I have never done a short sale. I found a house that has a 368k mortgage against it and the area goes for maybe 300k. Is there any guage (%) that you know how much the bank is willing to loose? Rather not waste my time with trying to get engaged just to realize the bank won’t budge?
thanks!
Hey Newbie,
Please don’t look at it like you’re waisting time. It will at the least be a learning experience. Remember this, the bank is not in the real estate business, they just loan money…so they don’t want the property, it doesn’t help their financial report. Most banks have to hold in CASH from 5% to 8% for every home they have on their books not in good standing. This could in some states be a million dollars and more for one house. Banks don’t want money sitting in the bank that they can’t use. When you make an offer to the bank remind the bank of that fact. Don’t be afraid to make an offer…You have nothing to loss and everything to gain (knowledge, experience and yes even money). I would start my first offer at around 60% below the asking price. If the math works you can make the deal work…
THANK YOU!!!