OfflineI found a house that a guy wants to dump. He got suckered into a refinance from an ARM. He was recently laid off from his job about 3 months ago and wants to move out of state. The only thing keeping him here is the house. He owes approx $105,000 on the house at 9% interest monthly payments now $890 per month which does not include taxes and insurance. He is about 4 months behind and owes $1,600 in taxes that were due in December. He wants nothing but to get out.
He just faxed the bank stating that I had permission to talk with them. He said that the bank guy (Citifinancial) said he would seriously consider offers in the $80's. I could get about $800+ultil., for it. It is only worth about $80k if not less.
Any thoughts on how to help this guy out and how I should pursue?
Thank you guys and gals for all your input. It sure is appreciated!
hillvalley
Have you done a walk through of the property to evaluate what renovations are necessary. You may want to do this first. The bank might say they want offers in the $80s, but you do not have to offer that, you could go lower. In order to try and help the guy, you might want to also recommend that the bank wipe of the difference on the loan. Remember the banks need to get rid of these properties that are accumulating. This has a negative impact on the business bank records which they are trying to avoid. Hence the reason this process is so lengthy. They have to convene a special committee that evaluates several things before making a decision. These include: the FMV on the property (devaluing daily), offers presented, financial/expense sheet of the seller, last two pay stubs, etc. The process could take between 60-90 days or less depending on the bank. However, the short sales always produces equity to the buyer. I would offer maybe $65-70K. They could either accept it or counter, and you will be surprised that they may accept the offer. Good Luck.
Sandra
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Hi everybody,
The terms and conditions can be broke,For fact...They're man-made! How do i know this,You show me this thru your ideas and experience/everyone on this site!
hillvalley run it with all you have!That is all afriend could ask for!
Invest in yourself!
As Dean repeats many times in his book, you never know until you ask. Worst case scenario is that the bank declines your offer and you're back to square one. Do your assessment and then make an offer you think could benefit you. I may be wrong so someone please correct me if I am, but if you don't get the bank to relieve your seller of the 105,000-selling price, then he will still owe the difference.
Success and Nothing Less!
is it possible to assign a short sale after an offer has been accepted by the bank? I always wanted to know this
I believe it is technically possible to assign a short sale (not 100% sure), but most banks will not accept the offer with and/or assigns in the offer. But this is just info I have gathered from reading. Please, someone correct me if I am wrong so we will all know for sure.
Success and Nothing Less!
Most banks wont accept and/or assigns, but to get around that you do a double or simutanous close with an end buyer.
Thanks for your thoughts.
hillvalley
can the IEE program be applied? the program in Dean's book?