I have never done a short sale and I need advice. I started talking to a person about real estate and he mentioned a couple that purchased another house and moved in before selling the original house. The first house has been on the market since Jan and they cannot sell it. They also own a 2 family that they also cannot sell which is leading them to forclosure. It seems that both properies were purchased in 2004 then a few things changed for them and just want to get rid of both. Right now I am only interested in the single family. Tonight I went to the house which is in really good shape in an ok area. I talk to the owners for a while and they supplied me with great information. They have already talk to the bank about a SS so that was helpful in starting the conversation. They seem to be willing to work with me but I am not sure if the deal is worth it. They expressed several times they just want out and they are willing to go into forclosure. They just don’t care because they have to much on their plate and have already moved on. Here are the details;
They have not recieved the letter of default so I am the first person they are talking to about short sales.
Owners Purchase price in 2004: $303,000
Assessed: $284,000
First Loan Balance: $240,000
Second Loan: $60,000
Monthly Payments: $2,700
Back Payments (2 months behind): $5,400
Liens: $0
Repairs: $20,000
They just recently took it off the market but had recieved offers for $299,000 on 2 different occasions but the funding fell through. What is the right price for the bank? Does this deal look like something to pursue?
SS second mortgage for $2-4,000
SS first down to $205,000
Backpayments: $5,400
Repairs $20,000
Then place it on the market for $260-$280,000
Please give your honest opinion. Suggestions appreciated!!
:help