What are the options - owner in foreclosure

Foreclosures, Short Sales, Tax Foreclosures
1

Folks,
I have a homeowner in the early stages of foreclosure and
willing to work.
The owner wants to just get out off the property.
Loan - 300K
Back payments - 15k
Comps - 340K
Some homes listed at 360K, but does not mean they have
or will sell for that price.

I can buy this puppy for cash. But the scoop is that i want
to ensure i make some money in case the prop is really
worth and can only be sold for 340K using realtors.

Can i do a shortsale??
The sucker is its countrywide.

I would really like to purchase this for 280 if possible and
will make sense.

The home was built in the 90’s and is in a desireable
place. I don’t anticipate much work that needs to be done.

What are the chances of making this happen?

I plan to get the following from the owners.
a) Authorization to release information.
b) Request for Estopel letter.
c) I would need a signed contract with the owner.
Perhaps multiple contracts with different $ amounts, so
i can use it when i negotiate with the lender.
d) I am sure that when countrywide mails out the SS package,
they will do a BPO.
I can list the property on the MLS using one of the FSBO
services.

Thanks
Krish

2

$315K (loan plus back payments) is too much if comps are $340K. At the very minimum you should be looking at 80% LTV ($272K) minus fix up costs. Having cash to pay for this might help you in a short sale. I think that’s the way to proceed. Your plan is good.

3

Sorry but I’m new to this. What does SS package and BPO stand for?

Thanks,

Triad

4

SS - stands for Short Sale and BPO - stands for broker’s price opinion.

5

Unless you’re in an exceptionally hot area, I would recommend paying less than 280K. I buy houses like this one all the time, and I never pay more than 70% of fair market value. So, if it’s worth, 340K, I would pay no more than 235K and probably start my initial offer at 200K.

The only reason to pay more than that is if real estate is appreciating like mad. Think Orange County or Phoenix, Arizona. In those areas, buying property at its current market value can be a steal.