Any Short Sale Experts Here? Any Negotiators?
Was hoping someone who really knows about short sales could give me their 2 cents about a short sale home I put an offer on, would like to know the opinion if there's a possibility it could be approved.
Here are the facts:
House price is $129,900 - I believe it's a teaser price, but not sure. FMV per county records is $167,000 (no way!). Owner purchased it just 3yrs ago and got an 80/20 mtg for the full amount of the sale which is the same as the FMV. More than likely, there's no equity at all in the house.
The house is a definite "fixer upper" needs a LOT of work. My laywomans instincts say about $40K. Needs all new flooring, entire kitchen, bathrooms need to be redone, screens replaced (15 of them) a few windows broken, all new appliances, people left a ton of crap - dumpster needs to be ordered, of course, paint, new garage door, and the list goes on.
Owner (actually people who lived there, wasn't owner) abandoned the property, so no one there.
I put in an offer of $101,990 and it would be a cash deal, so I can close quickly.
Just wondering if there is any hope that I'll get the house. I know others can come and bid higher, but if no one else bids, wondering what the likelyhood would be to get the house. My offer is based on the amount to put in the house. At $142K it would not far off what I believe it should sell for if it was in good condition.
As I mentioned, the house has 2 mortgages, both with the same company, from what I understand, it's called a piggyback loan.
I read that the banks want to try and get the full amount of what's owed to them and usually won't entertain a low-ball offer and just ends up foreclosing. I've read that they want at least 90% of what's owed to them. What I can't find out is if, when it's 2 mtgs for the same company, do they concentrate on the first mortgage amount, or do they add the two together? If the first is $133k, and considering the condition of the house, would they take the offer possibly?
I don't believe they know just how bad the house is in and wonder how that will play in to the whole scenario.
I won't go up much at all if they counter, can't see going through all the aggrivation of a short sale, not to mention all the work that has to be done to bring it to be livable in, if there isn't going to be any type of savings.
One last thing, I see where foreclosure proceedings have begun a few days after I submitted the offer. I also found out the house right next door is in foreclosure as well.
Thanks for any insight you may have!