Short sale update

ing this post!

I don't do them much. But if your having trouble with what to do and how to put it all together, you may want to talk to some of your local title companies. In my area, there are a few of them that have set up a system whereby, for a fairly minimal fee, they will gather all of the info and do the negotiations with the bank.
This make the job much easier.

Good luck,
Jim

Yes, we know they can handle them, but just wanted to make sure on a few things. Thanks!

Short sales are not difficult, but I am not clear as to what your questions may be. The biggest issue, especially for a new investor, can be the time it takes to get a deal done. With short sales that time can take 3 to 6 months. I saw one the took over a year. Being patient is the key here.

If you want to ask your question i would be happy to get you pointed in the right direction. Best of Luck.

Hi Tammy - I did one a few years ago as the direct buyer. No wholesale, LLC or anything like that. As Roy said above, the biggest obstacle was the time...took about 5 months to complete.

Had to present my offer through an agent (bank required it to be listed on the MLS) along with pre-approval on my financing and my bank statements showing funds to close.

The main hold up on the close was the bank required a serious of appraisals and with each appraisal I had to adjust my financing slightly based on the new price. Also at closing I had to sign an affidavit stating the seller wasn't going to benefit from the short sale in any way (seller couldn't remain in the house, no side deals or funds to the seller, etc).

Got the place at a good price in the end, but haven't done any short sales since.

Hope that helps and good luck!

- Tom

Coach, I may send you a question then via pm. Tammy

If you post your questions here, it may help a lot of other people by hearing the answer.

Karen

Well I was just wondering a few things. First off I sent in an offer and the seller agree and we were told by the realtor that the bank agreed, however, we now have to wait on the HUD 1 approval, which if I am not mistaken is the approval we want saying that we will not have to pay any liens on the home as she was upside down on the home. It was a short sale. Basically we want to make sure that our offer settles the amount owed on the home.

Secondly, my partner who is more experience in rei, however, has never done a short sale wonders if we put the end buyers name on the contract that the bank might not approve, however, I myself don't understand that worry since it was accepted with as or assigns behind our name and we also had an addendum that says, Buyer does not intend to reside in the property. Buyer Intends to lease, fix and sell, rent, assign, or rehab for profit. I guess he is wondering about the bank having a seasoning requirement perhaps. Just wondering the wholesaling of the home at the end in general what problems we need to traverse?

I would be quite surprised if the bank will allow the assigns. I've never done a deal, that involved a bank short sale or REO, that would allow it. If they do, you are really lucky.
Having said that, it looks like you have been accepted by the bank. And that's awesome. You have accomplished something extraordinary.
The HUD-1 thing is normal. Because of FDIC regs, they have to make sure everything is perfect or they can get in trouble.

Hope it goes through for you,
Jim

They said we are have the HUD 1 approval which was really quick and that the bank understands that we will assign. I guess now we will see if everything is really going to go through. We are scheduled to close this Friday, but I think it is going to be pushed back since we are asking to our 10 inspections days. I will let you know if this truly becomes my first deal. I had already given up hope that this would happen this year, but maybe........

Don't ever let yourself get discouraged, or get the feeling it won't happen. You've been diligent for a long time.
If you can get through a short sale, and have it go your way, you've really accomplished something!!! Be proud of yourself. Short sales tend to be the most challenging.
Once you break down the wall of completing that first deal, it seems to get easier and easier. You really gain confidence, because you can honestly say,
"I DID IT"!!!
In my experience it starts a great momentum.
Keep it going!
You should still be able to close, even with the inspection period still open. If you, the seller and the bank are ready to close the deal, close it. The inspection period is for your benefit alone.

Good luck,
Jim