Short Sale Help

I would like to know

  1. Is short sale possible if the house is going to be auctioned in 2 weeks.
  2. Is short sale possibe if the HO owes less than the value of the home. eg ARV $115k mortgage balance $104k. Is it possible to short sale, offer the bank $65k?
  3. If you buy a home with SS can you let the HO live in it with a lease option?
  4. What type of marketing will bring quality leads, if direct then, what type of list? any tips… sugessions appreciated.
  1. Yes you can short sale a home that is up for auction in 2 weeks. You need to convince the mortgage company that it is in their best interest to delay the foreclosure. With the back log of foreclosures, it may be hard to even talk to someone with the authority to stop the foreclosure. A complete short sale package along with a contract may speed things up. Sometimes the mentioning of a possible bankruptcy will get them to stop the sale.

  2. You can short sale a loan that is less than the ARV. But you need to give the mortgage company a reason to accept your offer. Lots of repairs, mold, etc. They just don’t take offers because they got one. They have guidelines thay have to follow and show why it was a good business decision to accept the short sale. A good rule of thumb for short sale acceptance is: BPO * 80% - repairs. It will also depend on the investor who owns the loan.

  3. I would stay clear of letting the homeowner stay in the home after you buy it. The howeowner is your best friend now because they are under tremendous stress from the looming foreclosure and you are their savior. But once that stress is gone and a little time has passed, you could become the “GREEDY INVESTOR” who took advantage of them, and the courts will most likely take their side. Stay away, it’s not worth the trouble.

  4. By quality leads, I assume you mean buyers. Do eveything you can to market the home, FSBO, craigslist, realtors, list it in the MLS, bandit signs ( I still use them), neighbors, flyers,, yahoo.

James Thnx for your response. By Quality lead I mean, houses in pre-foreclosure or people who missed their payments. I tried a pre-foreclosure list by a local company, I sent out post cards and out of 600 more than 200 came back.

Yes, you will get returned mail. I use a local company also and when I mail out to pre-foreclosures I get a bunch returned. I am getting a return rate of 29%. It’s hard to pinpoint where the problem is. Is it the list or is it bad data from the attorneys filing the foreclosure?

I don’t think the big national list companies will be any better, they would probably be worse.

I just deal with it and chalk it up as an expense. I don’t have the time to go down to the recorders office and get the information myself. I don’t think there will be any company that could give 100% accurate infomation.

Not to sound like I can do better, but If you have one or two you want to go after pm me and I’ll see if I can’t help get that info! First ones on me then we can discuss paper!

What would be the best to mail out, post cards or letters? I sent out postcards saying I can either Stop your foreclosure or Buy your house, but got only 2-3 calls. What will be the most effective script to get the phone ringing.

I’m sure this info is on this forum somewhere; search for “scripts”.

Here is some additional info:

All the best