Short Sale back up plan

Foreclosures, Short Sales, Tax Foreclosures
1

Lets say I perform a short sale for example ARV 100k 1st Mortgage 97k Repairs 12k. After submitting the short sale, the lender decideds not to approve the Short sale. What would be my back up plan? Should i put something in the Purchase & Sales contract to protect me if the short sale is not approved?

Also If there are two mortgages, should i try and short sale the 2nd first, if so how much % should I offer. Should I start at 50% of the morthage? Same thing for the 1st, should I start off at 50%

2

The entire sale should be completely contingent upon lender approval of the short sale!

From what I’m hearing, short sales of 2nd mortgages usually run 40-60 cents on the dollar (50-60% of face).

Keith

3

Use an option! Then you can open escrow put all the needed docs into it and work on the lender.