Posted by Tyrone on October 08, 2003 at 23:35:42:
Posted by Tyrone on October 08, 2003 at 23:35:42:
Seller is 2 payments behind: Can I Short Sale? - Posted by Tyrone
Posted by Tyrone on October 08, 2003 at 20:32:42:
Is it too early to attempt a short sale?
Re: Seller is 2 payments behind: Can I Short Sale? - Posted by Dimpil
Posted by Dimpil on October 12, 2003 at 08:58:04:
I read all the posts and found you only got excited about a person agreeing with your wanting to short sale.
2 payments behind does not equal forclosure.
There really isn’t enough reason to use a short sale tactic. And that should be one tool in your arsenal of negoitating skills.
Get a title search done, since you owner has health issues he may have let other stuff go before letting the home go. IRS liens, Medical judgements, back property taxes.
Try and negoiate to forgive the 2 payments if you can close it within 30 days. I seriously doubt a true short sale (thousands less) will be allowed at this juncture.
Give the 2 paysments to the lender or have your owner make at least 1, and get it on a lease option FAST and make the downpayment 3x the back payment + 2,000. Set the the selling price now 90,000 (5% above your current ARV)
Have the lender put the payments on the back end and let them know you will help ‘dad’ keep the payments up but neither can afford 2 payments up front now. You may even suggest spreading the payments and late fee and intrest over several payments to make it up.
MARKET MARKET MARKET the property to get a lease option tenant with about 5-10 down and 1/2 you will give to the owner so he can get an apartment, and create a note for maybe 10,000 not due or payable for 30 months (gives you enough time to get the tenants qualifed and to close) for you solving his problems.
Upon the sell you would have paid the 1st note paid the second note given your past owner a few dollars and still have money for you. AND you can even discount the note you created before it’s due date. And you would have gotten some cash flow for your efforts.
Just some ideas and MHO
I think you should get more creative before going for the short sale.
Re: Seller is 2 payments behind: Can I Short Sale? - Posted by Paul-FL
Posted by Paul-FL on October 09, 2003 at 07:06:28:
How about taking it sub2? What are the numbers on this deal? Why not get it under contract and flip it?
One question here for all, why is it seems that everyone wants to short sale almost every house? Just because they are only a few payments behind etc doesn’t necessarily make it a candidate for a SS.
I am only saying this because I see many of these types of messages come up and then you hear later the SS failed due to it was not a good candidate or that a newbie tried to short it.
Yes SS is one way to get the deed but it’s not the only way. SS’s are tough to and lengthy to do.
I welcome everyone?s replies.
Re: Seller is 2 payments behind: Can I Short Sale? - Posted by Blane (MI)
Posted by Blane (MI) on October 08, 2003 at 21:00:44:
No, it’s not too early. It’s actually better, since you have more time to work with before a sheriff sale.
It is because short sales… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on October 09, 2003 at 13:19:33:
…are the latest, greatest guru fad. Just search the net…every day someone else is offering another short sale course or e-book. It’s another situation where, as the old saying goes, “If your only tool is a hammer…”
I’m afraid the fallout may be that lenders will get so tired of hearing ridiculous, inappropriate, poorly-packaged newbie short sale proposals that it will become almost impossible to get a legitimate one considered.
The details - Posted by Tyrone
Posted by Tyrone on October 09, 2003 at 12:50:31:
1st $54k and a 2nd $14k (private individual)… ARV $85k
The seller is 2 payments behind due to his health…
What would you do?
If it’s not too early then what’s next… - Posted by Tyrone
Posted by Tyrone on October 08, 2003 at 21:14:33:
If it’s not too early then what should I do next?
The seller says he only wants enough money to move into an apartmen. Do to health reason he can keep making the payments…
Re: The details - Posted by Paul-FL
Posted by Paul-FL on October 09, 2003 at 14:18:00:
The first and the second only add up to 68 with a ARV of 85. What are the cost of repairs? The bank stands to gain more from holding and foreclosure then a SS. They can foreclose and more then likley sell at what they owe or slightly more.
Maybe if the first and the second added up to something like 99 maybe a short would work or if the hosue needed an extensive list of costly repairs. I just don’t see it here.
I agree with Paul… - Posted by Ironlung
Posted by Ironlung on October 09, 2003 at 13:07:08:
but first of all, which one is he behind on?
I’ve done some wholesale flips, and obviously I see the profit potential in doing short sales. However, that doesnt’ mean that a short sale is the solution to every deal.
In this case, why not see about buying SUBject TO the existing mortgage(s)? If he’s only 2 payments behind, it seems like it would be a lot less hassle to come up with 2 payments, rather than the process of getting a bank/lender to take less than what’s owed.
Just a semi-newbie opinion…
Re: If it’s not too early then what’s next… - Posted by Heather -Tx
Posted by Heather -Tx on October 08, 2003 at 23:01:48:
Get an Aithorization to release info from the seller to give to their bank. Next step is to get their shortsell package. Each bank has different requirments for their shortsells. From hardship letters to actual bank statements. They should be able to tell you all they need.
Also on a short sell the bank will not let the home-owner make any profits, so you may want to make a side agreement with the owner to purchase something that will be left with the property… appliances, lawnmowers… whatever Good luck with this one Ty. I’m still looking for my forst shortsell that actually goes thru!
The 1st is 2 payments behind DNO - Posted by Tyrone
Posted by Tyrone on October 09, 2003 at 13:19:57: