Re: CASH is king - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on October 17, 2003 at 17:01:10:
First contact the owner and find out how much is owed on the property. Then you will need to know all the specifics of how much cash is needed to bring the loan current and pay any other expenses such as insurance back taxes, and legal fees to date. Then you can add up all the stuff that is owed right now, and decide if you want to bring all the expenses up to date and buy the property from the current owner, subject to the existing loan.
It is very important to know the condition of the title right now before you decide. There could be leins, judgements and other problems attached to the title to the property.
If the deal is good, then you can pay all the expenses and have the sheriff’s sale cancelled. Then you can proceed with the closing of the purchase from the current owner.
Randy is partly correct. The lender can not sell you the house. But the lender can sell you the note. This is where the short sale concept comes into place. A few things are necessary to make a good short sale. Sometimes the lender will sell the note for less than they are owed. Thus the “short sale” term. They may not want the property and all the problems that come along with owning, and eventually selling it. It might be to the lenders advantage to sell for less money right now and be done with it. A major concern here is do you have cash, and can you close fast? If you do not have the cash, can you get it quickly? If the lender is willing to cut the price to less than is owed, they usually want to complete the deal quickly.
Another thing that you might want to look into is making the purchase at the sheriff’s sale. You will need to have the financing lined up if you do not have the cash now. This may or may not be a good deal, who knows? It is an auction, and it ain’t over till someone says SOLD.