AFTER A SHERIFFS SALE
DWAN, I AM ONE OF YOUR STUDENTS WITH THE TELECONFERENCE BOOT CAMP ON SHORT SALES. FROM MICHIGAN I SENT A HOMEOWNER IN FORECLOSURE A FLYER A FEW WEEK'S AGO. SHE CALLED ME YESTERDAY AND SAID HER HOUSE HAD ALREADY GONE TO THE SHERIFF SALE. THE REDEMPTION PERIOD IN MICHIGAN IS 6MTHS. SHE TOLD ME THAT I WAS THE ONLY ONE THAT SENT HER A FLYER BUT SHE DIDN'T KNOW WHAT TO DO! SHE WANTS TO KEEP HER HOUSE. I DIDN'T KNOW WHAT TO TELL HER SO I SAID I WOULD PUT GATHER SOME INFORMATION ON WHAT HER OPTIONS WERE IF ANY AND CALL HER BACK TODAY. SHE DID KNOW THAT SOMEONE BID ON HER HOUSE. I DIDN'T GET MORE INFORMATION FROM HER BECAUSE I DIDN'T KNOW IF IT IS TO LATE. OR IF THERE ARE OPTIONS TO CONSIDER. WHERE DO I GO FROM HERE? WOULD APPRECIATE YOUR HELP.
THANKS
IRENE FROM MICHIGAN
In the redemption period, the homeowner has the right to purchase their home back. But, if you help the homeowner save their home, then you may be in for more problems than you anticipated. The homeowner most likely wants to stay in their home. The problem with that is if you fork over any cash to help them get their home back, then try to lease/option the home to them...they could sue you and consider the money you paid a loan. I would let this one go. Tell them you cannot do anything since it went to auction already.
Tanya
You really don't share with us any numbers with which to base our answer.
Generally speaking, the Homeowner can sell to you (for $1) the Right of Redemption. If the numbers satisfy your acquisition criteria, you can Redeem as Owner by financing the redemption as you would any acquisition. Then, you can allow the former homeowner to stay as a simple tenant, or, you can extend a tenancy with first right of refusal, or as a tenant with an exclusive option to repurchase.
If there is some equity and the numbers support an acquisition, go for it. Be certain that all liens have been indentified and quantified before you lay out a nickel.
THANK YOU FOR YOUR HELP! I CALLED THE HOMEOWNER BACK AND FOUND OUT THAT SHE IS A SINGLE PARENT ON ADC WITH FOUR CHILDREN. HER TOTAL MONTHLY INCOME NOW IS $700. SHE HAS NO EQUITY. I DON'T KNOW HOW SHE DOES IT BUT SHE HAD TO DEAL WITH SOME CUT BACKS AND THAT IS WHY SHE COULD NOT MAKE HER HOUSE PAYMENTS. I TOLD HER THAT SHE HAS TO BE REALISITC IF SHE COULDN'T MAKE HER HOUSE PAYMENT IN THE LAST FOUR MONTHS SHE WOULDN'T BE ABLE TO IN THE FUTURE WITH HER MONTHLY INCOME BEING LESS. SO I WILL LET THIS ONE GO.
APPECIATE THE HELP!
IRENE
So you've left the distressed homeowner to fend for herself, huh? You can't make a dollar, so you will "let this one go..."
That might set well with you, but I am of the opinion that our's is a business of building relationships, and providing customer service. I've also learned that people in financial distress often have friends in financial distress. Do right by one of them, and they'll refer you to their friends.
Therefor, would you be so kind as to ask the Homeowner to get into contact with a non profit organization at:
www.SPOCH.org
who will try to help to position her for future creditworthiness... without charge, of course.
WOW! EXCUSE ME! I DIDN'T SAY I WASN'T GOING TO MAKE OTHER SUGGESTION'S TO HER DID I? I AM APART OF THIS FORM BECAUSE I AM SEEKING POSITIVE HELP! I SAID I WAS GOING TO WALK AWAY FROM THE INVESTMENT PART. THE RISK IS TO HIGH I CAN NOT HELP HER. FYI I WAS THINKING THE SAMETHING THEIR HAS TO BE AN ORGANIZATION THAT WOULD BE ABLE TO HELP HER SINCE SHE HAS HANDICAP CHILDREN. I AM JUST GETTING STARTED IN THIS BUSINESS. MY GOAL IS TO ALWAYS GIVE BACK AND HELP WHERE I CAN. IF I CAN'T HELP I WANT TO BE ABLE TO HAVE OTHER RESOURSE'S FOR HOMEOWNERS WANT TO KEEP THERE HOME. I WOULD APPRECIATE POSITIVE HELPFUL REPLYS WITHOUT BEING JUDGED. THANK YOU
peace man
THERE YOU GO! THANK YOU
I'm glad that you had given their situation a bit of thought, and will point them in the right direction. The majority of investor wannabees's offers to help the distressed homeowners end up with a simple abandonment, having wasted the homeowner's prescious time, leaving the homeowner worse for the encounter.
If I misjudged your intent, I'm sorry.
I KNOW I WILL HAVE MORE QUESTION. HOPE THAT YOU WILL BE ABLE TO HELP ME IN THE FUTURE. THANK YOU.
SINCERELY,
IRENE
Shortsalepro, it is great that people here will help others with advice. On the other hand it is not their responsibility to judge these same people. I am sure that everyone on this forum has done something that they regret or just wish they never did. It is simply just being human. Now with that in mind, these same people do not have the right to pass judgement on others. Especially if they have never met those people. I don't care if you think that you should help everyone that passes you by. That is your opinion and the way you need to live. Don't insist or judge people just because they don't live by your rules. I think that you add to this board with your knowledge but you need not cast stones because you don't agree with someone or the way they typed an answer. I would rather you not contribute to this board if you are going to judge others. You may know a lot about short sales but it doesn't give you the right to judge other people's actions or statements.
Just my humble opinion.
Tom
Hi Renie,
Could you stop YELLING please.
And that's why I don't invest in pre-foreclosures: legal and moral implications Sorry, just had to throw in a few pennies there. Carry on!
Roger
WOW!! Lots of answers on this one.
Just so you know, Renie, there is a fantastic charity called "Adopt A Family" that we support. I believe it is a nationwide program. The jest of it is this... families in distress with no place to live are placed on a "tough love" program. Adopt a Family puts the families on a very strict budget, finds them a place to live, if needed, puts them in counseling, and helps them work their way off the program.
The reason it is called Adopt a Family is because someone (like us) subsidizes (or adopts) the family their monthly shortage until they work themselves off of the program. We have a family we subsidize $300 per month. They will be off the program later this year. It is our second family.
I figure we make our living from folks in distress, why not give back as much as we can.
Don't feel bad when you can't help a homeowner. Remember, you did not get them into foreclosure, you are just trying to help. Refer them to a charity or church organization when you are unable to come up with something and you'll do fine.
Talk to you Monday.
Dwan
DWAN,
SOME OF THE COMMENTS SUPRISED ME. EVERYONE HAS THERE GOOD DAYS AND BAD DAYS. I WANT TO LEARN FROM ANYONE WILLING TO HELP. THANKS FOR YOUR SUGGESTION. I THINK I MAY HAVE FOUND AN ORGANIZATION THAT COULD HELP A HOMEOWNER IN THIS SITUATION. I MAY NOT ALWAYS BE ABLE TO MAKE A PROFIT BUT HELPING SOMEONE WITH OTHER OPTIONS TO KEEP HER HOME OR FIND ANOTHER WILL FEEL JUST AS GOOD. THANKS EVERYONE FOR YOUR HELP!
IRENE
Renie,
I do believe you might still be able to do something with this property. I have the privilege of traveling with Dwan & Sharon, and have met others around the country that work on Short Sales during the redemption period. Since you are taking the course, you should look into applying your newly acquired knowledge to help this woman. Think about it, the bank can not do anything with this home for 6 MONTHS!!! It looks like you can help the bank get rid of the property sooner and you might also be able to put a few bucks in the homeowner's pocket.
I saw that you are looking into finding local organizations that can help these families in distress. Let the organizations know that you specialize in assisting homeowners in distress and they just might send them your way. Don't forget to include them in your donations.
You must GIVE in order to receive.
Good luck with this one,
Juan