Seeking helpful advice with short sale

[overseer]

I am an absolute total diaper stinking, no funds having, starving newbie. With all that I don’t have, I am not afraid and willing to try even if I fail.

I came across a person who will be behind 7 months this coming month in their note. They want to walk away from the property. I advised them not to do that for their credit sake. I advised them I would see what I could do to help them. He is perfectly willing to allow me to represent him and has signed authorization of such. I found someone willing to buy the home all cash for the remaining loan balance or whatever the payoff amount is. I have ordered the actual payoff. In the meantime, after reading you and others, I thought I would try and see if the lender would be willing to do a short sale. They seem to be and advised me of what would be needed, which is basically the same info I have learned from doing my research and reading. I am in the process of gathering all the necessary components. Here is the breakdown on the property. I have also gotten a realtor who will list the property.

FMV                                                
$125,000

Existing First loan*                            
$111,600
                         
Original Loan                                    
$112,500
                       
Questionable 2nd deed*                      
$24,000
                         
Outstanding taxes                              
$2000

Repairs (mainly sewage and
tree roots advancing into foundation)    
$6000
                         
Realtor 4% of sale

* I found this when I went to the recorder of deeds. This was a seller carry back from the original purchase. It was supposed to have been satisfied under arrangement when the owner did a refinance with present lender two years ago. I am presently researching to verify.
 
My question is this is it possible for me to build a profit into the sale price when we write up the contact or am I being to ambitious? Naturally the seller has no funds to give me. Any suggestions, pointers or comments would be appreciated from anyone.
 :hammer

[tedjr]

How is this deal going. I have been out of contact a few weeks and thought I would get an update to see if I could help.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[overseer]

Well the latest is I have received the short sales package from the lender (Ameriquest) and the 2nd is actually there and has to be dealt with.

More history, not to bore you. The home was purchased on a special contract for $119,900 in '99. The original loan was 80% LTV with 20% seller carryback. The agreement was if the 2nd was paid in three years it would be discounted to $3000. The owner/seller refinanced the loan in 2001 and thought the 2nd was paid along with other debts. It wasn't. I have a copy of settlement statement and it wasn't listed. The seller called the 2nd and he said he never heard from the lender. Curiously, no payments have been made to the 2nd and he has never contacted the owner/seller. Maybe that's a good sign for my negotiations with the 2nd.

 The payoff on the home is $121,000.00. Any suggestions.