Texas Short Sale » Buy a short sale http://texas-short-sale.com/blog short sale real estate Wed, 09 Mar 2011 19:25:42 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 Buying a Short Sale with CASH http://texas-short-sale.com/blog/buying-a-short-sale-with-cash/ http://texas-short-sale.com/blog/buying-a-short-sale-with-cash/#comments Wed, 09 Mar 2011 19:25:42 +0000 admin http://texas-short-sale.com/blog/?p=98 A new trend seems to happening to folks buying short sales with cash. With a cash buyer there is no need for the property to have “value comps” to justify and approve a loan, banks can use an inflated market value BPO/appraisal to see if the unsuspecting buyer will pay more and take their “bait”. Cash is still king in this market, but more than ever cash buyers must have an accurate market value of the property their seeking. Remember every dime the bank can recover from any party of the transaction helps minimize the investor’s loss.

Now that we understand their game of short-sale cash a little better, lets get in the game. Consider the buyer get preapproved for an FHA loan with the lender servicing the property. Any servicer will take their short sale approvals into consideration if they are getting the other end of the loan. Also the FHA loan offer may have a better chance of being accepted due to the FHA value approval process.

Once the approval letter is issued, depending on the verbiage the buyer may be able to swap for cash before closing. Otherwise they can payoff the loan right away if needed. Either way, don’t let your strong cash position as a short sale buyer pay an inflated price for a distressed property.

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]]> http://texas-short-sale.com/blog/buying-a-short-sale-with-cash/feed/ 0 HOA dues and Short Sales….oil and water http://texas-short-sale.com/blog/hoa-dues-and-short-salesoil-and-water/ http://texas-short-sale.com/blog/hoa-dues-and-short-salesoil-and-water/#comments Thu, 23 Jul 2009 01:23:46 +0000 admin http://texas-short-sale.com/blog/?p=11 Recently I had the opportunity to negoiate a short sale that had past due HOA payments.  The payments were over a year behind and the association had put liens on the property.  Two weeks before closing the homeowner received a foreclosure letter stating the HOA was foreclosing next month.

I was never so frustrated that the HOA “board” demanded full payment.  After every party involved in this transaction made monetary concessions to work together to a reasonable close, the HOA would not budge.

What I have learned is that in certain instances like this, the HOA would be the first paid at the sale.   Even before the first mortgage.  They have nothing to lose.  They always get paid.

Point being, when HOA liens are present and they have filed to foreclose, get the sellers lender and the other parties to absorb the HOA blood money!

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