Very Little Time Until Auction - Strategy?
Hi
I posted this on the general questions too.
I have recently been approached by 2 homeowners whose property was up for Auction within 5 days. The numbers didn't pan out for me based on the small amount of equity that they had and although I don't have experience with Short Sales it seemed too close to Auction for this strategy.
Question is if someone is motivated this close to the sale (finally) and they have little equity what is the best way to make this work
It is almost always possible to get the sale postponed if you are serious about working the deal. If nothing else the seller can trot down and file BK then notify the foreclosure court. This will buy you at least 60 to 90 days.
Then you have time to negotiate the short sale.
A good lawyer may be able to buy you some time just by going in on an emergency motion saying that there are negotiations in process to sell. I don't do short sales but I do sometimes buy notes at a discount and my guess is that this close to the sale the lender is going to take their chances at the sale unless you create some roadblocks.
Have them file a complaint with your local Banking Commission contesting the amount due. Have them request a payment history and escrow account history and dispute the balance owed.
Our Banking Commission will force the lender to postpone the sale to make sure that the balance due is truly the balance owed. This takes 6-8 weeks and gives you time to do the deal.
Barbara
Rather than postponing the sale, is there enough time to do subject to? If the numbers are tight this may work in an area that is appreciating.
I have a hard time seeing why an owner would be open to short sale when they are not allowed any money except if you pay the mover for them? Just curious...
Is there enough time for sub to?
Can anyone share how they have been able to make this scenario work? Just a few days until the auction not a lot of equity but very highly motivated sellers. Thanks for all replies!
Quote:
Is there enough time for sub to?
Not sure how it works where you are from, but in Washington State you can pay off the outstanding amounts to reinstate the mortgage up to 11 days prior to the trustee's sale. So doing a sub2 within that time frame should be okay.
Hope this helps.
Vasiliy
Thanks for the responses. Can anyone share a strategy they have used to make this work? Little equity and a few days until the auction? I was hoping there was some creative way to make this profitable?
anyone else? Little equity and a few days until the auction?
Maybe...
What is the ARV?
Any repairs needed?
What is owing on the principal?
Arrears?
Will the sellers sign a deed to you, to avoid a foreclosure on their credit?
Will they do a sub2?
How much are the payments?
What would it rent for?
Give us these numbers to work with!
Most any lender would accept the arrears right up to the sale (even though the law says they don't have to, like in WA as mentioned above), they do not want to foreclose if they can aviod it. Question is, will the numbers make sense for a sub2 scenario. :-?