I am a big letter writer. I am always out and about writing down addresses and sending letters. Just waiting for someone to respond. I have gotten a few responses and it is always interesting where things go.
I got a response from a potential seller in an interesting situation and I am looking for some advice. The seller has a property that they no longer live in. I am in talks with their power of attorney because the owner has some major health issues they are battling. The property they have has major issues and needs a good fixing. With $30K and some sweat equity, this place could easily sell for $150K - $165K. The owners are extremely eager to find a solution to their problem. They have already contacted the bank informing them they are planning to go into foreclosure. They owe $110,000 on the property. I told them I am a cash buyer and interested in purchasing the property. But the amount they owe is a little too much to pay. The owners would love to work with me to find a solution to their problem, but they are not sure how to accomplish this. The mortgage is done through Wells Fargo. I have read a little bit about short sales, but talked to my local banker and he told me that there is NO WAY Wells Fargo will settle for a short sale even if they take a loss. They are so big that they have their systems that they go through basically regardless.
Here is my dilemma. I have a potential deal, with no competition, but how do I close it? Looking for some advice.
Appreciate all the help.
You can pay off the loan or let it go to foreclosure, they don't really see a benefit to selling it for less than they owe to you, and from what you've said Wells Fargo (you might want to confirm with WF) doesn't want to play ball anyway. You may be able to take over their payments for a while and get your profits upon sale but they aren't going to pay you money to take it off their hands.
WF does 100's of short sals every day, just like any other lender. But, in a short sale the lender has to determine that the property is worth Less than what is owed on the mtg......that doesn't seem to perhaps be the case here. If it is, WF will require it b list d by an agent for at least a week or so, and will require a Real POF or preapproval from any buyer.