Short Sale Advice Needed

Foreclosures, Short Sales, Tax Foreclosures
1

A real estate agent contacted me and told me about a property that the owner is in default on. She is an agent for the seller.

After Fixed Value: $100,000
Loan Payoff: $60,000
Cost to fix $20,000

The bank is going to start foreclosure proceedings on Monday.
He, by the way, is not co-operative and will not call the bank. But he is willing to sign the deed over to the agent or someone else. His agent wants me to accept the deed and make his payments current with the bank to stop the foreclosure. His loan is assumable. I want to offer a short sale of $40,000. The agent says the owner has to accept the short sale before the bank can approve it. (??)

a. Should I stop the forclosure by accepting deed and making payments current?

b. Should I offer the bank a contract to purchase for $40,000?

c. Should I accept the deed and not assume the loan?

d. If I assume the $60,000 loan is it still a good deal?

e. HELP!!!

2

Well myself I would think it all depended on…DO YOU HAVE THE 20k to fix? Like credit cards? HELOC? ETC?
If you do, then take it subject to.

My experience has been the bank WILL NOT negotiate on a first with equity in the home.

Make sure you get a deed before.

Happy investing!

3

I should clarify that it is currently a one bedroom valued at $89,000, part of the $20,00 is to convert a 10x 8 dining area into a bedroom.

Can you explain “subject to”?

thanks

4

You can take over the deed from the ownwer before the property goes on foreclosure and borrow a hard money loan to fix the property and resell proerty at market value to cash in.

Also, if property goes on foreclusure you can negotiate with bank for a lower sales price and borrow the hard money and fix property and cash in.

Good luck