[b][/b]Hi Everyone! I really need some advice/counsel on this one. My husband and I have done several rehabs and sold them but this is our first potential short sale/preforclosure and although I’ve read quite a bit on how to do this…I still feel like I’m way in over my head.
Here’s the situation:
Homeowner will be losing her house to auction on Mar.23.
The auction ad says starting bid 43,500 and appraised value is 68,000. She owes 105,000 with an additional 12,000 in back payments/late fees. Repairs on the house will be about 10,000 and we are confident that the house would sell for 110,000. Comps support this and we just rehabbed/sold a house across the street from this one back in the Fall for 114,000 so we feel pretty good about the area, etc.
Met with the homeowner last night and all she had was a bank statement with HSBC. She had no additional letters from the bank with a contact number. That surprised me. I thought that banks usually try to work something out in the beginning with homeowner…(maybe not). There is only 1 loan on the property and looks like the taxes are paid up as it states on her bank record that they paid them out of escrow recently.
Homeowner had no idea her house was going up for auction March 23rd. This surprised me too.
So now I have all the paperwork from her including a signed letter from her given me permission to talk to the bank about her loan.
This is where I’m feeling way over my head! I need counsel on these apprasial numbers/auction starting bids and if this is even a doable deal? I have my own calculations of what we’d buy the house for and they seem a little higher than what the house would be going up for auction as. Any advice you can give me would be greatly appreciated in this situation.
Thanks!!