Yesterday, I announced that I will be doing my first door knock. Some of you had some nice words of encouragement for me.Thank you so much. NOW, I need real help.
The seller is desperate to sell. I just got back from the property. Its a brand new condo , low assesments( $323) with a indoor heated pool, parking spot(included).
The owner owes 1st mortgage: $ 193,000
2nd mortgage; $ 45,000
The comps for apart in the area with parking are around $ 250,000 minimum.
She is ready to sign a contract today, but I dont know what to do next. Shortsale? Anybody an expert in that field. Please advise.
If I can talk over the phone, that will be great.
Is she looking to get anything out of it?
Coventional wisdom says low equity = Sub2
If she is not pre-foreclosure, I’m not sure that the lender will even consider a short sale.
Is she behind on payments?
If you got it, what would you do with it? (i.e., assign, flip, hold and rent, etc.)
This is where the terminalogy gets interesting. What do you mean when you say that the owner is “desperate” to sell? She owes $238K on a $250K property, which is a whopping 95% of the market value (assuming no repairs). That is definitely NOT a deal in my book. To make this a deal, I’d want to buy the property for $175K or less. As Keith said, you won’t be doing a short sale unless the owner is well behind on her mortgage. I wouldn’t even consider a sub-2 at 95% of the market value. So, that leaves the owner bringing a check for $63,000 to closing!!! IF the owner will do that, then I agree with you that she is motivated to sell. Otherwise, this is not a deal - just one of the millions of owners with no equity who wants to sell their house.
I’d move on.
I do not know Mike is that what you took it as or was it low assessments( $323) and the comps for apartments in the area go for 250k! If so and its worth 323k and she owes 235k It would be a deal but there would be no short sale that’s for sure do to the equity! If I could get a little clarification on that we could help you no problem!
I think by “low assessment” at $323, she may have meant low “condo fee”…
I think there is no room and no real equity in this “deal”…
Ahhh I get it!! I am just a little slow this morning guess I was to busy LICKIN CHICKEN!!! LOL happy Bird day to ya!
Thanks for helping the ‘damsel in distress’ guys!! Happy Thanksgiving to everyone. I did some reserach/reading/asked more questions and I think that this is a great deal to short sale( as long as the lenders co-operate)
The condo unit is in a great location downtown and in great shape. No repairs needed whatsover. Brand new building. Most importantly, she is very very motivated and told me that she would leave with very little cash to just get out of the deal.
I want to do a double closing on this one. Any of you guys had experience in selling properties to places like 'We buy houses for cash!" and ‘Chicagofastoffers’? How quickly do these guys buy houses.
Can I double close and sell the condo unit to an end buyer who dosent have cash to bring to the table but has been qualified for mortgage? I read somewhere that it problematic to do that because of seasoning the title? What does THAT MEAN!!!
By the way, its really awesome that everyone here is so motivated on this forum to be up so early on thanksgiving morning.
If you do a short sale, she is prohibited from receiving ANY money.
You might be able to get away with paying some of her moving expenses for her, though…