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First Condo...need help

Posted by Smitty on November 11, 2010 at 9:50am in Short Sale Discussions

I'm short saling a condo that is not part of an association and doesn't have fees.  I've been told by most buyers that they cannot get financing because the other unit is not owner occupied, so a cash offer has to be put in. 

 

My buyers put in a cash offer of $248,000, but the net was around $220,000.  Lender came back today and said they want to net $261,000.  The buyer will go up to $273,000 for an offer but that only nets the lender $253,000.  So is it worth explaining to the lender that ONLY cash offers will work here?  What can I do? 

 

What strategies have you used to work down the net amount a little?

It's serviced by AHMSI.

 

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Replies

  • Smitty November 13, 2010 at 11:00am
    Jim, I just looked there and didn't see it. I'm very interestd.

    Jim Schneider said:
    Smitty,

    what you need is a matched pair analysis, sounds complicated, but is really simple. As it is an explanation that would be helpful to those interested in bpo's, I will put my full explanation in the bpo forum on this site.
  • Smitty November 13, 2010 at 11:00am


    Malcolm McLean said:
    Who is the lender?
    How much do you owe? 1st and 2nd Td's?
    How many units in building?
    How many are FHA loans?
    Do you own any other units in the building?
    Are you delinquent?

    :)
    Lender AHMSI with Option One. Homeowner owes $350,000 but with fees and back payments it's up to $400,000. Two unit building. I have no idea if the other loan is fha or not. - Homeowner is about 10 months delinquent
  • Jim Schneider November 12, 2010 at 5:28pm
    Smitty,

    what you need is a matched pair analysis, sounds complicated, but is really simple. As it is an explanation that would be helpful to those interested in bpo's, I will put my full explanation in the bpo forum on this site.
  • Malcolm McLean November 12, 2010 at 2:01pm
    Who is the lender?
    How much do you owe? 1st and 2nd Td's?
    How many units in building?
    How many are FHA loans?
    Do you own any other units in the building?
    Are you delinquent?

    :)
  • Smitty November 11, 2010 at 1:31pm
    I called a portfolio lender local in my area today and they verified they won't lend on a condo where over 1/2 of the units are investor owned and unfortunately that's our case. I did meet the appraiser and show comps that justified our offer price.

    I think the only thing I could offer at this point is the listing history. Its been on the market since FEBRUARY without an offer. This offer is solid and cash so I could counter just below their desired net with the listing history.

    Any other ideas?
  • Louise Dela Cruz November 11, 2010 at 1:05pm
    This is why when the agent or appraiser goes out to get the property value it is vital you meet them. You can then give them information they need to know and it will be considered in the report given to the bank. Remeber you are NEGOTIATING; just because the bank wants to see a # doesn't mean they will get it so advocate, and negotiate on behalf of your seller and buyer. Also, FHA has restrictions on owner to non-owner ratios etc. however non-owner or conventional should not be an issue to purchase.
    You need a lender to tell you it is not a property that can be financed and why; if in fact this is the case.
  • Janet Nation November 11, 2010 at 10:18am
    I can't figure out if you the author is an agent or the seller. At any rate tell the bank the same thing you told us, provide supporting documentation (comps) to justify the offer on the table. How long has the condo been on the market, what is the condition like, add those factors if necessary. even get an appraisal done if necessary.
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