I have not done a short sale nor do I pretend to know what to do. Here is what I know.
This lady filed Chapter 7 on Feb 06. Its a side by side duplex. The condition of this property I do not know. I figure at least 10K a unit for repairs. She lives on one side and told me it was updated with plumbing, electrical, etc.
First lien is a 30 yr fixed at 9% interest with 102K remaining
Second lien is a 10yr fixed at 25% (no typo) with 27K remaining
The trustee gets 273.00 a week on top of the above payments
Comps are 125-130K range. She got an appraisal at 141K. My guess was that the bank didn’t want to take it back so they “made” the appraisal come in to where it needed to. She has a letter from the second lien holder saying they would take 10K right now. Suprise suprise.
Just looking at the numbers it doesn’t make sense to pursue. BUT…how do I know what the banks will take unless I try? I don’t have any of the authorization paperwork or quite frankly know where to begin. Any suggestions or help is welcomed,
First, you should get the Authorization to release, so that you can speak to the bank. Once that is in the system, give it a couple of days, then call the bank back and ask to speak to loss mitigations. Once you get on the phone with Loss Mitigations, you should ask them for their short sale packet. If do not have one to fax to you, you should have the seller gather the following:
Tax returns
Hardship Letter
Bank statements
Pay Stubs
You need to provide
Listing agreement
HUD1 or Net to seller
Offer to purchase agreement
Comps
Once you have that, you fax it to loss mitigations. Those are items that you need to get a short sale started.
Doing well. Still buying mobile homes, just bougt a rental, my SFR rehab is on the market, and looking for my next SFR rehab. Any pointers on how you are finding your deals?
Yes both, they wont talk to you without the authorization. I would offer less than 10k for the second though. If it goes to the sell they lose all their money. If their quick to settle for 10k then 7-8k will get them thinking too.
I have ads in the paper, one of the banks here in town send homes my way, I got a couple of realtors that send stuff to me, I got family looking for any houses that look run down. I’m just always putting the word out that I buy houses. Oh yea, I also get a foreclosure list from my title company and send postcards out.
1k is even better, you got the idea. It’s better than nothing. I had one loan company that wouldn’t budge and it went to the sell and they lost it all. Sometimes they just do not care.
Good stuff about the title company and banks. I haven’t done the title company thing yet. Ads, banks, realtors I am working with. Your on your way John. I gotta get some sleep. 0430 comes early. Damn day job!
Remember that mobile home I bought awhile back for 9500.00? And I resold it for 25k with 2500.00 down, well this lady called me and said that she wanted to buy my mobile home, I said I don’t have one for sale. She then told me that the other tenants were moving out, I was like what!!! Well anyway’s she wanted to buy it when they moved and I said that I would discuss it with her once they were out. Once they were out I called her back and ask if she was still interested and she said yea. During negotiations I got to the down payment and before I said anything she said that she would give me 10k DOWN. I said ok I will get the contract to you right away. Man I love this shi$. REI is the way to go. I allready made 13,100 on a mobile home I bought in December for 9500.00. And she still owes me 15k. Pretty cool!!!