Credit Qualification for short sales - Posted by R Bronson

import · May 15, 2007, 1:09pm

Posted by Rich-CA on May 16, 2007 at 20:03:20:

That makes sense. And now that I think of it, I always have to submit a pre-approval letter with my offers. Of course, these are not even close to the same as a real loan approval, but it does mean he would need to be at least pre-approved just to submit an offer.

import · May 15, 2007, 1:09pm

Posted by R Bronson on May 15, 2007 at 13:09:24:

If I have a deal and negotiated with a bank for a short sale, do I personally have to be qualified by the bank to own this property before I can wholesale it out? This could be a problem if I can’t qualify for the $200000. house that I plan to wholesale right away.
How is this handled by a newby in the business that doesn’t have a lot of cash/or may not qualify based on income requirements because of retirement and/or credit?
Thanks,
R Bronson

import · May 16, 2007, 8:19pm

Re: Credit Qualification for short sales - Posted by GS

Posted by GS on May 16, 2007 at 20:19:40:

YES

You need to have a pre qualify letter from a lender. But ANY lender will
do that.

I would also agree that you need to be in a position to purchase if you
can not assign.

Even though in the contract it is contingent upon financing, if you start
getting all these short sales and never assign them then back out,
banks and realtors will tend not to want to do business with you.

import · May 15, 2007, 6:59pm

Re: Credit Qualification for short sales - Posted by ken

Posted by ken on May 15, 2007 at 18:59:45:

I have not done a short sale in awhile but i believe the bank will not entertain your offer without proof that you have the funds to close.I buy quite a few REO properties and they always ask for a proof of funds letter so i imagine it would be the same with a short sale

import · May 15, 2007, 2:56pm

Re: Credit Qualification for short sales - Posted by Rich-CA

Posted by Rich-CA on May 15, 2007 at 14:56:58:

You can think about the situation logically. If you are going to assign a purchase agreement to someone else, why would you have to qualify to buy the property. Once its assigned and you have your fee, its no longer your problem. Now that would be the logic, but the reality will have to wait for others since I don’t wholesale properties.

import · May 16, 2007, 7:24pm

Re: Credit Qualification for short sales - Posted by Kevin - WA

Posted by Kevin - WA on May 16, 2007 at 19:24:24:

If you put something under contract, you need to be able to close in the event that you cannot find an assignee.