OfflineI got a list of REO’s from a bank. A week or two later I found a buyer who said he will “buy short sales all day long.” So I was going to call the woman at the bank and ask her if she’s willing to do a short sale with any of the houses on the list to get them off their books.
Is that the way I should go about this or should I already have houses on the list picked out before I talk to the bank?
Or maybe I should do more homework and find out which of the houses have been on their list the longest.
Thanks for your time!
Sam
__________________
I really do not know where to ask my question so if this is not the right way to do this please tell me how and where to post this question.. I am trying to buy this home for myself. I talked to this lady over a year ago when she was trying to sell her home without a realtor. I offered a lease option to buy at the price she was asking at the time. She said no because all i could afford was $5,000 down and then pay her $2500.00 per month until i could get a loan, I have poor credit. Now it is a short sale at a price of $499,000. I know she paid $599,000 in feb.2007. Is there a way to just take over her payments to get her out of the house and us in. I would think if it is a short sale she would not expect to come out with any money. What does anyone think and am i going at this at all right or how should she be approached??? Thanks for anyones help on this... Fran Austin
fran austin
The REO list (real estate owned) are properties that the bank has already
foreclosed on & the bank owns. They usually sell them through real estate at discounted prices, usually about 30% below market value.
A Short Sale is a property that is in Pre-foreclosure, in other words the bank has filed a law suit against the people for non payment of the mortgage. The property still belongs to the owner, but they are trying to sell
it for less(usually 15% under market value) than what is owed on it. The bank would still have to approve the amount of the sale, but short sales are very involved in paperwork & time, taking from 3 months to 9 months or even more.
Fran, usually people do not make any money when they are selling a house that's in under water(amount owed is more than what it's worth) unless the bank/investor gives "cash for keys" just to get them out quicker.
There is a way to just take over the payments, it is called buying "subject to" the existing mortgage. Despite most mortgages having "due on sale" clauses, the idea is that the bank won't accelerate the loan(call it due in full) because the back payments & monthly payments are being made; & since they have so many foreclosures they will just let it go.
The only problem it that the seller is still responsible for the loan if you default, but then they were going to loose the house anyway they would be in that same position.