OfflineOK so i have a question. i have a friend whos doing a short sale on her house. and a investor walked to her and told her that when her house is in short sale she cant make more than $5,000 in profit.. is this true...??? does the owner have a limit in profit..??
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do a short sale on your house you NEVER get any money at the closing table. The bank is allowing you to sell for less than what you owe, so there should be no profit at the closing table. The only thing I can think of that the investor might have been trying to explain is that some banks have a cash for keys program. Some banks will give a homeowner up to $5k if they leave the property in broom swept condition.
how can i make a profit from the house if i make a shot sale for her property im doing all the work...?
if you're an agent
If you're just someone off the streets, I doubt you'll even be given the final authority. I might be wrong....
huh interesting.. ok. so i could try to sell it before the short sale is approve.. in the mean time we get an extention for the forclosure
it has to be for the price that satisfies the loan
If you owe $150k and the house is worth $100k the bank of buyer will only approve what its worth, so they'd have to come up with the difference.
Unless your pipes are solid gold, I doubt anyone will pay up the additional $50k
Dont think ive ever heard anyone getting an extension on the foreclosure once its in progress
well my friend is going through a divorce and she has a house that cost $600,000 and there is around $400,000 on the loan and we are trying to do a short sale. she has been call to move by the end of the month because she hasnt paid on a year. im hoping that since the bank is giving her a forclosure they would extend the process because of the short sale. we are planing on saling it for $250,000 to $300,000.
Now don't hold me to this but I Think:
Being you're friends with her and not related you could use some sort of transactional funding to put an offer in on the property, get it under contract and wholesale it via a double closing.
I've been told by a local short sale guru that if the family (same last name as the mortgage holder) who is going through the Short Sale profit from the sale, it's considered a crime of some sort.
That's the only way I can think of that you can profit from a shortsale, from the selling side of things.
I'm sure Elix could correct me If I'm wrong. The very last thing I want to do is spread false information, so do your due diligence on the subject. I'd love to hear how it works out for you.
Matt
If only I could remember I put a post up on the forums.
Thank you everyone for all the help. I really appreciate it