Last Friday I got the acceptance letter sent from HSBC!!…finally….
I wanted to thank everyone who has helped me through my 1st short sale investment purchase. Now the hard part….find a buyer…:>
Short Sale Details:
Market Value = $500,000
Fix up = $2,000
1st Mortgage = 370,000
2nd Mortgage before negotiation = $98,000
2nd Mortgage after negotiation = $22,000 (I will do better on the next one
So I currently have a contract on the property to purchase for $392,000 and it comps out at $500,000. In fact there are other properties on the market in the same neighborhood and the lowest asking price is $499,000, and this house is better quality.
I hope this update finds the people who answered my beginner questions. I also hope it finds those who need a little confidence builder……that this game is for real and fun!
so, you only negotiated the 2nd and not the 1st?
you got them to accept 392K…without a purchase contract? are you selling it yourself or using an agent? Are you buying it yourself then selling it or doing a “same day closing” and owning it for 10 minutes? I am interested in this and would love to hear the details. I just talked to a 2nd mtg lender and they needed the contract, HUD1, and comps otherwise they didn’t want to continue with the conversation about what they will accept.
hwo or why exactly did the back agree to go forward with a short sale if the comps in the neighborhood were so great? did you submit different comps to them then you’re telling us about?
Congrats on the first deal. I don’t mean to rain on your parade but if they accepted your first offer, you offered too much. But still, not bad for the first one.
:beer
Here are some more details…
My 1st offer to the 2nd was $9,800 (10% of balance). They rejected my offer verbally and said they would not even respond because it was so low. I negotiated verbally to a price of $22k. …although I will still do better next time.
From the 1st day I met the seller I told them I would do the short sale paperwork and negotiations. If the negotiations came in at a low enough price I would purchase the home. If my negotiations were not successful in a low enough price I told them I would list the home with a realtor of my choice…
I did have a purchase and sales agreement (Other wise the bank will not work with you). It had my 1st offer (very low price) just to get the ball moving.
Also…you always submit low comps with your offer to the bank….They have to know why you are offering what you are offering…I also submitted lots of other paperwork above what they asked for. I paid for a home inspection. I got the highest contractor repair estimates I could find for what work needed done, in fact the bank took $10k off of their BPO because of repairs). I also met the broker for the BPO and gave him a copy of the home inspection and a copy of the contractor estimates….
