Short Sale question

[DaveS.]

A realtor, who received one of my postcards called me telling me about a young man about to loose his house. She wanted to know if I would try to do a short sale on it. The auction has been postponed till mid October. The BPO had already been ordered and came in at $250K. Evidently the bank told her the BPO. She said that the home is in perfect condition and would sell at $220K quickly. She said the only problem with the home is that there is an easement in front of the home so evidently another or perhaps 2 other homes are positioned between that home and the street. Also, she has been calling the bank trying to get the seller some more time. She said that he tried to get a loan modification but was turned down. My question is, how do I get the deed in a case where the home is already listed? I don't think the seller is looking for any money, in fact, the realtor said that he might be able to bring some money to the table. Also wanted to know if bank's require the home be listed while a short sale is going on?

[KCHomebuyers]

Ok, first the bad news: With a BPO alreayd done, you may be out of luck on the sale. Once the bank lays their eyes on those high BPO numbers, it's VERY hard to get them to back off of that - especially if the loan-to-value is already say, 85% or better.

Lenders have been getting extremely stingy with their mortgages inspite of the grwoing flood of defaulted paper.

Ok, the good news: It sounds like the realtor is proactive and investor friendly. they already know that there's no commissions in the property if they get it sold, so you may be able to get them to step aside with a promise of a "finders fee" if you can get it sold.

You may even be able to get the agent to work with you by telling the bank that there's no way the house is really worth 250, and that they have an interested buyer coming in with a lower offer.

At this point, I wouldn't go for the deed just yet - see if the bank will even entertain an offer on the property, then get the owner to sign over the deed, etc. Just for your own records, get the listing contract cancelation.

[SlumLordMike]

Ok, first the bad news: Once the bank lays their eyes on those high BPO numbers, it's VERY hard to get them to back off of that - .

And those those BPO's can be outta the park!

I went to an auction recently where the BPO's came in at 60k -70k. The successful bidder was 29k. That was a Hudson Marshall deal. (see Internet on Hudson Marshall for more properties)

I would have paid 25K.

[blessedx100]

bpo stands for what:praise:

[TommyOH]

A Brokers Price Opinion....it's what the bank is going to set fair market value on the home with.

[blessedx100]

thank I receive your response can i talk with you privatlly