Question about Short Sale Procedure - Posted by Sammy (ATL)

import · October 10, 2003, 4:58am

Posted by Sammy (ATL) on October 10, 2003 at 11:16:55:

This is exactly what I had in mind to include as the “Sales Price”.

Thank you for your response.

Sammy (ATL)

import · October 10, 2003, 4:58am

Question about Short Sale Procedure - Posted by Sammy (ATL)

Posted by Sammy (ATL) on October 10, 2003 at 04:58:25:

hello board,

I have a quick question about a step in the short sale process (or what I’m thinking should be a short sale opportunity).

Owner owes 158k. House is worth 125k(conservative est.) 130k (avg. estimate). Owner is willing to sell and has received letter from the lender (HouseHold Finance) suggesting a short sale as a possible option.

I’m meeting with the owner this afternoon with 2 documents - (1) auth. to release info (2). Purchase/Sales Contract.

I believe these are all the docs I need. Could someone suggest anything else or any special stips I need to add to the Sales Contract?

Thanks.

Sammy (ATL)

import · October 11, 2003, 9:00pm

Re: Question about Short Sale Procedure - Posted by Atlanta_bob

Posted by Atlanta_bob on October 11, 2003 at 21:00:46:

Sammy:

HomeOwner has obviuosly “raped” the mortgage companies if he owes $158K on a $130K house. Best to run away from this “deal”, unless you can buy it for under $90K, which is highly doubtful. Forget about any documents or special stips. RUN BABY RUN!

Atlanta_bob

import · October 10, 2003, 1:27pm

Re: Question about Short Sale Procedure - Posted by Lyal

Posted by Lyal on October 10, 2003 at 13:27:43:

Sammy,
What were you thinking offering for a price? If it’s not less than 100K then it’s not worth the effort (IMHO anyway). I think it’s doubtful that they’ll settle for a 58K+ discount.
Good luck, let us know how it goes.
All the best, Lyal

import · October 10, 2003, 9:12am

Re: Question about Short Sale Procedure - Posted by B.L.Renfrow

Posted by B.L.Renfrow on October 10, 2003 at 09:12:43:

The purchase needs to be contingent upon negotiating an acceptable discount with the lender.

Brian (NY)

import · October 12, 2003, 7:23am

Re: Question about Short Sale Procedure - Posted by Dimpil

Posted by Dimpil on October 12, 2003 at 07:23:34:

Bob I wouldn’t say that. Not too long ago in a differnt economic environement mortgage companies were offering 110% LTV, 115%, 125% LTV, 135% LTV and good gosh 150% LTV (which you HAD to have good credit to get). A LOT of them are now out of business now because ‘THEY’ raped themselves, striped the equity and future equity of the property and left homeowners upside down in a property that might take a lifetime to overcome, hence the short sail madness, because then the homeowner’s adrenaline died out they realzied they were chained to a bad investment FOREVER! and they wanted OUT. Do you know those silly lenders where offering 125’s on MOBILE HOMES? Do you know Fannie Mae has changed it’s lending to Moblie Homes in 2003 and most sub prime lenders won’t tocuh them (Argent and Option 1 will GreenTree/Censco/GreenTree goes in and out of of moblie homes).

Can you imagine being in a slow to apprecaite area or an area that has topped out and you are into your home 25-50% above the appraised value?

Do you commitee harrie carrie of do you beg for a short sale?