Thinking Outside The Box..

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I have a seller that has a 90k FHA 1st and 30k 2nd. The 1st does not qualify for a short sale, however, the 2nd is open to a offer (actually, they called me several times to see why I have not sent the offer in). The problem is the house is in excellent shape! A tenant could move in right now. I'm scratching my head to come up with ideas to help me get the lender to discount. What would you guys do to convince the lender to discount in this situation?

One item I may do is offer to submit low comps to cloud their confidence on thier BPO.

The second item is to definitely show up for the BPO.

Maybe I need to re-read the short sale premier to get some ideas..

Any suggestions?

Good investing!
Bginvestor

Comments(8)

  • rjs935211th February, 2004

    What's the FMV of the house? Important to know in this situation.

    I'm sure you already know this but if the house is foreclosed on the 2nd may end up with nothing. That would seem motivation enough.

    Ryan J. Schnabel

  • bginvestor11th February, 2004

    Yup.. FMV is 128k-132k

    The 2nd is Greentree. My investor friend said that they were the worst to work with. He was banging his head on the table after dealing with these guys

    They seem motivated for an offer, no commitment on how far they would discount at this point. The goal on this one is 15%.

    Good investing!
    Bginvestor

  • tjm52814th February, 2004

    bginvestor,

    Since the home is in perfect condition, I would try to dig up some dirt on the area it is located in by looking into the local crimes that have recently happened. Once you gather some of the crime statistics (If any), I would try to make the area seem a lot worse than it is.

    Just a suggestion.

  • bginvestor14th February, 2004

    Great suggestion.. Thanks..

  • jllaco14th February, 2004

    My first and only short sale was with Greentree a few months ago. I'd have to say they were very easy to work with. My circumstances were different though. They had the second and third combined = 72K. They shorted to me for 2k plus attorney fees. They had already written the loans off, they had title and the first was foreclosing in two weeks and they had no interest in bidding at the sale. SO, I guess 2K was better than nothing!

  • bginvestor14th February, 2004

    Quote:
    On 2004-02-14 19:59, jllaco wrote:
    My first and only short sale was with Greentree a few months ago. I'd have to say they were very easy to work with. My circumstances were different though. They had the second and third combined = 72K. They shorted to me for 2k plus attorney fees. They had already written the loans off, they had title and the first was foreclosing in two weeks and they had no interest in bidding at the sale. SO, I guess 2K was better than nothing!


    Wow, 3%-5% of 72k! Good job..

    By any chance did you speak with Annette or Victoria in Loss mit.?

    Did you present only the 1st payoff and offer letter to Greentree?

    Was 2k your first offer? Did they negotiate hard, or did they just let it go?

    Any threats from them pursuing a deficiency judgment?

    Thanks for the input. Again, good job.

    Bginvestor

  • jllaco15th February, 2004

    My situation was different since they had already foreclosed on the 2nd and third and the first was about to foreclose. I am not sure why they foreclosed if they were just going to write the loans off, but it worked out for me. I had first told them I'd give them 1 to 1.5k based on the payoff of the first, but i agreed to 2k and they accepeted. Ms. Michael Ann Yedlicka from the Tempe office was my contact.

  • TheShortSalePro15th February, 2004

    If Greentree had already written off the loans, (probably issuing the mortgagor an IRS form 1099) they had already made their decision. The $2K (for their security interest) was a bonus. Right time, right place. Sometimes, it just falls into place.... and makes it all worthwhile.

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