Got The Bank To Approve - Now What
House should sell for 110k after 8k in repair. 1st said that would got down from 92k to 64k. 2nd said they would go down from 7k to 2k. I told the 2nd that I was a note buyer and that I wanted to assume the note.
So I ask the 1st to send a letter. Pay off the 2nd. It is about 2 months until the foreclosure date. Is it better to use conventional financing or to use hard money. I have easy access to either. Of course it depends on partly your exit strategy, but just for the SS process what are the trade offs of conventional vs nard money.
Title company - do I take my letter to the title company and just start the process? Anything in particular that I need to tell the title company? I doubt they have experience with short sells.
Thanks
Brenda
Hi Brenda,
Generally when a bank approves a short sale they will give you a short amount of time to provide the dollars. Most of my shorts are less than 30 days. This is generally not enough time to get conventional dollars, I wouldnt want to bet the farm on it.
If they have given you a longer amount of time, then the option is yours. Hard money will be quicker, but it will cost you more. Conventional money will cost you less overall, but you will need to bring money to the table most of the time.
Private money is a great alternative to both. Have you considered that approach?
BAMZ
No, I have not used private money. I know that they can do whatever they want - it IS their money - but typically is it a fixed term like 30 year or a shorter term with a balloon. Will have to start asking around.
For the title company, do you ever have problems with the title company getting the approved payoff amount?
Brenda
Hi Brenda,
Once you use private money, you will agree that there is no btetter way to fund deals. Read this article and let me know what you think.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=437
BAMZ