If your scheme is successful, this post will be very useful in proving a fraud case against you. As Keith noted, this is far from an arm's length transaction.

Tim,
I took a look at your property and sympathize with your dilema. Your home looks beautiful.

Canyon Isles, like most of the homes in the GL Home communities took a substantial hit to values and the Chineese Drywall issue is not helping.

It appears you already took a large financial hit, and based on recent sales of similar homes, the value is somewhere between $500,000 - $530,000.

As some others have indicated, it may be better to just move on and not look back. Here is why.
At a $500,000 sale price, with $9,600 in property Taxes, $215.00 HOA, and about $3000 in insurance, the expenses are $15,180 or $1265.00 month. An investor would need to charge at least $5,000 in rent to make the transaction work. Better to put the $5,000 to better use, scale down, and rebuild your credit, so you can purchase a new home in 2 years.

We are here to help, no strings. Give me a call.
Craig Fialkowski GRI, CDPE
Herman Group Real Estate
561-827-1790
NewFLproperties@gmail.com http://www.FL-ForeclosureHelpNow.com

Hi Tim,

i think it's cleaner to short sale your property and move on with a new home elsewhere. However, you can go to this website to find your local real estate investor club to see if any investor is willing to do this with you. http://www.reiclub.com

Good luck!

Tim
Most lenders that agree to a short sale have language in the approval letter that stipulates that this must be an arm's length transaction, meaning that there is no way you can stay in the house, even as a tenant.

If you do that, you might be charged with mortgage fraud. Talk with a REaltor about your options. Your idea is not uncommon and never (to my knowledge) permitted.

Tim,
I am a CDPE - Certified Distressed Property Expert, who has been negotiating Short-Sales for over 2 years and have several contracts pending.

Every situation is unique and lenders do not have to approve a short-sale, although most will, as long as you can show a legitimate hardship or insolvency.

Short-Selling I don't think will be an issue, finding an investor will be the challenge. Most investors are not looking for luxury real estate for long term hold. Most are looking to make a quick buck. Are they out there, absolutely. I work with several who will contract to purchase the property immediately.

A lot has to do with how much the lender is willing to net out of the proceeds of the sale. We find in many cases, what the banks want and what investors are willing to pay are in different solar systems.

Investors want 9% or better return on their cash after expenses. So here is how to calculate what an investor may be willing to pay.

Take what you are willing to pay in rent and multiply it by 12. (That is the Gross Income)
Now total the annual expenses: HOA, Taxes, Insurance, Lawncare, Pool care if required (Expenses)

Subtract the Expenses from the Gross Income and you have NET income.
Divide Net Income by 9%, and you get a purchase price.

I have a feeling the price you come up with will be far lower than what you think.

As mentioned earlier, every transaction is different and this will require further discussion.

Please give me a call. I can get the property under contract in 3 days with an investor, and submit it to the lender. Thisgenerally takes 2-3 months to complete as long as the lender is cooperative.

Feel free to Google my name.

Craig Fialkowski GRI, CDPE
Herman Group Real Estate
300 Avenue of Champions
Suite 230
Palm Beach Gardens FL 33418
561-827-1790
NewFLproperties@gmail.com http://www.FL-ForeclosureHelpNow.com