I have a potential deal for a property that does not have a good margin. It is an inherited property. The mortgage is in the decedents name. The heirs have been paying the mortgage regularly and on a timely basis; it has never been late at all. The ARV is about $130k. The house needs $40k in work. 70% of $130k is $91k. Take away the $40k in repairs, and you get $51k. QUESTION: Since the house is not in foreclosure, what are the chances I could arrange a short sale with the bank in the amount of say $40k, and the flip it to an investor?
If the payments are not behind, it will be difficult to get the bank to agree to an SS.
If the owner is not behind its payments nobody will allow you to do a short sale.
Since the mortgage is in the name of the decedent, can they skip 2 payments without any penalty to themselves personally? Then it will be in default and I can proceed with a short sale. What do you think?
You didn’t state the mortgage balance. That’s a tad critical.