> 1) FHA will not consider short sale if any interest > in premises has been conveyed, so you had better > not disclose the transfer,
I had mentioned in my post that the transfer has not been recorded.
> 2) Possible conflict with BNK Trustee (any > transaction involving ($200 or more?) requires > Trustee approval.
We were working on trustee approval of an assumption till I found out the true payoff. Also, the attorney has told the client to find someone to assume.
> You make no mention as to the property’s FMV other
> than to say it needs $3-4K in fix up, and similar
> homes are LISTED (but not sold)
Comps out of 92,500 ARP.
> If it is worth $91K in an as-is condition, and the
> payoff is $81, there is no need for a short sale as
> proceeds from that sale would be sufficient to
> satisfy the mortgage loan… and don’t forget the BNK
> Trustee. He’ll probably want some of that, too.
The property needs roof work, sheetrock work, all carpet and linoleum replaced, paint on interior & exterior, needs new heat pump, needs a few new drawers in the kitchen, and a lot of cleanup! If it was hired out you would be looking at 5-6k. I can do it myself, for about 2K.
I have been negotiating a deal that the owner has deeded the property over to me(did not record yet pending due dilagence).The owner is in BK 13.He at first tells me that the principle is 77-78k.I later find that the payoff is 81k.The mortgage is a NQA FHA @11.5.The lender is fully aware that they have filed BK.
The payments are a little high(1130.00) to assume.The property has about 3-4k fixup.I have found that two other properties (same floor plan) in the area are listed,one at 91k and the other at 98k.
Now for my question,is this possibly one that a short sale may work on and if so what is a good way to approach the lender?
Hope I have given enough details for a response.
Re: Will a Short Sale possibly work on this one? - Posted by NJDave
Posted by NJDave on December 05, 1999 at 13:02:45:
FHA will not consider short sale if any interest in premises has been conveyed, so you had better not disclose the transfer,
Possible conflict with BNK Trustee (any transaction involving ($200 or more?) requires Trustee approval.
(FYI) The majority of real estate listings taken by real estate brokers from Seller in BNK are invalid.
You make no mention as to the property’s FMV other than to say it needs $3-4K in fix up, and similar homes are LISTED (but not sold)
If it is worth $91K in an as-is condition, and the payoff is $81, there is no need for a short sale as proceeds from that sale would be sufficient to satisfy the mortgage loan… and don’t forget the BNK Trustee. He’ll probably want some of that, too.