Real Estate Investor · Palm Desert , CA · Member since 2010 · 4 posts · 1 vote
Hi
I am a newbie, I have a approved Short Sale in Bermuda Dunes California, My tenants are the buyers unfortunately the broker just told me that they do not qualify for a loan. They have income but had a foreclosure that will not be off there credit file until March 2011. I have to find either transactional funding or hard money until they qualify. The bigger problem I will lose this house if I don't find a buyer by 10-10-10. The buyers are my renters and want to stay in this house. The short Sale is for 225,000 and is listed on the Desert MLS if you need more details. Any ideas or help!!!!!
The buyers are my renters and want to stay in this house.
Yvette,
Are you the current owner of this house that is in short sale? If you are, you can not be the buyer who comes up with any kind of cash or hard money to purchase the short sale and be the same owner again but with the discounted price. It is an arm length transaction, banks won't take the discount just so the same owner or their immediate families can own the house for less.
From what I know, a short sale is generally initiated by a qualifing buyer who puts an offer to the bank with the house that is in default. Were you approved for short sale with a certain amount and closing date because you had an offer to show the bank? And where is that buyer?
I can only think of 3 ways to prevent your foreclosure for now.
One is to find a cash investor who can close by the deadline. Whether that investor is willing to hold until the current tenants can purchase is up to that investor.
Two is to see if you are in the position to catch up with the default amount to stop the foreclosure for now and then re-start the short sale process a few months later when you find a more qualifying buyer. If the tenants are seriously trying to buy the house, they may be able work out a rent-to-own agreement with you where their down payment could be used towards the money that is paid to the bank. (Work with your realtor and attorney to make sure this is set up properly... don't let your tenants pay the money and lose the house through the owner's default.)
Three is to advertise and submit more offers to the bank and see if they would entertain a better offer with extended closing date.
Thank You !!!
I do understand that I cannot buy the house back myself. The renters are willing to use hard money sorry I guess I didn't explain my situation well enough. Thank you for the 3 options your help is appreciated. Have a wonderful day