BiggerPockets

Can a foreclosure on a property be reversed back to a short sale?

Thursday, September 24

http://www.TheSharpInvestor.com - This week on AskMike, Mike Moulton takes you on a ride to a real estate deal that he is working on that requires a short sale. Mike discusses the deal overview on the way to the property and then debriefs afterward. Be sure to visit the blog post on TheSharpInvestor.com to see all the details.

This week on AskMike, Mike Moulton takes you on a ride in his MDU (Mobile Deal Unit) on the streets to a real estate deal that he is working on that requires a short sale.  Mike discusses the deal overview on the way to the property and then debriefs afterward.  This is an interesting deal because the loan is in a deceased borrowers name.  Watch the video below for the details and see the numbers of the transaction below.  Mike will introduce new videos as the deal unfolds.  A special thanks to Tim from California for writing in and asking us to walk through a deal.

Here are the high level numbers for the deal (I update to more precise digits in a later video as we work the deal):

House value in market condition = $185K

Current mortgage balance (1 loan) = $176K plus a few back payments, interest, etc.

Estimated Repairs (carpet, paint, appliances, blinds) = $6K

Our offer to the lender = $130, 562 (we always offer a “calculated” number, not rounded off). Generally we take about 85% of what we think the BPO (broker price opinion) or appraisal would be, then 85% of that number (approximately).

If you missed last weeks video on “Can a Foreclosure Be Reversed Back to A Short Sale” then click the linked text.

Also, if you have a question you’d like answered, please visit our contact us page and submit it to The Sharp Investor.

Take Care and Happy Investing!

Mike

Comments

1. 

   Pebble Singha Reply
   over 2 years ago

2. 

   Pebble Singha Reply
   over 2 years ago

   Hey MIke i am in Ca and i went thru the exact same scenario.The only diff: being that mine was WAMU the slowest short sale process now.A day before the sale the negotiator accepted the package and sent an e-mail to the attorneys to pull the file.Never happened and it went to sale and the 1st took it back. When i called in the REO department.They never returned my phone calls and the finally 15 days later some one left a message on my phone saying that this property has been listed with a Realtor and ask the buyer to make an offer with him.

3. 

   James Ward Reply
   over 2 years ago

   Mike,

   Do you always offer such high numbers? What are your exit stratagies?

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