FORECLOSURE LOOMING? Don't wait until it's too late...

FORECLOSURE LOOMING?  Don't wait until it's too late...

I had a gentleman come by my office this morning who wanted to know if I could help him.  His home had gone into foreclosure last summer and his parents were trying to purchase the home for him.  They had hired a person who happened to have a broker's license to write an offer to purchase the home.

Even though the Sheriff's sale amount was well over $140,000 the broker put in an offer of just $80,000.  I asked how that number came up and I was told it was arbitrary in an attempt to get a counter offer.

Right there was the first mistake. 

#1 Lenders generally will not give a counter offer unless you are within a few thousand dollars.

#2 Lenders will not sell a note or short a note when there is significant equity in the home above the amount of the Sheriff's sale.

#3 In this case the parents were willing to buy the home for the redemption amount (plus taxes, closing costs, etc.).  It was foolish to try to make a low ball offer.

#4 Due to the broker not following up regularly, the redemption period had expired and the chance of saving this man from being evicted is unlikely.

The moral of the story is to be sure you hire someone who has actually successfully negotiate a short sale (or two or three).  As for the names of the other people they helped and ask if it's alright to call them.  You only have one chance to get this right so don't take someone's word for it... hire someone with a proven track record.

If you are unsure get a second opinion.  All too often when you are vulnerable it is easy to take the word of a supposed expert.  I know if I had been contacted just 30 days earlier I could have saved this mans home.

The short sale process is quite easy...it's just hard to do one successfully if you don't know what you are doing.   Feel free to contact me with any questions.