Short Sale for $78k - how to proceed - Input.

[Kirk R.]

Not too familiar with short sales

Property I'm interested in:
APR 2002 - Loan For $65k
Listed with a Realtor June 3rd for $83k. About 40 days ago. Price changed to $78k July 9th.

Property is probably worth $70k. If it needed no repairs ARV of 70% would be $49k? Ideally I want "SUNTRUST MORTGAGE" the company that has the current loan to have the loan.

I could do a VA or my credit union business department might give me the loan.

Any input appreciated.

Next Steps look @ the property to see about repairs. & then work out an offer of 70% of ARV?

Best Regards,
Kirk

Oh and notice of default was served on April 15 2013. I am in IL.

[Edward Burns]

Not sure if I understand fully what you are asking.

If the morgage currently has a $50K loan payoff cost and the house is being offered at $78K that is not a short sale. A short sale is when sale price is lower then loan value (thus the bank winds up losing money and therefore has a say in the transaction). If assuming your $50K payoff is correct were to offer $53K (adding 6% realtor fees) and paid all the closing cost then the bank gets paid in full (and thus doesn't enter the negotiations), the current owner walks away with nothing (but his credit indicates the loan paid off) and you get the house.

Find out what the original loan amount was and the date of the loan. Then look up any amortization table and you should be able to find out the payoff amount (assuming the loan was kept current). Add 6% to that figure and see if you are close the 70% FMV of comparable comps in the area (Note same or similar condition), then decide if that price is reasonable from other standpoints, if so keep the bank out of it. As long as the offer is enough to pay off the loan completely IT IS NOT A SHORT SALE.