I am in the process of putting together necessary paperwork as I have found I house I am buying for my family.
Homeowners just got NOD, they have moved 3000 miles away, I have their cooperation and I am about to begin negotiations with the bank.
My main question is how much should the P&S agreement be for.
The house is listed for $679,000.
They owe $566,000 first and $106,000 second (Probably 40k more if you count what they are behind on both).
I think $525,000 -$550,000 is a strong possibility in a short sale.
Not many houses have sold in neighborhood in last 6 months. Were selling for $579,000 to $670,000. (Current owners bought this house in Oct of 2005 for $707,000, they paid most in neghborhood, slightly overpaid at tippy-top of market). 3 houses listed in neighborhood currently, one at $599,000 one at $649,000 and one at $679,000… each have been listed for at least 6 months.
Have estimates from contractors for everything from roof to driveway repair.
Best friend is an appraiser, tight with a title company.
I do short sales all over the US, and I have completely stopped “getting the deed” because laws are popping up all over that prevent title companies to do a simultaneous close or similar process (aka seller deeds property to you, you then go find a buyer and sign over deed to them all @ once). of course since you are the buyer, this is slightly different.
i have an attorney that works with me, we write up a shortsale package and have our sellers go to a title company and sign everything there (so it is notarized). instead of deeding the property to us, the seller deeds their property into their estate trust (which they just created). we then become the trustee to the estate. this is a non-taxable event, so the title companies are happy to do it. i have NEVER had a seller express ANY reservations about doing this.
it is probably in your best interest to let someone else negotiate since you are the end buyer. shortsales are accepted by lenders at an extraordinarily high rate when we as the short sale negotiators send an offer from a qualified buyer in along w/the short sale property.
if you’re interested, we could help you with that. you obviously would still be able to reap a tremendous gain of free equity, and give yourself a much better chance of 1) protecting yourself from legal liablity, 2) getting the deal accepted.
My understanding is that you are going to put the Purchase price that you are going to short sale the property to. So, when you present offer to the Lender, the will be the amount that you are asking the lender to SS it for that you have on the contract.
You memtion using an “estate trust” to convey the property and becoming the trustee. Could you use a land trust and obtain the same results? thanks, Eddie
need ur advice… Can I short sale these 2 homes with some BAD conditions I’ve gotten myself into. Have 2 homes here in Orlando, Florida in foreclosure…JUST purchased in February 2006…filed bankruptcy to delay the one I live in($331k)… have little to non-paying tenants in the other, so fell behind on the interest-only/conventional mtg for that property. For this lender (IndyMac), I owe both $234k and $58k for a 1st & 2nd mtg. Then, the buying price was $294k. This home is on the market for sale, but because of poor market right now, there are no offers and the home is priced MUCH too high ($299k)… the listing was only for 6 months which will be up on Dec. 29, 2006. For the home I live in… the sale price was $331k (Option One Mtg Company) and I want to sell this one too, but it’s a duplicate situation… not only is there no equity in either home, the asking price would be much too high… I want to sell the homes (like yesterday), but can’t figure out a technique. I would not mind if I walked away from each of these homes without earning a $1 from the sales. I just want them gone. I’ll rent a home or an apartment somewhere and move on, but don’t know how, and I am STUCK. What do I do? I do not know how to start a “short sale” (if this is feasible), nor do I know how to word my request to the lender(s), is there someone I could hire to negotiate on my behalf? I’m ready to do so… even if I just break even, but really don’t know how. Both homes were built in 2005, need no repaires @ all inside…requires lawn maintenance on both, though…in addition to the original amounts I borrowed from the lenders, of course, I also owe now for attorney fees and filing fees which has increased the amount I owe immensely. How do I sell these homes to someone…underpriced?