May 3rd Sale Date. Need Help W/strategy
ok, I've been reading the posts, but I still need help w/the strategy. My expertise is rehab/construction
- sale date is 5/3
-owner owes $92k + 4700 arrears
- owner is settling 5k lien on prop
- appraisal in @ $125k (good area)
Strategy??
If a short sale can't be negotiated (or can it in this short time frame?) does it make sense to:
1) cure the debt
2) do a $ out re-fi (to get $ back)
3) re-sell or hold the prop
We found 2 lenders that will do the re-fi (no seasoning). I've never done a short sale, but my gut is telling me perhaps this should be my 1st. Thanks in advance for the advise.
I'll comment as to short salability.
The foreclosure process has just about run it's course. The mortgagee is close to getting paid, and probably will be paid in full... unless the property has some defects that aren't known to the lender, or the lender's appraiser who provided the lender with a BPO. Meaning, if the property is worth $125,000, and the lender knows that the property is worth $125,000... then why would they agree to accept less at this late date?
If you can think of a compelling reason why the mortgagee would accept less now, instead of waiting for a couple of weeks...to get paid in full then you might be able to facilitate a short sale.
But if you have no real reason, then a short is probably not feasible, and you should consider other acquisition techniques.
[addsig]
That's what I was thinking (no incentive for bank to short).
Since it's in a good area, good condition, we could have the deed signed over to us, cure the debt (get the prop for 4700) re-fi, rent it & still have equity.
Make sense??
Yes, a good plan. But make sure that the default can be cured... not all mortgage defaults/foreclosures can be cured. In some cases, the mortgagee may determine the loan to be troublesome and problematic, and decline to accept your payment.
[ Edited by TheShortSalePro on Date 04/22/2004 ]
Will do. Thanks so much!!! You (this website) are invaluable resources.
I believe you should attempt the short sale. You have nothing to lose and only to gain. The bank doesn't know the property will sell. In my area 80% of foreclosures that end up on the courthouse steps at auction file BK the day before the auction, postponing the sale many, many months and costing the bank additional holding/legal fees. There's also the time/value of money they would/should consider. Additionally, there's no guaranty someone will buy at the price the bid begins at. That depends, in large part, on the current market conditions in your area. Anyway, all it takes is a quick fax along with an 'authorization to release' to the bank to find out if they're in or not. If the bank sends you the short sale package and you don't have 'calyx point' software or something like it you can have your title company print out the HUD which is the document you'll use to present your offer. If nothing else it's great experience. Best of Luck!
Shar
Shar
Gotcha! Nothing beats a fail but a try. I will get to work right now!
BTW, one guy is losing his house b/c he rented it to family, they didn't pay & he didn't put it on the mkt (called us @ the 11th hour). Is a short practical since he owns another house?