If I am conducting a short sale, is there any maximum number I can’t exceed when reselling a house?
Not sure I understand the question ??
In the event that I can get a bank to lower the amount owed, is there any restrictions they have about selling a home for a higher price. Say a house is in pre forclosure and I get the bank to lower what I owe from 200,000 to 100,000. And lets say the property is valued at 300,000. Am I allowed to still sale at FMV or are there any restrictions with short sale?
sell it for what ever you want, but yoiu’ll be hard pushed to get a bank to take 100k for a property that is worth 300k
If you purchasse on a short sale you own the property. No one can tell you what you can sell it for unless the bank you bought if from had something in their contract otherwise. I have never heard of the bank wanting to be involved with the property after they unload it.
Good Luck
Thankyou for your replies! BTW I have seen the forclosure number rise and rise everyday. I am going to jump on the bandwagon and get started! Looks like this trend is going to stay and rise more in the next 5 yrs.
Charles are you saying that you own a property that is going to foreclosure?
No I am just stating that the numbers of foreclosures are rising in my area.
Charles,
I believe you are leaving out a step, and that is why we sound confused.
When doing a Short-Sale, you must purchase the property for the amount of the Short-Sale. The bank will ask for a copy of the HUD and it better match, or this gets ugly really quickly.
Then when you own the property with your new loan, sell it for whatever you want.
The missing step is you are trying to get a Short, and sell it in the same transaction, and that will blow up in your face. The bank will see you are selling it for more and cancel your Short, nor will the Title company allow you to close as you are doing what is called in most States as an “illegal flip”. An illegal flip is when you are using the next Buyers money to close your deal, and you can’t do that.
Another option is to find a Hard Money Lender, borrow the amount from him at 1-4 points, close your purchase, and then sell it the next day to your buyer. It’s a legal transaction, your Hard Money Lender got paid back and you pocketed the difference.
Are we clear?