As a new Distressed Property Expert my goal is too try and help as many people in distress as possible. I just discovered that there are many homes in my area that are scheduled to go to auction next month and they are not listed. Is it too late to try to help at this point or is there still a chance that I can do something? Anyone out there in the Houston area familiar with the process once a date has been set? Can we still stall the proceedings this late in the game? Thanks for any help you can provide
I have a client with a Jan. 6 auction. We have a offer but they will not review it and state foreclosure is the only option. Will not let client deed in lieu either. Bank is P and C. Any body have any advice?
I like to scope out the FHA ones and get them into the FHA Pre-Foreclosure Sales Program. This gives you at least four months to get the property marketed correctly and get it under contract (unless some bonehead appraiser comes in and appraises the property significantly above market value - another issue for another day).
The tough thing is that their appraisals seems to be notoriously high for these deals in my experience. And after the time period, they are DONE, and will not consider other offers and will let it go to foreclosure. The other pitfall is that the will not pay buyers closing costs if I remember correctly, unless the borrower is getting an FHA loan than they will allow 1%.
But having a HUD approval to participate in hand certainly speeds things along, but the 90 days is not enough in some cases. If I remember correctly it also gives $1,500 back to the borrower. This is an older program.
wanted to give a bit of info on FHA short Sales as well. I have had several FHA appraisals come in way to high, so I contacted the bank requested another appraisal be done, when they wouldn't do it I contacted FHA directly. In the guidelines for FHA it says another appraisal can be done and the best part is the bank does not pay for it, FHA does, so there is no loss to the bank. Remember that everyone! It has helped me with two of my transactions. Good luck!!
The beauty of this program is that acceptable terms are known upfront. Also, HUD WILL pay up to 3% in closing costs as long as their acceptable net profit is met. If your negotiator states that HUD will only allow 1% in closing costs, ask him/her to request a variance for you. Good luck!!!
@ Mike...I will be the first to admit that I've had appraisal issues with them and, if it comes in too high, then it's pure torture from then on. However, as far as the closing costs are concerned. HUD will pay up to 3% on an FHA as long as their minimal net has been met. You must request that the negotiator request a variance for the additional closing costs. It normally takes a couple of days for the response to the variance request.
short answer is that it is never too late. I have had at least two or three that i have been able to stall and get an extension on the sale date when the sale date is only 7-10 day out. Sometimes you just need to get authorization and call and ask for the extension. Pending who the investor is they will usually give you an extension. hope that helps.
I attempted to help a client to modify for his home one month prior to sale date and helped him to get it modified and got put on waiting but the client finally got modified. \
When speaking to the negotiator about short selling the property in case he could not modify, the reply was, It has to be at least 15days prior to sale to put your listing or sale contract in.
They usually contract with a company at least 10 days priosr to the sale date.
hope this is of some help.
Coldwell Banker Premier R E
Clovis, Ca C: 559-360-4940
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