Short sale, no equity, how tos (realtor) - Posted by carson

Posted by JR_FL on June 15, 2006 at 20:53:49:

Short the second. Their may be equity there.

Short sale, no equity, how tos (realtor) - Posted by carson

Posted by carson on June 15, 2006 at 18:50:08:

I know a guy in forclosure with zero equity and about 5 months behind.

So how might a Realtor go about getting a short from the 2 mortgages to we can sell his home and I get commissions?

Would i just call the banks, tell them the situation, and see if they will come down to the sale price minus my commission?


Why would you do that? - Posted by Brian Kurtz

Posted by Brian Kurtz on June 18, 2006 at 18:32:57:

I am guessing that you have not done a short sale yet. It is very very time consuming. As a licensed agent myself, I would never EVER work a short sale in order to let someone else (the end buyer) walk away with the equity. Way, way too much work.

Plan for a minimum of 6 weeks to close a short sale deal from the time you get the buyer’s authoriztion to closing to purchase.

I’ve seen agents in my office work short sales for their clients. They put in the same amount of work and get a sad commission (which is normaly split because they are not at 100% yet) for all the effort.

The only reason I can think that you would NOT buy a short sale yourself is that you are worried about how you can afford the deal.

Here’s how I handled that. I partnered with other investors. Guys that have good credit and some cash but no time to work a deal. They put up all the money (loan, payments, appraisal fee, etc) I run the project, we split the net profits.

Also, both myself and others in my network have negotiated shorts on first mortgages…so the hard and fast rule that only second holders will discount is untrue.