Posted by Jonathan Mednick on October 03, 2003 at 22:27:25:
I do a lot of short sales. My short sales takes up to 3 months to negotiate after i have submitted or the paperwork, financials, etc. The only way you can do one on this property is if there is no equity there, otherwise, when the bank does an appraisal, and they have 50K worth of equity, they have no reason to discount.
If there is no equity, I recommend that you speak to loss migitation at the bank. They will send you the financials to have the homeowner complete, you will need to submit all the supporting docs (pictures, hardship letter, financials, 2 years tax returns, last 2 pay stubs, last 2 months bank statements). When you submit it, it will take the bank up to 2-3 weeks before they even review it. Then, they will take another 2 weeks to send the appraiser out to the property. make sure you are the point of contact for the appraiser so you can meet him/her and point out all the problems with the property.
be careful, new FHA/HUD regs won’t allow the house to have repairs exceeding 10% of the “As Is” appraised price. At least, that is the way it is in Florida.
Why tell you all this? I recently had a bank cancel the foreclosure sale and give me the time to negotiate with them. sometimes they will and sometimes they won’t but in the end, because they allowed it, i made $20K.
If the bank won’t consider cancelling it, pass on this deal.