I have a situation where the title & mortgage is in the husband’s name. The husband left 2 years ago and now the wife and kids are living in it. This was set for sale tomorrow, but the husband’s attorney got a matrimonial stay for 30 days. It is currently about 2 years in arrears.
The appraisal is coming in at $265k. The 1st is Chase at $133k. The 2nd is Option One at $50k. The wife’s aunt is pre-approved to purchase this for $250k . I’d like to step in, negotiate a short sale with the 1st and 2nd and then immediately sell this to her aunt for $250k via simultaneous close.
The husband is extremely vindictive towards his wife. My selling point to him is that he will net more with me involved (coming in with a short) than he would with a straight sale to the aunt.
There probably isn’t much profit in this considering the husband knows he can sell it for nearly full price. I’m probably going to have to settle for splitting whatever I’m able to discount, assuming I get a decent BPO, but then again, I have the buyer lined up.
Does anyone see any problems here? Is this as straight forward as I see it? Thanks.[b][/b]
NYREI,
I guess I’m missing something here. What can you get it for? It doesn’t make sense to me to muddy the waters with a short sale. You’ve only got thirty days and you’ve already got a buyer. Why not just negotiate a sales price somewhere below where you can sell it, take the easy profit, and move on?
The problem is that the husband can sell it to the aunt directly–without me.
My angle is that I may be able to create additional equity by a short sale. I’d be willing to split the additional created equity with the husband–that’s his incentive to allow me to step in and attempt the short. thanks.
I see two issues that might make this difficult. The bigger hurdle is that the bank is not going to allow the seller to walk away with anything if it discounts. That seems to be all lenders policy. Secondly, the seller owes 73% of the value of the house. Why would the bank want to discount the loan when there is that much equity. The bpo would have to come in very low for you to have a chance. On the other hand, second liens can be generous with discounts. But if I were you getting past the first hurdle might be reason enough for you to walk away and not waste your time. Mike