All Forum Posts by: Jorge Vega

@Beth Anderson Purchasing Short Sales at a Discount is an Art. Are you in contact with the Listing Agent?

You are going to need some more information to complete an analysis and determine if this would be possible.  Do you know what the Banks value is ?

There are many factors that are in play when an offer is accepted for a Short Sale but the biggest determining factor is the Value of the property. The Short Sale lender will complete a value on the property and make a decision on the offer based on that value.

Some mortgage servicers and investors have certain guidelines that dont allow them to accept anything less than a certain percentage of the property value. Finding out who the Short Sale lender and Investor are will help you know what to anticipate.

Do you know who the Mortgage Servicer is ?

@Dave W. Are you the "Original Buyer" or did you see this property on the site and began to bid?

A lot of times the Winning bidder on these auctions doesn't get approved even after they win the auction , you may see this property going back in auction soon if it doesnt work our with the buyer who won( If any one won ) , you mentioned the Auction was complete but that could also mean it was finished and no bids were placed. Was there a winning Bid ? If so what was the winning Bid amount? If you were the Original Buyer then you should be able to get plugged back into the review if you were outbid at auction and the winning bidder backs out or it doesn't work out.

@Ralph Biah i would like to know more, That doesn't seem like a problem at all. Sounds like you got a Short Sale on your hands so you came to the right place.

Who is the mortgage Servicer ? Do you know how many liens are on title? You can still purchase a Short Sale and flip it if the numbers are right. In a Short Sale the major deciding factor is the property Value. The mortgage servicer will complete their own value on the property and will accept, counter, or decline the offer based on the value they obtained.

The Seller would need to authorize you or who ever will facilitate the Short Sale to speak with the servicer(s) on their behalf, if you have never done one before i dont recommend you do it alone. 

@Eric F. Is the property already active in Foreclosure? If so what is the Date?

You should initiate a Short Sale, FHA Short Sales when active in Foreclosure are slightly different than when you are going into the review delinquent and not yet into Foreclosure.

Who is the mortgage servicer of the 1st for your Transaction?

@Tom W. You are correct that the partial claim cannot be settled. Per HUD guidelines those cannot be settled and will have to be paid in full however in those situations HUD will tell you to do a Short Sale.

Short the 1st and pay the partial claim off in full, the seller may still qualify for a relocation incentive through the FHA Short Sale.

We just did a transaction like this with 2 Partial claims on title.

What is the purchase price? What is the 1st lien Payoff? and who is the Mortgage servicer for the 1st?

@Fred Kite I would need a bit more information. I think that completing a Short Sale will be your best bet. How long ago did they find the 2nd? Are the Agents already in works with the lenders to get the Short Sale review opened?

The Short Sale itself could be enough of an incentive for the seller or occupant to complete the transaction as they could get a Relocation incentive from HAFA ( If they qualify ).

Whats the Amount owed on the 1st? What is the current purchase price?

@James A. I think I need more information. How much is the home worth and do you know how much is owed against the property? The short sale in my opinion is the best option and also seems to be the what the seller wants.

It can be really challenging to deal with a mortgage servicer if you have never worked with them before or are not very versed in Short Sales.

This could help your seller potentially get financial assistance to relocate as well. Get Authorized with the servicer and initiate the Short Sale. How you initiate the process will depend on the Mortgage servicer some servicers use online platforms to process their files others are just call and go.

In regards to wholesaling the deal, it is very possible to do this but you would need to be careful these types of things can be frowned upon by a lot of servicers and depending on how its done it could be a violation.

@Tammy BrazI wish you the best of luck with the short sale. What is the purchase price? I don't think its normal to have you order an appraisal now. In a Short Sale the bank will accept an offer based on value amount that they obtain on the property. Depending on who the servicer is you may even be able to find out their value amount and in some cases get a copy.

I also don't really have much information, there are situations where this could be require from you for any good reasons. I would need to know more information.