Possible First Deal..Short Sale..Listed w/ Realtor - Posted by Tom NH

Posted by Tom NH on May 02, 2006 at 17:39:04:

Yes, already checked that out. I have a copy of the quit claim deed on my desk, and her name is the only one on it.

Possible First Deal…Short Sale…Listed w/ Realtor - Posted by Tom NH

Posted by Tom NH on May 02, 2006 at 16:45:43:

OK folks, I think this may be my first opportunity…

A co-worker of mine told me that his wife’s friend recently went through a divorce and is having a difficult time selling her house. She can’t make the payments (she’s 2 payments behind) and she’s thinking about letting it go into foreclosure and filing bankruptcy.

She originally had the property on the market in Sept '05, and her ex made it difficult to show the house. Since Feb '06, she had switched Realtors, and the house has sustained some minor damage after her ex moved.

It’s listed at $239,900, and she told me that she is willing to let it go for whatever is owed to the bank, that she just wants the property off her hands. She said that she had contacted the bank and explained her situtaion, and they told her they’d be willing to discount the balance if she found a buyer NOW.

I told her that we would have to work together to get the bank to discount it engouh to make it worth it for me. She also said that if she were to sell to me, she’d try to drop the contract with her Realtor, as there wouldn’t be any room for a commision. She has already given the Realtor a heads up about her contemplating letting it go into foreclosure.

She gave me the password to her garage door opener so that I could let myself in. I told her that if I didn’t get in touch with her tomorrow night, that I’d give her a call Monday afternoon as I would be away on business (CRE Online Convention!!!)

Well, anyway, here are the numbers:

ARV = $230K - $240K

1st Mort = $190,400
2nd Mort (HELOC) = $32,600

Total monthly pmt w/ taxes = $1,585

Is this a possible Short Sale deal???

This woman sounds pretty desperate, and I can’t believe how open she was to come out and tell me what she owed, who the banks were, etc…

I’m wondering if I can help her out by working a short sale with her lender, and make this my first deal. I’ve read Ron LeGrand’s course “Short Sales Made Easy” and he goes into explaining the different steps in the process as:

  1. Get the Deed
  2. Call the Bank
  3. Complete the Short Sale Package
  4. Submit the package to the lender
  5. Wait, wait, and wait
  6. Follow-up until you get answer!
  7. Pay-off the lender

Let me know if I’m missing anything here!

I’m curious to see what you experienced investors have to say. Thanks ahead of time for your feedback!

I’ll see you all at the Convention!!!

  • Tom

Re: First Deal…Short Sale…Listed w/ Realtor - Posted by Jack

Posted by Jack on May 02, 2006 at 16:57:14:

Are you sure the title/deed is in her name only?