Does The Bank Normally Appraise The Property For Repairs?
Hi,
Says I found a pre-foreclosure and work with the owner to come up with a list of repairs and send the lis to the bank. Does the bank normally send their appraiser or inpsector to the house to make sure that the repairs are necessary?
thanks.
If you're trying to short sale the loan the pro's say to send the bank a contractor's estimate of repairs along with the value given by an appraiser.
thanks.
After the bank accept the offer, now what?
Do I then negotiate with the owner to buy the house? What happen if the owner knows that I have made lots of profit from the short sale and decide not to sell the house?
thanks.
rcy,
Do not go any further until you have a signed purchase and sale agreement with a special stip regarding the bank accepting a discount. Then go to the courthouse and record a Memorandum of Agreement or whatever it is called in your state so the seller cannot go behind your back.
Once you have a signed purchase and sale agreement with the special stip:
"THIS OFFER CONTINGENT UPON ____________________ ACCEPTING A PAYOFF OF THE LOAN THEY HOLD, SECURED BY THE ABOVE REFERENCED PROPERTY, IN THE ORIGINAL PRINCIPAL AMOUNT OF ___________________ DOLLARS ($ ).
Go to work!
JohnCl
Your negotiations with the Owner/Seller are done BEFORE your offer is made to the mortgagee.... generally, they won't consider a request for short sale consideration unless the application includes, at a minimum, an executory contract for sale, and proof that the Buyer can pay for it.
If you make any allegations of needed repairs, you must assume that the lender will send out someone to confirm the truthfullness of the allegations.
Never overestimate the value of needed repairs... be as accurate as possible.
[addsig]
thanks for the help -JohnCL and ShortSale.
Do you guys have book or course on the instruction and forms to complete the first deal.