there the worst. currently involved in one with them. you will be lucky to find someone who speaks english. everything is outsourced to india, china, australia, u.k. etc.
give me a call..i can give you the contact information for where I found my attorney who handles double closings my email address and contact info are at www.atlbuys.com[ Edited by ambitious1 on Date 08/25/2005 ]
im no "guru" but i will give you my thoughts on it.
out of 6 or so short sales that i have attempted i have gotten 2 accepted so you do the math. both were large discounts. one was a 50% discount on a house were a murder took place, another was a second mortgage that took 10% of what was owed. they took 2800 on a 28,000 dollar loan. it really all depends on how much of a case you have and can prove, also how motivated the bank is to dump it. i have had banks who wont take a penny under the Appraisal/b.p.o. amount. i have had otheres who will take 70% of the Appraisal/bpo amount. its really a difficult game to tell weather or not there willing to play. some of these loss mitt reps are trained to act all motivated about accepting a short but then when they get the appraisal back they will flip the script on you. i really dont like doing short sales, because doing a double closing is getting to be difficult and i dont have the capital to cash them out yet. good luck.
I do not have statistics, but my gut feeling is that 30% of my short sells do not get to the closing table. About 40% I purchase, rehab, and then retail sale and about 30% I do a simultaneous close.
Had a simultaneous close last week. Short sell with ASC - Wells Fargo was the investor. Started on it in August 2004, 770k house, made 4k. So the numbers can stink. But have another house that I am ready to sell. Purchase on a SS with Homecomings for 105k. Rehab for 15k in it. Will list it for 235k. Now part of this success story is that FL RE is going through the roof.
I use to hand in a repair estimate, appraisal, pictures, etc as part of my short sell package. Then a short sell rep came to speak at one of our REI groups. He said that they are slammed - which is obvious. And that given the choice between reviewing a file that is 40 pages to a file that is 15 pages, he would review the 15 page one first. And he never considers pictures (how do I know that the pictures are of that house), repair estimates (totally made up), or other "nonsense". He belief was that they paid the BPO person to do the appraisal and that is the number that he is using. Now he is only one person, but because they are soooo slammed, I have decided that less is more. The big punch for me is in the BPO. If you can get a good BPO, then the rest just falls into place.
My first offer is usually 80% of what I consider the FMV. I usually settle for 85%. Sometimes I am forced to pay much, but then it has to be a simultaneous close so that I have no closing costs.
The percentage rate on all my hard money loans are an annual rate. So I would pay 10k / 12 * 3 = 2,499 if you only had a 100k loan at 10% for 3 months.
In FL right now, if the house needed no repair, you would easily sell it within three months, even if your first two closing fell apart. It would be different in a softer market, or if there was repair required before you could resell.
I think what is owed is irrelevant. You must base the discount of the current market value of the home.
The current market value includes taking into account repairs needed etc...
You may get a 15-20% discount on the current market value.
That figure could be 20% -40%- 50% etc.. of the mortgage balance. But the amount owed is totally irrelevant unless there is alot of equity in which you wont get a short sale at all.
there the worst. currently involved in one with them. you will be lucky to find someone who speaks english. everything is outsourced to india, china, australia, u.k. etc.
give me a call..i can give you the contact information for where I found my attorney who handles double closings my email address and contact info are at www.atlbuys.com[ Edited by ambitious1 on Date 08/25/2005 ]
Is the buyers money cash or from a mortgage co.?
well if you dont mind I have a few questions?....sorry newbie here!
If you set up a short sale with the bank and also have a buyer, but dont have the cash to buy it yourself how do you close this deal?
I quess the title company or who ever is doing the closing would float the funds over ?
can you let me know how your deal works out?
Thanks very much,
Michael
im no "guru" but i will give you my thoughts on it.
out of 6 or so short sales that i have attempted i have gotten 2 accepted so you do the math. both were large discounts. one was a 50% discount on a house were a murder took place, another was a second mortgage that took 10% of what was owed. they took 2800 on a 28,000 dollar loan. it really all depends on how much of a case you have and can prove, also how motivated the bank is to dump it. i have had banks who wont take a penny under the Appraisal/b.p.o. amount. i have had otheres who will take 70% of the Appraisal/bpo amount. its really a difficult game to tell weather or not there willing to play. some of these loss mitt reps are trained to act all motivated about accepting a short but then when they get the appraisal back they will flip the script on you. i really dont like doing short sales, because doing a double closing is getting to be difficult and i dont have the capital to cash them out yet. good luck.
I do not have statistics, but my gut feeling is that 30% of my short sells do not get to the closing table. About 40% I purchase, rehab, and then retail sale and about 30% I do a simultaneous close.
Had a simultaneous close last week. Short sell with ASC - Wells Fargo was the investor. Started on it in August 2004, 770k house, made 4k. So the numbers can stink. But have another house that I am ready to sell. Purchase on a SS with Homecomings for 105k. Rehab for 15k in it. Will list it for 235k. Now part of this success story is that FL RE is going through the roof.
I use to hand in a repair estimate, appraisal, pictures, etc as part of my short sell package. Then a short sell rep came to speak at one of our REI groups. He said that they are slammed - which is obvious. And that given the choice between reviewing a file that is 40 pages to a file that is 15 pages, he would review the 15 page one first. And he never considers pictures (how do I know that the pictures are of that house), repair estimates (totally made up), or other "nonsense". He belief was that they paid the BPO person to do the appraisal and that is the number that he is using. Now he is only one person, but because they are soooo slammed, I have decided that less is more. The big punch for me is in the BPO. If you can get a good BPO, then the rest just falls into place.
My first offer is usually 80% of what I consider the FMV. I usually settle for 85%. Sometimes I am forced to pay much, but then it has to be a simultaneous close so that I have no closing costs.
Brenda
The percentage rate on all my hard money loans are an annual rate. So I would pay 10k / 12 * 3 = 2,499 if you only had a 100k loan at 10% for 3 months.
In FL right now, if the house needed no repair, you would easily sell it within three months, even if your first two closing fell apart. It would be different in a softer market, or if there was repair required before you could resell.
ok, thanks for the elaboration somtimes i overthink things i guess.
what do you find are your usually holding costs and what is your typical loan amount? also how many points are you willing to pay upfront.
thanks again.
I think what is owed is irrelevant. You must base the discount of the current market value of the home.
The current market value includes taking into account repairs needed etc...
You may get a 15-20% discount on the current market value.
That figure could be 20% -40%- 50% etc.. of the mortgage balance. But the amount owed is totally irrelevant unless there is alot of equity in which you wont get a short sale at all.