Lenders Who Fund Short Sale Closings?
As a follow-on question to "Need Help Analyzing A Short Sale"...
What are the hurdles to getting a conventional lender to participate in the finding of a SS purchase? Or is it even possible?
I'm ready to go with Countrywide for a retail purchase, but I want/need a better deal than that. Since the question just hit me tonight, I haven't asked my CW rep if they will play ball.
What is the general experience out there? Do you use Hard Money and then refi? Thanks in advance!
The biggest mistake that new folks make is that they put the cart before the horse, and don't have a solid business plan, seemingly to prefer to fly by the seat of their pants.
I'd recommend that you get acquainted with a few lenders, a few real estate brokers, an appraiser or two, a title searcher, and a reliable building contractor or three.
By speaking with these folks in advance, you'll be better able to approach/structure your proposed acquisitions in a way that they are likely to close.
If you aren't prepared, you'll find yourself running out of time... losing the house to foreclosure sale, bankruptcy, conventional sale, or to another, more prepared speculative investor.
Speak to a hard money lender or two. Learn their criteria. Sometimes a HML will be the indicated choice. Othertimes, conventional financing will suffice.
[addsig]
I didn't realize that a conventional loan for a short sale is not typically used!! We have just received the short sale packet for a home we are trying to get from Countrywide for our own personal residence.
PLEASE let me know, in detail, what I need to tell a lender when requesting this type of loan.
Is this a location specific thing?
Why would the lender care that it's a short sale?
Good question, probst, where are you located?