I have found a homeowner that is moving out of state and would just simply like to get out of their house. The problem is, they owe too much on the property and they only have a 1st mortgage. He said he is willing to submit for a short sale. Anybody have any suggestions on how I should go about this. I have never done a short sale and would like to help this man out.
Thanks.
Well you didn’t give us much information to even work on. A homeowner can’t just go out and have a short sale, they need to be in great financial difficulty and its not up to them, its up to the lender. Herbster
The owner purchased the house for 135K and now owes 166K and also owns 2 other homes. He just wants to get out of this house as he is moving out of state and there is nobody to occupy it.
I say get the property sub-2
Then start working on the short sale by doing
1 ) get the seller to sign a right to release information form
2 ) make contact with the mortgage company
4 ) set out to get everything they ask for asap
5 ) this will require you stay in contact with the sellers
All of this after you do the sub-2 buying of the property
This will get the property out of the sellers hair as well as get you in the end a real buy if all done correct
I’m very curious about this step. When you suggest getting the property “Subject To” the existing mortage, in this case, the Home might be worth $135K, and the owner owes $166K, so there is a $31K gap. So, you purchase the property sub-2 the existing mortgage, then negotiate the short sale and try to get it bought for something less than the $135K. I get that part.
But what happens if the SS deal doesn’t get consumated? You end up with a house that is upside down, essentially subtracting $31K from your networth?
I need to understand this Subject To business better, as used in a pre-foreclosure situation. Who has excellent programs out there on this?
A good person and course on sub-2 is john cash
Or the biker who buys houses is a good course
If the short sale is not a go go for a refi on the property
There are many ways to get a upside down home right side up :biggrin
“The biker who buys houses”?
Where would I find such a course? Got a URL link for me?
HE posts here from time to time as i belive
AS jim fl you can find his post in the sub-2 part of this sight
Thanks. I really need to understand this option well before I jump in. However, it does sound like an interesting option; i.e. working both the short sale and Subject-To simultaneously.
I’ll have to check out John $Cash$ Locke a little more closely.
I think they better seek for someone expert on short sale, if they to pursue on it.
yes im curious as well. why would you take it sub 2 then try to short sale?
the lender is going to see the payments coming in, so why would they want to do a short?