Expert: Brian Bocchieri - 1/20/2008

Question
I am about to try to negotiate a deal on a commercial property that the bank is about to foreclose on. They said the current owner will surrender the deed in lieu of foreclosure. The owner owes more than the property is valued at, (according to the bank.) I have purchased properties in the past, but only through normal channels, realtors,so I no nothing about these procedures.The man in control at the bank said as soon as he gets the appraisal back,( He needs a starting point, he said!), he will give me a walk through. What kind of contract do I need to give him with my offer to lock this up? He seems receptive and appears that he wants to sell it before he has to turn it over to their real estate broker to sell. Where do I get a good contract, and what should I look out for? I never did a transaction like this before, any help would be appreciated. Thanks,
                      Rick

Answer
Rick this is a great question.

If you are familiar with short sales this does work in the commercial arena also.  Your first step is to establish the value either by appraisal or your own investigation.  Next do your title work to find out the mortgage balance and other leins.  Once these items have been established you can begin to craft you offer.  

You can contact the bank and ask for the loss mitigation department to ask them what documents are required and to send you the document package.  As far as the contract any type of real estate sales contract should work unless the bank requires something other.  

This is only a very quick "short sale course" I hope this is a help.  If you would like to speak to me directly send an e-mail to brian-bocchieri@hotmail.com and I will give you my phone #  

Wishing you all the best and looking forward to speaking to you

Brian Bocchieri