I have not explored the Short Sale arena much, so I am hoping that someone can help me out.
The subject property was listed in MLS by the seller and then was taken out because the bank has changed the locks on the property and the seller has been in foreclosure at least for past few months. The lender is Countrywide.
The agent who was representing the property said that bank is okay to do a short sale. The sale of property at the auction house is atleast a couple of months away. I would like to know how can I approach on the short sale. The property was listed for close to 500K. The property needs 20K work. Similar properties in the area are going for close to 560-580. My question is how can I influence the BPO, I think the BPO is already done on the property, but I am not sure. So, how can I ask the bank to reduce the asking price further as any repairs are already factored into the asking price. What to say to and what to ask for short sale.
Can I begin the mortgage process from another lender to buy the property while I am working on the short sale.
Also, if I buy the property from the bank using short sale method, can I also earn commision ,if possible, as I am a Realtor.
Thanks a bunch,
Holding cost’s $18,900.00 7 months @$2,700.00 per month
Bank will profit $440,000.00 after all cost’s
OFFER $400,000.00
This offer will get this property off of your books Now giving you as the bank the option to re-lend this money to make a higher profit.
**Try this approach there are other items you can add in there such as taxes,closing cost’s appraiser fees inspection fees and on and on and on… I send them a basic explantion of offer such as this to start then when we are close I ask them to pay all the fees including 3% towards buyers closing costs.
I am a little confused. If the auction is a few months off, then the bank does not own the property yet. Why does the bank have locks on the property at all, much less new ones?
They have been doing that alot latley I do not know what the reasons are. That being said I would re-key the locks as well if I was into the property for 200-300k I guess to.
How can I rekey the property. I do not own the property. Would not it be illegal. I just saw it listed on the MLS, now it is canceled. Owner cannot be found anywhere, even on the property records does not have his real address, it just has the property address that is in foreclosure.
I do not understand how bank can change the locks, it does not make sense at all. It should be illegal, owner should have complete access to his property until the auction is complete and other formalities are fullfiled.
Since I cannot find the buyer, I cannot do Short Sale. Is that correct?
The only things I can think of is that the owner has done a deed in lieu of foreclosure since the lis pendens has been filed, and that is why the bank has secured the property. Or maybe the owner has abandoned the property and since the bank has a security interest in the property, they have the right to secure it. I’ll have to check my mortgage to see if that wording is in there…
The owner was not aware of lock change when the agent called her. By the way, this is an investment property, so I am not sure if the rules of engagement are different.
Still, it does not make sense. Now, I cannot find the owner and the agent representing the property is not returning my calls.
Is Short Sale possible in this sort of situation? Can I do short sale with the lender without having the seller/owner involved while property is in the foreclosure process?
I do not know a lot about short sales, but I would think that until the property is sold at foreclosure, the only one who has authority to sell it is the owner. If anyone has any information to the contrary, please let me know…
I JUST LOVE THIS FORUM IT IS SO INFORMATIVE AND VERY HELPFUL, BUT I HAVE ONE QUESTION AND I HAVE BEEN READING FOR DAYS AND I JUST DONT GET IT WHEN IT COMES DOWN TO THE CONTRACT STUFF, DO WE HAVE ANY NAMES OF THESE PARTICULAR CONTRACTS, LIKE THE ONE FOR THE SHORT SALE / QUICK SALE ETC, OH , WHEN THE ONE WHEN YOU AND THE SELLER SIGNS AND THE ONE WHERE YOU AND THE INVESTOR SIGNS, DOES ANYONE KNOW THE NAMES OF THESE PARTICULAR CONTRACTS AND WHERE CAN YOU GET ONE ASAP, THANKS TO ALL FOR YOUR TIME AND HELP, TRISH, NEW AT WHOLESALING / AND LOVE LEARNING IT :
: hello… does anyone know the name of the form that is used when you are doing the deal and doing the transfer on the preforeclosre property, thanks ahead of time
Lenders change the locks to protect their asset if they have knowledge it is vacant.
The thing is they really are not supposed to change the locks, it’s against the law, but being the bank who questions it right???
here is what you do get your authorization to release comtact countrywide and asl them for a copy of the key. DEAD EASY. They must send it to you. They can not deny access to the “owner”
as for your shortsale a walk in the park, ask Countrywide to send a shortsael apackage and ask for an internal BPO, you have the key aske the mitigator to make you the contact.
Meanwhile get a contractor out there and get some estimates to contest the BPO if they don’t work with you.
OR if you get the seller to to give you the deed … call the lock smith and tell him to let you in.
This is what coaching does for you… i have been in the dark for 2 years but now I am out.
Bye the way my coach called the mitigator for me and got he the key sent out first class post.
Hope this helps.
Thank you for responding, but the big problem here is that the owner is no where to be found, so what do I do if I can’t even find the owner. As for the property, I have seen the property from the outside and it was rehabbed completely, the owner rehabbed it, so I do not think the property does not require much work. If the property does not require any work, does the short sale will even work as short sale is useful when property requires work. Why would the lender take a lesser offer when it can put the property in the market. Am I wrong? I am still trying to understand how the short sale works and what to say to the lender. Each reply confuses me even further. PLEASE HELP!!!
Try sending a letter maybe they fowarded the mail MAYBE…
If not try www.findtheseller.com or ask the neighbors or tell them there is a fee for them if you can close a deal plus it will help the comps in the area.
As a rule of thumb keep in mind most of the time the harder the seller is to find the better the deal!
