Short sale and Flipping

Comments(7)

• 
  tanya12152nd May, 2003

  You can flip a short sale, but if you don't know what you're doing, then it can be very hard to do. The bank usually doesn't allow it because they want to be guaranteed a payment.
  
  Tanya

• 
  KP8th May, 2003

  the safest thing that I've seen done is to do simultaneous settlement. If you don't actually assign your position then the mortgage co. only know about you and that they are dealing with you. If you bring the buyer in during yourdue dilligence period and get them to settlement at the same time then you still have to pay the extra closing charges but it'sdone from the proceeds of the second transaction. Your titile co should be able to set this up so you bring nothing to the table and walk away with your share.
  
  Great Luck,
  KP

• 
  cr1127018th May, 2003

  thanks a lot for that tip, I did not know thatr, hanks.

• 
  Chewy9th May, 2003

  So your saying that performing a double closing is the best way to flip a short sale?
  
  matt

• 
  cr1127019th May, 2003

  well after much work the bank only came down to 90k from 106k, and the house its worth 119k, however there is a second morg on this house and its for 20k which Im trying to bring it down to at least 7k, do you think that I should continue working on this property of should I walk away?

• 
  bbolt310th May, 2003

  If the 2nd mortgage numbers end up being in line with your original objectives then you are still in play. If it doesn't work, don't force it - move on as you make money on the numbers not the emotions etc.
  
  Keep at it!

• 
  KP10th May, 2003

  Chewy,
  A simultaneous settlement is one way to be absolutely certain that you can flip the property. The bank has no legal standing to prevent you from selling the property once you own it. Even if you only own it two minutes. However the bank can refuse to allow you to put "and/or assigns" in your purchase contract with them. If they do that then you may have to do a simultaneous settlement but be sure to try to put the assignablilty clause in your offer. They may let it go and then you wouldn't have the added expense of two settlements.
  
  sr112701,
  If the first mortgage holder came down (and I presume that they are the ones who started the foreclosure process) then the second is just as likely or perhaps even more so to come down. With the numbers you've given the house had negative equity. The second mort holder doesn't necessarily know that the first agreed to a short sale so they may see that their is negative equity and rush to settle with you. This all depends on how firm the 119k figure is and how hot the market is. If you think that you could flip the property before you put any money into it than it would be worth it in my opinion to continue to negotiate with the second mort. holder. If the numbers still don't work out to your satisfaction you can always let it go and then watch the auction. If the auction doesn't go well then the second could be wiped out and the first may be in a mood to negotiate even more.
  
  
  
  _________________
  Great Luck,
  KP
  Emerald Investment Real Estate
  eiremclaughlin@comcast.net[ Edited by KP on Date 05/10/2003 ]