First Short Sale - Need Help

Foreclosures, Short Sales, Tax Foreclosures
1

I have a homeowner who basically said I could have the house (husband) left and she no longer want to stay in the house. I visited the house today and her balance is $89K, $6K in arears. no 2nd mortgage. They area comps are around $115-$120. The house is a total wreck (smells like dog - she has 7 dogs, holes in the walls, holes in the doors, needs a roof, ceiling messed up from leaking roof, kitchen floor has to be replaced, carpet needs replacing). The house needs quite a bit of work. Also there are 3 cars in the backyard that do not work and she does not want anything in the house so I must find a way to get rid of everything.

I had the homeowner to sign an authorization to release so that I can contact the lender. If I try to do a short sale, what is a reasonable amount to request for discounting without them thinking I am making a ridiculous offier. Also, if they ask whether it has been listed, there is no way any realtor will list this house.

Should I have gotten the homeowner to sign any other documents.

2

What is the loan product?

3

She has a conventional loan

4

In kind of a similar situation, but I am still quite new myself.

There would be no need to obtain the right of redemption if your obtaining a short sale, is there?

5

Jag,

You are in an excellent position for a huge discount here. I would get the authorization signed and through to the lender ASAP.

You need to get some repair estimates and also when th eBPO arrives you need to work them to get your numbers low.
The BPO will pull comps and probably come in around the 90k mark. it’s up to you to get him lower.

6

Plus to add on to what was told to you, you must subtract the amount of repairs from the market value, then subtract the profit that you would like to make and that is your maximum allowable offer. Don’t start your offers with the bank at your max offer. Start lower so you can negotiate. Be prepared they will want to play hardball.