Can I wholesale a Short-sale

Question

I hope this is the right forum category for my question.

Hello All I hope all is well.

So here are the numbers based on a seller's LIS PENDEN pre-foreclosure problem in Jupiter, Florida.

Overdue payments as of 6/15/11-12/15/17: $261,072.12

Unpaid advance balance: $18,018.92

Reinstate loan: 279,891.04

Unpaid principal balance: $430,030.33

Repayment of escrow balance $109,317.47

Unpaid late charges: $1,465.62

Unpaid interest: $110,350.33

Accelerated amount to-date: $669,982.67

Unpaid differed interest balance: $30,476.39

Interest rate: 3.080%

Maturity Date (month/year): 8/36

ARV from Real Estate agent: $650K- $750K

Repairs: $100K - $150K

After repairs: R.E Agent says it would resale back at $850k - $1,000,000

I'm planning to offer a short sale offer of $300K - $400K than wholesale or Fix/flip with a private lender or financial partner to split profit.

Question: Can I wholesale a possible short-sale?

Greg K. · Answer

@Chukwuemeka E. Nwozuzu

I'm in the exact, same situation, almost the same numbers even.  But I'm even a step further down, and I've negotiated a workable price with the current mortgage holder.  They even agreed to frame their offer as a "Short Pay", which is a less restrictive version of a Short Sale.

But I can't quite come up with the exact process to get this closed, and the mortgage holder is starting to get irritated.  Looking into plan B, but I don't have a lot of trustworthy connections yet in this business.

How did you make out?  Thanks

Chukwuemeka E. Nwozuzu · Answer

If wholesaling isn't an option than I'll look into getting a private lender or partner and fix/flip, than split the profits. That's plan B. Thanks again gentleman!

Chukwuemeka E. Nwozuzu · Answer

Much appreciated Tom Gimer for replying to my post, but I'll take y shot nonetheless and see what happens. Thanks again champ.

Chukwuemeka E. Nwozuzu · Answer

Hey there Brent Combs, I hope all  is well. Thank you for watching my "6", it was definitely a typo. Yes, it should read As-is value.

I appreciate the encouragement however far fetched my offer may be. Thanks champ

Tom Gimer · Answer

As @Brent Coombs said, you can't wholesale short-sales.

The current value according to your agent is $650k-750k and your plan is to buy it for how much? Not happening. The process involves valuation by the lender who will be looking at the same numbers your agent did.

Brent Coombs · Answer

@Chukwuemeka E. Nwozuzu, afaik, The Banks' Contract will specifically forbid the person at closing to be different than the person on their Contract.

ie. Non-assignable!

Some/most of their Contracts are also likely to forbid re-sale within a specific time frame for more than a specific amount above what was paid by that same person.

You wrote: "ARV from Real Estate agent: $650K- $750K

Repairs: $100K - $150K

After repairs: R.E Agent says it would resale back at $850k - $1,000,000".

Whereas you probably meant to write: "As-is value from Real Estate agent: $650K- $750K

Repairs: $100K - $150K

After repairs: R.E Agent says it would resale back at $850k - $1,000,000", right?

[Otherwise, it didn't make sense]. Good luck getting them to agree to $300-400k!...