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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Doesn't Sound Like A Short Sale Posted by Gary-TX on May 05, 2003 at 6:53 PM In Reply to: Doesn't Sound Like A Short Sale posted by SeanW on May 05, 2003 at 4:43 PM : I'm assuming the 145K is the foreclosing loan. Surely you don't mean that bankruptcy proceedings dragged out an initial foreclosure of $145K, for another $69K, on the same mortgage. : In that case, why would this lender accept a short sale if the FMV is 220K? Even if the repairs are much more than your estimate, the bank can still take it back as a REO, and sell it themselves for a profit. : If the 69K is junior lien holder debt, sounds like you have time to negotiate with the owners and the junior beneficiaries, if you really want the house. But it may be a lot to handle, especially if the owners are still in BK and you have to get the approval of the BK trustee. Buying at the foreclosure sale would be simpler, if you can come up with the $145K. The juniors would be wiped off the title and become unsecured debts of the ex-owner. Not your problem. : However, nobody will help you finance the house before the sale. You need it ALL in a cashier's check at the conclusion of the foreclosure. Sean, Yes, that's right 30+ payments behind means lender will be foreclosing for $214K!! Why wouldn't a lender take a short sale on a house that is $69K delinquent? Every time the lender forcloses, it limits the amount he can loan out by 8 times, I was told. 8 x $214K=$1,712,000. Thats like putting a hold on your credit card so you can't charge. I know banks can take short sales, but will they take it for loan balance to get it off the books? And how long do I have to get the funds? Or do I have time to flip the house? I'll bet it would sell fast at $175K!! Gary-TX Follow Ups: Really is 69K Additional... SeanW 7:20 PM, 05/05/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I'm assuming the 145K is the foreclosing loan. Surely you don't mean that bankruptcy proceedings dragged out an initial foreclosure of $145K, for another $69K, on the same mortgage. : : In that case, why would this lender accept a short sale if the FMV is 220K? Even if the repairs are much more than your estimate, the bank can still take it back as a REO, and sell it themselves for a profit. : : If the 69K is junior lien holder debt, sounds like you have time to negotiate with the owners and the junior beneficiaries, if you really want the house. But it may be a lot to handle, especially if the owners are still in BK and you have to get the approval of the BK trustee. Buying at the foreclosure sale would be simpler, if you can come up with the $145K. The juniors would be wiped off the title and become unsecured debts of the ex-owner. Not your problem. : : However, nobody will help you finance the house before the sale. You need it ALL in a cashier's check at the conclusion of the foreclosure. : Sean, : Yes, that's right 30+ payments behind means lender will be foreclosing for $214K!! Why wouldn't : a lender take a short sale on a house that is $69K delinquent? Every time the lender forcloses, : it limits the amount he can loan out by 8 times, I was told. 8 x $214K=$1,712,000. Thats like : putting a hold on your credit card so you can't charge. : I know banks can take short sales, but will they take it for loan balance to get it off the books? : And how long do I have to get the funds? Or do I have time to flip the house? I'll bet it would : sell fast at $175K!! : Gary-TX Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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