Posted by NJDave on September 11, 2004 at 06:28:30:
Your best chance to short will be with the junior lienholder… and your Proposal will have to be a compelling, and fact based. Presumably, since the BNK has extinguished personal liability to repay the mortgage loans… the lenders will know that their recovery is based upon the subject property’s as-is, fair market value.
Your job will be to denigrate their perception of that value… and devise a business proposal that convinces them that accepting your Offer is in their best financial interests.
They’ll do their homework, too.
The ‘walking away’ money to the Seller will have to be under the table and off the radar screen since a prerequisite to the majority of mortgagee approved, preforeclosure short sales include ZERO proceeds to the Seller.
I’ve saved 5 essays on the art of preforeclosure, short sale acquisition. If intererested, lemme know.