Lonnie deal help needed! - Posted by Nicole_AZ
Posted by Nicole_AZ on January 21, 2000 at 11:13:49:
I jump started my REI career last night and started looking in the mhp for lonnie deals ( I have a sfh scheduled to close shortly as some of you might know). Well, I found a mh in pretty good condition. Needs carpet. It’s an '85 70x14, 3/2. The seller lives in MI and has been trying to sell for 2 years. The property is vacant. He is very motivated.
Here is my problem. He currently owes $14,307 (verified by lender). When I told him I wasn’t sure I could even pay half of that he didn’t really balk and say no way. He said he would talk to his parents and see what kind of money he could come up with to pay off the loan.
Later he called me to tell me that the lender was willing to do a short sale and work out the difference between the sale price and the balance directly with the seller. I know very little about short sales. I thought the lender took a loss when they did that and the seller did not have to pay off the balance.
I was considering offering $5000 for the property and letting him determine if he could work out the rest with the lender. With a short sale, do I need to be directly involved with the lender? What do I need to watch out for? Is this something I should get involved with? He told me openly that he REALLY wants to sell this thing.
PLEASE HELP!! Very nervous on this.
P.S. Let me know if I left out any important details.