I hope this makes sense, im new to short sales.
Is it better to do a SS when the property is in foreclosure or before the auction, or more effective when its passed the auction and becomes an REO sale?
Or is it just not possible to do a short sale after the auction if there is a 2nd? Has the 2nd lender just lost there money and thats it?
At this point you can only short the 1st correct?
You can’t short sale anything after the auction because it belongs to the bank.
ok that’s simple enough.
So the bank that was on the 1st loan now owns it and the 2nd lender lost all the money they lent out?
Say the amount on the 1st owed was $350k before the auction. Then there was a 2nd for $100k. BPO is $450k. Are the banks ever willing to negotiate a sale down to the amount that was owed on the 1st before the auction?
350K is around 75% of 450K. If you’re any good at negotiating, and the property’s in bad enough shape, you should be able to do that.
You’d probably have to split it at 320 to the first and 30 to the second.
I thought seeing its gone to auction the 2nd lender is out of the picture now?
That’s if it’s not gone to auction.
If it has gone to auction, everyone’s out of the picture. Wait for the For Sale sign and talk to the realtor.
What’s the deal with the REO sales though, are the banks usually willing to sell these houses at a discount? For instance for the amount of the 1st that was originally in place before the auction.
Pretty much.
But then it isn’t a short sale, it’s just a straght purchase agreement with the bank.