Seller messed up - Bank threating to forclose. Is there still in this for me?

[Derek Daun]

I'm in the process of negotiating an offer on a SFR.

Offer = 145k. This is buy and hold for me; but I'm guessing the ARV is about ~160k after a little paint, and landscaping. This isn't fantastic deal, but it fits my model: as little work as possible, gives me a little more experience, and has a very likely hood of gentrification in the next couple of years.

We found out the seller's bank is forclosing in six days. The bank turned down a request to delay forclosure unless they have a purchase offer in hand with a preapproval or cash. We have been banking with Chase up to this point, and our loan officer says Chase does not do pre-approval without going through full underwriting, which can't be done in six days. 

The seller purchased the house two years ago for 113k. Basically, by delaying selling the property till the last minute, the seller is risking losing 40k in equity if the bank forcloses.

This seems like the potential for a great deal for someone with cash if the seller's bank doesn't play ball with financed offers. The question is what creative ways I could make this a deal for me.

-Find another lender willing to do preapproval in this short timeline?

-Find a cash partner

-Some sort of a wholesale/finder fee deal for someone with cash?

[Wayne Brooks]

Six days for a typical preapproval is ridiculous.  With your last 2 years tax returns, last 4 pay stubs, 3 months of bank statements, most lenders can pull credit and issue an preapproval in an hour or two....and it would be legitimate, as far as preapprovals go.  A full DU report could be done in a day or two.  Go to an independent mtg broker/lender.  I know loan officers who left Chase for this very reason.  I think your purchase price just went down $10k.