Evaluating A Deal
Here’s the deal:
Small 2-bedroom condo that was purchased in July 2003 for $91,000,
Refinanced in summer of 2004 for debt consolidation for $130,000.
Appraised at $130,000 when refinanced.
Pulled comps and they support a value of about $120,000.
HSBC is the lender and their total payoff amount is $142,800 with all fees and a prepayment penalty.
The owner has a place to move to and is ready to just walk away.
The think most likely exit strategy would be to sell retail.
Am I looking at a decent candidate for a Short Sale or is it to slim?
Any and all thoughts would be appreciated,
Thanks
Brian
:-D
Brian
Looks like you will have to get this for no more than $96,000 to make a marginal profit.
You are asking the lender to take a $24,000 hit.
This will not be an easy short sale but will be dependant upon the areas current market status, the number of foreclosures that HSBC is dealing with and how your customer has dealt with them.
How many payments are they behind?
How does their payment compare with the market rents of the area?
Why did your customer not make their payments?
Have they made any major purchases during this time that will show up on their credit report?
This is just a start, just note sure yet without a lot of detail. HSBC can be some real butts to deal with some times.
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