Hello All. I could really use some help here. There's a FSBO house that I'm interested in buying as my primary residence. The home owner can't keep up with payments and has left me voicemail saying that the lender/bank is willing to do a short sale.
Thing is....the home owner has no real estate agent. I have no real estate agent either. Is this a bad idea or can we march on ahead ,as long as we have a real estate attorney reviewing all the paperwork?
I'm new to this. Any help will be most appreciated!
thanks, Dave
She either doesn't care about her credit or wants to give me an impression that she doesn't care. I was wondering if I could "loan" her 30k? Write up a note saying that I'm loaning her money, payable back over ten yrs or something? Would that be legit?
I'd bounce that off your attorney. I guess as long as the $30K note is in no way related to the short sale, it should be ok, but having it show up on the books at the time of the short sale looks suspicious.
I would never do a real estate deal without an agent - legal or realty - working the deal for me. Sellers are too emotional and this one you already say is a mess.
Ditto you want your agent looking into the values, the deal, the structure. And be sure you get an appraisal.
Since you are saving the bank and the seller trouble and costs, you should be seeing a better deal than if its just on the market.
Don't get too excited or emotional. Just do the numbers and then the deal. It either works on paper or its not a deal.
Diane
Anyone can do a short sale, but only investors know how to work the bank down to the lowest possible acceptance price.
I personally would much much rather use my own comps than any Appraisal. IMO, an Agents CMA can estimate a properties resale value far better than any appraiser.
Update to an old thread. The home owner now has a realtor. I offered 550k for the realtor to submit to the bank as an offer. Realtor says the offer is too low, even though the last house in the development sold for 590k last yr in June. Since then, prices have been coming down every month. Realtor says she already has another 600k offer. I'm going to step away from this, and hope it goes to auction - which it probably will.
1. Why does Countrywide take 2 months to review an offer when they are losing money every day?
2. Is it true that an agent/realtor can't submit more than one offer to the bank, for the same property?
I first saw this thred now. One comment "I" have is with a STRONG alcoholic seller such as this obviously is,,,is sold down to a nubbin,,,no 'visible' means of support,,,the BOOZE comes first in there mind. Find out exactly what they drink. If you want them eatting out of your hand,,have them drink your booze. Have a drink with them as you negotiate,,,makes them dependent or beholding to you!! Bring some more every time you stop back to renegotiate some more. IF they have the shakes,,or NEED it badly,,they dont CARE what it costs as to negotiaiting. If you think they drink a 6 pack,,,they probably drink a case or 2 (a day). If its a quart,,,they drink probably at LEAST 2 a day to keep from withdrawl Makes the house deal secondary!!
Probably too late now that a realtor is involved but may have got her off the 30K deal back when,,,unless there is something she isnt telling you yet. Sometimes we need to DIG a little deeper.
1. Why does Countrywide take 2 months to review an offer when they are losing money every day?
2. Is it true that an agent/realtor can't submit more than one offer to the bank, for the same property?
1. I have read reports that CW initiates over 100,000 new SS files each month
2. No. It is true that a seller cannot enter into contract with two buyers at the same time, but there is nothing wrong with a realtor submitting a non-ratified offer or a back-up contract to the bank.
David, Others,
Let's say the seller's agent finds a qualified buyer who offers to pay a price that sounds like a sum the bank will accept. Paperwork goes into the bank. They take 2 months to review. At some point, the buyer backs out. What happens now? Does the house go to auction or does the agent submit another offer and the process starts all over again while the owner sits in the house rent-free month after month?
She had an open house last weekend. Everything in the house had a FOR SALE sign on it. She was selling clothing for $5 apiece. Who the heck is going to come to see a 750k house (purchase price 2 yrs ago) and buy $5 used clothes? Can't make this up...
Da Deep,
Don't walk, but run as fast as you can from this deal. Why?
No1. In a short sale situation, the bank will not allow the seller to walk with any money. For this, you will need to send a HUD1 before the deal is approved.
No2. For this deal to work, you will need to obtain comps for other properties that sold within the past 30 days.
No3. You will need a purchase agreement along side other documentation that the bank will tell you.
As David has been trying to impress on you, you are better off using a professional agent or a lawyer to do this deal- so that you cover your butts - just in case the seller later conveniently forgets and claim that you duped him or whatever...
Regards
nii
Da Deep,
Listen to your friends here. You are a buyer in a buyer's market. You are letting bad advice, none of which came from people here, to take away your advantage in bargaining.
Step back and save your money.
Here is something to consider in determining value..
If it was as good a deal as you seem to believe a more experienced investor would see this also. The people here are all saying RUN.
There are more deals coming than you can imagine. Talk to people like those here until you get a good understanding of what you are doing.
What I have learned with short sales is that there are no rules. If you are a good negotiator, are patient and professional in your dealings with the lender's people they will give you just about anything within reason. You have to be prepared to say no to more deals than you say yes to especially when there are so many choices.
easy- no need to contact a bank -