Need Help With Short Sale...
I am working on my first short sale...
I recently submitted a short sale package...scenario as follow:
The homeowner is in preforeclosure
1. Payoff is $253,000
2. Reinstatement is $83,000
3. Repairs total $113,000 (written estimates)
4. Appraisal value $225,000
I offered $120,000 to the mortgage company.
They just declined the offer...they say it is too low.
I was thinking of counteroffering at $130,000.
Can you all offer any suggestions?
What method do you guys use when counteroffering? What is your maximum counteroffer?
[ Edited by millionaireinthemaking on Date 12/31/2003 ]
Lotsa numbers, but what do they mean?
When calculating a short sale proposal, the amount needed to reinstate is immaterial to the equation.
The crucial numbers to know are the as-is, fair market value, and the liens of record.
Who appraised it, when, and for what purpose?
If the repair estimate of $113k is bona fide, you already have a problem in that your offer plus repairs exceeds the appraised value. However, I am assuming you used full retail repair cost which you will not be paying.
I would suggest you provide them more info to justify whatiever price you go back with. Include pictures that show all of the areas needing repair, provide comps, the repair cost, maybe send in your own BPO. Show the calculations taking into account the cost of those repairs. In your counteroffer, make sure it is low enough to leave you whatever profit you need in addition to your holding, acquisition, and sales costs.
Good luck!
Bob