Over Leverage Or Short Sale?

An over leverage home is one that you want to stay away from… meaning that the amount owed is more than what the house is worth, even more than the AVR. About the only thing you can do with these homes is list them.nnAn exception might be if there is significant damage to the home, for example if there is fire damage. Under these circumstances, selling the home by traditional means may not be an option. The average buyer does not want to buy a house that needs repairs, they want a house that is ready to go… ready to move into and start making it a home. nnBut people in this business are not the average buyer. In fact, homes in this condition are exactly what is sought after. Spending a couple thousand dollars in repairs is all that is needed, and then the house is back in shape to sell to that average buyer, which is what generates our profit.nnComplications can creep in when it is a HUD home. They usually insist on listing the home, which only a realtor can do. But again, we’re dealing with a home with excessive damage which can’t be listed the traditional way. So, do you just tell the mortgage company the place had a fire so there's no point in listing it because no body's going to buy it, or should you play the game for a while? nnThat's really the question. Well, the answer is you're going to need to play the game. HUD mortgage companies have a set of parameters that they have to push this thing through in order to get it to meet their criteria. Because even lost mediators are subject to internal audit and if a deal ever comes up down the road as having not been done by the book, their butts are on the line. One of the most common parts of a short sale is for the seller to have had the house listed at one time previous to your negotiation with the bank. The bank wants to know that all normal methods of selling this house for some value greater than what you would presumably offer have been exhausted.nnYou may also be wondering if you should let the bank know that the place is vacant until they've figured out for themselves via the VPO or something. It is preferred that the house be vacant and you having the control of it and being the VPO contact. So at that point you're going to have to disclose the fact that it is vacant because they are going to need to get in it to do the VPO.n