2nd Chances At Short Sales
Seller has 15 days to Sale date. First Short didn't go through, seller says his income was too high. Original short proposal was done with a RE agent for $130K. FMV = 155k - 160K. Needs about 8K - 10K in rehabs. I'd like to get it for $119K and wholesale.
I'm working to get a reinstatement amount to see about a Sub-2 deal, but I'm 99% sure it's too rich for my model. Any chance on offering another short proposal? What kind of odds on lender postponement of sale?
Thanks
Big,
Anything change in the owner's income?
If not, why would bank change their mind?
Just the way I see it,
Kelly(WI)
Is there only one mortgage on the property? It is very easy to short sale a junior mortgage so a very good option may be to catch up the first and take that sub2 while shorting the 2nd and everything else to a very low amount.
another newbie question, what is Sub2??
4my,
A sub2 is taking over a property subject to the existing mortgage. Say you have a home owner who wants to sell their house but they only have had it for1 or 3 yrs & had a 95% loan. On a $100,000 home they have little equity say only 5% for this example. What would it cost those people to sell thru a realtor? Usually 6-7% plus 3% closing fees, plus most people negotiate 3% off of the price, plus the time it takes to sell = another 3% or so. What have we got, 16 % of the price of the home = $16,000. So, 16,000 - 5,000(equity) = $11,000 that the sellor would need to bring to closing to sell the property! Ouch! How about I offer to take over their payments so they can move to that new job and not have 2 payments and the hassle of selling or get on with their life since the are divorcing etc.
There is a great Sub 2 forum here, check it out and search thru the postings.
Kelly(WI)
No second on the property so no way to short a junior.
Lender denied the first short sale. According to the seller because his income was too high. This was apparently attempted through the agent and I think the seller communicated with the bank. He may have P.O.'d the Loss Mitt, or something, no way to tell for sure.
We should have more info from bank today. I've never tried to postpone a sale. Does the trustee have control over the sale or do I need to contact the lender to try to delay the sale?
It's tough to revisit the well via an appeal, so in the future, make certain that the mortgagor's application accurately reflects the financial hardship... by beefing up the credible expenses on the application.
If the app was denied due to income, either it wasn't a viable candidate for short, or the application wasn't compelling...
You only get one chance to make a first impression. The same holds true with short sale presentations.
It's best to try to control the application/negotiation process from the beginning. If you arrive late in an already botched situation, it's tough going.