Short Sale Basic questions for first timer
Hi, I understand the concept of the short sale, but do not know all the details.
1)Is a month enough time to execute?
2)Are special forms required? Does the bank provide?
3)Should you first contact bank to see if they are interested or the home owner?
4) house worth about 150K, needs 5-10k repairs, 135k owed on it..a good prospect? What would be a good starting price for negotiation?
5) if bank and owner agree to ss, does this free up the home owner from all foreclosure cost and losses the bank will take?
6) Are there any secial criteria that must be met by the defaulting home owner?
I know these are a lot of basic questions and I appreciate any and all help! Jst trying to decide if I should approach the owner.
also, would anyone know who the contact is for short sales at Suntrust Bank, Atlanta??
1)Is a month enough time to execute?
Perhaps.
2)Are special forms required? Does the bank provide?
The mortgagee will provide the Homeowner with a basic, boilerplate application. The Proposal, however, and all supportive materials is something that should be devised by You to accompany the boilerplate application.
3)Should you first contact bank to see if they are interested or the home owner?
I would learn about the Homeowner's needs, first. If a short sale isn't feasible, then another technique might be. As you can guess, there are about a gazillion wannabee investors for each opportunity. If you establish a rapport with the distressed homeowner, you'll be in the driver's seat... irrespective of what acquisition technique you employ.
4) house worth about 150K, needs 5-10k repairs, 135k owed on it..a good prospect? What would be a good starting price for negotiation?
5) if bank and owner agree to ss, does this free up the home owner from all foreclosure cost and losses the bank will take?
Not necessarily.
6) Are there any secial criteria that must be met by the defaulting home owner?
Oh, yes.
If you are serious about learning about the short sale technique, I suggest that you buy A Short Sale Primer.