The Property has no Equity
The Seller hasn't enough Money
It's that simple
Can I get a fantastic Deal on a Short Sale ?
Probably not …… perhaps a decent Deal depending on activity, location etc…. But fantastic – ain’t gonna happen
Why Not
Because as a rule Lenders will not approve any deal that nets them less than 85 – 90 % of the Current Fair Market Value after Commissions, Closing Costs and Other Expenses. What the Owner paid for the Property and what the Owner currently owes on the property is not relevant.
So even if the Owner paid say $ 800,000 for a Property and owns the house free and clear – If the current market value is $ 400,000 – you can probably negotiate the price down to 90% of Current Market Value. Doesn't need to be in a Short Sale Situation to get virtually the same deal.
The End Result
In pretty much all respects a Short Sale is close to a Regular Sale with the Lender taking a hit on anything owed over 90 % +/- Fair Market Value
Extra Problems
Difficulty in finding who holds the Mortgage due to packaging (time consuming)
Many Licensees that have the Listing do not know what they are doing
Unreasonable time involved in Bank approval process
Summation
Like a regular sale with more aggravation.
Difficulty in finding who holds the Mortgage due to packaging (time consuming)
Many Licensees that have the Listing do not know what they are doing
Unreasonable time involved in Bank approval process
Summation
Like a regular sale with more aggravation.
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