Foreclosure in Saginaw>Question Details

Harborbuyer, Home Buyer in Saginaw, MI

Short sale durning redemption period in Michigan. The house next to me just sold at sheriffs auction for $215,000. Is it possible to offer less than?

Asked by Harborbuyer, Saginaw, MI Thu Jul 22, 2010

that? and how likely would it be accepted? The house has never been marketed, because the owners had the feeling of just "giving it back" after a job loss. Speaking with them they would be open to short sale. How complicated would this process be. I understand I will need an attorney, which is no issue.

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Keith Manson- Metro Milwaukee Wisconsin’s answer
The property must be listed with a real estate agent and needs to be a arms legth transaction. In addition the seller needs to meet the banks requirements to be eligible for a short sale. You can hire a attorney but to do the process what you really need is a agent that is experienced in short sales and knows how to deal with the lender that hold the loan.

This transaction needs to the mortgagors idean and not yours as the buyer. There have been lots of fraud with short sales in the past and the lenders and the FBI are cracking down on those that try fraudulent transactions.

Good Luck
Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Fri Jul 23, 2010
The short sale process can take 30-60 days depending on the Bank you are dealing with on the short sale and the Agent who is handling the short sale. You should be sure that an experienced Agent, one who is certified to handle these transactions is working on the sale. The Agent should have a CDPD or CDPE designation, or at least a SFA. Otherwise it may never close and end up a n REO with the bank. It is always wise to consult an attorney, but there is less for the Buyer to be concerned with as along as you get clear title from the Seller.
The Seller should seriously consider the short sale as it dramatically improves their overall financial situation versus a foreclosure, and their are usually no closing costs unless the bank demands something from them to settle the account. Otherwise all closing costs are paid by the bank including Broker fees.
If you pursue the purchase, be sure to get pre-approved from a Lender and include your pre-approval letter with the offer to purchase. You can offer less than $215k. Have your Short Sale Agent advise you on what might be an acceptable offer based on "current market value", not what is owed on the mortgage. They may accept about 88% of current market value. The actual number depends on the type of mortgage and if it has PMI.

Good luck!

Ray Spitler, Associate Broker, GRI, CDPD, CSSP, CSSA
Keller Williams Realty, Saginaw, MIdland, Bay County MI
http://www.MBShomes.com
(989)607-6252
Web Reference: http://MBShomes.com
0 votes Thank Flag Link Fri Jul 23, 2010
Hi

You should also utilize the services of a short sale real etate agent, like a CDPE agent. Their services (commission) are free to the seller because they will be paid by the lender at closing. The agent will consult with homeowner to understand their situation. Help the homeowner understand the foreclosure and short sale process. Review the benefits of a short sale vs a foreclosure. Review role of the Homeowner and Agent during the process. Make sure all documention meets the lender guidelines. Prepare a CMA or BPO to support the offer submitted. May themselves or have a third party (attorney) negotiate the offer with the lender. A short sale can be done, but you do need to act fast because time is running against the owner and the chance of short sale acceptance by the lender decreases the closer it gets to the redemption period.

Mike Warren, CDPE, SFR
Keller Williams Realty
0 votes Thank Flag Link Thu Jul 22, 2010
This is possible, but more complicated since the sheriff's sale has already occurred. As long as the property is still occupied, the owner has 6 months to "redeem" the property. Some banks will still consider a short sale during this redemption time frame. I can assist you with negotiating the transaction with the bank if you and your neighbor are interested. Feel free to contact me at tom@tomwebb.com or 989-492-0650.

Tom Webb, Realtor
Certified Distressed Property Expert (CDPE)
Acres & Homes Realty Inc.
0 votes Thank Flag Link Thu Jul 22, 2010
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