This was a personal favorite of mine so let’s get right into it. An investor purchased this property whom later resold it and made a profit. This is theperfect example of how working with an investor can be beneficial to both thebuyer and seller of the property.The background of this deal is typical of many seller’s in foreclosure. The subjectproperty is located in a booming area next to downtown Chicago that just wentbust as the market crazed. This new neighborhood full of lofts and new urbancondo’s had overbuilt built and dozens of developers building’s were comingonline right at the crash. The seller just got married and had new born on theway so a 1 bedroom was not cutting it this new family. He needed to move outbut he didn’t know what to do since he owed more than what he can sell it for.Now the key to this deal is that the seller remained current on his mortgagepayments throughout the short sale process. Since the seller needed his creditintact he did not want to begin missing mortgage payments. Remember it is afalse myth when someone tells you that you cannot do a short sale when theeseller/borrower is current.BPO value came in right where we needed it to be to settle out the 1
lien.However, since the borrower was current on payments the 1
Lien demandedthat the borrower contribute a $5,000 cash contribution to be paid at closing. Theseller didn’t have the money to do this but since the investor was getting a gooddeal on the property he didn’t mind coughing up the extra $5,000 to the first lien.