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.
First Weber Group
Certified Distressed Property Expert
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.
Ray Spitler, Associate Broker, GRI, CDPD, CSSP, CSSA
Keller Williams Realty, Saginaw, MIdland, Bay County MI
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
Tom Webb, Realtor
Certified Distressed Property Expert (CDPE)
Acres & Homes Realty Inc.