Short Sale Deal Case Study – Part 1
This week on AskMike, Mike Moulton takes you on a ride in his MDU (Mobile Deal Unit) on the streets to a real estate deal that he is working on that requires a short sale. Mike discusses the deal overview on the way to the property and then debriefs afterward. This is an interesting deal because the loan is in a deceased borrowers name. Watch the video below for the details and see the numbers of the transaction below. Mike will introduce new videos as the deal unfolds. A special thanks to Tim from California for writing in and asking us to walk through a deal.
Here are the high level numbers for the deal (I update to more precise digits in a later video as we work the deal):
House value in market condition = $185K
Current mortgage balance (1 loan) = $176K plus a few back payments, interest, etc.
Estimated Repairs (carpet, paint, appliances, blinds) = $6K
Our offer to the lender = $130, 562 (we always offer a “calculated” number, not rounded off). Generally we take about 85% of what we think the BPO (broker price opinion) or appraisal would be, then 85% of that number (approximately).
If you missed last weeks video on “Can a Foreclosure Be Reversed Back to A Short Sale” then click the linked text.
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Take Care and Happy Investing!