Short Sales

A Short Sale is a property that is under water. The Principle is higher then what the FMV or (what the property is worth). In order to Short sale the property will have to list the property with a Real Estate Agent.A purchase agreement has to be submitted along with several other Items.

Once the file is opened ( in other word all docs are in and completed correctly , the file will open) usually 2 days after you fax it in to the lender. You then will be assigned a negotiator for the bank. Your rep will negotiate for you . The lender will schedule a BPO with their RE ( it is probably best to have your own BPO done) and have your BPO agent meet the lenders agent during the BPO. After the BPO has been submitted the lender will either reject the purchase offer or approve it, the negotiating continues until you both come to a agreement.

When the offer is excepted and the prove of funds have been received ( or letter from Mortgage company saying you are pre-qualified and for how much will do ) This is when it might be 7-10 to close the deal. Keep in mind cash buyers work much faster. The time frame to process the Short sale and get a approval on the purchase offer is what consumes most of the process. Unless you get really creative as a investor As a customer you can call on your file any time and ask for a update, although it is best to have some one qualified to negotiate on your behalf.

Your representative should update you weekly on your file. All fees are taken from escrow you don't pay for any of it. You can download Short Sale applications on the website of your lender. Bank of America is the only bank that has given access to RE agents to the Equator program.Most lenders either will have you fax all paper work to them Every lender has it's own name for their Short sale program and the universal one is the HAFA( read carefully all he waivers you are signing) you can research this one on the HUD website. Thank you hope this helps YHER27

My father is sad that he can't afford his house anymore and is up for foreclosure. What is the best solution in his case. He wants to save the house. It's a beautiful house in the Porter Ranch, CA area in suburban Los Angeles. its worth about the same price as it was bought at around 570,000. Its still a developing area and has a major upside when the market starts to go up. Back in 2006 it went up to around 950,000 from 2004 when the house was newly built. What should he do?/ What is the best action for this type of crisis?

i am currently learning of the short sale ,i was ask by a investor to birddog for them only wanting short sales,ok how do u suggest to be best way for this to work? and he only wants exspensive homes.help me to understand? thank u

If the short sale is approved for $200,000 but the original loan is for $400,000 what about the $200,000 the bank is not getting?

If the bank approved it, thats it....from what I know

Hi Members,

Can you file for bankruptcy to stop a foreclosure then request for a short sale from the lender?

Is this possible?

I have a friend who is going through this now so to help him out I have someone who want to buy this condo cash out of pocket making it a win - win.

Thanks For Your Support,

I hope everyone had a Bless Labor Day Weekend.

"With God ALL Things Are Possible"

hi there shelia ...what are the consciences of buying a property as a primary when you dont intend to occupy the property as your primary residence? What is the worst case scenario? and have you ever done that?

Short sale is for people with patience. It can be worth the wait sometimes.

Hi, Tim here. A short sale is just basically the controller of property agreeing to sell the property at a price, less than what the property is listed for.

We are close to making our first short sale happen. We found a 4 unit they were asking $225,000. Total View says, $271,000. They will take $180,000. They want 10,000. with the offer. They want 25% down. That is $45,000. We have an investor that will loan us the money for a short term, like 6 months @ 6% We are going to try to show prof of funds with the investors money and then borrow the full amount from the bank and pay off the investor. We don't know how to figure out closing costs, taxes etc. So now we are waiting to hear back from our investor, and accountant. Any words of wisdom out there would be appreciated.

I have questions regarding short sale. Last year I purchased a property with a mortage of 15 years. I recently bought your book and realy excited about purchasing another short sale property in the same area but wanted to turn it into a rental. Is it advisable to purchase another property ( in Florida ) and rent it out?

I have questions regarding short sale. Last year I purchased a property with a mortage of 15 years. I recently bought your book and realy excited about purchasing another short sale property in the same area but wanted to turn it into a rental. Is it advisable to purchase another property ( in Florida ) and rent it out?

Some banks will pursue a deficiency judgement for the difference. Most negotiators however will push for the lender to waive any judgements as part of the negotiations. If the lender refuses to waive, they will generally settle for a much smaller amount because they will only end up selling the debt for around .10 on the dollar. Favorable small payments and 0% interest can all be part of the negotiations if the waiver is denied.

Kyle

I have someone that has their home is on the market as a short sale. It is listed at 150k and she states that she owes 220k. On total view the value is 116k. Owner indicated that she doesnt care any longer for that property and just wants to get rid of it and doesnt want any money from it. She has section 8 tenants in the house right now that want to remain in the property and pay $1400 per month. How can I make this purchase?? What's a good offer starting point to the bank?? I would like to resell the prop to an investor that would rent or sell to end buyer. Any suggestions would be greatly appreciated. PM if you prefer. Thanks in advance!

Everyone, the info here has been very helpful especially me being a newbie. My mother is currently prospecting a short sale and you'll have giving me priceless info to relay to her . thnx

We are currently considering short sales with a partner who has funds to make the program work. We would be acting as a "bird dog/lead generator" for the area we live in. The partner/buyer is a 1,000 miles away.

He has offered a reasonably generous finders fee.

Anyone have enough experience with short sales to advise if this is a good path to get started, assuming of course that we put all the agreements and forms in place?

Jim and Alice

I'm really new, just devoured Dean's book and am very anxious to get started. I'm ready to start small. I found a short sale, speaking directly to the owner. He's asking $23K for the property and tells me that the bank has already approved that (another investor was going to pay that but backed out). He says that all a person has to do is agree to that amount. The property's FMV is around $45K and presently has tenants paying $700/mo. I haven't spoken yet to his realtor, but found the property on their website, where it's listed at $30K. I have read a lot about how drawn-out and complex short sales can be. Could it be as easy as the owner makes it out to be? I'm not working with an agent yet (still working on putting together my team).

Any advice would be greatly appreciated. Thanks so much.

By the way, I'm already developing a buyers list and have someone who would love this house as a lease option.

I submitted a short sale package on behalf of my seller it was a FSBO property. The seller has written several letters explaining to the short sale department that she is representing herself in the transaction. The mortgage adjustor keep assisting that we submit a listing agreement..
I live in Conn can anybody give me some advise on how I should handle this situation without losing the deal.
Help!!!

__________________

"I Can Do All Things Through Christ Who Strengthen Me."

I have a house in Cali that is completely under water. I am behind on payments for about 8 months and know I have to take action before the NOD arrives. My questions are:
1. Can I do my own short sale?
2. I have a friend who can buy the house for me now cash. Can my friend re-sale to me after 6 months or deed the house back to me?
The fact is that I do not want to loose this house, eventually we will go and live there.
Any input will be greatly appreciated.
Thanks a lot,
Ani

I've been stopped in my tracks on a short sale deal I'm attempting to sale to a buyer seeking FHA Financing. The Lender refuses to allow the flip without first buying the property myself. It was my understanding that this rule had been waved for 12 months. Can anyone verify this for me?

Hello Terry! Yes you will need a listing agreement with your offer. You simply have to get a real estate agent to write a listing agreement that shows that the seller is making an attempt to sell on the market. Banks also like to have agents in the deal as a point of contact and to hold someone accountable. Keep in mind that the seller does not have to pay a commission as the bank pays the commission. That's really all there is to it. Hope that helps!

Rodney

Hi Esmirna! If the house is valued around $116 you should start around 65 percent of the value minus repairs. If you are going to flip to an investor you must get it at a great price to flip at a great price.

Hope that helps!

Rodney

Hey Ron!

In general renting a property after a short sale purchase is idea in any market providing you cash flow and expecially if you see an up swing in the market in the near future. We are in a buy and hold market pretty much around the country if that is what you would like to do and have the cash or credit.

Just my humble opinion.

Rodney

I am currently working on a short sale with Indy Mac and they now have a document in their short sale package called “Purchaser Eligibility Certification” which specifically states that the purchaser (which is me) cannot resell the property within 90 days of the closing date. Is there any way that you know of to get around this? My exit strategy was to wholesale this property to a rehabber. Would love some ideas. Thank you!

incredible, and thank you. i'm new and i just learned something. didn't know each bank have their own package for short sales. now i know who to ask for. again thank you.

the info is appreciated

a short sale is when the person who owns their home they owe more to the bank than their able to sell the home for example lets say you bought a home for 150k a few years ago and but you still owe 144k but after selling it and paying expenses you still only be able to get 120k leaves you 24 k short of being able to pay the mortgage another example i am working on deal where the guy payed 140k for his 2 bedroom home a few years ago he owes the bank 9000 that he cant pay today his house is worth 135fmv but he owes this loan amount of 9000 that he doesnt have all i have to do is find a buyeror ent to own person with 9000 get 18000 from them to put down on the home i pay the man who owes the bank 9000 maybe a few thousand in repairs put the rest in my pocket then i rent it and make money every month and when it comes time to close then i will walk away with 100k in my pocket pure profit because number one i only payed 9000 dolars to this guy to pay the bank and i used some one esles money so i will make 100k with out using any of my own money

If you need a partner to work with let me know, I'm new at this, I'm learning too. thank you...

In a short sale do we need to pay counting from where the tenant owes the lien holder or do we have to pay the full price of the property

Example. My friend owns a home worth $400,000 and he has already paid $100,000. He is 3 month behind on his mortgage and his is afraid he’ll lose the house in a foreclosure. Do I make my offer around the $275,000 or around the $375,000.?

Also do making a short sale affect my friends credit in anyway??