I would like the house , but do I have to wait for the whole short sale process?
The simplest procedure is to find out what is owed to the bank including late payment penalties, fees etc. If the loan payoff is considered fair, then handle it like a traditional purchase. The closing and loan payoff can be handled by a title company. (Just make sure that is the only lien.)
If it is too high then a short sale is the next step. There are other options but it depends on what is really going on financially with the property.
Simon's suggestion above is great.
My question - Is the current homeowner engaged/interested in a short sale? The process takes time and they need to be involved for it to be finalized.
Thank you for addressing my question Simon and Scott, I am listening.
The property owner owes the bank 150,000 - is behind on payments and currently trying to renegotiate the mortgage with the bank. Regardless of how negotiations go, she will be walking away in June. to get married and move to another state. The bank knows nothing about me or my interest and she is interested in talking to me today. I don't even know what to ask but I am hoping she has information for me about this whole thing.
Thanks Gentlemen !
First step: What is the market value of the property? If you are looking at a property with a mortgage of $150k but is only worth $125, I wouldn't give this deal a second thought.
Second: Assuming there is equity. Now see what is the payoff on the mortgage with all the late payment fines, extra interest etc. The homeowner will need to get that information.
Third: If you are willing to buy the property for the payoff amount, then write up a purchase agreement and close conventionally by using a title company.
If you can help the seller avoid a short sale, then the two of you will win. The seller will not have as bad a credit hit, you will not have to wait 6 months to close the deal and the lender will be happy.
Oh, another option is to see if the mortgage is assumable (doubtful but possible). You would need to be able to bring the mortgage current and personally qualify for the existing loan and then take over the payments.
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