If I am looking to assign a contract from a very motivated seller but there is no equity in the property and the seller is almost 4 months behind in mortgage,how does one go about doing a short sale? Do I involve myself to do the short sale or is that the job of the investor I assign the contract to? I checked comps online at zillow.com and it shows the house being worth between $235k-$280k and $226 is owed to the bank.The seller just wants to get rid of the house with maybe 2k back at closing.Is this enough to do an assignment of contract,or will a short sale need to be done?? Your replies would be greatly appreciated.
First thing you need to do to become a successful investor is to forget the website ZILLOW exist. This is one of the biggest piece of crap websites out there. I am yet to hear from anyone who said zillow was accurate in there area…
Now for the deal. The seller can not get cashback if he is doing a short sale. Unless you pay them on the side with your own personal check and the bank does not know.
Assigning a short sale will depend on the state. Some states as well as banks do not allow you to assign a shortsale while others do. Also to do a short sale the home must be listed on the MLS with a realtor. This is the only way the bank knows the seller made every effort to get a FMV offer on the home.
If you chose to assign the deal, ask for your fee upfront and non refundable. But based on numbers, not much of a assignment deal. You need to get it short sales. You should not pay over 65-70% of ARV for the home.
If you have no idea how to begin with short sales I would find another investor in your area who does and pass the deal on to them. Prehaps ask if they could show you the process that they use for working short sales. You really need to read up on how to do short sales first otherwise it will show that you have no clue what your doing and your file will go to the bottom of the stack with the loss mitagator.
thanks for your replies