The one thing the bank does not want is for the long drawn out process of having to evict a homeowner and they know there is no guarentee on this. And it can be expensive costing them another year and risking potential damage to the property due to disgruntal former owners. The present condition of the house is no guarentee on what the house is going to look like if the foreclosed tenant get ticked off and start to wreck the place. Sell the short sale from this angle, as a suggestion.
If the appraised value is the same as the mortgage owed. Take it subject to if you want to bother with the deal at all.
Have homeowner create a land trust and assign you as beneficiary. This may preserve your option to just reinstate the loan by paying the back payments.
Is it possible to get a profitable short sale discount on a a property that’s three years old and in excellant condition? How should I approach the bank since there are no repairs needed?
Re: Short Sale…Excellant Condition - Posted by James (FL)
Posted by James (FL) on July 28, 2003 at 11:49:03:
I suppose anything is possible, but if the home is in good condition, ,the only way you are going to get a shortsale is if the Loans on the home are more than the home is worth. Get a borrowers authorization signed by the homeowner allowing you to speak with the mortgage company… and when you call them, request a shortsale package. Fill it out, and send it back. Good luck. But with the home in good shape, I sincerely doutb they will playball. they will rather sell it retail and get what they are owed, or more depending on the LTV. If the amount owed is less than what the home is worth now, have you considered catching them up and taking the home sub -2?
There is less than 5K equity in the property. The house will definitely sell but the owner is facing foreclosure and there is not enough equity to cover all the costs of selling the house.
Re: Short Sale…Excellant Condition - Posted by James (FL)
Posted by James (FL) on July 29, 2003 at 21:56:28:
Lashanda,
Get the borrowers to sign a contract for sale at whatever pricec you will start as your offer to the bank. Also, have them sign a authroization to release mortgage information to you… and call the bank. Ask for the loss mitigation dept… or many times the cust servicee dept will direct you to them once they see the loan is in foreclosure status.
Ask them for the short sale package, and when you get it, fill it out and return it. it is a lengthy process from what I hear. I have just started one with Chase (my first one, so don’t take my word at 100%). you need to show the bank why they NEED to discount the mortgage to sell the home quickly, and how you are saving them money in the long run. Something to that affect.
Good luck.
Check the main message board and ask the same quesrtion to a gentleman who goes by the name
TheShortSalePro
He has answered a few of my questions along the way, and to my satisfaction.