Hello everyone, I’m hoping someone can help me with a deal I’m working on. I just found a foreclosure that has 3 weeks till its action date, I’ve worked out a good price for the property that is 40% below ARV. I’ve had the owner of the property contact his lender and they are willing to shortsale the property to me.
I don’t have any cash so my exit strategy is to wholesale to an end buyer or re-habber/rental owner.
Firstly I need to find buyers ASAP! I need some good advice on how to do this quickly and effeciently! Also What if the bank asks me for Prof of financing !? Please help I don’t have much time left! :smile
Unless they tell you they are willing to delay the auction, i don’t see how you have time.
You say you have “worked out a good price” but what does that mean? You worked out a price in your head? That doesn’t matter. What matter’s is what price you can work out with the bank.
You are going to need to list the property for sale, prepare a complete SS offer package with hardship letter, etc, then simultaneously market the property and find an end buyer who can obtain financing with a lender who is friendly to back to back closings, and arrange transactional funding.
All in a short amount of time.
I don’t see it happening but it will be a good education for you I guess.
Good Luck
Eric,
Yes thats the first thing I’m going to try to do is delay the auction it’s been done before. By “worked out a good price” I mean something that the bank will negotiate with and still make me and my partner the amount of money we need. I don’t know what is contained in a SS Offer package with hardship buyer? I’m looking for a cash buyer primarily because for a nooby like me that other stuff sounds to complicated and I want to keep it simple right now.
And what do I have to lose? Nothing else to spend my time on at the moment. I might as well learn something from my friends here! And possibly gain a few thousand dollars on a contract plus get someone out of a nasty situation. Thank you for your advice
If you haven’t made an official offer and submitted a package, you have no idea what the bank will negotiate with you on. Just having them tell you they will accept a ss on the property means nothing. Every lender says that,.
There is alot to learn for a noob. Good Luck.
So it seems to me like your just telling me i can’t do the deal? You dont really seem like you want to help. Is their anyone else that can give a helpful word of advice?
I don’t think that it is that eric3 doesn’t want to help, it is the fact that you have provided very little for us to work with and it sounds like you are coming in to this pretty late in the game.
Yep, I share Eric’s opinion on this one. Find one before it goes that far.
Dude,
I did try to help. But I can’t help you if you won’t help yourself first. You need to read all you can about Short Sales to educate yourself before you can even pretend to ask questions about how to save a deal that is that close to auction.
You don’t even know what a SS package is so you obviously have done no research. I am not going to hold your hand through the deal because I am a nice guy.
This is not a simple process. Newbies hear about a deal and they think it is easy to just swoop in and make a deal and flip it with no cash and make a big profit. It simply doesn’t work that way.
It takes alot of time and alot of learning and alot of effort to close just one short sale.
So again here is my help in the most clear form I can give. Forget this deal and immerse yourself in all the info you can find about short sales. Go to all the short sale forums and read every single post on there. Find a local realtor who knows about short sales and pick their brain. Call title companies to know what they require for short sale deals and who is ss friendly.
Call SS negotiators and see what they have to tell you and teach you. Contact transactional lenders to see how they work and how they can help you.
Then look for a property.
Sorry if that is not what you want to hear.
I do work short sales and I can tell you as I tell all of my clients as they delay in getting me paperwork - foreclosure doesn’t stop until the bank has reached an agreement with one in whom they considered a buyer. The only way that you are going to stop a short sale, is not by word of mouth, but by a contract that the lender feels comfortable negotiating.
Aces,
How is your deal going?
Aces need to wake up
In some areas, you can go to the Court, request a short hearing to postpone the foreclosure.
Show your paperwork, that the lender is willing to accept a short sale. Explain to the Judge, you will need a little time to complete the deal.
I would think the judge would be willing to postpone the foreclosure.
Make sure you contact the plaintiff’s lawyer (the lender), and give him copies of:
Your written hearing request to the court.
Copy of your short sale paperwork.
Copy of the lender’s (the plaintiff’s) agreement to the price of the short sale.
Hope this is helpful?
RD
P.S. Disclaimer: I’m not a lawyer, so this is just a"forum suggestion". You need to check the rules in your County, and see if it possible to schedule a hearing by yourself, or do you need to have the defendant (the homeowner) do the requesting?
Short sales are one of the most effective techniques for discounting loans in real estate. Short sales create huge investment opportunities and are a must if you want to be competitive in this market. A key step in the sales process is to obtain deed.when call the lender to apply for short sales, you can tell them you are a buyer or represent the owner.