? For Short Sale Pro

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A person called me today who is 15 months behind on his 2BR townhome. He is $30,000 behind on the 1st ($165,000) and $6,000 behind on the 2nd ($43,000). The mkt value of property is $255,000. He said he spoke with loss mit and they said they he will receive a notice of sheriff sale any day. He is willing to do anything to avoid foreclosure and would like to stay in the prop if at all possible.

My question: What do you recommend I do with the property? Do I try a short sale on the 1st & 2nd? Should I look into buying the redemption rights and go that route? Thanks. I'm a newbie to short sales so you're input will really help.

Comments(3)

  • TheShortSalePro23rd November, 2004

    How much is owed on the first? $165,000 or $195,000? Either way, the first has no incentive to short. Your best bet would be with the second mortagee.

    How are the HOA fees? Current?

    Due to the inflated arrearages, my guess is that the Seller was in bankruptcy... and now the bankruptcy has been dismissed facilitating the Sheriff's Sale.

    It's tough to recommend a course of action without knowing more details... and this is not something I would do pro bono.

  • tdavid7623rd November, 2004

    The total balances with the arrears is 165k and 43k. Thanks for your input. I guess I'll try shorting the 2nd and see where that takes me. In the meanwhile, I guess it wouldn't hurt to buy the redemption rights anyway. Even if someone picks it up at the auction I have 10 days to get the property back. I've also heard of people in that situation asking the auction buyer to act as the hard money lender and just make payments to them so they at least come out with something. Is this something you've heard of before?

    Thanks again. Your input on this board is invaluable.

  • TheShortSalePro23rd November, 2004

    "I've also heard of people in that situation asking the auction buyer to act as the hard money lender and just make payments to them so they at least come out with something. Is this something you've heard of before?"

    I'm not sure I understand your question.

    As far as buying the redemption rights... to redeem you must pay the entire judgment amount. In light of the huge arrearages... my guess is that other liens have attached, as well, and will far exceed the property's value.

    Be very certain to ascertain the past due HOA fees....

    If you need some hands-on help... click on the SSP's banner ad.
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