Short Sale In Philadelphia

[Andresa Guidelli]

Hi all,

I've come across a short sale in Philly, we haven't done one before and I'm looking for advice.

We know that it can take a long time, which we are ok with. No negotiations have taken place with the lender and the wholesaler is not aware how much they would take for the property.

I'm looking to speak with someone who has done deals like this before and is familiar with the process.

Thanks,

Andresa

[Kyle J.]

Hey @Andresa Guidelli.  I've bought a few short sales and can offer some initial thoughts based on the info you posted. 

It sounds like the property is coming to you via a wholesaler. Does that mean it's an off-market property? Because the lender is going to require it to be listed on the MLS if it is. At some point further into the process, the lender will also request a BPO to determine the value.

Also, in most wholesale deals, the wholesaler will usually try to assign the purchase contract for a fee.  But in a short sale, lenders usually won't allow the purchase contract to be assigned and they certainly won't allow it to be assigned for a fee.  After all, the lender is being shorted on what they're owed so you can probably understand their reluctance to let someone else (i.e. a wholesaler) make a profit on the deal.

Feel free to post more specific questions if you have them.