So I have a property I need to do a short sale I have the contract from the current owners with a purchase price of 40k house arv is 115k but can cash flow and got really a lot of responses from a test rental page I made up. I guess what's my next step do I try and wholesale it first or work the bank for the short sale?
To even get started you need a 3rd Party authorization signed by the owners on the correct form that the bank uses Are the owners current on the mortgage,taxes, insurance etc. Do they have a second on the home ? Some states might require you to be licensed This situation is usually best left to an experienced short sale realtor. Did the owners attempt a hamp or harp loan mod?
I am getting the form tomorrow as we signed the contract yesterday taxes and insurance are current mortgage is 6 months behind. I was planing on using a short sale company to do the nagotiations with the bank
is them being behind on the mortgage a bad thing also do I bring the contract to a title company right away or after the bank authorizes the short sale
In all likelihood the lender will require the property to be listed in the MLS for at least 5 days or so. So your contract you have now will need to be redone later. An experienced short sale agent will know best how to proceed.....they'll check for back taxes, other mtg.s and liens, know the requirements of the specific lender/investor,mets. This is not DIY. Also, the bank is never going to review, let alone approve the short sale if the buyer on the purchase contract submitted can't show the legitimate ability to buy, and an assignment will not be allowed, and if a Fannie Mae loan, no resale within 30 days. There is a Lot you don't know about this process yet.
It depends how far behind. Some banks will not even consider a short sale unless the owners are behind .i just bring that up because some owners wait so long that a nod was filed and a sale is imminent Some banks will not consider a short sale if foreclosure is within 30 days or 15 days etc
@Wayne Brooks I agree this is the first time I have had to deal with the short sale that is why I am trying to figure out what next :) I will talk with the bank and find out their specific requirements. Thank you for the insight on the assignment part tho and every bit of knowledge I get from this post is very important :)
I guess what's my next step do I try and wholesale it first or work the bank for the short sale?
You can't wholesale it if you don't know what the price is going to be. You won't know the price until the short sale is negotiated.
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