First Short Sale Offer

Foreclosures, Short Sales, Tax Foreclosures
1

Through a friend I met an elderly gentleman in a nursing home. He can’t pay his mortgage with Wells Fargo, had the house listed and it expired. A previous short sale offer of $42,000 fell through when the buyer couldn’t get financing.

I faxed Wells Fargo today a permission letter from the owner so that they would speak to me. I did “for sale” comps in the immediate area, and can’t see offering more than $28,000 or so. The only sold house I could find sold for about $21/SF. This house is 1164 SF.

The seller will sign anything that Wells Fargo agrees to. He is tired of paying the light and gas bill and wants the house problem over with. He is quite ill and will never be able to pay a deficiency judgment.

I have some comparable listings to send the lender, plus I can pay all cash as my bank will fund it and give a written guarantee.

There is also a list of deficiencies–bathroom floor must be replaced, can’t get heat element in heat pump to turn on, no sewer cleanout, mice living in kitchen cupboards. Will cost minimum of $5,000.

Does anyone have tips to get the lender to agree to this short sale? And at a way lower price than last year’s offer?

Furnishedowner

2

they should since it sounds reasonable, they only other option they have it to go info foreclosure, and that will cost them a few thousand dollars and the property will deteriorate while that is going on.

I just got a letter from B of A approving a short sale I have been working on for a couple of months, I had even gotten permission from the ‘seller’ (not the bank since it was a short sale not a foreclosure), to have utilities turned on to keep the pipes from freezing in the house.,but at the very last second the bank wanted to increase the price $3k,I ended up coming up $1k, and they finally agreed to that,but we got it approved,finally

3

Here’s a progress report on trying to buy my first ever short-sale without aid of a Realtor:

Took my plumber to the house. He estimated $1000 for new bathroom floor, toilet, tub surround, etc. Plus $500 to make the heat pump function correctly, $300 for a sewer clean-out.

Spent Sunday afternoon driving “comps”. That’s comparable sales or properties. I don’t have access to the MLS so I just pull “For Sales” off the computer and drive the area. If you look at enough houses you learn what you want to pay. It has to be way less than what the competition is listed for.

Made multiple trips to rest home to get signatures and assure elderly owner that I want to buy property. FINALLY get signature.

Fax signed offer, comparable house listings, HUD-1 closing statement, estimate from title company to short-sale lender.

Lender says they will respond in 15 days. Nothing to do but wait and look at other houses.

The property has a loan on it of $70,000. Was listed, short sale for $65,000. Had accepted offer for $42,000 but buyer couldn’t get loan. I offered $30K. Cash. My local bank agreed to up my credit line.

Pretty decent little house with hardwood floors, nice woodwork, pecan trees, garage, forced heat and air, new roof, vinyl siding and shutters. If I get it, I will fix it to furnish and at that time get an appraisal and put a loan on it. Free up my line of credit.

Or I will sell it, also free up the cash.

All tricks I have learned from my own experience and reading REIClub.

Furnishedowner