All Forum Posts by: Brett Goldsmith

The bank does a value then they will counter to their FMV generally. You can negotiate by getting it at a % of their FMV and/or minimum NET. Contesting a value or submitting supporting items to get a lower offer approved may be an option as well.

The property is already listed with another agent? 

What are you trying to accomplish?

You buy a short sale from the homeowners and the bank/investor signs off on the loss ( they make the decision if the short sale is accepted due to this. ) You can get financing on a short sale if the property qualifies. The home is yours when you close. There is generally some sort of deed restriction for 30 days to resell. At times if you sell within 90 days you can't resell for more than 120% of the value it was purchased at. Guidelines on these matters differ depending on what documents are signed through the respective short sale program the homeowners must go through.. Double closing on a short sale is a tricky situation and more than likely not okay due to a deed restriction. 

I'd contact them as the friendly neighbor who wants to help. Generally I'd suggest that someone on my team who door knocks or finds someone who is distressed to get them to agree to simply speak to myself. I always feel it's important to leverage your peers especially when you may not be prepared to fully analyze a distressed homeowners position, goals, and the options available to help guide them in the right direction. I don't recommend just contacting him to do a short sale that's what everyone does. Be the guy who wants to find a solution for them and it may or may not be a short sale. Or it may become one in the future for example if they get denied for a loan modification.

The two common types of foreclosure used in the US are Judicial Foreclosures and Non-Judicial Foreclosures. Foreclosure laws vary a great deal by State. I'd recommend doing research into the foreclosure time frames and guidelines in the state the property you are reviewing is located in. 

If you find a SFR property in LA that cash flows well may very well be a flip too. LA has lower cap rates and IMO is more geared towards appreciation than strong cash flow. Hard to find property's in LA that cash flow without large down payments.

Yes, you can. I agree with Samantha, make sure the property will be smooth for financing or that you have reserves. Take into consideration that a short sale is sold-as and bake any repairs needed into the purchase price. Banks generally do not allot money for repairs. 

@Marc Jolicoeur That's awesome and for FHA short sales there are 3 tiers. 88% 86% 84% NET of appraised value. Need to exceed 88% NET for homeowners to receive relocation incentive. It's possible to get down to 84% prior to waiting 90 days, but servier will need to submit a variance to HUD to request this.

@Shefali R. Depending on all the factors that is what I'd do if I was buying the house. Who's the bank? I'm assuming it's a main stream name mortgage servicer with a private investor due to them participating in HAFA. Submitting comps, repair bids, etc can always be helpful in negotiations, but generally this is when you have a truly low offer compared to banks FMV or you want to contest the value.

@Evan Uribe Welcome! When you say pre approved short sale does that insinuate that it was already approved at that price recently or that it's going through a short sale program where the guidelines for minimum NET are clear to what is needed (FHA SHORT SALE)?
@Marc Jolicoeur

@Marc Jolicoeur I'm assuming that the seller had a FHA loan and they went through the Pre Foreclosure Sale Program (FHA SHORT SALE). That's great that you got it at the lowest tier 84% NET of appraised value.