REO taken off market

[chefmk1228]

Hey Everybody!

Found a SFH in Hanover, PA that was repossessed and put back on market for 190 and then reduced to 187. Property was then taken off market which leads me to believe that interior may be a wreck. Original owner was in default for almost 150. I'm not sure how to approach this. Do I contact lender and offer something close to the default amount? I was thinking something like 146. Will they be even looking to unload it to take it off their balance sheet? I've read that they're less than likely to rehab it to make it more marketable. The house is in a good neighborhood & new development in fast growing area so I know it would be very profitable, especially if I could get it at default amount. Any advice would be greatly appreciated.

[Dan Auito]

Hey Chef, I'm not really the short sale King as I like to offer all cash deals to unadvertised sales, sales like that above often are a losing proposition and to much work for my lazy bones.

I did put in the key words "Short sale package" into the blue search bar above and it came back with a days reading material for you in this case.

Scroll down the list of links to see if this question has an answer waiting in the archives. http://www.magicbullets.com/forum/search.php?searchid=64260

Here is an example of one that John Michael did.

Example of a deal that I did:

Locate homeowner in default - called from the following advertisement

Foreclosure - Fast Cash - Can Help Now

000-000-000

Contract with homeowner subject to negotiation with lender for a purchase of $49,000

Have homeowner sign authorization to release information

Have homeowner fax a 30-day pay off from First National with company address

Now it’s time to go to work

3 COMPS in Area Show Average Market Value $76,150
Average Sq Ft 1,200 Average Sale Per Sq Ft $63.46
Subject Property Sq Ft 950
$63.46 x 950 = Market Value $60,287
Suggested Retail Value $59,900Now show Loss vs Profit

Market value $59,900
Loan Payoff $65,000
Repair Cost $ 7,761
Past Due Tax $ 168
Carry Cost $ 2,800
Rltr Commission $ 3,594
Closing Cost $ 899
Lender will loose $20,722 to sell for $59,900
My Cash Offer $47,698
Lender Loan Payoff $65,000
Up front loss ($17,302) save $3,420
Full Return for lender if loan out my offer at the current rate at the time.
Loan out $47,698 at 8 1/4% 30yr and turn to $129,002Offer accepted - My return

FSBO Price $59,900
Sale Price $58,500
Purchase Price $49,000
Repair Cost $ 1,500
Past Due Tax $ 168
Carry Cost $ 933
Realtor Commission $ 0
Closing Cost $ 735This was a WIN-WIN for all.

Your keys to getting offers accepted

Research

+

Get under contract

+

Show a loss

+

Justify your short sell offer

+

Show how your offer will profit

= PROFIT

[thezster]

Hey Everybody!

Found a SFH in Hanover, PA that was repossessed and put back on market for 190 and then reduced to 187. Property was then taken off market which leads me to believe that interior may be a wreck. Original owner was in default for almost 150. I'm not sure how to approach this. Do I contact lender and offer something close to the default amount? I was thinking something like 146. Will they be even looking to unload it to take it off their balance sheet? I've read that they're less than likely to rehab it to make it more marketable. The house is in a good neighborhood & new development in fast growing area so I know it would be very profitable, especially if I could get it at default amount. Any advice would be greatly appreciated.

Found a similar situation here recently. I found out how much the bank had invested and offered a considerable amount less (180K vs 160K). They ignored me. After another 35 days, I put in another offer for 160K - and ended up buying the property for 164K... Closing in 3 days... and starting rehab in 3 1/2 days... Comps in the neighborhood are running 225K for the same home (essentially)... so I think I done good! :SM001:

[Dan Auito]

Hmmm, maybe I shouldn't be to quick to overlook such lucrative deals. Good work!

[chefmk1228]

Thanks for the tips Dan & good luck to you thezster. Tell me how you make out. Pardon my ignorance, but what is "short sale package"?

[Dan Auito]

The short sale package would consist of documents similar to these.

See:

http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=2473&highlight=short+sale)
http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=2523&highlight=short+sale)
http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=2428&highlight=short+sale)
http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=2442&highlight=short+sale)
http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=430&highlight=short+sale)
http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=359&highlight=short+sale)
http://www.magicbullets.com/forum/sh...ght=short+sale (http://www.magicbullets.com/forum/showthread.php?t=2207&highlight=short+sale)Forms

http://trice84.tripod.com/reforms/LandTrusts.zip
http://trice84.tripod.com/reforms/Forms.zip
http://trice84.tripod.com/reforms/Escrow.zip