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Ok, as some of you may know, I've been following a property that's been scheduled for 3 separate foreclosure auctions since early January and has been cancelled at the last minute on each. The third is scheduled for 5/31. I went to the last one, and it was cancelled so close to the auction that they even had the opening bid information (which was 318k).
I don't know why it's continually being delayed, but I'm really interested in the property, so I'd like to know if I could approach the bank directly with an offer of 320K for a short sale. I know the owner has no incentive to do so since they're living there rent free and upside down to the tune of around 200k, so I won't even bother contacting them.
Does any mechanism exist for me to bring an offer directly to Bank of America? Is it even worth me pursuing ? Any tips on how I could approach this process? I have a real estate agent, who doesn't specialize in foreclosures or shortsales, and seems fairly disinterested, so I'm trying my best to do as much legwork as possible.
The bank can't sell you the house since they don't own it yet (not until the foreclosure is final and they take possession). You must have the owner's agreement and participation for a short sale. The owner will have to agree to a short sale first, then negotiate with their bank.
The bank can't sell you the house since they don't own it yet (not until the foreclosure is final and they take possession). You must have the owner's agreement and participation for a short sale. The owner will have to agree to a short sale first, then negotiate with their bank.
What incentive would the owner have to participate? Any advantage for them to sort sale versus being foreclosed?
The main advantages are less of a credit hit, and may be able to more quickly apply for a new home purchase loan depending on the specific situation. Here's more info:
It's also possible that entering into a short sale process may further delay the foreclosure, giving the homeowner more time to deal with the situation.
As said, you cannot go to the bank because they don't own the property and don't have the right to sell it to you. The sellers get a significantly less of a hit on their credit. After a SS, they can buy a house within 2 years. After a Foreclosure, it could be up to 7 years, depending on how the rules will change over the years.
Trying to work a short sale deal with a free loading borrower
well short sales(ss) are a pain for most real estate agents or attorneys. They are time consuming and can yield disappointing results, just being honest. It's not a bad idea to approach the free loading homeowner and make an offer to them and give them reasons why doing a ss is more beneficial than doing a foreclosure or filing for bankruptcy. Tell the homeowner it is better because they will avoid a foreclosure which will be better on their credit when it comes to damaging their credit more, you can even offer them a gift for helping you to complete the offer by talking to their lender about you making an offer to purchase. Their lender will always listen to any offer if it is fair offer to mitigate further loss. Plus, a borrower can be given up to $3000 for successfully completing a ss, this will be there move out money is what the borrower refers to it as after the deal is completed. Moderator cut: no soliciting,please
Last edited by Marka; 05-29-2012 at 12:45 AM..
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Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Trying to work a short sale deal with a free loading borrower
well short sales(ss) are a pain for most real estate agents or attorneys. They are time consuming and can yield disappointing results, just being honest. It's not a bad idea to approach the free loading homeowner and make an offer to them and give them reasons why doing a ss is more beneficial than doing a foreclosure or filing for bankruptcy. Tell the homeowner it is better because they will avoid a foreclosure which will be better on their credit when it comes to damaging their credit more, you can even offer them a gift for helping you to complete the offer by talking to their lender about you making an offer to purchase. Their lender will always listen to any offer if it is fair offer to mitigate further loss. Plus, a borrower can be given up to $3000 for successfully completing a ss, this will be there move out money is what the borrower refers to it as after the deal is completed. Moderator cut: no soliciting,please
