Purchase Price??
If my home owner has a 1st lien of 300,000 and a second of 48,000 and a CMA of $400-450,000 what purchase price would you all go to the short sale table with?
I was thinking of starting at 280-300,00.
Is there a possibility that we may have to offer more than the loan value? (They have been delinquent since Jan. 2003. and the bankruptcy stay has just been lifted)
This is not an investment property, one for our personal home.
Please advise!!!!
That's CLTV of between 77 and 87%. Why would there be a short sale? They have 13-23% equity in the property (gross of costs)
What is a CLTV? I am not an investor, talk to me in layman's terms ~ please.
cumulative or combined loan to value..what the liens or loan balances add up to against what the property is worth is your CLTV..
regards-pat
I'd have to agree with cjmazur. With 50k to 100k in equity, the second lender's position is probably secure. However, I don't see any harm in trying. Pull some comps that show a lower FMV and take a shot at it. Worst case scenario: you'll waste some time and learn a bit about the SS process. If you can devalue the property enough the second may be willing to take a hit (I think the first is solid).
-Chris
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When you say that the first is solid, do you mean that I have a good chance at a short sale on it? Remember that I am not and investor, I want this property for my family.
cjmazur ~
The only reason that this home is a canidate, I think, for a short sale is b/c the home owner had a business that went belly up and filed Ch.13. He included the home in the bnk.. We have become friends with him, he knows that we love the prop. and he has had an order of stay lifted hoping to help us to get the house. I think that part of my argument is that it was on the market for over 200 days!! Did I mention that a payment hasn't been made on the loan since Jan of 2003?
What would everyone go into this situation offering the bank? Full price of loan, partial?[ Edited by popeemail on Date 05/25/2004 ]
If you are willing to pay for this property, at any price... it's a no-brainer. Just write a check for the amounts due on the mortgage(s), plus any judgments, and get the Trustee to approve the Sale.
Or, if you only are willing to pay $350,000 for A $450,000 house, wait until it goes to Sheriff's Sale... making sure you have cash or a mortgage preapproval, and bid on the house up to your maximum bid plus costs of sale..
By solid I meant that you wouldn't be able to short it or otherwise discount it. If the house is worth 450k, and the first is for 300k, why would they want to sell it to you at a discount?
-Chris
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