Short sale candidate or not?

Foreclosures, Short Sales, Tax Foreclosures
1

Hi all,

I am new to short sales and I am not even sure if this is even a good candidate for one. Got a call last night from a lady in the following situation:

Getting a divorce.

Husband has relinquished ownership to her. (I told her she need to get a QC deed).

Aprox. ARV $180K-190K

They have a:

1st mortgage for $144K
2nd mortgage for $12,500
another lien for $6,000

Total: $162,500

Monthly payment is around $1,250 mo.

Not sure yet about repairs but it could be at least $5K.

The mortgage is current, she’s just a late this month but will be making the payment the end of this week. She knows she will not be able to afford these payments and wants out.

She just wants to be able to payoff these loans and have some money to move out to get up on her feet.

Obviously, there is not enough equity in this deal the way things are right now.

Questions:

  1. Does this situation qualifies for a short sale? If so, what would be the best way to approach it?

  2. Is there any type of creative way to make a deal out of this?

Thanks in advance.

RV

2

I think there is no short sale here. They are not behind enough on payments. She hasn’t been summoned or served yet based on your info and is only one payment behind and she is paying that. No sub-2 deal here with low equity. Move on.

Nate-WI

3

“Monthly payment is around 1250”? With a first of 144K and a second of 12,500? You better refigure that. It’s alot higher with taxes and ins. Are you just taking her word? This may be an adjustable, check the mortgage docs before proceeding.

There is no short sale here because the first is below the fair mkt value.

The only way I would try to make a deal out of this to figure what the current rent would be and do a lease option with no money to take over. Or just walk.

EH

4

Do you know a Real Estate Agent? You could have the Agent list the house for FMV for at least 1 month if not 2. Make sure there is enough to pay for the commissions and get the debt paid off. If the house hasn’t sold & by then she should be behind at least 2 payments, then she is a short sale candidate.

She already has the hardship, & she tried to be proactive in selling the house. Once she becomes a short sale candidate, you can work on it and use your real estate agent friend in the transaction. Even if your profit is small, e.g., $5K, you helped someone out of a tough situation. Bigger profits can come from other deals. And your Seller will be grateful & probably refer you to others, not to mention have a great testimonial for you.