I have been checking into the short sale type of investment. It is a general rule that the bank has to approve the final offer. Is it true that it takes generally two to three monhs to get a sale closed. From the time you make an offer to close?
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Ali
Ok, Thanks for the info.
And have a blessed day.
RBB
I have a friend that is upside down and I know that she owes about $500k she has two mortgages on the house and now the condo is only worth about $125K from what I read she would have to be behind on payments or be pre-foreclose I guess the question is can I help her with a short sale and if so could you advise me through the process?
My girlfriend also is upside down tried to re-modify her loan but her bank is not wanting to help her she filed bankruptcy but was able to keep her ranch she also owes about $283K and now its worth $87 she is making biweekly payments to lender waiting for a response from the lender about her re-modification. Can I also help her with a short sale.
Can you please advise?
Hello All,
I had just got a question from a possible seller, Any way for the current owner (seller) that is in trouble or soon will be. They had talked to other family members about a short sale. Assuming the bank took the offer (shortsale) and investor purchased the property, is there some method for the now former owner to stay in the property assuming they could afford the new payment or lease?
Have a great day,
Dave Totzke
The bank was approve the offer for short sale with CASH OFFER, I also have a buyer agree to pay me the 10% find fee. The offer was under my company name,now the buyer want to financing the house. how we can do this ???
Thank you
Randy
Not sure if this is a trial program just in San Diego or is it in other parts of the country also but I was floored when I read this in today's paper:
http://www.signonsandiego.com/news/2011/oct/08/banks-offer-cash-troubled...
Just happened to my short sale team last month here in San Diego.
H.O. got 35k back.
It was a higher end property near the beach.
Jason S.
San Diego, CA.
**All CASH House Buyer!**
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How you do it? Can you please walk me through Step by Step I am new Babe of DG family. Bank was Approved my offer. I have 14 day to Close and seal the deal other why it will be null
1- The lender was Approved
2- I have buyer now, but he only can go for financing the property (my offer was CASH offer)
3- title company that the lender refer to me they said CAN'T doing it(Assign or Finder FEE both)
I am Stuck can any DG family walk me through this, Please
WOW, this is very interesting information thank you Texas Irish Lady.
Texas Irish Lady
HI,
I saw your post and would like to ask you a question. I have come across a short sale that has been approved by the bank. The first buyer did not show up to the closing. I have the opportunity to purchase this property at well below market value and also have a rehabber who invests in the area and would probably want to purchase the property. My question is: Can you give me any referrals for title companies that would do double closings in the Chicago, IL area. I have the transitional funding, but need to use a 'real estate' friendly title company. How do I go about finding one?
Valerie
A short sale is when a lender allows the borrower to sell the property
at a lessor amount than what is actually owed. This benefits both the
homeowner(pays most of the loan back)and lender(keeps the banks inventory
at a minimum).
when is a good time to buy a house in short sale?also can you buy a house with no money down in short sale?how?thanks
I ran into a 3 bed condo. Owner is $10k down to the bank, has a $5k second and $4k down in HOA dues. Owes $160k and the $5k. Comps are $129k to $147k in the last 45 days within 8/10 of a mile.
No NOD yet, Realtor is also on the HOA board....listed for $80k.
Is it worth paying the back payments and HOA and putting in a land trust, renting the condo out. $1700-$2000 rent comps and doing a short sale then??
K. Michael Fishbaugh
Some of you will rebuild the deserted ruins of your cities. Then you will be known as a rebuilder of walls and a restorer of homes. Isaiah 58:12
What if there is no home owner on the property? I contacted the agent to buy a shortsale and he advised me to see a broker. What is up with this?
good info...however, what state did you do this in?
Thanks,
Linda
"...be; not greedy for money....but eager to serve"
1 Peter 5:2
Hi All, will someone tell me the best way to finance a short sale - I have bad credit but great property management skills. Thank You. o my contract is accepted and signed by the seller and waiting on the bank's approval.
I need financing once accepted.
I am in contact with this owner, through my bandit signs. He owes more than the house is worth. He is not behind on the mortgage yet but he wants to get out of the house. He wants to do a short sale. Does anyone knows how to go about this? May be anyone living in Philadelphia area is reading this, and you have experience in short sale, let us partner together to do this deal.
Short sales can be unbelievably slow. I had one take a year. They can be a great source of deals though. You just have to know the time it can take and be sure you still have the funds to close, if it does take forever. Because like REO's, odds are you won't be able to assign the contract and once the offer is approved by the bank you will want to be ready to pull the trigger.
Good Luck,
Jim
I remember seeing a video on one of the students offering a low ball offer on a short sale and had a letter attached as to why. I don't remember all the details - that is why I am reaching out for my answer. At first I thought it was Matt - but maybe someone he coached.
I am just wanting to duplicate the process.
Thanks
I was in negotiation for a short sale for about 5 months, only to have the bank come back in december saying they were going to let the house go to auction. i want the house for myself & my boys...ARV is about 225...bank said they'd accept no less than 216K...however, inspection was done by me ($600) to find there will be about $50K of work; I know I can go to the auction at the courthouse to try to get it there, but do I have any other options to work with the owner in other creative ways? how do I know what amount the bqank is going to post for the lowest price at auction?
I offered 166498, then again countered the 216K at 177698...with the $50K of work needed, I really cant go above that amount...
any suggestions would be appreciated.
thanks
Angie M. Tonini-Rogers
Is is possible for a lender to refinance a mortgage note at a shortsale price? Quitclaim deed to ex-wife but husband holds the note. A modification can't be done since she is not on the note and the house will be foreclosured upon otherwise.
I just went over many of the latest messages posted here for assistance with short sales. It is interesting to see that this is an area that has not quite been responded to in a way that may show steps to understand the process. Maybe I am just not in the right thread. If there is anyone who has had a short-sale property and been able to re-sell it through a wholesale transaction, would you please help us who don't know how to do this, by explaining the steps (if it is still possible to wholesale a short sale at this time of 2013)? We would all greatly benefit from this and appreciate your help.
Does anyone here work with luxury short sales? I know it was popular a few years ago but I don't know if laws have changed but I haven't heard much lately. I'd love to hear from you if you are having success!
Moving forward daily will get you to your goals!
"You become what you study" - RTK Rich Dad Poor Dad
http://bulkassets.com
Your information was extremely helpful and I will look into this a little further. Now, that I was able to get some encouragement from you. I believe that there are so many options in investing, but this one, I was stuck on. The process is just simply too long and I needed to find a faster way. This is definitely a great opportunity and I am excited to venture out and a experience a faster pace in closing deals with short sales. I am looking forward to it. Thank you for your shared success.
Vida
Additionally,
Banks will not do ANYTHING to may a short sale easy on either the distressed owner or the potential buyer.
It seems they will stall and keep appraising the property for as long as possible. After SEVERAL months, most of the time the potential buyer will not continue to raise their offer several times as the bank seeks to minimize their loss on the property.
As a result, if the deal does go through, it will take several months. This form of investment requires far more "personal investment" than what most investors are willing to commit. Your time would be better spent finding other deals that will offer you a quicker turnaround in profit.
Stay Focused
RER
Can someone explain how I can buy with no money down and then make money ?
Maybe I missed it but I'll looked through this thread and didn't find it. How are you getting around the 90 to 180 day no resell laws.
Moving forward daily will get you to your goals!
"You become what you study" - RTK Rich Dad Poor Dad
http://bulkassets.com
Hi All,
I've just finished Dean's book and I can't wait to get out here and make some some money!!
However, I am nervous and would like a little guidance on some things.
I've found a short sale home in my local area that I'm interested in. The owners have relocated for a job transfer. The house is listed at 209K. The listing agent told me today that they are going to drop the price again to 199K and that the seller is just looking for an offer. The fair market value of the home is between 180-190K. I am tentatively planning to make an offer of 100K after I take a look at the property on Monday.
Does it sound like I am on the right track so far? If so....great!
My biggest worry is financing. Reading the success stories in the book makes it all sound so easy, but since this is my first time, I'm not exactly sure what my options are.
My credit score is 575 and I have no money. Is my only option for making this deal happen a hard money lender? Any suggestions would be greatly appreciated.
Thank you all so much in advance for all your help!!
Devvon
Dewon: It appears that you are on the right track in getting started. You will have to make an offer that is contingent upon acceptance by seller's lender(s). You will also need to make inspection period and closing period hinge on acceptance by the seller's lender, so closing might be termed as "30 days after acceptance by seller's lender."
Since we do not know how long it will take for the bank/lending institution to process the short sale request, you have to make sure that all the variables necessary to get to closing can take place after the acceptance of the offer by the lender.
As far as financing, it sounds as though you would like to acquire this property yourselves rather than wholesaling it. As long as you can find a suitable funding arrangement that you can qualify for, that's fine. Most lending programs, including insiderscash.com, affiliated with the program, will not fund the property above 75% of the purchase price, so you will need to plan to come out of pocket for the remainder of the purchase, rehabbing costs, holding costs, and costs of marketing and reselling the property. If these out of pocket amounts are not feasible for you, then you should focus on wholesaling the property to a cash buyer. That way you will not need much available cash to do the deal, only the Earnest Money Deposit will need to come out of pocket. Wholesaling the deal to a cash buyer would also help build some seed money for future deals, and help build relationships with your cash buyers, who at some point in the future, after you have established a good trust relationship, could become private lenders for your transactions.
Regardless, we always like to encourage people to have a Plan B, and sometimes even a Plan C strategy for real estate properties. Backup plans assure that you will have success with the properties you work with.
So congratulations on being active with the program, and we wish you success with this and other properties.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
I checked back a few pages looking for a list for a short sale package, did not find one, so included here is a list of documents that are typically required by a bank to consider approving a short sale on a property. Note that some lending institutions will require the use of their forms on their letterhead. When first speaking with the lender to propose a short sale, it should be verified which documents from this list are required, plus any other items they may request, and if they require that this documentation be submitted on any specific forms. If they have a template, it is best to use it as it can prevent any additional delays in processing.
Executed Listing Agreement.
Banks want to make reasonable decisions and protect bank assets. They are unlikely to approve a short sale that is well below the list price if the property has only been on the market for a short time. The listing agreement needs to be completely filled out with the name of the brokerage, term of listing, and amount of commission.
Fully Executed Purchase Contract.
Make sure that the purchase contract is completely filled out, pages initialed, along with any other location for initials; confirm that the contract is correctly signed and dated by all parties, including, if necessary, real estate agents.
Seller's Hardship Letter.
A hardship letter needs to tell a complete story of how the sellers arrived at their current situation and what they have done to attempt to resolve it, as well as why there are no acceptable solutions other than the short sale currently available. It must reference the loan number and be signed and dated.
Authorization Letter
An authorization letter is a letter written by the seller that authorizes the bank/lending institution to communicate with another person (listing agent, buyer) besides the buyer regarding loan and property specifics. An even more solid document for this purpose would be a limited power of attorney, and this document may need notarization.
Last 2 Bank Statements.
All bank statements, for each of the sellers’ bank accounts are required for submission, front and back. If there are large deposits or withdrawals or unusual line items on those statements, a separate explanation will be necessary to explain their presence.
Last 2 Tax Returns.
Federal and state returns will be required, including all schedules and attachments, all pages. If tax returns have not been filed in the last two years, documentation of extensions will be necessary.
Last 2 W-2's.
W-2 Forms for the past two years will verify employment, and provide information on how the lender can track salary verification. If the seller is self-employed, 1099 forms and/or Income Expense Statements will be required.
Last two payroll stubs.
Payroll stubs demonstrate the amount, frequency, and also the source of income, and stubs from all current employers should be included.
An Estimated HUD-1 Statement.
The HUD-1 is an estimated closing statement that is generally prepared by a closer or an escrow officer. It contains the property address, sellers' names, buyers' names and estimated closing date. The estimated closing date should be 3 months in the future. Each cost of sale is a separate line item on the HUD. Because the HUD was revamped in 2011, some closers send a worksheet so the bank can understand the HUD. A HUD is not a simple document.
Additional Documents for Your Short Sale Package
If there is a reason to believe the sales price might be rejected or countered by the bank, ask the real estate listing agent to include a comparable market analysis or CMA with the short sale package. The CMA should justify the sales price.
If the home needs repair, include a minimum of 3 repair estimates. Realize, of course, that the bank will choose the lowest repair estimate. Also realize that there is no way to force a bank to accept a short sale proposal, but the better the documentation, the more likely they are to accept. This is especially true of value estimates when the bids are coming from investors who must submit low offers. It is okay to include authoritative articles or other substantiation for a low price.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
Thank You Dallin for your quick response!
This really helps me alot.
My intentions are to buy this property at a price no more than 120K and to keep it as a rental property or live in it for awhile.
The value of the home is between 180-190K. If my offer is accepted by the bank. I should be able to refinance and tap into the equity to use for other deals once the house is in my name right?