This doesn't sound like a short sale situation to me. A short sale occurs when the owner can no longer service the mortgage payments and the market value of the home is less than the principal balance of the mortgage. The lender has to approve the short sale, which is a long, drawn out process. And it's unlikely that a lender will approve a short sale if the market value is higher than the outstanding principal of the mortgage. Having said that, I don't think the situation is nearly as dire as you think it is. It sounds like the owner mentally shut down after a traumatic life experience and walked away without considering the options he had, and may still have. He could have put the home on the market and made a little money. He could have rented it out to cover all or most of his mortgage payment. But he didn't do that. I get it. At some time in our life we all have those dark moments where we say, "F*** it! I don't care anymore." It sounds like that's where this guy is. So what do we do? Well, first of all I doubt he's anywhere near entering foreclosure if he's only missed his May and June mortgage payments. Lenders are pretty long-suffering when it comes to this because the last thing they want to do is foreclose. I wouldn't expect this to enter foreclosure proceedings until he's missed several more mortgage payments. In my opinion there are still options. And if this is a property you seriously want, you can get it. If you need help in the process, PM me and and I'll help you acquire it.

How did you do valuation on the property? Comps, CMA BPO? To clear something up for you a "Short Sale" is a property where the owner owes more than the current market value and is unable to continue to pay the mortgage. The lender has to approve the short sale, not the owner. Short Sales can be a long, bang your head against the wall process. And in the end the lender might not allow the sale. Has the owner tried a Loan Modification or other foreclosure prevention measure? Has the owner received the NOD? Be careful how you handle these types of situations. In Maryland we have laws to protect homeowners from what can be perceived as preditory acts. Even if this deal doesn't work out take the knowledge you gain and keep building. Hope this helps you out.

Updated almost 11 years ago on 07/06/2015. Most recent reply

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Edgar AguillonPoster

Investor
Hereford, TX

Foreclosures

Short sale maybe?

Edgar AguillonPoster

Investor
Hereford, TX

Posted July 05, 2015 19:22

Got in contact with an owner as I was doing a driving for dollars. House was vacant so got number through neighbors. House is a newer home 1568 sq ft. 3bdrm 2bath 2car garage built in 2007. Guy has not paid since May and fixing to go into foreclosure behind 4k, owes 116k. House is valued at 130-145k. How can I help?or how can I even start to negotiate a short sale? I would appreciate any help as I would even consider buying it for myself.

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