I’m pretty new to the creative side of REI. I’ve done a couple of flips, but both were bought through an agent (my wife) off of MLS. Through my public records search I found that a realtor friend of hers is going into foreclosure. ARV is 350k. 260k first and 87k second. Mortgages are with two different companies. I’m a total n00b at short sales and my only education is a course I read by Dwan Twyford. Seems straightforward enough, but don’t all courses make it seem that way. Anyways, what would you offer each mortgage holder to make this deal go through? House is in almost perfect condition as it’s only a couple of years old. I was thinking of offering 230k and 1k respectively. Is my offer on the first too high? I’m worried that they’ll see that the LTV is pretty good and won’t mind taking back the property to sell at a discounted price.
You can offer them what you say, the second will probably accept, you may have to go full payoff on the first, but that still leaves you with 85K clear profit.
The second nearly always settles for next to nothing because that’s more than they’ll get at the sheriff’s sale.
This all depends on your due diligence.
And a realtor in foreclosure? I didn’t realise the market was THAT bad. Next it’ll be poor dentists.
Thanks for the reply JDS. Yeah, this guy has got himself and his family into a really bad situation. When the market was hot he and his mom were the #1 team in my wife’s office. I guess he thought that the money would just keep rolling in.
Some of the real estate agents are really hurting. If they don’t sell, they have no income and in some areas, real estate is not selling.
You’d sure think he could sell his own house for at least the mortgage amount, but people in foreclosure get into this denial thing.
Not to mention that a certain percentage of agents (like any percentage of a given group) are putzes.
Keith