Re: Need Short Sale Help Fast

[Toney]

Greetings:

I have a foreclosure deal that I just received and the auction date is scheduled for Tuesday Jan 2, 2007.

How do I get an extension from the lender within this short period of time?

What do I say to the lender?

I'm faxing the Authorization to Release to the lender now.

Thanking you in advance for your assistence.

Toney

[fadi]

Sounds like you are in Texas. Are you trying to short sale it or buy it?

Call the lender and explain to them that you have a contract on the house, but you need more time to do title search and ask them you need 7 business days to check the title. This puts the date past the foreclosure day so they would have to delay the foreclosure till next month.

They will play hardball and will not do it, but don't panic and don't give them any money. I had one like that with CountryWide and it went down to the last day to find out they stopped the sale.

[Toney]

I'm in New Jersey doing a short sale.

When I tell the lender I have a contract on the house and this technique gives me some extra time. How soon can I ask for the lender to send me a short sale packet?

The one Lender is owed $179,500, tax lien $18,000.
How much do I offer? Is there a standard percentage?
The house is in good condition and just needs cosmetic work.

Thanks

[Gregg975]

You can ask the lender to send you a shortsale package immediately.  

In my experience, you should only offer what you can justify.  Take  (low) comparables to come up with your market value of the home and then subtract (expensive) repairs to come up with your offer.

Also, consider how much you want to make to make this whole process worthwhile.



Gregg

[fadi]

I'm in New Jersey doing a short sale.

When I tell the lender I have a contract on the house and this technique gives me some extra time. How soon can I ask for the lender to send me a short sale packet?

The one Lender is owed $179,500, tax lien $18,000.
How much do I offer? Is there a standard percentage?
The house is in good condition and just needs cosmetic work.

Thanks

What is the ARV? since there is a tax lien, I assume you plan on getting a loan to pay it off? because you cannot do sub2 on tax liens.

[rgchamb]

I am by no means an expert!  I would use the low comparables as a base and take a 82-90% of that as a starting point.

[tbynum]

Can you please tell me what forms are included in a Short Sale package???

[Gregg975]

Generally Banks request:

Distressed homeowners financial statement
 "  "  Listing Agreement
Purchase contract
Hardship Letter from homeowner
Proof of funds(buyer)

You add comparables and amount of repairs to package needed even though it is not requested


Note that shortsale packages do vary slightly


Gregg

[rgchamb]

Distressed Homeowner's Financial Statement typically = income & expenses, 2 years of tax returns, 2 recent pay stubs, 2 months bank statements.

You will also need a HUD-1 statement that shows how much the lender will net in the transaction.

[rgchamb]

You need to get the homeowner to sign an Authorization to Release Information so that you can talk directly to the Lender.  Then you can have the Lender fax you what they want in the short sale (SS) package.  Many lenders require much of the information written earlier, but they might require it in a certain format, or on their particular forms.

I've told Lenders that I'm the buyer & therefore am not listing the property, therefore, I do not have a listing agreement.  Just saying that for what it's worth.