Chance Of A Short
I am looking at house thats worth about $50,000 as is. The owner owes $51,000 on a first mortgage with $9,000 in late payments. The house is an old two family and there are many many for sale around here that have been on market for months. The house needs work and I would need to be able to get it for around $30,000. What are the chances of bank taking this big of hit. The lender is option one mortgage. Thanks.
It's all about the lender's anticipated net recovery. If they feel that by foreclosing, taking back as an REO, holding, then liquidating will result in a greater net recovery than they would net by accepting your offer.... they generally opt to foreclose.
However, if your Proposal can demonstrate that the property is worth less than they think... that the resale market is worse than they think.. and they will actually net less than they think... you have a shot.
The Proposal should be compelling, and factual.