Short Sale

8 Replies

House was abandoned for 6 months and has a reverse mortgage $370K but FMV is around $220. For purpose of negotiating with lender:

1.  Should I get reports/estimates from both Inspector and GC?   

2. Should I leave it in as is condition, outgrown grass outside and a bit messy inside?

3. I have access to it, is it ok to sublease it while nego?  

Thanks.         

Wow...that's quite a spread in the numbers. Owe $370 with ARV of $220?? Estimates won't hurt but may or may not help...depends on the bank. I wouldn't do a thing to the property until you've closed on it. Too many things can go sideways and I'd hate to lose the money I've put into a property that ended up not closing.

Just my .02

Estimates are meaningless.  With a reserve mortgage there will have to be an appraisal done and it cannot be sold any amount lower than 95% of the appraised value or the full amount due on the mortgage (whichever is less).  

Are you the current owner?

@Patrick L.  

is right about RM's and 95% of current FHA appraisal. No negotiations.

I think the $370K owed is because of the way reverse mortgages are calculated.  I'm not the owner, it's in probate.  I really want to let someone live there in the meantime, is that an option? will the appraiser be entering the house?    

  

Probate short sale? 

Eee-yewwww!

@Ron K.  You don't own the house, so no you can't rent it.  Heirs rarely bother with a RM short sale, since there is no equity, and no liability to the heirs (no possible deficiency).

I love Short Sales. I have done 4 and they are my favorite. I use a realtor who specialized in short sales because the banks pay the commissions no matter what. So you don't save money AND having a great short sale broker for me is the maker or breaker. 

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