Short sale that is occupied by owners ex spouse

14 Replies

Good Afternoon ,

I have a seller who currently owns a home that hasnt been paid for a few years. I submitted all the paperwork into the Bank and now the bank wants to do an appraisal on the home however the ex spouse isn't cooperative whatsoever and won't leave the home. The homeowner also doesnt want to pay to evict her from the home. This makes it very difficult for an average buyer to be interested in the property. I have a few questions and I would appreciate any insight. Do investors buy properties this way? How can I get her to give access to the bank appraiser so that with an appraisal investors or buyers may feel more comfortable buying the property. Also with anyone with experience in shortsales how can I market his property to an investor willing to take the risk of purchasing this home? The property is in Southampton, NY. 

She'll likely get away with "living the (squatter's) dream" for years to come! Good luck...

(This one just reinforces my usual recommendation: put in your lowball Offer just like any other property you want to profit from - and move on - without holding your breath waiting for "yes").

Does the account qualify for a relocation incentive? 

Without a value being completed on the home, the short sale won't be able to be reviewed.

Yes it does but she doesnt want to take it. She is practically waiting to be evicted. 

@Brett Goldsmith Thank you for your input. That is where I am with the bank now. They want to send an appraiser to value the home. 

I want to give her a notice but I also don't want to be out of the law. 

If he is willing to do it and if it makes sense for you or another party to pay for it then that's what I'd be considering. 

The place is the value of the land.  An uncooperative ex-spouse can pretty easily destroy a home before the new buyer ever gets in the door.

The bank won't fall for the assignment game anyways. Just like a good agent, they know better and don't want to get tied up with game players trying to broker real estate without a license.

I'm guessing the owner's lender wants to do a BPO.  Usually an exterior BPO is sufficient, depends on the Servicer/lender guidelines.

@Jonathan Rodriguez

Your post stated you want to "market the property to an investor". By your post, it appears you want to put it under contract and then try to assign the contract. Is that correct? I refer to those as the assignment game. 

The owner's ex might convince a judge that she has some equity in the place, which would make an eviction or foreclosure very difficult, time-consuming and expensive. 

I think there's  a reason that the owner doesn't want to put her out, but hasn't been paying the mortgage. Maybe it's in his name, but he's required to pay the mortgage as part of their divorce?

@John Thedford Any and all offers will be presented to the lender. I am a licensed real estate agent in NY. It is currently listed on MLS as well. @Michaela G. I reviewed his divorce paperwork and it is agreed she has no ownership interest in the property. After reading these posts I'm going to speak with the owner on the eviction process and look for a lawyer who is experienced in the area where the property is on evictions. Thanks everyone your inputs I really appreciate it. 



Experienced investors will buy the house without getting into it.  This is for your very savvy and battle tested guys/gals.  

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