I’m a newbie to short sales.
If a short sale typically takes two to three months to complete, how would you be able to work with a client whose house is suppose to go to sell in three weeks?
Will the bank let you close after it’s suppose to go to sell on the courthouse steps?
What’s the advantage to the bank of waiting for a short sale from you?
And if your exit strategy is wholesaling it, is that a reasonable amount of time to find someone to buy it from you.
Thanks in advance. And sorry about all the questions.
First thing you need to do is check the foreclosure laws and process in your state.
The short sale is only done before the sale (when the homeowner still owns the property), after the sale the lender gets the property back. It then becomes a REO property. or it gets sold at the sale. for whats owed.
Typically the lender will not stop a sale unless they know there is a possibility for a viable deal.
If you plan to wholesale your deals you should have your wholesale buyer lined up even before you approach the lender. They will consider this deal if you can show proof of funds and make a reasonable offer.
If you already have the deed on this property you can offer to buy the note from the lender.
When a property is listed with a Realtor that is an REO do they list it at FMV or for what is owed?
I’m asking because I found an REO that has not been put on the MLS yet and the agent is waiting for the price from the lender.
I asked the agent if he would do comps for me and he said yes cause he has to do it for the lender anyway.
So it seems that they might be listing it for FMV???
Thanks, just curious.
Obviously, the bank wants to get as much as they can for the property…they will try to get full-price (FMV)…
Ok, now I know those are out of the question for me.
Properties like that usually go quick here, there was one that was on the market and the owner had it listed 25k under FMV to leave room for repairs and within three days they had 8 offer’s all of which were over FMV.
Better focus on pre-foreclosures…