I read this in a book this week.I just submitted a short sale for $207 and if it is accepted it will be hard to find $207 soon?Can`t I just get a mortgage?Thx.
Unlike what many people say, Short Sales are not easily approved, it is a long journey (unless you offer what the bank wants) and there are dozens of methods you can use depending what your goal is (flip, wholesale, keep, etc). I would not recomend doing a short sale after reading 1 book.
So to answer your question, YES and NO…
You will be in a better position to negociate if your present a NET CASH offer, once approved, banks usually want to close VERY quick.
To succeed at short sales you really have to LIKE it.
Hope this helps.
What is a net cash offer?? =)
Net Is what lender gets after all closing fees are paid.
EXAMPLE:
You offer 300,000 minus 2.5% closing cost = 292,500 net
That is for sure! Even reading ten books – you should try it yourself after seeing and following the steps of someone who is willing to share this knowledge with you. And that is not easy to find.
I have had a short sale working since September last year. As part of my offer package, the bank wanted to see proof of funds – either a pre-approval letter from a lender, or evidence that I had enough cash on hand to settle.
In December the bank finally came back with a counteroffer that was just unrealistic for our local market. I told my agent that in January we will start over again with my original offer after the bank has had a little time to absorb the reality of our market.
Are you trying to flip or purchase to rent or rehab? This is very important you can get a mortgage but what is your exit strategy? It may not make sense to get a mortgage. You could try different stategies to get the approval time extended. I am from NJ. Where you from?
jonznj
what part of nj are you from? i’m from the elizabeth area.
I know where you are coming from. I have not talked to a lender yet that will originate a mortgage for less than $30000. I suspect that the lender’s cost of processing a loan application is a lot greater than the $207 loan you would be requesting.