I have found a preforeclosure duplex which has an outstanding mortgage of $ 66,700.00 which is the only lien on the property. The property is valued at $ 124,000 fair market value. I am thinking if I should offer the bank most of the full mortgage which was originally taken out in 1997 and maybe offer the owner a couple thousand. But I am not sure how to handle this. How much would you start with on an offer to the bank? How much should I start with to offer the owner? What if the owner died?
Thanks,
Compass ???
i thimk it depends what your exit stategy is? do you want to keep it or flip it?
I am planning on keeping it for positive cash flow. I took the Rich Dad Poor Dad program and thought this would be a good one to keep, refi down the road and use equity to buy another.
Thanks
Compass
i don’t understand what you mean about offering the bank. do you mean a short sale. there is way too much equity for the bamk to justify a short sale. you could offer the seller enough to payoff the mortgage and put enough money in his pocket to walk away and feel content. you have to find out what the seller wants. did he die?
I would pay the bank & offer the owner 25K
you may want to ask a short sale pro about this but i don’t think the bank will take less than what is owed being so much equity involved
Hi,
I understand that this property is pending foreclosure and you want to offer the bank a short sale. First things first, if an appraisal was done on the property today 05/25/04, what would the property appraise for in it’s AS-IS condition? Based on the AS-IS appraisal and the repairs that need to be done to the property and if there is a POSI (Point of Sale Inspection) requirement in the city, the mandatory repair cost as well, that’s how you determine what you will offer the bank as a short pay, but always remember never start at what you are willing to pay for the property, the banks are always in negotiating mode, so start the offer low, but not so low that you insult the bank, but start low enough that when they counter your offer, it’s right back where you wanted to be anyway.
Guys, you gotta be kidding.
Does any of you really think the bank will even consider a short sale is this case?
Come Onnnnnnnnnnnnnn
thats what i said. they will probably make more money if they sell it at the sherriff sale. or does the owner get that extra money? hmmmmmm!
Delect Holdings is 100% correct there is no short sale here and if you can short sale this I am HIRING and will pay great $$$. LOL I think Delect and I will even split the cost of your check!
reoconsultants, I will do it. he is HIRIED!
mesha, Onces the bank is paid the sheriff takes it’s fees & if there are no other claims, the rest of the money goes to the home owner.
I still say, if the property is not worth $124,000 in it’s current AS-IS condition and also, if the owner is 12mons or more in arrears, then the bank will consider a short pay. There are different factors to consider when you are asking the bank to accept less than what is owed.
You also need to know how long does it take for a property to go to Sheriff Sale in the County where the property is located. For instance in Cuyagoa County, they are behind about 12mon in processing their foreclosures. In Atlanta. GA, they are not behind, so it takes less than 6mons for a property to actual go to Sheriff Sale.