Hey shy
Not to burst your bubble, you are further ahead then I am. In addition to your authorization leter, did you also get a contract ot buy the property as well? If you did great. What were your exit clauses(aka weasel) to get out of the contract if it went south.
Dont forget, the next time you visit to get picutres of the interior/exteriror of the property. This will help you negotiate with the bank. Check out you property appraiser website to find out the size of the property so you can run comps. You need low comps to lowball the BPO and then use high ones when you are going to sell. If I mistyped anything, feel free to correct me.
Just out of curiosity, who is the lender?
steve
Steve,
I did get the Sale Purchase contract signed. I also got a memorandum of option notorised and I am going to get it recorded today. I informed the seller that they will not be getting anything (other than $1 consideration) from the house and explained them what I was planning to do.
I also made some exit clauses making sure I can walk out anytime and also contingent on me able to do short sale with bank where my cost does not exceed a fixed number.
Despite all this the deal seems to be going south (for now)ā¦
Countrywide (mortgage company) wants me to list the property before I can do a short sale. I explained it to them that seller does not have time to wait for 6 month of listings as otherwise it will go in foreclosure. They are already 3 months behind. Not sure if they will accept this explanation.
I check on the property yesterday. This was sold just 7 months ago for $54K and has no appreciation. Hence the appraisals were way more than market value. The Seller took out a loan of $60K as they made the bank pay for escrow costs also.
What is the right price I should offer Countrywide Mortgage for short sale ? I have heard Countrywide has pretty strict rules regarding short salesā¦ Is it worth my time to get inspection and quotes from contractors or should I just move one ?
I am only guessing, again from what Iāve read in the past. You need to find out from the lender unless the letter they sent states when the property is going to auction. I dont know what state u r in. BUt it is common to have the property listed. If you have a real estate agent you r using, u should be able to tell him to list it low. Iām a little fuzzy at this point, was listening to mark sumpters audio, maybe will need to go back and listen again. According to another dwan bent-twyford, she said start half price or less. If you know the property is a dog and have pictures to prove it, u might want to have it on hand when countrywide comes back and says the offer is too low. I am starting to work with a mentor, have not gotten that far yet. You can try 20,000 and go up from there. the first offer will be 20,000 and then if they say know, send in the pictures, the sellers finanancial status. DO NOT get an inspection done until you have the final approval from countrywide. If your deal goes south, you will lose that money. Tip - have contractors bid time, money materials for the job. No money out of your pocket. Iāll let the more advanced shor sale specialists help you out. That was my 2 cents work. Let the homeowneer know that they will get the consideration at the closing table when they bring the keys. You did stress that they cannot stay in the property if you are succesful in doing the short sale, right?
good luck
steve
Hi Shy,
It sounds like you are well on your way. I have had good luck with also getting the following forms signed by the sellers; I have them take them to be notorized and return them to me.
Quit Claim Deed
Power of Attorney
In addition to the forms you had signed, this should help you protect your interests.
Nice Job!
Enjoy your day,
Ray Rochefort
Managing Member
Purpose Investments LLC
