This property could have been featured onHGTV or MTV Cribs because it was sounique, large, and modern. I wanted to move into this one. Although thisproperty was sold at a high price point it was a fairly straight up short sale andnot overly complicated. In the course of several months the seller’s weredivorced and one of them lost their job. The property had to be sold becauseneither owner could afford to live there on their own. The property was originallypurchased for $750,000. Soon afterward the seller’s had the property they had itreappraised for 1,000,000 and some overinflated appraisal. Here were thefigures on this:The total net loss on this property was high and the bank ordered several BPO’sto determine what the 30-day sale price would be. The comparable’s in theneighborhood showed nothing even close to what the mortgaged amount was.Consistently, the BPO values came in the low 600’s and the bank agreed to apurchase price of $642,000. However as, negotiations with the bank continuedthey requested/demanded that the buyer make cash contribution of $10,000 andassume the prior years unpaid tax bill of $9,000 in order to provide the fullrelease and no deficiency judgment rendered.Furthermore, the HOA (homeowners association) for the building had two liensthat appeared on the title report and amounted to $4,000. In order for anyproperty to be sold in this building both the water and tax liens needed to be paid.Although, it was the HOA’s responsibility to make this payment it was unclear when and how they were going to make this happen. Also, the seller of theproperty had not made several payments for assessments to the HOA and
CaseStudy
Exampleofhowworkingwithaninvestorcanbeabeneficialarrangementforallpartiesinvolved.1
st
Lien:HSBC,$949,0002
nd
Lien:None30-DaySalePricebasedonpropertybeinginfairconditionasadistressedproperty:$615,000-$645,00030-DaySalePricewithallHOAliensandbackdueassessmentspaid,propertynolongerlabeledasadistressedproperty/shortsale:$689,000-$724,900
Search History:
Result 00 of 00
00 results for result for
p.
More From This User
Notes
Load more
