Thread: Short Sale advice

Sorry to say your post isn't very clear, so it's difficult to respond to.

The answers to your questions would be something like this;

Who should I call first? - The owner of the property
What due diligence should I do for myself? - Same as with any property
Should I find an investor and bring the deal to him? - If you want
If so how much should I charge for a finders fee? - As much as you can

Not too helpful is it.

Tell us who you are, what your objectives are and why. Just fill us in as much as you can and be detailed.

What is it that makes you think this is a deal? Why do we care what the lady can afford?

Be detailed and we may have some help for you.

Chris

I cant really understand.... can you please elaborate more... please...

Yes post little seems difficult to understand about Short Sell, Latest trend running on Short sell and also useful for who want to sell fast, so if possible clear out more may it will be useful.

Thanks for the replies. Let me clarify my situation.....

• Lady contacted me b/c she is about to be foreclosed on
• Husband refied it 2yrs ago at 100% and divorced her and left the home to her in the divorce decree
• She is already working w/ lawyers and they just put her home in the foreclosure papers
• She owes 145k and the home is worth 150k
• She wants to stay in the home and can afford to pay 1k per month not including utilities

How do I go about setting up the deal?
Do I....

1. Contact the lawyers
2. Contact the mtg company

What extra steps should I take after that and are there any other resources I should tap into?


Thanks board

You need to clarify matters with the lady why she had made a deal in such manner.. i mean you wont take a heed if one is not sure of taken a thought.. aside from that try to contact a lawyer to make sure about the said agreement...it seems there are loopholes on that settlement.. i mean that certain situation.. as of now that is all i can advise. hope it can help you..

Maverick, When you are attempting a short sale you start by signing a contract with the homeowner. There is no need to contact anyone else first, it's just a waste of time.

Once you have a contract with the seller you then need to submit a complete short sale package to the sellers lender.

Who are the lawyers you mention? Are they the lawyer for the lender? If so there is no reason to talk to them. But you say the lady is working with the lawyers, so I'm wondering if it's her lawyer you are refering to.

To acomplish a short sale you don't need to work with anyone other than the sellers lender, but you need to start with a contract with the seller.

As far as renting the property back to her, that is a very bad idea!!! In some states it is illegal. But even if it's not illegal in your area, this is where lawsuits come from. You become the evil investor who is taking advantage of the poor lady in the eyes of the media, and any jury or judge.

Renting back to the seller? I would NEVER do it.

Chris

Originally Posted by Kreative Maverick

Woman getting divorced from here husband who refied the home at 100% and is 90 days behind on the home. Purposely letting it go into foreclosure.

First, do you CONTROL the property? Have the deed signed by both H/W? Have an authorization to release information signed? Have a POA signed? Have your disclosures signed?

Next, do you have all the loan documents, for account #s, for all the liens on the property?

You mentioned that you have contact numbers, so that is good.

Originally Posted by Kreative Maverick

She owes 140k and the home is worth 143k.

Okay, what is the house worth?? You said $143K, but is that in the current condition, or are there repairs/deferred maintanance to be done? Also, what do you think you can do with the property? Are there more than one note on the property? (or is $140K on the 1st.)

Now, not to say that SS negotiations are easy, but they are easier than days-gone-past, but none the less, you need to ask yourself WHY! Why would the lender take less than what is owed? Sure you have market conditions putting pressure on the lenders, but what else? Does it make sense for the lender to accpet your discount over taking it back?

Here is a Q... How many short sales have you done? Are you an expereinced negotiator, or is this the first time around?

Originally Posted by Kreative Maverick

Who should I call first?
What due diligence should I do for myself?
Should I find an investor and bring the deal to him? If so how much should I charge for a finders fee?

Yikes!! You need to know where you are going before you can start this deal... Are you looking to do the SS, or are you looking to pass deals to investors. (Personally, with the information that you have provided, you might have a hard time getting any interest from an investor, but you had provided very little, so there may be a deal there, just don't have all the information at this time to say.)

Originally Posted by Kreative Maverick

I want to come in and get the short sale, get the loan on a 10yr Interest only. The lady can pay 1k per month, not including utilities.

Umm, huh? Get a SS, get a 10yr interest only note, the lady can pay... What are you trying to do?

Get a SS, okay, that is self-explainitory.

Get a 10yr interest only note... Okay, from where? Do you have a source for that, or are you expecting the lender (that is now holding the note) to modify to that... If so GOOD LUCK!!!! If you SS the thing, first of all the lender doesn't want ANYTHING to do with the property. Second, to find a interest-only note these days is like parting the water (in conventional lending that is... Private lending is very possible.)

What lady?? The original homeowner? VERY BAD idea, if she couldn't pay the mortgage, why would she pay you? And better yet, why would you provide that service? If it is someone else, umm, okay so you are saying that rents support $1K/month... For a house? Yikes, that seems low.

Well, I have given you a lot to think about, let's talk though.

Michael Suess
The REI Training Warehouse, LLC