Hi Investors,
I have an acquaintance that just wants out of his house. Bought it with an 80/20 in WA three yrs ago. Owes $330,000 with value probably about the same. 1st has $265,000 and 2nd for $65,000. He would like to just walk away. I was thinking of getting letter of authority to work with the bank, giving him some moving money and trying to negotiate a short sale with each lenders. What do you think I should start at? $228,000 for 1st and $5,000 on 2nd?
The bank wants to help them refi to keep them in the home but they want to move on.
How would I go about this? I see bits and pieces of advice but would like to make sure of the steps. Is there a section here that lists the steps?
Thanks for your advice and help.
we can give the homeowner their full asking price subject to a successful loan modification. we’re average 4 1/2% for 3 years interest only and we can probably get a tenant/buyer to take over those on a lease to own. the tenant/buyer will take the tax deductions while leasing based on an IRS code that i can give to their CPA. lease option investors cannot do these.
in regards to the loan mods, we currently have a 100% success rate with just over 200 cases closed and money back guarantee. loan mods arent my main thing but its a entry to make these high payments much more marketable.
im in southern cali, near los angeles.
send me a private message if you want to talk
DOCUMENTS REQUIRED FOR A SHORT SALE:
Most lenders require the same information from the homeowner. Here is a list of required documents:
1.Authorization to Release Information. This will allow you to talk with the lender on behalf of your client.
2. Handwritten hardship letter.
3. Purchase Agreement.
4. Addendum to Purchase Agreement. This states that many offers will be submitted during the negotiation process.
5. Listing Agreement.
6. Last two years tax returns.
7.Last two months bank statements.
8. Last two pay stubs for all borrowers.
9. Borrowers financial statement. A basic incoming and outgoing expense sheet will be fine.
10. Detailed repair estimate if repairs are needed.
11. HUD 1 statement or NET Sheet showing the lender what their NET figure will be and any other expenses owed on the property.
If the homeowner doesn’t have bank accounts or is unemployed make sure that this is stated in the hardship letter as the Mitigator that is assigned this file will think that there are items missing and could end up ignoring your file.
JOHNNY Q is right on, here. To add to that, in my experience, a lender won’t entertain the prospect of a short sale unless the borrower has missed at least one mortgage payment and there is an offer already on the table.