Posted by MM on May 06, 2006 at 06:30:20:
Danny,
Every deal type requires education, so why avoid it? Flipping works too, and a lot of other things might as well, but you can’t do any of them if you don’t know how to.
PLEASE HELP!! FIRST DEAL - SHORT SALE!! - Posted by kevin
Posted by kevin on May 04, 2006 at 24:37:13:
Thank you all in advance for your responses to this post.
Type: Pre-Foreclosure
Situation: Seller who wants out has called me to buy her home. Tells me that the bank will begin foreclosure proceedings in June. ARV = 130k.Repairs = 10k. Seller faxed last loan statement:Sellers owes 95k on loan and 12k in arrears, this is including other fees associated with delinquent loan amount. Have to do short sale with bank on property. I do not want to call the bank and make a first impression that I do not know what I am talking about. I have read that they are overworked and do not have time to help a newbie complete a deal. I know that I have to call the bank to find out where their short sale department is. What preliminary documents should I have before I call the bank besides an Auth To Release form? How much should the Purchase contract be written for? ( I know the loan balance but fees are tacking every day) This family really needs my help and I do not want to let them down. I know that many short sales do not go through but I would like to give my best the first time so that I can honestly say I tried my best and hopefully get paid for it. Thank you
Re: PLEASE HELP!! FIRST DEAL - SHORT SALE!! - Posted by Max-Va
Posted by Max-Va on May 04, 2006 at 07:57:58:
I have done several short sales. Here is what I advise, some people may have differing opinions.
Get a signed authorization to release infomation.
Figure your maximum offer.
Contact lender for a number to fax the Auth To Rel and phone numbers for the Loss Mitigation Department and a name as well if possible
Fax authorization and wait 24 hours or so for them to update their files
Contact them for correct numbers and ask for a short sale packet, different lenders require different things
write a contract with seller for a price below your maximum offer contingent upon lender approval
Take photos of property the worse the better.
Get an estimate (high) of repairs from a contractor
Have the sellers write a letter to the lender explaining the problem and asking them to help by agreeing to the short sale(the worse the better)
The lender may ask for a financial statement from the sellers as well
This is the basic info needed. When submitted it is a waiting game, and you will have to be pushy and bug them often.
The lender will order a BPO/ appraisal if they will even consider a short sale. Be the contact person for this and be sure to point out all the defects and everything bad about the property.
Have you thought about paying for the property? You will need funds to close, quick once approved usually 10 days or less. Most lenders will not allow assignments, so buy or double close is the route to go.
This will get you started. If you need more info, E-mail me but I am going to Atlanta latter today and not return til Monday
Good Luck
PS: you really need to get a course on short sales Dwan twyford’s is good
Bill Bronchick covers short sales somewhat in “Flipping Properties” course
Re: PLEASE HELP!! FIRST DEAL - SHORT SALE!! - Posted by MM
Posted by MM on May 04, 2006 at 07:04:26:
Kevin,
I don’t advociate you doing somthing that you don’t have much knoweldge of. So I say you should buy some education first. There’s several different people selling stuff on short sales I can’t post the name of the one I have because cre is filtering it ( filtering potential competion I guess). So do a search for products on that topic.
Re: PLEASE HELP!! FIRST DEAL - SHORT SALE!! - Posted by danny
Posted by danny on May 04, 2006 at 13:47:37:
why not assign it to another investor who knows how to do it for a finders fee contingent upon bank approval of the short. that should make every body in the deal happy.