Please review my short sale offer letter

[lxcoupe89]

Below is the actual letter I have prepared to send to the bank for a short sale.

PLEASE provide as much feedback as you can, I'll appreciate every bit of it bad or good.

Thanks,
Mark


This letter will be provided along with:

Hardship letter
Income/expenses of owners (negative cashflow)
Assets/Liabilities of owners (more liabilities than assets)
Hud 1 with the Sellers side fully completed showing net proceeds to bank
List of repairs
Pictures
Copies of bank statements and tax documents for 2006 and 2007

The bank is owed roughly $114000 they will recieve the net proceeds of roughly $80,500.



January 30,2008

Money Hungry bank
Street Address
Town, State ZIP

To whom it may concern,

I am interested in buying 543 That St. This town, PA 12456 for my primary residence. I have contacted the current property owners, John and Jane Doe, but because the condition of the house is so poor I am not able to offer the mortgage payoff plus delinquent taxes and fees. As you will see by the attached purchase contract I am serious with my offer of $90000.00. I have attached pictures of the house and a list of repairs needed to justify my offer.

As you will see in the attached Hardship letter John and Jane have suffered one set back after another. John suffered multiple strokes shortly after obtaining this mortgage leading to his inability to work. That began a chain reaction, which led to the separation of him and Jane and had a catastrophic effect on their finances.

I have attached financial statements showing the current financial situation of John and Jane. As you review them you will see they have used all of their assets including their savings accounts, retirement accounts, and they have cashed in all of their life insurance policies trying to hang on.

I have provided a preliminary Hud-1 settlement sheet based on a settlement date of March 31st 2007 showing the net proceeds Money Hungry Bank will receive. I am prepared to settle within 45 days after receiving an acceptance letter from your company.

It is my understanding only an exterior BPO has been completed, if the broker has not seen the interior of the property he has not seen most of the damage and environmental issues plaguing this house. Because the value of the property is significantly affected by these issues I would gladly, with permission of the owners, provide access to the house so the interior could be evaluated. Feel free to contact me to schedule a date and time.

I would like to request that the February xxth 2008 Sheriff sale be postponed while my offer is being considered. The acceptance letter or counter offer may be forwarded to the contact information I have provided.

Sincerely,


Ralph S. Mouse
2 kitchen cabinet way
Cheese City, PA 13567
email address
XXX-XXX-XXXX cell
XXX-XXX-XXXX home

[Michael Quarles]

What is the current VALUE....

And if it isnt 180k then youre paying way tooooooooo much... and I think your letter to the lender is weak and doesnt offer a hint of credibility or professionalism...

Where is your RPO (BPO for non brokers) ...

And I am not being mean just direct...

Michael Quarles

[lxcoupe89]

The value of the house in good shape would be 220k-230k.

My numbers work out to me buying for no more than 100k. Dumping 50k into it and living there for a few years. 150k total investment. Then selling for atleast 225k which would leave me with about 50k after a realtor's commission and settlement fees. Maybe I am paying to much but I could see this house selling at sale for 120k-130k after being emptied.

By RPO do you mean realtor's price opinion or re-purchase option?
I do not have the price opinion of anyone.

The BPO is 180k and the bank goes by 85% of that I'm told so they think's worth 153k. Exterior only. Loss mitigation person gave me these numbers.

Now about the letter. If you opinion is true I'm glad i posted it. How can i fix it?

Does everyone else have the same opinion?

[Invstr73]

Your letter IMO should be more brief, state what's contained in the packet including your offer. The hardship letter from the homeowners should explain the health issues etc. Until they balk at the offer, there isn't much need in writing out all the details yet.

The BPO is 180k and the bank goes by 85% of that I'm told so they think's worth 153k. Exterior only.

Well..........The question to ask yourself is..... Will an interior BPO influence the value enough to bring that 153k value (The lender thinks it's worth) down lower? If so, PUSH them to order that interior BPO!

Make sure your numbers are solid at this 220k range going into this and that you're NOT making too high of an offer.

[lxcoupe89]

I will remove a bunch of the info in the letter.

Well..........The question to ask yourself is..... Will an interior BPO influence the value enough to bring that 153k value (The lender thinks it's worth) down lower? If so, PUSH them to order that interior BPO

I have pushed and will continue.

I am positive it will sell for at least 220k fixed up. The house nextdoor was built by the same builder, the same year, a couple hundred sq ft smaller and has a one car garage (this house has a 2 car garage) and it sold for 233k.

I think the bank could sell this at sale and probably break even.

[lxcoupe89]

Is this letter getting better or worse?


January 30,2008

XXXXX bank
Street Address
Town, State ZIP

To whom it may concern,

I am interested in buying 543 That St. This town, PA 12456. As part of this packet I have included:

Purchase contract for $90000.00
Hardship letter from the owners
Financial statement of the owners
Preliminary HUD 1 statement
Pictures showing the current condition of the property

I am prepared to settle within 45 days after the receipt of an acceptance letter and a letter waiving the right to pursue a deficiency judgement against the current owners.

I would like to request that the February xxth 2008 Sheriff sale be postponed while my offer is being considered.

Sincerely,


Ralph S. Mouse
2 kitchen cabinet way
Cheese City, PA 13567
email address
XXX-XXX-XXXX cell
XXX-XXX-XXXX home

[Michael Quarles]

Here is mine....

To whom it may concern,

In today's economy of rising foreclosure rates and the inability for borrowers to work out a payment modification, most mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. the borrower Stephen Smith is faced with a hardship that makes it likely that they will be unable to meet your obligation on their mortgage. Because of this, I am making an offer for short sale approval on the property located at 210 Spruce St, Bakersfield, CA 93304 owned by Stephen Smith.

Attached are the following documents:
Authorization to release loan information (1 page)
Contract (11 pages)
Financial Worksheet (1 page)
Hardship Letter (1 page)
HUD 1 Closing Statement (1 page)
Residential Price Opinion
Last two years of tax returns/W2's
Last two months bank statements
Last two pay stubs
Your most recent mortgage information on the first and second
Property tax bill
As you review the documents supplied and have questions regarding them, please call me at 661-836-2466.

Upon your review, if you find it necessary to receive or if you need clarification about the contract price, please call so we can discuss it further.

It is my intention to see this short sale through completion and I want you to know that I am a professional in the real estate industry and I have the ability both financially and professionally to proceed forward toward a completed transaction.

Thank you in advance for your professionalism and hard work in this matter.

Sincerely,

Michael Quarles

[Invstr73]

Is this letter getting better or worse?


January 30,2008

XXXXX bank
Street Address
Town, State ZIP

To whom it may concern,

I am interested in buying 543 That St. This town, PA 12456. As part of this packet I have included:

Purchase contract for $90000.00
Hardship letter from the owners
Financial statement of the owners
Preliminary HUD 1 statement
Pictures showing the current condition of the property

I am prepared to settle within 45 days after the receipt of an acceptance letter and a letter waiving the right to pursue a deficiency judgement against the current owners.

I would like to request that the February xxth 2008 Sheriff sale be postponed while my offer is being considered.

Sincerely,

Much more succinct and to the point.

[lxcoupe89]

Thanks, to you all for the help. I'll revise again and I think I'll have it.

[lxcoupe89]

Here are the pictures I'm sending to the bank.

[Debbie]

My Goddess! Those are the best pictures and "pointed" wordings I've ever seen!

What software did you use?

As I looked at the pictures, I shuddered at the thought that a human being literally lived inside of this house. What a mess! Perfect for investor!

Curious, was this house set up for wheelchair access (except for basement)?

Was that you holding the flashlight? If yes, you looked much, much softer compared to your icon. *grins*

[lxcoupe89]

What software did you use?

Microsoft power point

Curious, was this house set up for wheelchair access (except for basement)?

It was, but not well.

Was that you holding the flashlight? If yes, you looked much, much softer compared to your icon. *grins*

It was my cousin, but we look very similar, most people think we are brothers. In the picture he has his "Where did all this stuff come from face".

Mark

[haynesm]

I concur with what Debbie said about the pictures with one exception. Perhaps a few close ups, (like the water damage near the window) unless there is an easy way to zoom in on the pictures.
I would be very interested in learning a little more about the picture taking and wording with arrows that you did. Can you shed a little more light, info on how it was done or suggest where we might read up on the techniques.

[lxcoupe89]

I would be very interested in learning a little more about the picture taking and wording with arrows that you did. Can you shed a little more light, info on how it was done or suggest where we might read up on the techniques.

I use microsoft power point. It's really easy all you have to do is insert a picture, then using the icons in the toolbar at the bottom create text blocks and arrows.

[Burke]

I would be very interested in learning a little more about the picture taking and wording with arrows that you did. Can you shed a little more light, info on how it was done or suggest where we might read up on the techniques.

You might try some on-line tutorials for the use of Powerpoint. I googled "powerpoint basics" and came up with several links. Here is the first one I clicked on: http://www.baycongroup.com/powerpoint/00_powerpoint_tutorial.htm

You can also try entering a few key words in the help function of powerpoint itself. There is a wealth of information in the help file of most all Microsoft products.

[TheShortSaleHouse]

This is what we send and maybe it will help some of you in draftign your own...

To everyone's success.

Short Sale Cover Letter (http://mywebsite.register.com/db1/00092/californiashortsalehouse.com/_download/Samplecoverlettertobank.pdf)

[KCHomebuyers]

ShortSale,
How well does the cover sheet work?

Here's the content of one of the most recent letters we submitted. We actually got the house for 105, and it comps at 140. Homecomings had their balance at 105, and HSBC had the second on there for almost 38K. Homecomings took 102,500 and HSBC dropped the second for 2K. We immediately got a lease op tenant in there, and it's cash-flowing about $400/month :D

To Whom It May Concern:

I am faxing in regards to the property at 49XX Juniper in Roeland Park, KS. We are currently in the process of purchasing the property but the funds available for this purchase will not be enough to cover the full payoff of the mortgage.


Due to a hostile work environment, Yvonne was unable to stay at her job at Gear and subsequently fell behind on the payments. She has also been unable to maintain the property, and it requires repairs. Most notably, roots from the tree in the back yard have caused damage to the block foundation. By our estimates, the house will require about $8,500 in repairs.

Attached for your consideration are the following documents:

Purchas & Sales Agreement
HUD-1 Net Sheet
Hardship Letter
W2 Forms
Current Pay Stubs

Our offer is $98,950 net to Homecomings, and we will pay all back taxes, closing costs and other fees. Please fax your acceptance letter to 866-314-XXXX or call me at 913-244-XXXX should you have any questions.

Thank you for your time and consideration in this matter.

[Bernie (FL)]

What happened to the pictures of the house? I was curious to see what it looked like

[lxcoupe89]

This is what we send and maybe it will help some of you in draftign your own...

To everyone's success.

Short Sale Cover Letter (http://mywebsite.register.com/db1/00092/californiashortsalehouse.com/_download/Samplecoverlettertobank.pdf)


Thanks for Posting it. Looks good. I've already submitted the package and am now waiting for it to be approved. The Feb 25th auction has been postponed, I am supposed to hear something on Wednesday or Thursday.

[lxcoupe89]

Here is the Offer Letter/Cover Letter I submitted.