommend letting the former Owner remain in the property as a Tenant, unless the Buyer/Landlord is a friend, or family member who bought the house via short sale to help.
  
  3) How much in your opinion/or experience, do you feel you can short sale (percentage wise) a 1st loan? What would be an average?
  
  AAA: Except in the cases of government insured mortgage loans, the 1st loan balance or amount in arrears is immaterial. The only number that matters is the mortgagee's perception of the as-is, fair market value.
  
  
  4) What do you present to the loan officer to convince them that they should short sale to you?
  
  AAA: I only accept short sale assignments (fee based) on a case by case basis. If I feel that a particular scenario warrants, I'll prepare a comprehensive Short Sale Proposal that includes all the information requested/required by that particular mortgagee(s) for consideration. To make my Proposal more compelling an argument, included are a review appraisal, and a (copyright protected) CPA prepared Cost Benefit Analysis that includes a Time Value of Money projection. My proposal is professionally packaged, and placed into the hands of the authorized/empowered representative... it's arrival scheduled to coincide with their weekly staff meeting....
  
  5) If the banks agree to a short sale, do they require CASH only to pay off the loan or do they also allow a new conventional loan to pay off the loan?
  
  AAA: That depends. They'll want to close within 30 days from their approval. That would mean that you would either have to have cash, or some financing prearranged. Be careful. You don't want to have conflicting appraisals... On one hand you are trying to convince the mortgagee that their collateral is worth less than they think... so it isn't wise (IMHO) to on the other hand tell them that making a loan would be a sound investment. Way too complicated. Bring you own money to the table.

• 
  bginvestor28th February, 2003

  Interesting! Thanks..