What if I don't have a buyer?

Foreclosures, Short Sales, Tax Foreclosures
1

This is a hypothetical question but one that is bugging me. If I am successful with a short sale and then up without a buyer by closing, what happens? Thanks!!

2

Hi Lin,

That’s a good question many have asked in the past. The worst that can happen is that you don’t close on the property and the bank withdraws the approval. Of course, the homeowner may be most disappointed since the forclosure will continue.

But if the deal is really good, buy the property yourself. That’s what I do. I buy almost everything I short.

  • Short Sale Mike
3

Thanks Mike…If I don’t have the money to buy it (I’m new into all this good stuff), is it going to cause a problem with the mortgage company or bank or do they even keep track of things like that? Thanks again!!

4

Lin,

No, it won’t cause a problem because it won’t happen very often. Even if you’re new to “all this good stuff” you can get the money to buy a good deal. If you’d like more information I can put you in touch with the hard money and construction crews to do any rehab in any state. The way I see it, if you do all the work on getting a good deal, buy it and rehab it youself. About 90% of the properties I buy don’t require any money out of my pocket. This includes acquisition and rehab costs.

  • Short Sale Mike
5

Thanks again Mike…I visited your website…it has some really good info on it…Can I ask one more question please? My short sale package has been faxed to the mortgage company…they are sending an inspector out sometime next week…Do I need to go to the title company now and open title or wait until I know more from the mortgage company? You have been a great help!! Thanks again. What state are you in by the way??

6

Thank you for your feedback on the web site.

If the bank is willing to order a BPO based on your offer I would check title to make sure all liens, taxes, etc… are known to you so they can be added to the net sheet ASAP. It would be good to know all the costs prior to getting a short sale approval.

I currently reside in North Carolina, but do short sales all over the country. I have a system in place that allows me to do short sales everwhere without going out to every property.

  • Short Sale Mike
7

The mortgage company is ordering a BPO first of next week…they have been very easy to deal with so far but I don’t want to get excited yet…so I should probably go ahead and open title so I don’t run into any surprises if the mortgage approves, right? I’m sorry to ask so many questions but you are being an amazing amount of help and I really appreciate it!! ;D

8

Correct. Get your title work opened so you won’t have any surprises.

9

I never get title stuff done. The mortgage company does everything. Also if no one buys the house after the 90 days they give you or however long you agreed to close within…the house forecloses at the next auction. ONLY OTHER WAY TO PREVENT THE AUCTION IS reistate the loan.