Posted by Ed Copp (OH) on October 02, 2003 at 17:37:29:
is likely to happen on a mortgage that is current.
Sounds like her realtor does not know what a short sale is. Sounds like the seller may be willing to accept less than the amount that is owed. In other words bring some money to the closing table and pay you to take it off her hands.
Your concept of offering $40,000 seems a bit greedy on your part since the loan balance is $92,000. It might be prudent to offer to take title subject to the existing financing for a cash fee to you, with the seller paying the realtors commission. Pretty unlikely that the seller will bring $52,000 cash to the closing table, but if this happens let us know.
Mortgage current-Short Sale possible? - Posted by Brian,WI
Posted by Brian,WI on October 02, 2003 at 17:08:33:
There’s been a house on the market since at least March where the price has not come down (wonder why it’s not selling hey?). It is listed with a realtor so I called her to find out more about the house, if it’s going into foreclosure and maybe I can just step in and give her some money for her time, etc. Here’s what she said.
The seller moved out of state, AND has continued to make his mortgage payments, BUT he wants out BAD! She was even talking about a short sale (mentioned a price of $70,000) and I told her that’s what I’d look at doing, she was very happy I called and hopes I can work something out and not to concerned about her commission, but…
The house: Old 2 bedroom farm house. Both bedrooms upstairs and you have to pass through 1 to get to the other. There has been some rehabbing (kitchen mainly). Listing price that has never changed $109,000. Comps are about $98,000 and what is owed is about $92,000.
I don’t even think it’s worth while to keep this a “2 bdrm” house and I’d put a dormer on 1 or both sides upstairs and try to make it a 3 bdrm 2 bth. With all that I’d have to go in with a really low offer…something like $40,000 or so.
Again the question is though, can a Short Sale be done where the mortgage is current, and if so how? Don’t you send the lender a “seller in duress” package showing how they can’t pay anymore or fix it up better to sell? How can that be done if the seller has been paying the payments?
Re: Mortgage current-Short Sale possible? - Posted by Brent_IL
Posted by Brent_IL on October 02, 2003 at 22:10:02:
I don?t think that you and the owner are on courses that will intersect. He wants debt relief. You want a rehab opportunity. Where?s the mutual agreement?
Do similar farm houses in the area all have the same undesirable floor plan? Is that why the comps are close? Is the value in the land and not in the improvements?
As Ed said, a short sale won?t be considered until after the owner has missed a few payments. If he?s paid for seven months, or so, it?s likely that he?ll continue to pay monthly rather than come to the settlement table with $42,000 to give his lender, so he can sell to you.