Ok,

I'm really not sure what to do about this.  I am trying to get an offer for a short sale.  We have an ATP with a certain price that might have worked if it wasn't found out that the home has major foundation issues.  

I have sent the structural engineer report to the lender (Round Point Mortgage) so that they understand that I am going to need to drop the price dramatically and invite only investors to make offers.

Any advice out there on what else I can do so that if and when I do get an offer, I can speed up the approval process to the negotiator?  

Thanks in advance :)

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You may will need to open up a value dispute if you are unable to obtain an offer that NET's 88% - 84% of the ATP value. The structural engineer report is a good start, but you likely will need 2 licensed contract bids as well with colored photos and itemized expenses. If roundpoint mortgage won't open up a value dispute or if the value dispute does not come back in your favor, I'd open up a case with HUD to get a HUD counselor involved. Having another appraisal is also a potential option.

Let me know if you have any questions as my door is always open.

[email protected]

310-564-6389

www.ishortsalenow.com

Thanks Brett,

I had e-mailed the mortgage assistant and sent her the actual report.  She told me that she would contact HUD to see what could be done.  

I can work on the contract bids so that I have them ready to go should they require them.  

Hello Brenda,

This is one of my favorite situations here is what worked for me:

*120 days on market at ATP value - current

*Structural engineers report - completed

*Call 3 reputable foundation repair companies for 3 bids to cure based on Engineers report - immediately

*have borrower send you an email requesting bank to reveal appraisal to determine if the comprised foundation was adjusted for in the appraised value? (most appraisers make a comment but don't adjust monetarily because they are not structural engineers or foundation repair guys and the liability is many times too great so they pass the buck to just comments) - NOW

*After receive reports from foundation repair companies in your opinion taking the middle value of repair bids off the ATP value , Can you sell it for this? - know this move on

* If Bank provides you with appraisal and there are NO adjustments for the foundation cure take ATP minus the middle repair value x 88-90% now can you get an offer at this value - reduce SP on market accordingly to get that buyer to make an offer - send back your value report with the appraisal pages that cover adjustments circle comments where no monetary adjustments have been made for foundation issues with 3 bids to cure foundation at a value based on these facts with your 3 comps

NOTE: Sometimes on a compromised foundation "all things considered" getting to that reduced value (example above) may not be low enough to get it under contract - make sure after above step you reduce value to see if an offer comes in  while the clock ticks and you continue to move forward.

*If the bank provides you with an appraisal and there is adjustments for the foundation then compare it to the middle value of the foundation repair bids, if they are off adjust. Try to comp subject to only properties with foundation issues within one mile if you can find them attach this info to your comps and send in.  If you are still not at a value appropriate and there exists only one appraisal on property have borrower send you an email demanding a 2nd appraisal on the property.(2 max on life of loan for FHA)

NOTE: If the bank does not respond to you favorably for the borrowers sake to do the 2nd appraisal open a Deval ticket so HUD can make the bank Perform and HUD will make sure an appraisal is ordered.  Now you have HUD working on your side as you approach the termination of the ATP to avoid a possible foreclosure date.  Make sure you reduce the property SP to a value you know you can sell it for before the 2nd appraiser gets out there.  This is the value you established through all these efforts that a buyer would be "Willing and Able" to pay for this property based on it's condition.  You want all parties to understand this thought of the value so list it there and be strong in your conviction because you lived it & you have paper to back it up with the time & value reductions on market, foundation bids, engineers report, buyers feedback etc...

NOTE: A bank adjustment of the sales price to the ATP still expires at the original ATP's termination date so you want to continue to reduce the sales price.  If you finally have your reduced SP where you can sell it and the termination date comes and goes aggressive gradual reduction is in order to get it under contract because a foreclosure date can be established.  Once under contract you are back at the bank and HUD still has an open ticket so remind them you have an offer now and they will assist in keeping the foreclosure at bay to process the possible short.  Are we having fun yet???:)

Good Luck!:)

Kelly Jack

OMG...lol..I will need to print this out to follow the instructions :)!  Sounds like work HA!  Thank you so much!  I love this site!

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