Re: What do I do? Please help J Piper,JohnBoy - Posted by JohnBoy
Posted by JohnBoy on October 27, 2000 at 11:35:28:
A short sale is when the lender holding the mortgage is agreeing to take less than what is owed. This is usually when the property is in or about to be foreclosed on. Are the payments current? If not, (which I doubt if the bank is talking a short sale) how far behind are they? Does the property need any work? If so, how much will it cost to fix it up? The realtor says it’s worth $70k, they owe $50k and the bank is saying they will do a short sale. Something doesn’t sound right. Why would the bank agree to a short sale on a mortgage of $50k against a property worth $70k??? That doesn’t sound right. Is the property worth $70k NOW, in it’s current condition, OR, will the property BE worth $70k AFTER it’s fixed up? How much will the fix up cost?
You can’t go by what the realtor tells you. YOU have to VERIFY the value by getting comps on compareable homes that have sold in that neighborhood recently. THAT’S what the property is worth in FIXED UP CONDITION. Don’t use this realtor to pull the comps for you either. You can use another realtor for this, or check the county courthouse records for recent sales, or check with a title company for comps, or use an appraisor to get comps for you. But don’t use the realtor you’re working with because she can hand pick the highest priced comps without showing you the lower priced ones that have sold.
You can check title at the courthouse for any liens or have a title company run a preliminary title search for you. You can check for liens after getting the property tied up under contract.
What you need to do is find out how far behind the sellers are on payments, what the true value of the property is, and what it will cost to get it fixed up to be able to get market value for it.