Short Sale In Texas
I have a home under contract with the homeowner for 146K that has a FMV of 183K with a 1st and 2nd to the same lender that total 204K. The home is owner occupied and in foreclosure. Texas is a non judicial foreclosure state. I have a signed authorization letter, CMA, hardship letter, proof of funds, and repair bids for 10K (inflated). I am paying all closing costs on the buyer side in the amount of 6K for an investment of 162K. Selling costs will amount to approximately 10% or 18K and bring the total costs to 180K. My SS package reflects all the above.
This is my first attempt to short sale. I want to help the homeowner out of their situation and still protect myself. Is this the way to proceed and is this a viable project?
[ Edited by sierra654 on Date 05/25/2005 ][ Edited by sierra654 on Date 05/25/2005 ]
Ok, but (2) quick questions:
1) I thought Quit Claims were pretty useless legally as a claim instrument
2) Need Notary Public onsite?...[ Edited by Hibby on Date 05/24/2005 ]
Quit Claims work in Florida when you spell out: married or single; homestead or non-homestead; have two witnesses and notarize the document.
The notary can be one witness. If married, to be safe, the spouse should sign also.
Okay, I have a couple of questions. What is the point of the QCD if it is not recorded? Secondly, can the lender accelerate the loan if they know that there has been a transfer?
When does the Transfer of Interest occur?
When the Quit Claim is signed and notarized?
Or when the Quit Claim is recorded?
Until it is recorded, the Quit Claim has no legal chain-of-title standing. It is just another piece of paper.
In my opinion the Transfer of Interest occurs when the document is recorded, not before it is recorded.
Does anyone know of specific legal rulings on this subject?
[addsig]
In Utah to have value it must be recorded. IN theory ownership passed when the QCD was delivered to you.
IN Utah all deeds must be acknowledged (notorized).
Thanks for the advice. DarylM
"too much spread..."
If all other criteria is met, the FHA must net from 82% to 87% of the confirmed, as-is value of the property from a PFS.
The 10% repairs threshhold is widely misinterpreted.
For what specific reason was the short sale request denied?
The short sale was declined specifically because the repairs were estimated at $28K when only 10% of as-is value of $93,000 was allowable ($9,300.) This is why the lender declined the deal. I was wanting to know is there any hope to saving this spead/deal.
Daryl
Whew! Steep repairs. Generally, the 10% threshhold applies to repairs needed due to fire, flood, or other disasters... not just deferred maintenance.
Yep, very steep repairs. But the truth is that I unknowingly "sold" the apparaiser on the repair costs. If I would have known that the limit was just 10%, I would have kept my mouth shut. Is there a way to start over on the deal? Currently, the borrowers are willing to file chapter 13 to save their credit.
DarylM