The Housing Bubble - An example
- Thread starter Sarcasmo
- Start date
Mean Mr. Mustard
Always shouts out something obscene
Valve1138
I like the AB in the GB
good, cause it never would've worked.
bank asks for all your assets statement, all your bank accont statements, stocks, etc... then the most important part is a letter of hardship, where you gotta prove something drastically changed in your life to put you into foreclosure (ie: death, illness, lost job, divorce, etc.).
so basically, you gotta have no investments, almost no money in the bank, leased cars, and out of a job, etc. as all of this is part of the short sale packet.
also, for you to buy it april, you'd have to pay cash. the only way to do traditional loans is to use a transactional fund and do a back to back closing the day the shortsale went through, which is gonna cost you 1% of the foreclosure price. the upside to your plan, and this is probably the only upside, is you save 6% in realtor commissions attached to alot of shortsales.
you're better off finding someone down on there luck, shortsaling there house, and taking the profits. even then, its a long process with alot of paperwork and procedures and you're gonna need a buyer ready to take the place. so really, you'd be even better off, finding someone behind on their mortgage payments, flat broke, etc. and telling me about them. i'll do a 60-40 split on the profits.
good, cause it never would've worked.
bank asks for all your assets statement, all your bank accont statements, stocks, etc... then the most important part is a letter of hardship, where you gotta prove something drastically changed in your life to put you into foreclosure (ie: death, illness, lost job, divorce, etc.).
so basically, you gotta have no investments, almost no money in the bank, leased cars, and out of a job, etc. as all of this is part of the short sale packet.
also, for you to buy it april, you'd have to pay cash. the only way to do traditional loans is to use a transactional fund and do a back to back closing the day the shortsale went through, which is gonna cost you 1% of the foreclosure price. the upside to your plan, and this is probably the only upside, is you save 6% in realtor commissions attached to alot of shortsales.
you're better off finding someone down on there luck, shortsaling there house, and taking the profits. even then, its a long process with alot of paperwork and procedures and you're gonna need a buyer ready to take the place. so really, you'd be even better off, finding someone behind on their mortgage payments, flat broke, etc. and telling me about them. i'll do a 60-40 split on the profits.
A foreclosure has nothing to do with what I'm earning right now. It simply has to do with me not paying the mortgage. I'd love your scenario where I could stop paying my mortgage, but they wouldn't foreclose (and kick me out) because they knew I technically could still pay it. That's not how it works though.
Additionally, if the short sale fell through or was denied on this house, we didn't care. There are tons of other short sales going on right now that we/she could buy with our (now) sizable down payment. It just would have been convenient to not have to move.
And I'm not sure I follow why you think April would have to pay cash for the house. Come again?
you can't assign shortsale contracts, so if a third party does the shortsale and not you personally, the third party would have to get a 1 day loan called a transactional loan or a bridge loan at 1 point or pay cash and turn around and sell the house to you for whatever. typically 85-90 cents on the dollar if you're getting a good deal.
the shortsale will go through at 65-70 cents on the dollar, but but there's alot of costs associated with it. closing costs, transactional loan costs, realtors 6% fee's to sell it to you, etc.
with foreclosures or short sales there's also a thing called a deficiency judgement. the bank could agree to the shortsale, then come after you with a defiency judgement to make up the difference they lost.
the shortsale will go through at 65-70 cents on the dollar, but but there's alot of costs associated with it. closing costs, transactional loan costs, realtors 6% fee's to sell it to you, etc.
with foreclosures or short sales there's also a thing called a deficiency judgement. the bank could agree to the shortsale, then come after you with a defiency judgement to make up the difference they lost.
Assign? wtf are you talking about? Are things different where you are? Here all you have to do is put in a bid with the bank (after they agree to the short sale). It usually takes a couple of months, but the bank either approves or denies the bid. After that, its the conventional mortgage process. Are you thinking that maybe more than one person would bid on the house? It's possible, but again we really don't care if we lose it.
And finally, florida is a deficiency judgement state, but that's usually written off in the short sale contract. Meaning, they agree not to come after you.
i've never heard on bidding on shortsales, only on foreclosures.
a shortsale is something completely different from a foreclosure auction and when the foreclosure auction fails the property becomes an REO.
a shortsale is a formal submission of all kinds of stuff, then the bank has to agree to the shortsale. part of submissions is garunteeing you have the funds to pay for the transaction.
Okay, well things must work very different where you live. A short sale (here) is essentially defined as the house being put up for sale for less than the note. The bank has to approve it. Once it does, a broker puts up a For Sale sign in the yard and attempts to solicit bids, which he forwards to the bank. The bank then takes the bid(s) and determines if they are willing to sell it for that price. If they agree, its a normal mortgage process just like you're buying a new house.
Syrup Beaver
pants log
And I can't fight this feeling anymoreeeeeeeeeeeee
I've forgotten what I started fighting foooooooor
I've forgotten what I started fighting foooooooor
Syrup Beaver
pants log
Syrup Beaver
pants log
