I saw this foreclosure a few months ago in the neighborhood I live in. I called about it and they were asking 149, now 3 months later they are asking 139K, the realtor emailed me and asked if I was still interested. I told her I would only be willing to make an offer of around 110K (70% of ARV), she said “I know they wont go that low” in a emailed response. I told her to just keep me in mind…
The loan balance for this foreclosure is 110K, so to me all that the bank needs is 110K to recoup there expenses. So why is the realtor being so diffucult. Why cant they just make an offer for me and the bank could counter offer something favorable. Just wanted to know if anyone had any ideas for these situations when realtors pretty much blow you off.
I do know that I am going to go get my real estate license. Then it would hopefully make it easier to make offers.
If it is listed with a Realtor, get you own Realtor to write the offer. By law any and all written offers must be presented.
If there are any repairs to be made, make sure that you include this rationale in the offer. Often, the “suits” making the decisions have never seen the property, have never seen a picture of the property, and couldn’t find it on a map. It’s just a ‘case’ with a number. If you can make the case to them that the property needs X in repairs, it may be an easiers sell.
BTW - the Bank will NEVER accept an offer it doesn’t see! The Realtor maybe just blowing smoke…she may have no idea what they may or may not do…it’s the end of the year…I guarantee that they want it off the books!
Also when you are talking about breaking even keep this in mind as well.
If they need 110k to break even on that house what about Realtor fee’s attorney fee’s And what about that house two miles away that sold for 130k that they were owed 160k on they need to compensate for that as well it is not a house by house deal it is a thousand house deal!
But Keith is correct I offered on an R.E.O. last month where they wanted 145k for the house I offered 104k And got it! You can never tell what is going to happen.
It is kinda like if you had a bad tooth and went to four dentist one would pull it one would fix it and the other would root canal!
The same is true at the Bank you could get any loss mitigation manager you might accept it another might counter while the other might simply reject it you can never tell!!
This is definately the time of yr that the loss mit people want to close out as many as they can. Short sales are in season.
Let me give you an example: I closed on this one yesterday. The payoff on the loan was 54k( homes in TN are cheap) with backpayments, and all the other charges, that was about what the house was worth. It did need some repairs, paint, carpet, etc. My initial offer to the loss mit guy way 21,400. He called back and said not a dime under 30K. We ended up at $25,500. Not a bad deal. I never worry about the lender losing money.
I read on one of the post that a homeowner cannot make any $$$ if the bank agrees to a short sale. Is this true? What if the homeowner won’t walk away without money in his pocket… what do I do? Do I not capture this on the contract? Do I just put the total amount the bank is asking for?
nothing says you can’t give them 1k or so to “clean” the place up when they move. You can also rent a truck and hire a couple of guys to help them move.
Would this mean, if the bank is asking for $200K, the sales contract should only be $200K ?.. and then just give money to the homeowner which will not be written in the contract?
I was interested also with the best way to arrange paying these folks without committing bank fraud. When you say I’ll give them 1k or so to “clean” the place up when they move or I can also rent a truck and hire a couple of guys to help them move. Is this a verbal or written agreement? I aslo heard of somebody putting this down on the HUD to disclose any agreements between the parties. Could you expand a little on this Idea!
I put it in writting but it’s not something the lender sees. It’s just between the homeowner and me. Kind of like a contract for services in this case, house cleaning. The truck and a couple of guys is just verbal. That part is really for me. I want them out of the house as soon as possible after the close.
Thanks for the reply,
I’m still looking for my first short sale deal, but this information helps when needed!
It amazes me how my people just move in the middle of the night when they are months away from the sale. If I could just locate one of these people I might be able to make a little money!! I have researched people up to march sales and all have vacated. I take that back there have been a couple of houses that looked occupied, but I haven’t heard from these people yet.
I need to find out how to get the leads when they are first filed at the circuit court. Maybe then I will catch them before they get scared and move.
well…you can spend $25 to do a skip trace on them. I find that when the trustee sale notice is published in the paper…most are still in their homes. the first publishing gives you about 30 days to do something…that’s more than enuf. You have to look every day for these notices
It’s the first thing I do in the morning…I immediately start a mailing blitz on them.
They advertise three weeks before the sale, but have looked at all of them only to find them vacant. I have pushed to find Feb and march sales and so far I have had no luck, but will keep trying.
You can pay the homeowners for furniture, appliances or any other stuff and put it on the hud1 and its ok with the lender. Just don’t give money before the deal is done!!
The listing agent is there to protect the sellers.
Find an agent to represent your interests, if agent makes an offer in your behalf the listing agent must present offer to sellers it’s the law. Or its the law in Texas
hi,
my name is tom and I have alot of foreclosures in the philadelphia area. I have a quick question about switching over the deed from the owners name to my name when there is a mortgage. Is it possible to switch the deed over to my name before settlement and it’ll be legal. and if so where can I get the paper work to do it?
You can do what’s called an addendum…simple piece of paper that is between you and the seller. On the addendum, you put down what you can do for the homeowner. It’s a numbers game.
The addendum doesn’t have to be notorized either. I always included an addendum that is between me and the seller. This paper can be handwritten out and basically just shows what you can do IF the bank accepts the short sale. Just make sure to be in a phrase that says …subject to…
If I if offer 1000.00 to help the seller move on with his/her life, I always put a “subject to” the bank accepting the short sale. And I always go over the addendum word by word, explain to them like I’m explaining to my children. Most of the these homeowners haven’t got a clue of what I’m talking about until I go over every step in the addendum.
