Are there any guidelines to what lenders might accept for a residential short sale?
I have a property in foreclosure with about a 79% LTV ratio, and most hardmoney lenders stop at 75%… Any information on how to propose a short sale, etc is appreciated.
Thanks!
Even if the property is in foreclosure, you should still have the right to sell it.
It shouldn’t cost 20% to sell the property. Maybe 7-10%, depending on agents and area. So you may still get some cash out of the deal.
Since the property hit foreclosure, you’ve probably been bombarded with realtor and investor offers in your mailbox. Ignore the investors, but look at the realtor ones that actually want to market your property. Especially ones that seem like they have experience with foreclosures. Talk to a few agents. You should get a good idea of what your options are and who is best to work with.
March 7th, 2010 at 7:03 am
Why don’t you sell the property yourself if you have that much equity in your property. If you are correct you have approximately 20% equity. Selling without a real estate agent you can realize that equity.
As for your question each lender is a bit different about how they conduct their short sales.
If you want to do a short sale you must immediately contact your lender and speak with their loss mitigation department. Ask them to send you their short sale package.
After you the short sale package complete every item. You will want to document any and all damage to the property, this will pretty much determine what will ultimately be the figure that will be used for the short sale.
The lender will also contract a real estate agent to conduct a survey of the property indicating what he feels the the property is worth. This person, might or might not come into the property.
It would be in your best interest that you meet with this real estate agent so you can produce the pictures and any other evidence that the property is what you think is worth.
The real estate agent will send the lender his findings. The lender will make a decision based on what you send them and the real estate agents evalution of the property.
The lender will conact you with their decision.
You should stay in constant contact with the lender.
I hope this has been of some use to you, good luck.
"FIGHT ON"
References :
March 7th, 2010 at 7:26 am
Even if the property is in foreclosure, you should still have the right to sell it.
It shouldn’t cost 20% to sell the property. Maybe 7-10%, depending on agents and area. So you may still get some cash out of the deal.
Since the property hit foreclosure, you’ve probably been bombarded with realtor and investor offers in your mailbox. Ignore the investors, but look at the realtor ones that actually want to market your property. Especially ones that seem like they have experience with foreclosures. Talk to a few agents. You should get a good idea of what your options are and who is best to work with.
References :
10 years in mortgage banking