OWNER OWES 195,000. ON HOUSE, OWNER WANTS 10,000 FROM SHORT SELL, CAN GET HOUSE FOR 140,000. FROM THE BANK. THE HOUSE IS WORTH APROX. 240,000. IT NEEDS ABOUT 2,000 REHAB. MY QUESTION IS THIS A GOOD DEAL? THANKS FOR INPUT. ??? ???
It sounds like a good deal. But as far as I know, the seller is not allowed to get any money from the deal on a short sale. Where are the numbers you listed coming from? Has the bank already approved the short sale?
Keep in mind that the owners will have to show the lender
they can’t afford the property now. with (bank Statements, pay stubs, tax forms, retirement accounts)
IF you can get a $240K house for $140K with only $2000 in “rehab” (dude, $2k isn’t a rehab, that’s called sprucing up at best) and you have to ask if it’s a good deal or not, you might be looking at the wrong business to get into.
Now, my question would be can you actually get the property for $140K on short, or are you just assuming that you can? The reason that I ask is because, by your figures, the lender has $45K in equity padding on their loan and the house needs no repair. I would seriously doubt that the lender would discount the loan any, much less $55K.
The owner cannot receive any money if the property goes through a short sell. Would you agree to a short sell if you were in the lenders position if someone said to you, “Hey, this guy owes you $195K, we only want to pay you $140K, and just to smack you around a little more, we are going to give this guy $10K for his ‘trouble’ Will you go for that?”
Raj