Short Sales--how Does It Work
Can anyone explain to me how a real investor can make money using a short sale? What do I tell the mortgage company that will convince them to reducing their loan balance? What do I tell teh homeowner? how much can the loan balance be reduced by? How long does the process take? How much cooperation do I need from the homeowners. What type of scenarios are the easiest to do? Very interested in this concept!! [ Edited by mortgageman on Date 09/07/2003 ]
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try the FAQ tab for starters.
1. It depends (discount)
2. It depends (time)
3. 100% (mortgagor's
cooperation required)
4. It depends (all other questions)
You should spend an hour or two reading thru this Forum. Check the articles, too, including "How to Prequalify a Short Sale Candidate" and "Short Sales: Childs' Play or Not"[ Edited by TheShortSalePro on Date 09/07/2003 ]
FHA you can go as low as 82% net property value. the Seller gets 1k incentive. Realtor cap is 6%.customer closing cost can be paid as long as Serviver gets HUD 82%. not alot of soft cost on a HUD PFS. No buyer benfits. You must get the borrower to sign up for the Pre-forclosure then with the approval the lender holds off 90days. If the PFS fails the borrower can do a Deed in liue. seller incentive $500.00 for that.
That just one of many...