What all do I need to submit to a bank for shortsale, I’m aware of a few forms but what is a HUD-1 form? where can I get one? Or can I use a net sheet? I plan to double close but need to have some out clauses for the bank in case I can’t find a end buyer. What are some clauses? What happens if I can’t find a end buyer? who owns the home if I have a purchase contact from the homeowner? Do I have to put a contingency on that contract so I’m not stuck with the home on a short sale and give it back to the original homeowner? PLEASE HELP!!!
Beofre a bank even considers your short sale offer you’ll have to submit a purchase contract with the homeowner AND show proof of funds. A bank is not going to waste it’s time if you can’t step up to the plate and fulfill your end of the bargain and close within 30 days.
Your object isn’t to get some prop under contract, go through all the motions, waste the banks time and the homeowners time then bail at the last minute when you can’t find a buyer. Thats not the ethical way to do this business. And now the homeowner has lost another 30+ days in the foreclosure timeline and are now even more peeved at the word “real estate investor” all because you failed to find a buyer and left them hanging only to be alot more skeptical with some other investor the next go 'round to get them out of their bind.
Find your buyer FIRST. Get your financing lined up FIRST. Don’t be going around getting prop under contract then not be able to finish your obligation leaving all parties hanging and nothing but a waste of time.
I’d read the forums, buy some short sale course material and once your comfortable with the knowledge and procedures THEN go pursue your properties. Don’t just jump in thinking you’ll learn on the fly and have NO idea what order the banks prefer their short sale paperwork so they don’t have to rifle through everything to find the numbers their looking for and waste precious time.
You can find a HUD-1 by doing a search. Net sheet same thing. If you have a purchase contract from the homeowner doesn’t mean you own it until all the legalities are finalized and closed on.
Theres alot of short sale courses out there. Pick something up and get a basic education on the process and procedures. Otherwise if you don’t know what your doing the bank is NOT going to waste their time dealing with you and explaining what they want, how they want it and when they want it. By educating yourself on the process you’ll already know that so it makes the banks job alot easier (and yours) and they’ll know they have someone who knows what their doing to get the deal to the closing table and off their books ASAP.
Thanks for the advice, I have read some material but wanted more info. So is it ok to tell the buyer first about the property if it isn’t under contract by the homeowner? I know some buyers but I wouln’t know if they want a certain property I have until after I have it under contract. So can I have the buyer assume I have under contact to determine their interest?
Any ideas???
I think your best bet is to buy a short sale course.
First…invest in a short sale course. Most of your questions will be answered.
Find out what your buyers criteria is so you know what he/she is looking for. 3bdrm 1.5 ranch or colonials or duplexes, basements or no basement…Build your buyer list and you’ll have investors who want nothing but ranches, others nothing but duplexes, others townhouses…
It’s easier to build the list and match your buyer list to a house you have under contract than doing it backwards.
Your buyer doesn’t have to know the exact address if you don’t have the prop under contract yet and you’re worried about him going around you. Take some photos, crunch the numbers, get some comps, guesstimate the repairs the best you can, give him the general area cross streets and by looking at the numbers and knowing the area an investor will make a pretty educated decision just on the numbers (and his own due diligence) and whether or not to jump on it if it’s a great deal. If it isn’t he won’t.
Spend some $ first and get a good short sale course so you undertand the process better and you’ll be able to answer your own questions.
What SS courses would you all recommend? I am looking for one that is complete on the nuts and bolts details of how to find the properties, get them under contract and negotiate with the banks legally and ethically. A lot of the courses I have seen seem to be long on generalities and promises of wealth, and short on the actual “how to”.
Look up Dwan Bent-Twyford and Mark Sumpter for course info on this site and at money4investors.com
Also, David M. Petrovich’s SHORT SALES AN ETHICAL APPROACH ebook is good.
I second Dwan’s, but IMO the best course going right now is Ryan, Angie and Claude w/ Financial Health Coach out of FL. Probably, again IMO, the cream of the crop.
I am not an attorney or a guru marketer so anything I say can be held against you :anon but check them out and due your research. I think you’ll find what your looking for.
It sounds like you want to do a little more studying before jumping in on this. Take your time and get a little more education under your belt so you before you make any moves… it could save you loads of headache and a lot of money.