This owner is underwater and said she’ll take it for the price I offered what’s next? What do I need from this seller?
Well first, the lender is going to have to agree to take your offer. Short sales can take a long time so be prepared. If that offer is accepted then I don't see why you couldn't turn around and sell it to an investor through a double closing. The banks may have restrictions on that though for short sales.
Being that she is underwater, is she still current on the mortgage? If not, how far delinquent is she? This will help understand how much time you have to get this short sale offer approved with her lender.
You or she will need to get in touch with the lender and find out what their short sale process is. Without her giving you too much personal info on the loan, she can tell you which bank and a lot of times you can go on their website and see if they have info on short selling.
Typically, it is a lot of paperwork and information.
sellers bank statements, sellers personal financial information, W2s, back tax filed, letter of explanation if she is delinquent, authorization to discuss seller's short sale etc etc.
As Jon said above, this can take a while and may not get approved.. ugh! After all the waiting, right? Stick with it, you definitely want to understand the short sale process.
Best of luck.
Thank you for that information, I’m gonna try sticking with it, hopefully it goes through.
@Sardar Mustafa Khan A couple things to consider regarding short sales:
1. If you are doing a short sale, the sales price is not up to the seller its up to the bank. There is no guarantee that the bank will agree to the short sale.
2. Seller is going to need to hire an agent because the bank is going to want to see the property listed on the open market for a specific period of time.
3. Its very difficult to wholesale a short sale. If you go under contract in your name (or your entity’s name) then that is the entity that must purchase the property. The bank will also most likely put deed restrictions on the property, such as buyer cannot resell property for 60 days after purchase, buyer may not resell property for more than they bought it for without notifying the bank etc.
A more experienced investor would consider a subject to if the numbers make sense.