Short Sale Question
Will banks agree to a SS if the payments are not behind? I have a lady who has been BK for a couple of years and now she just wants out of her house. She has a 1st for 32k and a 2nd for 25k. The ARV is 65 to 70k and needs about 6 to 8k in rehab. Is there a deal here?
Typically lenders will not consider a short sale if the homeowner is not behind on their payments. Some people suggest advising the homeowner to not make a couple of payments but I do not suggest that.
Yes there is a potential deal - maybe not with the first, but I would definately think you have a chance on the 2nd.
Study the terms and timing of the second; If it is older, was made at a high rate, has late payments, the bank will know this is a potential loss loan.
Expect to buy the house for 80% of ARV, less the true cost of rebab (use 150% of what you 'think' it will be) then start negotiating.
Generally, mortgagees won't consider a short if the mortgagor is in a bankruptcy repayment plan... any listing or sale of property that's been included in a BNK will require Bankruptcy Trustee approval.
While it's rare that a mortgagee will consider a short for a performing loan... it is possible and will depend upon the strength of your Proposal.
Unless you have a few of these under your belt, and/or have a lot of time to devote to this.... I'd consider another acquisition strategy.
[addsig]
What would be another acquisition strategy? Sub2?
I restrict my replies to the art of preforeclosure Short Sale acquisition.
Irrespective of what you attempt... you'll need Bankruptcy Trustee approval.
Uh huh. Ok fine.
I would suggest finding another deal to short sale.
Thanks guys for the answers. Your knowledge is most appreciated.