I have a 2 family house under contract in NJ. The sheriff sale was today and judge gave homeowner till Jan 9th as final extension since he had my contract. Judge would not extend any longer. I pulled comps but was getting a big range. I think it would be probably close to $385-$400. Would I need to pay for apraisal to get FMV on this property?
Also, if it is the amount mentioned, the homeowner owes close to this amount. I would need to do a short sale asap. I took pictures of the damages in the house but since this is my first deal, I want to know if anyone has a sample short sale letter/package they would like to share? I saw in some posts that it may take 1 to several months for bank to respond. If I only have till Jan 9, any advice on how I can get the bank to respond quicker?
First you’ll need to get an authorization to release info signed from the homeowner so that the lender will even talk to you. The lender will get a BPO and comps, but it’s a good idea for you to find comps too. You’ll need a couple of contractors estimates for repairs. Also, a financial statement from the homeowners may be necessary and last yrs tax returns. I generally get the homeowners to sign 3 standard RE offer forms so that if you have to make several offers to the lender you don’t have to keep going back to get another one signed. Find out who at the lender actually has the file on their desk. Get in contact with him/her and ask for a short sale package. Time is short, but it can be done quickly.
Yes, I have an authorization to release from the homeowner. Would you suggest I get contractors or an inspector. I was told the inspector would be more detailed. Is there even a difference?
Do you know where I can get these standard RE offer forms?
The homeowner filed for Chapter 7 two years ago. On the short sale letter, would it help me if I mentioned the homeowner may file for Chapter 11 or 13 (I forgot which) if I’m not able to get a shortsale and make a deal with them?
As for closings, should I have a lawyer or title company do the closing?
I have contractors do an estimate of repairs, the higher the better. Granted the contractors are part of my team but you need to have one or two if you’re gonna be doing short sales. You need to find out who the loss mitigation person is that actually has the file on their desk…this my take some patience. Make sure they have the authorization you sent on their desk…if not…fax it to them. Then call them and find out what docs and paperwork they want from you and the owner ( financial statements etc). It varies from lender to lender. I just use the title co. I can fax or email you RE offer forms.
If there is only one lien on the property the bank may or may not short sale depending on the equity in the house! Beneficial is a decent bank just ask them if they are in the Real estate business or the banking business!! And if they ask if you work for reoconsultants just say no but do you need Robb to call you? LOL they know us… Talk to the manager and tell him you need this done to close ASAP!
Sheriff Sales get published weekly in my area. The auction date are usually within a month, that’s why I don’t have much time. You may want to subscribe to an information service like foreclosures.com. It’s worth it. I get a list of sheriff sales, bankruptcy & lis pendens. For me, foreclosures.com did not update info in my area as quickly. Some offer free trial. Find one that works best for you in your area.
Do you have the owners payment/coupon book? There is an initian contact number on it usually. They arn’t loss mitigation but should be able to direct you to them. If you have a copy of any letters to the owner from them, that might have a number on it to get you started. If not, try 1-800-371-6441
