Posted by MattFL on February 11, 2004 at 21:40:08:
There is really no possibility of a short sale unless you are in contact with the owner of the property. You need their cooperation. The lenders will not even talk to you unless you get authorization from the owners to release information. So, can you contact the owners? If you can, then start there and post again. I’ll be glad to help.
Posted by Ronnie on February 11, 2004 at 19:19:15:
Good Evening. I am a newbie and am currently doing research on purchasing at the county courthouse auction. I have found a property: The first is foreclosing for 351K, there is a second for 100K and the comps are 525K-575K. I can purchase up to 400K cash no more. If the second doesn’t show great, however if they do and I am out bid what are your recomendations for possible short sale on the second? Any advice would be greatly appreciated.
Once the auction occurs, any incentive for a short sale by a Jr mtg holder is gone. If you are outbid, then the Jr mtg holder will certainly know what the bid was, and be able to figure easily that their net from the sale would be higher than your offer of a short sale… Let’s say that a third party bidder out bids you @ 425K on this deal, the second will net 74K, (without calculating any clerk of court fees, or other possible issues that may effect their net after sale). So why would they accept an offer from you where they net 50K…? They wouldn’t.
Short Sales require the owner to be on-board with the sale… signing as the seller on both the contract and the Deed. Are they…? If so, then you could orchestrate this deal prior to the sale, potentially. Likewise, you could approach the 2nd mtg holder and ask to purchase the Note and Mtg for a discount… like maybe 25K to 50K… Sometimes they will, sometimes they won’t… it just depends on who it is and what their policies are. If you are able to purchase the Note & Mtg, then you could bid higher at the sale, and have the advantage of locking in your price at the cost of the 1st, plus what you pay for the 2nd… Just another angle.
However, these are some advanced techniquest, and you state that you are a newbie… In these waters newbies get eaten for breakfast, due to lack of knowledge… and there is much to know in the arena of foreclosure and note investing… Caveat Emptor…