Property Needs Work
If your property needs carpet, paint, windows, roof work, electrical work, plumbing, foundation work, mold remediation, or any and all other kinds of repairs, do not worry, you can still sell. For the purposes of short selling, the main difference between a retail-ready property and a property in need of work, is the buyer. If a property is in great shape, the sky is the limit on who the buyer will be. If the property needs alot of work, the buyer pool is much more limited. Most likely, a buyer for a house in poor condition is an investor who will pay cash and make those repairs so that they can put it back on the market and make a profit. It could also be an investor who will put less money into it and then rent it. There are lots of strategies that investors employ and there are alot of investors out there. The thing for you to keep in mind is that the bigger the loss the bank takes the more likely they will want to file for a deficiency judgment against you. In a short sale, it is possible to get the judgment waived if the contract has language that specifically stipulates that. Check with your attorney or accountant to make sure. If you let your property go to foreclosure, the bank will have to sell it out of their REO department and will lose more money than in a short sale. This makes it more likely they will try to win a deficiency judgment. In a short sale, you have control and can try to get that waived, in a foreclosure you have zero control.
The key is to find an investor that has experience negotiating short sales who WANTS to buy a property that needs work. The more work your property needs, the more negotiable your bank will be. If you do not have a friend or associate that invests and has adequate financial resources, I can help.
Nick Graff
847-629-5400
