Let me first say this is my first deal and I’m new to short sales.
Found a possible short sale. Some feedback ASAP would be great. The seller is going to auction May 6th. Comps appear to be at 85-90k. Seller owes 90k. She said she just submitted paperwork to Wells Fargo and they told her she would have an answer for her if they would work with her on her mortgage by Monday. She has 1 loan.
Seller did mention that she called Wells Fargo with another investor and she gave the seller permission to talk but she says she never signed anything.
Is this a good candidate for a short sale? If so, is there enough time to meet with her this weekend or early next week before the May 6th and get the documents submitted to the bank to POSTPONE the auction of her house?? Can I work on the short sale while the bank is deciding what to do or should I wait to do any contracts until the bank gives her an answer?
Do you have an end buyer interested and ready to purchase? If you do then there will be a better chance of getting the bank to postpone. If you do not, then it would be in the banks best interest to foreclose and get the house on the market as an REO as quickly as possible.
As for whether or not this is a good candidate for a short sale, I don’t know. There isn’t enough information for me to say either way. It does sound as though someone else attempted a short sale already…that other investor she was working with. It was not successful or you wouldn’t be looking at this deal now. If that is the case, then she should have all the docs already put together for a short sale. Providing they got that far…
Thanks for the reply! When you say “end buyer”, do you mean person I would wholesale it to OR me actually line up funding, take ownership, and then sale to an end buyer?
Part of me is tempted to just buy for myself to rent/flip if I get an offer accepted at a low enough price.
I don’t think she has any docs…and I’m not quite sure what happened with the other investor. She said she never saw him in person and never signed anything. She said him and her did a 3 way call to the bank to work something out and that the bank would get back to her on Monday…
As far as a buyer goes, unless I buy for myself then the simple answer is no I don’t have a buyer lined up…