Quick Response To Short Sale
I am a realtor looking to begin investing .I was figuring on aretail situation (pick up a fixer upper) . However, a situation just presented itself and I don't know what to do first. I was called by an acquaintence with a real problem. She and her husband are divorced for two years. She is unemployed currently. He's still on the deed and mortgage but remarried. The house is worth ,as is 120,000 ( I could produce comps) They owe 72,000 on the first (WAMU) . They havent made a payment in about 18 months she said. They owe 43,000 on the second for a total of approx 115,000. She hasn't made a payment on the second for about 10 months. Oddly enough, it's the second mortgage (banc one) that is foreclosing. The date for foreclosure is March 1, 2004. I don't have much time to deal with a short sale but I was thinking that if I could get the second short saled to 5-8,000 this would be a good deal for me. However, I don't know how to proceed. Do I tie up the property first and then try for the short: Do I try to remove the husband from the deed , by offering to get him off the mortgage : What can I do short term to stop the foreclosure process ? Help !! Please !! She has talked with a rep from foreclosure solutions who told her she can pay them some money to have their foreclosure process delayed 6-8 months but then they are still in the same hole only deeper. Please advise. Thanks 
Can't comment until we know the type of foreclosure process used in your jurisdiction. In what state is this property? It's not likely that the first will agree to accept anything less than it's due, but you have a shot with the second.
Are you a real estate broker, or broker's agent? Do you intend to list the property and collect a listing/sale commission, or do this without disclosing that you are licensed?
The property is in Ohio. And I am a brokers agent. I would most definitely diclose the fact . I would sell the property for them as an agent if it would help. They (the sellers) both know me as a Realtor. That's why they call me in the first place. However, with my new investors mindset, I thought I could help them out of this situation and profit . Win/Win, right ?
If you want help on this, email me privately. You'll need to list the property at it's as-is, FMV subject to mortgagee short sale approval... then, make an offer to purchase. To be proactive, insert the usual restrictive short sale contractual language, and have the Seller make immediate application to the second mortgagee for short sale consideration. Incorporate the application for short sale consideration into your proposal to the mortgagee. Your proposal should be factual, compelling, and supportive of your Offer. .