SHORT SALE/Forclosure/Bankruptcy advice? - Posted by BrandonT (So.IL/St.Louis)
Posted by BrandonT (So.IL/St.Louis) on February 27, 2002 at 18:13:31:
Just have a few questions for those more versed with actually negotiating short sales and things of that nature with banks and private lenders than I. I have a few properties on my plate that I’m considering doing something along the lines of getting options to purchase them for the balance of their mortgages, doing minor fixup work, then selling them for a profit.
Where my questions come into play, is that in one, a woman has just a first mortgage on her property, but is 3 payments behind. It’s a traditional mortgage company but she hasn’t recieved any late notices or anything of that nature, and I’m kind of nervous about having time to fix that property up and sell it before I lose it in forclosure. Should I attempt to contact the mortgage holder and negotiate based on the fact she’s so far behind in payments and/or ask for an extension while I rehab and resell? What department should I try to get ahold of and do you have any advice for someone who’s never negotiated a short sale?
Another one is similar in repair stature and equity position, but with this one the man is only now going behind in payments, and plans on filing for bankruptcy in early March. Obviously I won’t be able to get the property fixed and sold until late March at the earliest, but how do I need to approach this to be safe? The man has said he has a privately held 2nd mortgage that he ‘knows’ will discount a couple thousand, but again I’ve never negotiated a short sale before and am unsure how I should approach the negotiations, etc.
In both of the properties listed above there is a clear 10K minimum profit without shortsaling but I also in both cases want to make sure I don’t spend money on a property I’m going to lose to some legal thing, or have problems selling to a traditional buyer with the legal things going on in the back ground.
Any advice is greatly appreciated as always,
Southern IL/St. Louis