Offlinei have a house i'm looking at in Fort Wayne, IN that is a possible short sale. the house is 52 years old in a solid neighborhood in a good area. i grew up there. the seller bought it in 2004 and still owes $67,000-68,000 on it. the BPO came in at $50,000, which it is now listed at, down from $59,000. the payment is just under $700/month at 7.25% interest. the seller has it listed with his daughter, who is a new realtor. she said the comps are $59,000 and $54,000 for 2 houses just like this. 3 bedrooms, 1 bath; very basic rehab. no air - tenants have put in a window air conditioning unit in the kitchen, then take when they leave. it has been vacant since February, when the wife lost her job. those tenants had lived there 3-4 years. the house rents for $600/month. the seller was asking $700/month, but did not get any takers. this neighborhood will not support $700/month for 925 sq. ft. no basement. assn. monthly dues are $15.00. as of May 19th, the seller is behind $3000 PLUS attorney fees. foreclosure is set for September 12th. only one mortgage on the property. should i just let this go, or is there a way to work a deal on this property and help the seller out? i do not have money myself to make the purchase and cannot get a loan since i have been (happily) unemployed for 2 1/2 years. thanks for your help!
Linda, Army EOD Mom
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Personally the first thing that I would do is get an experienced agent that knows how to conduct a short sale. You can go to www.cdpe.com and find an agent that can represent you in the transaction. These agents are highly skilled professionals trained to work in these situations. A new agent generally has no idea as to what to do in this situation nor has the patients to work with all the parties involved.
But since you have stated that you have no funds to work or employment this will not be the place where you want to start. You will want to work on your buyers list. Investor buyers are going to be who you need to pinpoint. They know what they want, and have the funds to purchase the deal and pay you for your time - via birddog or assignment. You can find these people at the REI clubs in your area. You can go to www.meetup.com, Dean has a place on his site where investors meet as well. You can locate investors at any auction setting. Please, work on finding your buyers first, then qualify them - get what it is that they want. After you have this information then look for deals. I hope that this information helps!
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The strategy I would use would be transactional funding and do a double close. Find the transactional funds lender, they will supply proof of funds for you. Submit your offer using their proof of funds and earnest check (you will have to supply earnest but maybe a partner or credit card if you don't have the money)Find a buyer, get them under contract, cover your earnest money with theirs and do a double close, leave with check. Make sure your contract has an escape clause(inspection, 7 to 10 days)Worst case, if you can't find a buyer you can back out and get your earnest money back.
Its very difficult to get an assignable short sale contract (close to impossible)Its also hard to bird dog a short sale, they are usually listed on the MLS.
You must have a buyer in place that you can sell this deal to and double close.
This is just one strategy, I'm sure there are others.
Thanks and hope this helps,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
thanks for the comments and suggestions. i decided to be the buyer's agent in this and am working with a fellow DG'er to see if there is a deal here. if it works, great; if not, great. i am just trying to help the seller if possible.
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
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Good luck to you, and the one your trying to help out of this situation. You have been given two great options to approach this deal. I personally have been sucessful in bird dogging Short Sales. I have an investor who buys these properites and gives me a finder's fee for locating them in my area.
Hope this helps
MJ
MaryJane
MJ,
How does the process work with bird dogging short sales. I have someone wanting me to do a short sale on two properties, however, I don't have the funds to purchase myself, and have not built my buyer's list yet.
How do you get paid, do you let the Investor work the short sale or do you?
Teresa
"Dont't Let Your Past Dictate Who You Are, But Let It be Apart of Who You Will Become"
thanks for stopping by and the encouragement. we are still working on it and i hope to get something going here this week. what area are you in?
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real