Short Sale Eligible Or Not?
I am a newbie so please ignore my ignorance on this subject. I need some advice on whether or not I can do a short sale on a deal I am working on. The homeowners are in default of $4500. The home is not in foreclosure yet, but the lender (WAMU) stated it will be in Dec or Jan if they do not receive the $4,500..
ARV= $105,000
FMV= $95,000
Repairs= $5,000 - $7,000
Payoff= $79,000
Does the home have to be in foreclosure in order for the bank to do a short sale? Also, will the bank accept a short sale with so much equity and not much needed for repairs? The homeowners just want to get rid of the property so they are open to a short sale. Any help would be greatly appreciated.
Thanx
Robert
Robert, the home does not have to be in foreclosure but there will have to be some kind of extinuating circumstances for them to take a short. Chances are that if they are not that far benind in payments and there is a lot of equity they won't budge too much. But Its worth a shot
what you should do is submit a short-sale package and while you are waiting fot the acceptance, market the prop and try to sell it at FMV. Big deal if the short doesnt get accepted, you will still end up with some cash. you have to make these deals win win. ,Ryan
astcptlmgmnt, Can you go into a bit more detail about what you might mean by "extenuating circumstances"? thank you for replying!!
ryand, what should my short sale packet consist of ?
Thanks for trying to help me out!
ryand, what should my short sale packet consist of ?
Thanks for trying to help me out!
The bad news is that you are dealing with WAMU or worse, their Loss Mitigation outsource, First American.
This deal looks a little skinny if you plan to rehab and sell. It looks like a pretty good hold deal.
If the loan is conventional, you are pretty much screwed as WAMU "seems" to be more interested in mitigating these days.
We do a LOT of short sales here with 3 closing next week. If the deal is FHA or VA, you may have a shot at it.
My last FHA short was 83 pages long - whew! We got a $120,000 beauty for $86,900. The rug needs a shampoo and it's ready to rent or lease option.
WAMU is going to want the "as is" value and most likely will not give much if any discount so you will spend a lot of time on an "iffy" deal.
I would try and help the hapless owner negotiate a fair replayment plan or loan modification. I get a minimum fee of $900 to do this and so can you. It also gives you a chance to "learn" the ins and outs of working with lenders to work out their problems and ultimately you will get leads from them directly.
I would probably pass on this one unless you have a lot of time on your hands. WAMU is a piece of parakeet poop to deal with and they will also reneg on you at the last minute.
They are scum :-( good luck!
I'm curious... since FHA would have to net not a penny less than $98,400 on a $120,000 home... how did you come to buy it for $86,000 plus change?
The house is insured by VA. Does this mean that if the BPO comes in at $85,000 - $95,000 that they (WAMU or VA) will not take anything less than $69,700
Thank you, :-?
ramirez1775
my question about the FHA ratios was directed to cpifer and the numbers that were stated.
The VA has qualifying ratios for their compromised sales, too, predicated upon the confirmed, as-is value of the property.
For the latest info, you can contact your local VARO's housing department.
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