Have house under an option to purchase from owners;
I faxed an offer to the first mortgage bank and they sent me a Short Sale Package.
I’m in the process of putting it together and the bank appears to be receptive.
The house has two mortgages first 216.000.00
second 11,658.00
Would it be easier and better if I purchased the second at a disount price? Should I just work with the first bank and shortsale the house for $170,000.00? anyone out there who has done a double closing?
I have a buyer who wants to purchase the house.
I have recorded my option at the county.
anyone with any ideas let me know
thanks and have a great day
April,
How much are the repairs to the property? I think your offer to buy the first position is too generous! Start at 60% and negotiate from there. On the second note, I would offer 10% of the note and go only as high as 15%. The seconds get wiped out at the sale anyway…It might be easier to just buy the second. Again, I would only offer 10-15%.
Doubles can be done, but I question if you have limited your ability to do a double because you recorded the deed. Did you record the deed or an option to buy? Your buyer’s lender may require that you season the property.
Based on the numbers you gave, I would offer $129,600 on the first (less any repairs) and $1,165.80 for the second. A total of $130,765.80(less any repairs). If you buy it for much more than that, you may limit your exit stratagies.
Do you have your buyer already qualified? Proof of funds?
How much equity is in the deal? How much did you buy it for?
Good luck!
Thank you for your relpy on the short sale. I offered 170,000 because the house would be worth 240,000.00 if it was fixed up. I recorded my option to purchase with my name and or assigns and am trying to sell the option to a couple who wants the house. Repairs on the house are approximately 10,000.00 of which I sent a letter along with my offer to the bank. I am putting the short sale package together today and will fax it to them by tue or wed. There is a lot of stuff I didn’t know but I’m learning quickly. I’m getting the listing papers from the Real Estate person who tried to sell the house for a year but it didn’t sell. I think it didn’t sell because the back yard is very ugly which is okay for my purposes
I like your idea about buying the second for pennies on the dollar but I would like to have an exit stadegy if the first fales to accept my short sale. I’m putting the offer in on the second today, I was going to start at 1,000.00 and see if they would counter me. the first loan guy said they would only pay the second 500.00 if his company accepts my short sale. One of the seminars that I went to said that if you buy the second the bank may shorsale the first and refinance the second. Have you heard of doing it this way? They haven’t scheduled the sale but I have to work fast.
This is a fun experience and I’m having a good time helping the owner of the house. I appreciate the help. Thanks again for your reply your awesome