Couple of questions
1.Can you do a double close on short sales?
for example
FMV 150k
balance 170
repairs 10k
arrears 3500
lets say the bank agree on the short sale and now owed is 100k. Would I have to pay with my own funds first then do a double close?
Is there anyway I could do a SS with using any of my funds? Pls explain. Let me know how you guys do SS.
Thanks
???
This depends on your lender. A short sale is pretty much handled like any other sale from the point of view of the title company.
What I mean is this: If you buy a house from an individual, and they owe $50k to the bank, and you buy that house for $75k, the title company takes the $50k for the original mortgage from the seller before they ever see it and send it to the original bank.
In a shot sale where the source bank is making concessions, nothing changes except the amount that is sent to the original lein holder (bank). It doesn’t matter to you the buyer how far behind they are, or ever how much they actually owe on it because your getting clear title.
Now, all of this assumes you don’t do another technique which is to assume the original mortgage (via the seller doing a quitclaim deed where you pay up their original mortgage, due the repairs, then have it apprasised and sold to yourself). (A quit claim deed example can be found here: http://www.ilrg.com/forms/quitdeed.html)
As for the repairs, if your doing a mortgage, the mortgage company your getting the mortgage loan from will determine if they will add money into the mix for repairs. Some will, many will not.
If you intend to occupy the house (for any period of time), then you can often doing an FHA 203k loan that will escrow repairs funds.