Need Help with 1st Short Sale!

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Hi,

I'm a newbie & need help. I want to purchase this for my personal residence (not to flip, etc).

The owner is an airline pilot who was laid off & had to relocate to find work. He vacated the home last December and it is sitting vacant in Florida. He filed Chapt. 7 bankruptcy which recently became finalized. He is happy to work with me.

There is a 1st with WAMU for $137K (including arrears) and a 2nd with Suntrust for $46K (incl. arrears). I have spoken to Suntrust & offered to do a short sale for $25 - they countered verbally at $32K. WAMU sent me a 2 page financial form for the owner to fill out indicating any hardship involved. I am to include this with my proposal to them along with a net sheet.

I have no experience with this & would like to know how to proceed to close this deal. Is there a good book I could buy that will help me or are there good examples of what I will need to include in my proposal or presentation to them? What about a "net sheet"?

I do have the cash in order to simplify this short sale. Any help you could give would be greatly appreciated! Thank you,

Steve

Comments(2)

  • tanya12155th May, 2003

    There is a few articles on this forum that give overviews of short sales. Here are a few written by the TCI short sale experts, Dwan Bent-Twyford and Sharon Restrepo:

    Real Estate Short Sale Secrets
    FAQ's about Real Estate Short Sales
    Loss Mitigation During PreForeclosure: Friend or Foe

    Their course is available here in the TCI shop. You can check out their selection of products here:
    http://www.thecreativeinvestor.com/ChanPart-ForeclosureCourses.html

    Also, a net sheet is a settlement statement in which all expenses are shown and the amount due to the seller, which should be zero. If you have never created a net sheet before, then I would suggest trying http://www.EasyHud.com They provide a service in which you enter the numbers in the specified fields and the finished version is e-mail'ed to you. It's great for people who are not familiar with using a net sheet.

    Tanya[ Edited by tanya1215 on Date 05/05/2003 ]

  • srs8th May, 2003

    Thanks for your reply to my post Tanya.

    The articles you suggested were helpful & give me some better direction.

    When I send my package to the loss mit. dept at WAMU: How many comps do I need? Must they be from the immed. neighborhood or just similar sales in the same town? Also, do I send a Contract to Purchase signed by myself & the homeowner with a sales figure? Are there any good examples of what my cover letter should loo like? Should I at this point employ a title co. to do a search for liens on this property - I have searched the courthouse records myself.

    Thank you again for your help.

    Steve

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