Hello, I’m out of Wisconsin I found a house thats in pre-foreclosure with a motivated seller the house has been listed with a realtor since December 06, 2006 and has not had an offer yet the price was taken down from $128K to $117K the 2nd was suppost to foreclose on 01-22-07 but the realtor was able to push that date out. The 1st is foreclosing 02-19-2007 with countrywide.
The 1st is 95K with countrywide
2nd is 30K with Landmark
What would you do?
Would you still have the home owner sign a P&S agreement and still speak with her bank?
or would you try and get the realtor to release the listing so I can go to work?
How likely is the 2nd going to take a shortsale if they already pushed out the auction date?
First of all you should tell us what the fair mkt value of the home is right now. No one has asked that. What do you think the lenders go by? You opinion of value? Since the 2nd is foreclosing like you said, there should be equity. They usually don’t bother unless there is.
Listen you can’t do short sales unless you know what the property is worth. And I’m telling you now that they know what it is worth even if you don’t.
The truth is the lenders/investors only discount 85-90% of fmv as is in a ss. If you can make money off of that great. Look at what they list the reos at.
Which is why distressed properties are the best short sale candidated. If you have an ARV of $100k, with $15k in repairs, then FMV is approximately $65-$70k. If you can get it for 80-90% of that, you have yourself a rehab property with almost TWICE the profit.
kmilinvest: 4R is right. I would get the Seller to rescind their agreement with the RE Agent ASAP. The current arrangement is not in the best interest of the Seller.
You need to start the SS process ASAP. It typically takes Countrywide about 7-10 days to even get the SS paperwork into their system once it’s submitted. Also, you should have your own RE Agent b/c CW will want it listed. If it is not listed, it will slow down the process.
You should have your Agent do comps on distressed properties in the area & base the list price to be filled in the CW paperwork on those comps and the repair costs for the subject property. Then you could see if offering 90% of the “list price” works as far as profit & submit that or maybe 8% lower.
Thank you Rgchamb your the only one that answered my question I really appreciate it!!
The ARV is $135k
and I believe short sales work I just never ran into one with so much added with it like the 2nd closing first and also listed with a realtor but I’m being told now that all short sales need to be listed with a realtor so thats confusing to me!