the ARV is 105K and his debt on the place is 125K? youd have to get a great short sale for this to have any money in it for you. since the loan is apparently short term still, theres no way the bank is gonna short sale it by enough for you to clear anything. youll be lucky if you get uot of that deal by writing a check to the lender for the extra 20K. WALK on by it.
if someone else knows how to make money off this id love to see how its done, maybe i shuold start looknig into these deals myself? think i better leave these 20K deficient deals to the pros, ill stick to the basics for now.
I recently came upon a situation in which the seller has no equity and just wants to give me his house. The problem is he has no equity and is 6 mo. behind. Can anyone with shortsale experience give me any tips in approaching the bank with my offer? If the house is in decent condition and the note is 125,000(no other leins exist on the property), what should I propose to the bank as far as an offer is concerned? The seller is most willing and cooperative to do what ever is neccessary in order to get rid of the property.
If you are asking what price to offer- offer low. If you are asking how to persaude the bank to accept less you should consider encloing the following in your letter.
Short sale usually requires the seller contact the bank and ask they to accept less so the seller can sell the property. But the bank may allow you to do the work under the seller’s name if the seller is cooperating.
Your initial letter should be an expression of hardship on behalf of the seller- lost job, sickness whatever. Enclose copies of payment arrears to other creditors.
Express to the bank seller needs to sell quickly and an investor/friend has offered to purchase. But due to balance owed and house value, property cannot support amount presently owed.
Put together some low ball comps from the neighborhood- Yahoo or whatever- take most disgusting pictures of the property that you can- and enclose other default notices to the bank. Give the bank a reason to discount.
May also want to put in closing statement from title company to show bank what they will net after they accept the discount offer. But they will not agree if you show the seller is receiving any money.
BTW, the arv is ~105,000 and his payments are $1200/mo. piti. Also how would I know if a lease option/ sub lease option would work? Or if I just sold the lead how much should I get? I’d like to make my first deal work somehow!