Short Sales FHA
I was reading over some training material today and as I understand it, FHA only shortsales in some circumstances 82 to 87% of the as is value. Well, don't most home buyers use FHA loans? So, that may mean you virtually don't really get good deals short selling homes with FHA or VA mortgages correct?
Hi Adrienne,
Good question! Lots and lots of homebuyers still buy FHA, but there is still a lot that buy or refinance with conventional mortgages.
The good news is that FHA loans can sell at 82% of the AS-IS Value. Your job is to show the bank why the as-is value is less than current market value. If the bank (or realtor) doing the BPO agrees with you that it is worth a lower as-is value, then you can buy the property for 82% of this lower amount. Making your deal more profitable.
So in short, you can still make a very nice living off of FHA properties if you present them right. In additional, in certain circumstances you may receive larger discounts or short sales on conventional mortgages. So work them both and make money with both. I've not had much luck with VA loans, they usually are around 92% of the FMV. I hope this helps!
Best of Success!
BAMZ
Hello Everyone,
I just got approve for a shortsale for 77,000 dollars from an original mortgage of 92,900. The property had an fha. The as is value of the house was 84,000. 82 percent of that is 69700 plus a realtor fee of 6 percent which came out to $4620. title closing cost of $1200 dollars and a second lien negotiated at $1996. which is about 77,000 give or take a dollar. my lost was with the mortgage company countrywide wanting to list the property with a realtor but I am assigning my contract to buyer for 15,000 dollars. it took me 3 months to get approval but I guess it was worth it.
Congrats. 3 months isn't too terribly long. Get a non-refundable, good faith check (of at least 25% of the $15K) upon assignment of the contract. Once it's out of your hands, anything can happen to blow up the deal.
Thanks for all the responses. I have another question though, it was my understanding that when you do a short sale you have to do a "double-closing" so you won't look suspicious to the mortgage company. I did not think you could do an assignment of contract. Please let me know if this is right or wrong? Also, I have tried to find an absentee owner listing, but not getting good results on the net. Does anyone have suggestions on finding this listing?
I've assigned approved preforeclosure/short sale contracts.
It's a matter of laying the proper foundation for your Proposal, luck, and your negotiation skills.
Double/simultaneos closings work, too.
I have been approve for a shortsale I have a buyer thats been approve for a loan. I have a current title report from a company that can't meet my closing date. someone wants to buy my contract for 19,000 but they want to pay me at settlement. How do I proceed in finding a title attorney that can close quick.
I would ask fellow investors. Or just call around.
Tom
bigg redd
contact investors or go to investors meetings and find out the famous attorney or title company in town that the experienced investors use.
***Please See My Profile***[ Edited by rajwarrior on Date 06/21/2003 ]