Hi Everyone,
I have my first short sale I am working on in Conyers, Georgia. I would like some suggestions as to the split for my short sale offer package. I am concerned that I may be too high for the 1st position.
Home is in excellent condition, only 4 years old. Conyers is going through a flat market.
Loan Balance: $170K
1st position:$ 135K - short offer of $109,600
2nd position: $ 35K - short offer of $1000
total short sale $110,600
Low Comp BPO came in at $165K
Just in case this helps. I retail value after to clean up and paint to be between (198K-213K).
The first mortgage might not even budge cause they know the second will get wiped out. If you can get the second to jump then be happy with that and don’t press the first lien holder to hard. Your not to high at all. I would be suprised (although it happens) that the first does anything. Short the second and maybe sub-2 the first or bring it current if it makes sense. You will probably ber responsible for back fees, lawyer fees, taxes, liens, etc. if you go that route.
Also if this is a slow market and the BPO came in at 165K then your numbers of 198-213K are way off. You said it yourself…its a slow market. I would short the second for sure. If the first doesn’t move then your deal is tight and I wouldn’t do it especially in a slow market that you say it is.
Nate-WI
Thanks Nate I appreciate your help I will take you advice and let you know what happens.
I ordered the low BPO from a broker. I am pretty sure that if I got another I would come in closer to the ARV I mentioned before.
Either way I will let you know how things play out.
I’ll second this. You can get 2nd really cheap. Try to get the 1st drop 5K if you can justify to them that it will cost them the same to foreclose.
In either case, you are looking at a hugely profitable deal. Just run with it! Good luck!
Thanks 100K. I will do just that. I will let you know what happens with the deal.