I found a home in my neighborhood that is vacant. I found the seller and have been talking with him. He has moved out of state and is getting a divorce. I would guess its close to the foreclosure state. He says he will sell the home for what he owes on it 98,000. He claims its in good condition with newer roof decking and siding. Claims it needs just a good cleaning. I'm obviously going to look at it first but I'm unsure how to continue.
He says the bank maybe willing to negotiate a lower price. I would buy the house for $70,000ish based on what I know now.
Should I deal with the bank? The seller? What can I do to help him? I doubt he can sell for $70 if he owes $98. I've never dealt with buying private. All my deals have come from the MLS.
Just searching for some ideas. I am able to get my own financing from my bank, with a 30% down payment.
Sounds like a classic short sale situation. The bank can (and may) approve it but they're usually pretty slow going. You don't need a Realtor here. You can use any title company to do the paperwork drill if the deal goes through. However, you need to be smart on the short sale process and you need to educate the seller on the process as well so he's comfortable with the deal.
If the seller is behind and can demonstrate financial hardship, a short sale may be approved. Is the seller behind @Dustin Barr ?
I like what @Walter Key said, but in this one case (can't believe I'm suggesting this) I would get a short sale specialist realtor to help. Won't cost anybody but the bank and there are specific ways the offer needs to be presented. It'll also be what the bank us used to seeing. No reason to extra confuse the apathetic employee in the cubicle 500 miles away that will be reviewing it. Good luck!
So i should contact the bank and see if they are open to a short sale?
Depends on whether they're behind or not and can demonstrate hardship. Thank you for responding kindly and answering the basic question.
@Dustin Barr did you have success with this property? Was it difficult to contact the seller or did he put out for sale sign? I like the idea to find potential deals outside of the MLS here in Albert Lea.
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