How To Get Short Sale Rolling W/ Motivated Seller?
I got a call from someone with a 2/1. Comps out at 100K. They owe 83K and are about 4k in arrears. He claims there are no liens. I am meeting tomorrow. He is VERY anxious to get the money to pay back his loan and get $$. I would like to possibly short sale this deal.
My goal is then, to flip to other investor Problem is - this is my first deal (been doing this for 2 weeks now) and am wondering what should i do at my meeting tomorrow? And at what point does the seller get the 4K?
Thank you in advance!
csilvestr
Hi csilvestri,
You stated that the 4K was for arreas, how much does the seller want out of this?
BAMZ
He would not give that information to me over the phone, but I am assuming 4-6K.
csilvestri,
See what kind of information he will give you tomorrow so that you decide if this property and or his circumstances are a good candidate for a short sale.
In my opinion, I wouldnt buy this unless I negotiated a SS. If you buy for $83K, plus back taxes $4K, plus the seller wants $4K, you would be in this one for $91,000. There is not enough profit in this one to get me excited. If you did get it a SS approval, the seller would get his money on the day that you closed on the property, or on the day that he vacates!
Best of Success!
BAMZ
Is it possible to finalize a short sale in 10 days or less - or would that be pushing it?
In theory yes! In real life no! You would need to get the sale date extended by calling the lender.
Csilvestri,
BAMZ is absolutely correct:
Unless you arrange with lender to postpone the sale date you have NO chances to complete the Short Sale in 10 days. If the mortgage company would not cooperate you may try to motivate them by offering some dollar compensation (reasonable, of course) for each day postponed.
If you planning to flip the property to other investor, make sure that you have at least a 20-30 % cushion in price or you will have a hard time selling it.
Also,
What ever the amount your seller might want to get out of the deal, make sure that this is not part of your HUD-1 statement. Banks will not cooperate on the Short Sale if the owner to walk away with cash. They consider forgiving the debt being a result of the financial struggle but not the way of making money by homeowner. You can pay him for utilities, furniture, etc after the sale and make sure you keep the receipt,
Hope this helps.
Dmitry.
[ Edited by Dmitry on Date 11/11/2003 ]