help... I need help structuring the short sale

I’ve found a great opportunity to short sale a propert that is 5 months behind. Please look at the details below, I am looking for the best way to structure this deal. I have an end buyer that will purchase the propert for 350k and will get a conventional mortgage.

1st Mortgage: $ 217,000
2nd Mortgage: $ 93,000
Monthly Payment: $ 1,830 + $ 1,019
Months Behind: 5
Repairs: $ 25,000
APR: $ 410,000

Well first thing is you need to start with a BPO, if the bpo is 310+ you will not be able to get a discount.

However by showing the BPO agent some lower neighborhood comps and a high estimate for repairs you might be able to get a low BPO painting a different picture in the lenders eyes resulting in the lender accepting a short payoff. How short? In my experience 75% - 85% of the BPO. So the whole entire short sale revolves around that BPO like the sun, High BPO = No Short Sale.

So run those numbers after you get a BPO completed and see if it still works. It looks like theres already 15k in profits if buyer pays closing costs and you can line up a dry-closing, so if theres anyway you can force those repair costs down, or the loan amount down, what you are able to negotiate will fall straight to the net line.

Good Luck


From what I have been seeing is that the second mortgage holder gets little to nothing. I’ve watched a few short sales and the 2nd mortgage holders received either 0 or $1000. Is that common.

what leads you to believe that the apraised value is $410k?.. make sure that the apraiser is noticed by all the lenders… no sense getting an apraisel that isn’t worth the paper its writen on!.. nothing against realitors but banks DO NOT lend on there evaluations…

I am basing the value based on comps on the immediate area.

Yes, it’s possible 2nd lien holders will take 1k. I did a short sale once when I actually had to convince the 2nd mortgage holder that they indeed had a lien on the property (it was in foreclosure so long, they wrote it off their books!) So, they were willing to completely write the whole thing off. I ended up paying them $800 to short sale the lien. Not bad, too cause I made $60k on the deal! No money down, too ;0)