Short Sale? - Posted by MTM

Posted by luke-NC on April 02, 2004 at 13:33:38:

Somehow, you have to get to the owners, the Realtor is a roadblock.

You’ll need authorization from the owners to discuss their loan with the lender. Then, you can find out who is handling this loan at “the bank” and work out the deal with them direclty, not through the Realtor
The bank will ask what your offer is and you’ll have to make the case that it is better for the bank to take your offer rather than foreclose on the property.

See if the agent will let you speak directly to the owners or work out some deal with the agent to let you speak with the owners.

If not, move on to the next one…

Short Sale? - Posted by MTM

Posted by MTM on April 02, 2004 at 12:12:03:

I just had a situation where a beautiful house in a million dollar area was under contract. The original asking was 890k (ask a local realtor). It eventually was asking 699k. It was then under contract (don’t know what for) probably 650k to 600k. I eventually saw the inside and I understand why. It was built in 1983 and nothing has been done since. That’s why it was only going in that range. Probably needs about 100k to bring it up to the neighborhood standards.

Anyway, I called to see if it was still available and it turns out the contract had fallen through. It probably was on the market for awhile and the owners took off. I don’t know if they took off and the bank put it on the market or they had it on the market and then took off.

Whatever, someone shut off the utilities and the pipes broke. Flooding the first and second floor. Nothing major, just drywall, new floors etc. Probably, 100k to 150k…probably could get it done for 50k.

I offered to take over the existing mortgage which I have found out was taken out in 2000 for 430k. I figure it has been paid down to 415 or so. Probably has back fees, taxes etc. equalling more than the original balance.

Anyway, I’m wondering what’s possible for this house. It’s in a beach community. My dream house, but I couldn’t afford the 400k mortgage and taxes, nevermind fixing it up. I’m not interested in doing this as my first rehab and the realtor said he has a few cash offers so it’s not really a little late for the wholesale.

It’s just that I’m curious as to what will happen. I’m worried that maybe someone will pay 200k cash and get it. I have no confidence in the realtor. Two weeks after my offer, I call and he just found the bank reps number to fax the offers. I told him that I think the mortgage balance is in the 400’s and he laughed. He thinks it’s way more than that etc. No idea. That’s what’s making me think.

How does this work? He works for the ‘bank’…can I contact the bank myself. Do they only want cash etc. What’s the lowdown? He said the bank is willing to short…(take less than is owed) but I can only imagine what the bids are.