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In my ongoing quest to educate myself as much as possible about Short Sales... I ran across this small bit of information and wondered IS there a way to get this information??
"Check the Public Records to find out how much is owed to the lender and if there are multiple lenders. If there are two lenders, you need to make an offer that will leave money for both lenders. For example, if a seller owes $200,000 to the first lender and $30,000 to the second, you have to offer more than $200,000, so the second lender can get money as well. This information will help you determine your offer."
In my ongoing quest to educate myself as much as possible about Short Sales... I ran across this small bit of information and wondered IS there a way to get this information??
"Check the Public Records to find out how much is owed to the lender and if there are multiple lenders. If there are two lenders, you need to make an offer that will leave money for both lenders. For example, if a seller owes $200,000 to the first lender and $30,000 to the second, you have to offer more than $200,000, so the second lender can get money as well. This information will help you determine your offer."
The bolded is the interesting part to me.
Thoughts??
Out here you just head down to the courthouse. The Notice of Default specifies how much is owed at the time of the notice. You won't have a real payoff balance though. Just an estimate.
It doesn't matter what the lender is owed. It matters what the house is worth.
Out here you just head down to the courthouse. The Notice of Default specifies how much is owed at the time of the notice. You won't have a real payoff balance though. Just an estimate.
It doesn't matter what the lender is owed. It matters what the house is worth.
True. So, I've been doing my due diligence today. I did some searches for homes with the same comps, bedrooms, bath and all in the same area. Over the past 12 months, 12 homes have been sold. I took the home prices and averaged it by 12 sales, which averaged 300K. With that information and knowing the current owners paid $370K four years ago, I feel like a good offer on the house would be $240K. But, here I have no idea, this is all foreign to me.
Plus too, I don't know how much they put down in cash, etc... so it's anyones guess.
The Clerk of the County Court handles that stuff here. You can go to their site & see loans, liens, etc. If they do not offer it online you can get it by going to the court house.
...Over the past 12 months, 12 homes have been sold. I took the home prices and averaged it by 12 sales, which averaged 300K. With that information and knowing the current owners paid $370K four years ago, I feel like a good offer on the house would be $240K. ...
First, any sale over 3 - 6 months old may not be applicable if prices have been declining over the year. Usually appraisers will not consider sales over 3 months old unless there are no other comps to use, then they will discount the price a certain percentage per month to adjust (assuming a declining market).
Second, if indeed the "average" sold price of similar properties is $300K, how do you arrive at an offer of $240K? Is it in worse shape than your comps? And what the buyer originally paid is not relevant.
Edit: If the bank arrives at the same conclusion that the house is worth $300K based on comps, why would they take 20% less?
First, any sale over 3 - 6 months old may not be applicable if prices have been declining over the year. Usually appraisers will not consider sales over 3 months old unless there are no other comps to use, then they will discount the price a certain percentage per month to adjust (assuming a declining market).
Second, if indeed the "average" sold price of similar properties is $300K, how do you arrive at an offer of $240K? Is it in worse shape than your comps? And what the buyer originally paid is not relevant.
Edit: If the bank arrives at the same conclusion that the house is worth $300K based on comps, why would they take 20% less?
You have a good point my thoughts on that "offer"price is because even though the house has been painted and new carpeting inside, the house itself isn't anything super special. From the houses we have seen (in the area), I just feel like that price is a good offer for what the house is. It's not on any land or anything either. The area its in is nice but it's kind of rural and the houses are all just average to kind of run down looking. If you saw the house, you may think nothing special but it's really nice inside... It was just a thought...and the house was built in 1972 so it's not new construction with all sorts of fancy upgrades.
Sounds like you've given it a lot of thought. Typically what the bank will do during the short sale process is hire a local agent to provide a BPO (Broker Price Opinion). This is a market analysis for the bank to use in setting a value they may accept. If your offer is too low, I'd expect them to come back with a counter. Of course, this all assumes the seller gets the bank to consider a short sale.
In my ongoing quest to educate myself as much as possible about Short Sales... I ran across this small bit of information and wondered IS there a way to get this information??
"Check the Public Records to find out how much is owed to the lender and if there are multiple lenders. If there are two lenders, you need to make an offer that will leave money for both lenders. For example, if a seller owes $200,000 to the first lender and $30,000 to the second, you have to offer more than $200,000, so the second lender can get money as well. This information will help you determine your offer."
The bolded is the interesting part to me.
Thoughts??
Andrea, this information is absolutely false. In most short sales the primary and secondary lenders take hits.
Andrea, this information is absolutely false. In most short sales the primary and secondary lenders take hits.
Agree with Downtown - totally inaccurate info. Also the discussion about asking price in the referenced article is inaccurate as well. The bank usually does not set the initial asking price, it's set by the seller/agent, and may not have any bearing on what the bank will actually accept.
Agree with Downtown - totally inaccurate info. Also the discussion about asking price in the referenced article is inaccurate as well. The bank usually does not set the initial asking price, it's set by the seller/agent, and may not have any bearing on what the bank will actually accept.
Thank you so much for clarifying! I feel a lot better and more positive now. I did end up reaching the seller (she was having phone issues, apologized profusely,etc...) meeting up tonight to discuss the rental aspect right now and then our thinking is, we live in the house a few months, get a good feel for it and then make an offer to the seller. I wish you were in PA, you could be our agent!!
Thank you again!!!
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