SHORT SALE CANDIDATE
OK, I saw this property in the paper the yesterday. It is a pre-foreclosure and goes up gor auction on Aug. 22. In my state (Washington) I think that the principal and the fees must be paid in full with in 11 days of the sale. The late payments total $6,831 and the principal totals $38,458.92 combined it all totals $45,290.03. The county has appraised it at $117,900. Today I went to the property to take a look around, it is a duplex. The outside dosn’t look bad, it could use a little work though, the usual hauling away junk, cutting back the bushes, and raking the leaves. It turns out both units are abandoned, I took a walk around the property and one of the units looked fine, it also could use some works, a new kitchen floor and probably new carpets and paint, but it was not bad. The second unit was a mess, broken windows, sledge hammer through the walls ceilings ripped out, I though, well maybe they were just remodeling, then I saw a broken mirror and graffiti. I estimated probably $6-13k to get it up to marketable condition. Area comps look good they are mid 120’s to 130’s and this property has about a 30k higher appraisal then the rest. The county says that the house was built in 1900. I researched the owner and he is a local dentist. He owns 2 other properties all about the same appraisal and he also owns a condo, which he lives in. I really think that this is a lack of care rather than a lack of funds, county records show that this same property was in pre-foreclosure last year. I am not sure but I think he purchased the property at auction with out looking at it. When he saw what disrepair it was in he just said forget it and walked away.
What should I do, I could probably short sale it, I know that I could get some great pictues of the work need to be done and a list of repairs could be quite expensive.
If I were to short sale it how much should I offer?
Any help would be much appreciated.
Jorgan Cattin
jorgan,
You did not say whether you had the property under contract yet. You would need to get control of the property first before you could negotiate a short sale. Theres alot of equity in the property so you are going to have to get with owner get a deal on the table, get as much documentation as possible regarding repair costs in order to negotiate any discounts. Put yourself in the banks shoes why should they discount when the can possibly gain the property through foreclosure sell as is to cover the leins. Work some creative angles with the dentist if he's a white collar professional pulling in the bucks as a dentist I doubt he wants to spend his time doing serious rehab. I think this is good candidate for many creative options but it needs to start with the owner. Keep posting so that you can get the needed advice along the way.