Working my first short sale
Well to give you guys on how my short sale is going. Most of you guys out there know that I am not new to landlording but new to purchasing real estate through pre-forclosures.
Anyway, I have been working on getting some deals closed soon. With a week left of time before the auction date, everything is getting down to the nitty gritty on some of these deals. On one I worked out a forebearance agreement with the seller(prime rehab and rental). Another deal working out another forebearance as well (nice $299 fee). Third one I am still working with the short sale department.
I guess every bank is different, but maybe somebody can point me in the right direction. Last night the lender finally moved my short sale package to a "different" department to, I guess, finalize the details of the sale.
Yeaaahhhhh!
Then I get on the phone with this lady who is supposed to be a realtor working for the Bank. They said that they had some big problems with my package and figures. They now required a couple items.
1. A Licenced Contractors estimate of the repairs neccessary to the house.
2. A Loan commitment from a bank.
I was able to get the LC estimate without a problem. Because of my rentals, I was able to get my handyman to write up a quote.
The loan commitment takes more than a day. So I should hear something back in the next couple of days.
So my TCI friends, we will see if this deal goes or blows. What do you guys think??
ATA BOY JOEL!
Keep pumping those Deals man!
Like your style!
Derrick Ali
[addsig]
Joel, what is your method for finding pre-foreclosures? Are there any methods that you've found to be more effective than others?
Quote:
Joel, what is your method for finding pre-foreclosures? Are there any methods that you've found to be more effective than others?
Going to the court house and finding who is in foreclosure and then contacting them directly by mail or going to the house.
Well this deal blows. The lady asked for a bank lending agreement. With only a couple of days to go, I will have to let this pass. But at least I know that I can get another one if I try. Anybody know any good hard money lenders for NC?? I think if I had the financing in place to start off with it would have help us out on this deal as well.
[ Edited by joel on Date 05/20/2002 ][ Edited by joel on Date 05/20/2002 ]
JOEL:
Try getting a 45 Day Non-Exclusive Purchase OPTION on the home then immediately place an Ad to Seel it LOW MONEY DOWN-NO CREDIT CHECK, NO NEW BANK LOAN-10% TO 15% MOVES YOU IN!
or say:
NO MONEY DOWN
MOVE IN WITH 2-3 PAYMENTS!
TAKE OVER MY LOAN!
CALL JOEL: (xxx) xxx-xxxx
Then you can lock up your sale with the Owner by getting their loan re-instated using the 10-15% or 2-3 payments from the SUCCESSFUL RESPONDER to the AD
Have the Original Owner to leave their mortgage in place for a couple of years,
Earn positive cashflow off of your New buyer until they can qualify in 2-3 years!
All this using an Equity Holding Trust(tm)!
How does this sound for your Next Deal JOEL?
Let me know!
Derrick Ali
[addsig]
The problem was with that house was that it needs about 25k to fix it up. I wouldn't mind doing it how you described but I my biggest problem is that I needed to get a hard money lender yesterday in order to do the deal.
JOEL:
Doing it the way I suggested would have gotten you the necessary control to OPTION it to OTHER prospective REHABBERS This is the way your AD would read:
"NO MONEY DOWN HANDYMAN!"
Fixer Upper-No CREDIT CHECK, TAKE OVER MY PAYMENTS, NO NEW LOAN! Your SWEAT is the DOWNPAYMENT! 4Bd/2.5Ba, Save Money doing it yourself! CALL JOEL (xxx) xxx-xxxx!"
[addsig]
With Joel's situation, it seems like there is not enough time to advertise with pre-foreclosure situations?? This would probably be great if Joel already got the foreclosure and then just wanted to get rid of the payment and have someone in there!