Bankruptcy Trustee Shortsale
Does anyone has experience buying Bankruptcy Trustee Short sales?I just started stepping my foot into Real Estate Investing. I'm interested in a short sale that is asking for 70,000. The value of the house after repair would be around 133,000 according to the neighborhood price. However this is a bankruptcy Trustee Short Sale. My agent said that he has experience with short sales but not with bankruptcy Trustee short sales. I copied some content of the selling details down below. I'd like some advise on this kind of short sales. Is there anything that I need to pay special attention to? Would there be hidden charges that's not listed here in this kind of deals? Appreciate all kinds of feedback!
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2. Seller is accepting Cash and Conventional.
3. At least $5,000 Binder in the form of a cashier's check will be due one day after acceptance by
the sellers and made payable to the Closing Agent. Can also be wired. An additional binder of $5,000 will be due 100
days after contract acceptance.
4. Buyer has completed all of their inspections prior to making this offer, and buyer accepts the property
"AS-IS" condition, and seller will not make any repairs. Binder is non-refundable, except if lien holder does not
approve the short sale or if seller is unable to provide buyer with a clear title.
5. Buyer agrees to pay $7500.00 or 5% of the purchase price (whichever is greater)as surcharge to the bankruptcy estate
for facilitating the short sale.
6. Buyer to pay for homeowner's estoppel in the amount up to $400.00.
7. Lien holder will POSSIBLY pay 3% of buyer's closing cost, escrow, and prepaids ONLY if buyer is getting financing.
8. Buyer will supply to seller all inspections, appraisals, and surveys done on the property within 2 days of receipt.
9. Buyer agrees to make ALL lender required repairs before closing.
10. Buyer's lender MUST submit lenders packet to the closing agent 72 business hours before closing.
11. Principles will not be paid a commission.
12. Wet signatures only! No digital signatures.
13. Please have your buyers print their names under where they sign.
14. We will let you know via email if your offer has been accepted. Please allow 4 business days for seller to sign the contract.
Additional Terms Amendment:
A. Buyer is buying property in its "AS-IS" condition. Seller to make no repairs.
B. Binder is non-refundable except if lien holder does not approve the short sale, if Buyer is unable to obtain
financing, or if seller is not able to provide buyer with a clear title.
C. Buyer will supply to seller all inspections, appraisals, and surveys on the property within 2 days of receipt.
D. Buyer is responsible for turning on all utilities for inspections and appraisals and pay any required utility
inspection fees if needed to turn on utilities.
E. Buyer will pay $7,500.00 or 5% of sales price, whichever is greater, as a surcharge to the bankruptcy estate.
F. Buyer has completed all of their inspections prior to making this offer and accepts property in its "AS-IS" condition.
G. Buyer is required to pay up to $400.00 towards the HOA Estoppel.
H. This contract is NOT assignable.
I. Buyer agrees to make all lender required repairs before closing.
J. Lien holder to pay 3% of buyer's closing costs and prepaids if the buyer is getting
K. An additional Binder of $5,000 will be due 100 days after contract execution.