Second time poster and I have read 40 pages back and found your responses very helpfull. Thanks!!
My landlord wants to SS his property and the realtor he uses suggested I make an offer. (I will find out realtors experience and maybe request that I deal directly with the bank according to all your suggestions in previous posts.) My intention is to buy the property to live in for the next year or two and then sell. My questions is in two parts:
1)SFR (Single Family Residence), NOO (Non-Owner Occupied) in Florida
Purchased in 07 for $595K
One mortgage at around $480K with EMC and almost 4 months behind.
Two similar comps sold in last two months at $440K and $455K - I can find lower comps selling a year out down to $428K.
A short sale comp has been on the market since April and they have recently lowered the price to $375K in Sep.
I plan to put 20% down upon acceptance and close within 30 days.
What would be your offer out of the gate with EMC, since I’ve heard everything from 50% of FMV (Fair Market Value) to 70% of ARV (After Repair Value)? Will the short sale influence the BPO (Broker Price Opinion)? Do you recommend the $100 initial escrow deposit or nothing?
2)Next, this property is in one of those communities that requires membership to the club outside of the HOA fee. The buyin is $50K right now and an extra yearly fee of which you get 80% of the value back when you sell. The owner will give me his 80% equity in the membership at closing so I just have to come up with the 20%. Since this would be a SS, how would you structure that part of the deal? Would this need to be a separate agreement between the seller and myself outside of the contract so that my new lender doesn’t freak out about a seller contribution above 3%. Or, would my lender not see it that way? Would the SS lender have any issue with being above board or be happy knowing that the owner is walking away with nothing?
Thanks in advance! I spelled out the acronyms to help out the noobs like me!