House Listed W/Realtor, less than a month to auction, Help!!

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?

please help!!!

Ok, so let me get this straight.

They have it listed for 117,000

They owe

95,000
30,000

125,000.00

Plus they have to pay realtor fee if they were to sell. Let’s just conservatively say 5%.

If the home were to sell for 117,000 (full asking price despite having NO showings) the commission to the realtor would be 5,850.00

So, let’s look at this again:

125,000 owed
5,850.00 to realtor

Total outlay upon selling would be
130,850.00

Yet they only get 117,000 (before fees and taxes owed)

So they would have to come out of pocket 13,850.00

Even if they sold with their realtor, how would they cover this?

Thats why there looking to do a short sale!!

So, who is doing the short sale? Has anyone approached one of the lenders about discounting?

Why is the price $117,000? Could you go get the 2nd to settle for $5,000? Then you could purchase for $100,000 Just a thought

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.

EH

EH,

why are you trying to assist people with short sales if you believe they don’t really work.

I’m not trying to assist people doing short sales. I’m giving them the truth about them.

EH

What is the truth?

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.

EH

Is fair market value, the value before repairs or after? That is how you determine a deal.

FMV as is as it stands.

EH

and where is that?

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.

Wherever you think it is. Why don’t you tell the rest of those on this site your truth? All the short sales you’ve done that can be verified.

EH

Not likely. If the property is worth $100k and needs 15k in repairs, then the property is worth 85k.

What guru’s are you guys learning from? That is not how you attempt short sales.

Maybe i need to come with a course or two on the subject, so i can profit in the information age.

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!