Is There A Potential Deal?
There is a house up for sale on the 24th of Feb. The person owes 240k and the house is appraised at 300k. the owner of the house has gone through a divorce and has already filed bankruptcy one time before. The crazy thing is that they have not put the house on the market, which would probably be an easy sell. Can i just take over their loan, and pay back payments? It sounds to easy, but some people are probably just dumb, and some just flat out do not care. What should be my next step?
Thanks for your time!
it is very instesting your situation, but I do not know what to answer, since I am newbie and I am learning. I would like to see if a pro can answer this
Ray
ShortSale pro:
in Pre-foreclosures deals to do a SS, can I do a transaction using a loan of a bank ? if so, let suppose that the bank accepts my offer, what do I need to do to let know that I will get the money from a loan or to pay to the bank ?
thanks
Ray
thank you
Short Sales Pro:
Like a newbie I am learning from your wisdom advises
thanks again
how many payments are you behind. i believe you have to be atleast 3 for them to consider a short.
We are looking into buying a house by short sale not sell. The couple we are working with missed the last month payment and this month. Once they hit three they will request the short sale packet.
Thank you Samedwin for your reply. So would it be dicounting after the lender has it back ?. I thought I made my questions clear , but I guess not. I will try and do better when posting.
Thanks !!!!!!!!!!
Thanks for the help. I used the term discounting because I read it somewhere that when you work on a reo , that is what it is called. I am new to this , So what do I know. Just trying to learn from you PROS.
Perhaps there is a difference. I am certainly not a pro at this niche, but I understand that:If the lender will accept less than the full balance due on the mortgage loan, then the sale of the property is a short sale (i.e., the sale proceeds are a bit "short" of what is needed for full payoff).
If the note holder (lender) sells you the mortgage note for less than the present value of the note, then you have purchased a mortgage note at a discount.After the lender has taken back the property through foreclosure, the lien on the property is extinguished -- the mortgage note is wiped out. There is no longer an existing mortgage balance to short, nor is there a mortgage note to sell at a discount.
If you want to still purchase the property from the new owner (the bank) at less than the asking price, you just have to negotiate a lower purchase price.
Hope this helps.
The main issue regarding purchasing a property after foreclosure is that the minimum you can offer is based on the sale price that the bank got the house back with (accepted bid at auction).
The second issues is that you will more than likely be paying the real estate commissions because REOs are listed with realtors. The commissions cuts into your profit post auction and may be avoided pre foreclosure auction.
Good Luck![ Edited by islndgrl444 on Date 02/12/2005 ]
from what i know there is NO minimum as to what you can offer the bank. you can offer them 1 dollar if you so choose. some properties they own sit forever with frozen pipes and broken heating systems that would never sell for the price that they are owed. realtors are legally supposed to submit any offer that you give, and if not then they are violating some sort of realtor crap, even if it is a low ball offer. sometimes thats the only way the numbers will work.