Help...
I posted this on the Short Sale forum but I think I need help from you too...I was attempting a short sale with a house that is going up for aution on the 19th. He owes about $130,000-$13,000 in back payments. This is a home that my husband and I were considering buying, fixing up and living in for a few years and selling and a much higher price. I have the owners cooperation completely. He is out of the house. Here is the problem, when I called GMAC Loss Mitigation Department yesterday (after speaking with 3 other people from the same department) the gentleman said that the person still owned his home until it went up for auction on the 19th. That because he filed bankruptcy there is no need for the whole short sale stuff. That I should make an offer to the owner "per approval of GMAC." He said to write up an offer, with net sheet, pre-approval letter, and an appraisal (because it would be easier and faster for them to process it) and fax it to him. I got the keys to the house, got the appraisal done (appraised at $133,000) and took lots of really bad pictures. This house needs so much work-major cracks in the slab foundation, mice in the house (with lots of droppings), possible smoke damage (my husband is a firefighter and says that the ceilings and walls have smoke damage and the walls were just painted over, hardwoods in the great room need to be replaced due to water damage at one end and crack in the foundation that pushed them apart, the place needs to be painted completely, new flooring in the kitchen, master bath shower needs to be replaced, stress cracks everywhere, and the yard is completely in shambles with garbage, overgrown grass, etc. Okay here is my question...how would you handle this? What would you offer? This house is a 4 bdrm home, 2200 sq ft., approx. 8 years old. GMAC said that they may not be able to stop the auction on the 19th but that I should fax him this stuff as soon as possible. My husband and I are stressing over this. I was considering offering between $85,000 and $95,000. Please help.
That because he filed bankruptcy there is no need for the whole short sale stuff.
Gee, you neglected to mention this in your post to Short Sale Forum.... or in any of the six or seven posts that followed.....
You and your husband are 'stressing' because in all likelihood, you don't have an adequate foundation in the mechanics of realty/financial transactions... the presence of bankruptcy should raise a giant red flag and cause you to review the steps you took to prequalify the ss candidate....
The more you read, the less likely that you will 'stress' because you'll have a better understanding of the process.
On my list of things to do, I've drafted an essay, "Bankruptcy and it's adverse impact upon preforeclosure short sales..." Guess I'll try to finish that one today.
[addsig]