short sale potential ??? - Posted by bob

import · January 28, 2003, 9:22am

Posted by bill Twyford on January 28, 2003 at 12:39:27:

FHA will take 82-87% of appraised value on a short sale

Bill Twyford

import · January 28, 2003, 9:22am

short sale potential ??? - Posted by bob

Posted by bob on January 28, 2003 at 10:22:21:

Here are the facts…

House in decent shape - minor cosmetic repairs needed - ARV is around $130,000. Seller owes the bank around $146,000. Bank is moving towards forclosure. It is also a FHA loan & the owner had filed a chapter 13 bankruptcy.

Any thought on this one???

import · January 28, 2003, 10:27am

Re: short sale potential ??? - Posted by Space Available

Posted by Space Available on January 28, 2003 at 11:27:08:

Keep in mind that FHA is insuring the loan for 97% of appraised value (I think thats how it works). The bank will simply collect that money from FHA and the property will go back on the market as a HUD repo. There may not be a lot of incentive for the bank to accept an offer from you that would be for less money than they are guaranteed by FHA.

I might go ahead and try anyway but I don’t think I would keep this deal on the front burner for very long.

Good Luck

import · January 28, 2003, 9:34am

Re: short sale potential ??? - Posted by Chris

Posted by Chris on January 28, 2003 at 10:34:56:

Sounds like you have nothing to lose. Get the deed, get authorization to release information and fax it to the bank, order the short sale package from bank, fill out short sale package, etc … I would go for it!