Short Sale - Owner owes less than property is worth

[Laureen Youngblood]

We have a very motivated seller on a Foreclosure property.  We have a settlement statement from the bank.  We want to offer less than what she owes, (obviously).  Question is, her settlement statement includes all of the late fees and interest from her not making payments for four years.  They have started the foreclosure process.  What she owes -penalties and all- is about what the property is worth as-is.  Is it feasible to still get the bank to settle on a short sale offer?  The house is not liveable and will not qualify for a conventional homeowner/loan.  We want to make the right offer and not mess this up, as it is our first truly motivated seller property and the property is exactly what we are looking for in a rehab.

Any suggestions on making this offer would be greatly appreciated.

[Wayne Brooks]

The seller being motivated in this isn't all that important.  It's the bank that's the issue of course.  Accruing interest, property taxes and insurance paid by the lender and costs won't be waived.  It's like any other short sale,you'll have to find an experienced short sale agent, list it,  submit the contract with all the owner's paper work, wait for a BPO and an answer.  The bank will want as close to market as possible.  Sounds like you may have to get the foreclosure auction date delayed also, depending on fast they are there.