I got a bank to agree on a 25k short sale for a house that’s worth about 60k. The payoff before the short sale was 45k.
I was able to wholesale it to a buyer and spoke to his title company rep lastnight; she told me that since the house is headed to the court house steps next week, the foreclosure attorney should provide me the payoff not the bank. Is this true? She told me that foreclosure attorney will send me something stating that the new buyer will have to show up at the closing with 2 checks. One check for 25k and a second check for the attorney fees. Is the title rep correct on this? I thought the payoff amount they provided me (45k) included the attorney fees and they made the decision to accept a net of 25k? This could be a deal breaker if the buyer now has to come up with another 5k if not more
They may take it regardless of what the current owner pays or does not pay. Any deficits are 1099’d to the owner as income the same way you get a 1099 at the end of the year if you do a negotiated settlement on a credit card. The IRS always gets theirs. So in the end, its how much the owner wants to avoid the foreclosure on his credit record.
Please stop putting your website URL at the bottom of your posts…it (1) Violates the Forum rules, and (2) is already in your Member Default Signature so it is displayed on each of your posts…
<<A TON of posters have URLs at the bottom of their posts. It may violate the rules, but it seems unfair to single only this chap out.>>
It is within the rules to do that. That is called the “Member’s Default Signature” area and you can put just about anythiong you want in there subject to the following (from the Forum Rules):
"Member Default Signature
You may use your forum signature to advertise your business and/or network as long as the signature is no more than 5 lines and has no blank lines in it. You may not post more than one link to your site in your signature. Once you’re logged in, click the “profile” button underneath the banner ad near the top of this page to set it up.
This “chap” already has the URL in his Default Signature but kept also adding it at the bottom of each of his posts as well.
Normally when a lender agrees to a short sale they will give you a payoff
that states what they will accept as their NET PAYMENT and the date they
want the funds. I believe that you should talk to the lender and let them
know what you closing date is and ask to postpone the sale until you close.
If you can present solid proof that you will close on that date then they should
be able to postpone it for you, especially considering the heavy discount they
are giving.
I’m having trouble getting Wells to give me a payoff amount they’ll accept. Their loss mitigation people keep telling me they want a purchase offer, then they will tell us if they will accept it. Kinda a Catch-22. How do I get them to give me a net number they will accept in order to put the P&S together?
Thanks!
First of all You should have a good ideal of what YOU want to pay for the property as well as what the seller will agree to. Once this amount has been determined submit a “offer to purchase” letter to the lender to get things going. I usually offer 20% lower than what I want to get the property for in order to make room for negociations. If they accept the lower figure great if we negociate to my price I am ok with that too.
I would need more details on the deal to give you moe specific answers.
Seller is 4 months into default, and last week had the Notice of Trustee’s sale posted- 3/9/2007. Seller is not interested in anything except getting out. Current balance is $209k. Value is $249k, but can provide comps showing no more than $225k. Indication from Wells is they’d entertain $190k. Average days on market here is over 90. After paying a realtor, costs to foreclose, etc. they’d not make much more than I’m offering probably.
If Wells has already indicated what dolllar amount they will entertain(190k)then you should send over the
offer to purchase in the amount of @ 152k. I know that this seems low and they most likely will reject it instantly,
but it creates a starting point in the negotiation process - in your favor. The 152k offer gives you a 20% window
to play with below your 190k comfort level. If they counter offer you at 180k you are still 5% below the original 190k
mark.