Posted by gman on January 25, 2007 at 13:05:21:
wow. thanks for the great information and the link. i will definitely look into it.
short sale question - Posted by gman
Posted by gman on January 23, 2007 at 20:09:29:
I am currently working on a short sale and not sure how to make this offer.
balances
1st 182000
2nd 47,000
repairs 20,000 everything is totally outdated but structurally fine
arv 220,000
i am offering the second 3k
i am not sure what to offer the first. they might think they can get what they are owed on the mortgage. since what they are owed is about “as is” value. any assistance would be much appreciated.
Re: short sale question - Posted by Juan
Posted by Juan on January 23, 2007 at 21:13:03:
Take a look at the sales comps in the local area, witin .50 mile, in the last 3 months. Lookfor the lowest priced home, in the same size, same lot, etc.
You may find a wholesale deal in the sales comps. This will help pegg the bottom end of the scale.
Then, take about 80% of the mortgage amount and see where you fit in relation to the bottom end sales price.
I balance it between the bottom end wholesale prices and about 70% to 80% of the mortgage balance. You also need to take into consideration the repairs and make get an estimate of repairs in your submission.
good luck.
Re: short sale question - Posted by gman
Posted by gman on January 23, 2007 at 21:50:01:
Do you explain your offer to the bank when you send it to them?
example
mr. bank my offer is 100k. here is why
you will have to pay 6% commission
20k repairs
holding cost…
ect…
if yes, than is it when you send your first offer?
Re: short sale question - Posted by Juan
Posted by Juan on January 23, 2007 at 22:03:57:
Oh. Well, lets see you need more information:
With a cover letter, you will need to gather the following –
o Purchase Agreement
o HUD -1 Statement
o Property REO Worksheet
o Authorization Form
o Hardship Letter
o Sellers Financial Statement
o 3 Months Bank Statements
o Prior 2 yrs Tax Returns, 2004 and 2005
o Current Paystubs
o Copies of supporting monthly bills ( phone, utility, Cable, etc)
o BPO / Appraisal Report
o Sales Comps within .50 mile radius
o MLS Comps, with DOM information
o Estimate for Repairs
o Photos of property online or in print
and ask them for their LENDER requirements for the short sale. Some have a specific list. For example, the best guidline I have come across for the short sale process is place on the net by the following lender;
Look at this linK;
http://www.homeq.com/mortgage/lossmitigation.jsp
and look for loss mitigation ( they have all the information for all the options) and click on the short sale information/guideline. Form 1 – is the name of the file
This is the best guideline that I have found by a lender online.
There, I saved you $ 500 or more just getting that far. The rest is getting the package to the lender.
Good luck.