I tried to do a short sale and got turned down. What’s the next step.
Also, Is there a website with free detailed info. on the best way to do pre-foreclosures and how to overcome the banks buttholes in the loss mitigation dept?
What do you mean by “got turned down”. Give us some more details about this particular situation. Most times the lender gives you a number that they want and you counter. That is the nature of this game. Don’t give up just because your initial offer was rejected. What happened with your situation?
well basically the lady at LM just sent over payoff and a letter stating that the full amount of the loan is expected to be paid. I wanted to know if there were certain tactics available to ensure success, as well as info on how to get around the issue banks have with not accepting contracts with an assignment clause in them
When you say you tried to do a short sale, how did you go about doing it? Sometimes a bank will not take you seriously and will give you the old brush off if you come off like a novice (not saying that is what you did). What did you include in your short sale package?
As far as banks not accepting assignments, maybe do a double closing?
I sent over the letter of hardship, bank statements, list of expenses, contract between me and the client for purchase for the amount I was willing to pay(75,000 - the payoff was 160K)
Also, I’ve heard that if they do accept a short that the bank must see your personal account to make sure YOU have the money to close - so if I cant supply that how is a double closing possible.
Also I would like to know the double closing process in detail.
Thanks
Eric
You offered less than 50% the payoff and whatever fraction that is off the ARV. Are there a ton of repairs and/or any comps indicating negative trends in the area? Did you send documents, pictures, etc. to demonstrate this?
If you can substantiate 47% of the payoff with major repairs, dilapidating neighborhoods, declining sales or something, then you need to detail them in your list of expenses, pull together your proof and resubmit the package.
The Loss Mit department is there to cut the bank’s losses, but they don’t just have to take any old bone tossed at them.
Sometimes a bank will except a commitment letter (not a pre-qual) in lieu of digging into your account. You could get a HML for the sole purpose of acquiring the property and they will give you that letter. Then you can just wholesale it to your end buyer and cash the HML right out. Find a title company in your area that is cool with doing them. The interest on these are very high, but if you are getting a $160K+ house for $75k, you will more than make it back. Verify that there is no pre-payment penalty. Be sure that you have more than one sure-closing end buyer (believe me this is soooooo important) and ideally some cash socked away to cover a couple month’s holding costs just in case.
You would benefit from reading some of the articles available by clicking in the navigation bar. There are lots of resources about double closings, short sales and tons more.
I hope this helps. Gosh, I feel so out of place, being the only non-cow in this discussion ;D
Thanks Wells!
I think I low balled them because I can’t justify less than 50% Have to resubmit
Hey Wells, what the heck is a HML?
You’re welcome.
And like bovine said, don’t give up just because they rejected your first offer. Keep in mind that some banks have a minimum percentage that they will accept. Even then it is not necessarily etched in stone in every case. Just go in knowing how high you can go while still getting what you need to get out of it.
HML=Hard Money Lender
Good Luck 
- HEY HEY i say forget dealling with the short sale as it is very detailed and really not for every one >>>> I say work on getting owner wrap around mortage >>> seller note and then find a buyer for the note at close or shortly after and then every one is happy
does anyone do those things these days? If so are they easy/hard, and what is the full process of doing them?
- heck yeah they are done every day some where there is a owner finance deal done and some one buying anote to make every one happy
but what are the exact steps from A-Z
???
I buy notes created by selling properties when seller financing is offered …notes protected by real estate so if anyone here needs to sell a note created through property transaction pm me
- HEY HEY DO NOT ASK TO BE PM IT IS AGAINST THE RULES AS WELL AS ASKING FOR BUSSINESS
oh I apologize for that I did not know how can I basically let people know I do that ?
- there is if you look to the side a classifieds part go there is a spot for note buyers