Can I Short Sale Here?
I have a very interesting situation here! I'm just wondering my possibilities. Being new and dumb in this, I have made some mistakes.
I bought a house for $178,500 on contract for deed subject to two existing mortgages ($108,000 & $32,000)
I put $40,000 into the home and estimated the ARV to be $250,000. However, ARV is actually closer to $220,000-$230,000.
For whatever reason my montly payments has NOT been to the mortgages! Seller is behind but no sheriff sale, etc yet. Only final notice has been sent, from what I gather.
Now...if I could drop the price $15,000-$20,000 I could easily sell the house, and move on from this situation.
Can I contact the bank to see about a lower payoff? What steps should be done first?
Keep in mind that I don't have any money to put forth!! I have no lines of credit so right now I have NO money to work with here.
Yes I know I am in a bit of a situation but hopefully I can correct this mistake. My other deals so far have gone great so I just need to get out of this deal ASAP. I no longer care if I make a profit as long as I break even!
THANKS
Now that the property has been repaired and marketable, you've lost some leverage if thinking short sale. Neither the first or second mortgagee has much of an incentive to consider a shorts sale.
Revise the asking price to reflect it's market value, and sell that property as quickly as you can. Foreclosure costs will escalate further eating into any profit.... consider this tuition.
In general, problems that many speculative investors face arise when combining acquisition techniques... failing to appreciate that 'real estate' is not a liquid asset... irrespective of how creative you might be...[ Edited by TheShortSalePro on Date 11/15/2003 ]