Posted by Michael on July 25, 2008 at 24:18:18:
I have a home for sale at Champions Club in Trinity, FL and would be interested in doing a short sale. Please contact me for further info. cybersurfer_2125@yahoo.com
Scared seller and the short sale offer - Posted by JLG
Posted by JLG on July 24, 2008 at 19:35:35:
I’m new to this game. I stumbled across a home that I thought was a HUD property only after much investigation found that it was in foreclosure and might be bought through a short sale. The owners have the mortgage with CitiMortgage. They filed backruptcy about 2 years ago, got back on their feet then lost jobs. I’m trying to get the owners to sign a purchase agreement subject to me negotiating a short sale with the lienholder. The seller is on the bubble as far as signing the purchase agreement in that he doesn’t think it will help him and that he has no funds to pay anything. I have told him that the first goal is to help him avoid the foreclosure. And that he shouldn’t have to pay anything at closing since it will be between me and bank. True? Any words that would help convince him to sign the purchase agreement. The sheriff’s sale is quickly approaching. Sorry about being so wordy. Thanks.
Re: Scared seller and the short sale offer - Posted by Bank Negotiator
Posted by Bank Negotiator on August 02, 2008 at 10:01:15:
Sellers do sometimes have to bring cash to closing. That’s the truth in this business.
Depending on the type of loan certain costs (such as water escrow ~ $300, and other nickle and time things) have to be picked up by someone other than the bank.
If there are junior liens they will often require more than the $1,000 token allowed by the first (if even that is allowed) which ends up having to be covered in cash by the seller either on the HUD or outside of closing.
There are a dozen reasons why seller have to bring cash to closing on short sales. Usually small amounts…but sometimes large amounts.
Be careful not to overpromise. Investors hit too hard on the “Save Your Credit and Don’t Bring a Dime to Closing” message…myself included.
The marketing you send out has to be this way…highlighting the best situations that arise for clients but not guaranteed to anyone because without offering hope they don’t respond in the first place.
On the other hand, they need to be fed a fair dose of real-world expectations when meeting in person before signing docs.
Do NOT set them up that the ONLY result will be that they are free of the debt. ESP if they have a HELOC second!
HELOC seconds almost NEVER do a straight write-off in my experience. They always require the borrower to reassume a large portion if not all of the debt unsecured in order to release the lien.
If you want to learn more about short sales I’ve got about over 3 hours of free video on my blog at www.ShortSaleShow.com
Re: Scared seller and the short sale offer - Posted by Ralph - SW Virginia
Posted by Ralph - SW Virginia on July 27, 2008 at 20:54:47:
The sale is not really between you and the bank. Its between you and the homeowner. The bank does not own the house. Here is what you convey to the homeowner: Their options are to have a foreclosure on their credit report which will severly limit their chances to finance another home for at least 3 years, have NO MONEY in which to move and start over fresh, incur a deficiency judgment or a 1099, and endure the stress of continuing to deal with this situation…OR, they have $3,000 (or whatever) in cash to start over again, NO foreclosure on their credit report, a deficiency judgment or 1099, and a fresh start with less anxiety and less sleepless nights. Adopt a take it or leave it attitude and walk away. The take-away close is the strongest. In the contract add a condition that the seller will pay no closing costs. That way the seller is assured there will be no money owed at closing.
Re: Scared seller and the short sale offer - Posted by Natalie-VA
Posted by Natalie-VA on July 25, 2008 at 15:57:24:
I don’t think you can really pursue this until you have a clear understanding of his bankruptcy. Was it a 7 or a 13? Was it discharged? Was the mortgage included in the bankruptcy? This guy might not have the authority to sell anymore.
–Natalie