Help!! This is my first possible deal ever let alone a short sale. I am not trying to flip this property I am interested in it as my primary residence. Here are the facts so far:
House was built in 1999, 2200sqft, 4/2/2, owner wanting $190,000.00 (has about that in mortgages and liens against the house) comps in the area $220,000. Has been vacant for more than a year, 1st mortgage holder Washington Mutual (Wamu) is in the process of foreclosing. House has been in foreclosure for more than a year…product of divorce (couple are the builders) first the husband thought he signed over to wife, then wife later files chapter 7, then the lenders knock on his door, he apparently did not take his name off the title. Neither of them are interested in the house and just want this problem to go away. I have already been on the phone with Wamu and they are willing to work with me, just have to get owners permission. Which is my first problem…this property is listed with Coldwell Banker so I give the listing agent my proposal, the works, with no sales price, just contingent upon short sale from existing lenders. She is all happy (she has had this listing more than a year…apparently pain in the rear because owner is asking to much for the house in the condition that it is in, but won’t accept less because this would leave him still in debt). She calls later and says “Question…How am I gonna get my commission?” good one cause I don’t know, It is listed with the owner who has NO money and I sure do not have the money to pay $12,000.00 in commission fees…so is there a way I can go around her. I know that the owner has had the listing for more than a year…can he just cancel it, although I have not exactly even talked to the owner yet, only the realtor. Scared about this.
Here is what numbers I know
Wamu: $151, 000 current balance 1st mortgage. $14,000. 00 in additional late fees oh yeah the interest was at 7%. Already said will work with me!!
Citibank Mortgage: 2nd Mortgage in 2002, $20,500.00 at 20%. Don’t know late fees or anything, Only the wife took this loan out after their divorce in 99, she only signed the loan and she filed ch 7 in 2003, but I do not have the details, maybe she listed this debt, I have searched public records for all of this info and only Wamu is foreclosing, not a single notice of default listed from citibank. So maybe its protected under ch 7 by her or something??
Lien against the house from a bond company, $5,000.00. The husband did not show in court and this was for his 3rd DUI, which he still had not been sentenced yet ( Thought that might have some negotiating room with the lenders since he may go to jail for 5 or more years.
Lien against the house from the Homeowners assoc. dues of $175.00 not current I am sure they owe more by now.
These were the things that I found in public records, there could be more, but I just thought that since the 1st mortgage was so low that maybe this was a possible deal. Also Wamu is a branch in Fl and we don’t have any local. This property is a beautiful home in a really great neighborhood, however it is an eyesore at the moment, and I am sure the community has plenty of objections. I have really spent a ton of time researching this and I love the house, however the price is way out of my price range. The house is in livable condition at present guess about $15,000.00 in repairs needed. I am currently pre approved for a loan for $135,000.00. Does anybody see a workable deal here??? Please help.
Oh yeah there is already a tentative auction date set for April 13th.
Amy in Louisiana,