Any Trouble with Short Sales?
Any body want to talk about successful Short Sales? I've done a lot of them!
Any body want to talk about successful Short Sales? I've done a lot of them!
Twyford,
Absolutely! Any experiences you could share regarding Short Sales would be fantastic. I'm especially interested in what methods work best, what kind of information should you get before attempting, what if significant equity is involved, how to convince a subordinate lien to sell, if there is a "standard" form to use to submit to the lender, etc. Let 'er rip!
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To start with you need the Authorization to Release for the mortgage company. On the second you need to sell them on why they should take your offer, example; condition of property, selling comm, holding period, eviction, taxes etc. it's not that hard just using the right scripts, and that's what Dwan and Sharon teach.
Bill, Dwan & Sharon,
Welcome on board this board as channel partners, we have been lacking in your area of expertise in Foreclosure Investing.
Looking forward to reading your posts, thank you for joining us here at TCI.
John $Cash$ Locke[ Edited by JohnLocke on Date 12/01/2002 ]
I love this kind of deal; it's a great game in REI.
I find that one needs to first sell their self to the lender, then sell the benefit of the short sell to the lender by running a numbers game of profit & loss with them if they continue holding the subject property.
Let the wisdom flow, I am waiting just like a fly on the wall.
John Michael
This is definitely an interesting area of investing.
It seems to me that there are less variables involved in short selling, meaning here, you really only have to worry about one thing, making the bank whole, or coming very close to it.
I would like to hear about some specifics if you would care to throw them out there.
Short Sales are to not hard however, you need to get control of your deals. You never need the seller at closing. You can do this with a P.O.A
Bill Twyford
BillTwyford,
I apprecieate you starting this thread. I recently purchased Jeff Kaller's Mr. Preforeclosure course and have found it very informative. I recall seeing Dwan and Sharon at a Seminar last March. At the time, I was still on the steep end of the learning curve, so the info was a bit over my head.
Now, the idea of shorting a mortgage in order to create equity seems quite exciting to me. I live in the Atlanta area so our time frames on foreclosures are a bit abbreviated. If any of you reading this have experience investing in the GA foreclosure market and you've had success w/ shorts, I'd appreciate some tips on how you conduct your business in the typical 30 day window you have from the foreclosure notice to the sale date?
On to my original question: When speaking w/ the motivated seller, how do you write up the purchase and sale agreement in order to tie up the property w/out knowing what you ultimately will be offering (because you don't know how much the bank will discount)? Do you make your offer contingent on the results of your negotiation w/ the bank? If so, how do you structure the offer and the special stipulations?
Any input will be greatly appreciated
Ken_GA
Ok. I have a question about Short Sales and lien buy-outs.
I realize that you need an Authorization to Release signed by the home owner. What can you do if the home owner is in complete denial and is convinced they don't need your help or anyone elses to save them from foreclosure, and therefore, will not sign an Authorization to Release?
What if the home owner has a 2nd or even a 3rd mortgage/trust deed and the 1st (senior lien) is the one instituting the foreclosure? Can you contact the subordinate note lenders about buying their note (discounted of course) without the borrowers knowledge/authorization? I ask this because it seems that you would NOT be acting on behalf of the borrower, but for yourself as an investor.
Doesn't Freddie Mac acquire mortgage notes all the time, without the borrowers knowledge?
Any help/suggestions/insight would be awesome!
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Quote:
On 2002-12-02 18:48, KEA wrote:
Ok. I have a question about Short Sales and lien buy-outs.
I realize that you need an Authorization to Release signed by the home owner. What can you do if the home owner is in complete denial and is convinced they don't need your help or anyone elses to save them from foreclosure, and therefore, will not sign an Authorization to Release?
What if the home owner has a 2nd or even a 3rd mortgage/trust deed and the 1st (senior lien) is the one instituting the foreclosure? Can you contact the subordinate note lenders about buying their note (discounted of course) without the borrowers knowledge/authorization? I ask this because it seems that you would NOT be acting on behalf of the borrower, but for yourself as an investor.
Doesn't Freddie Mac acquire mortgage notes all the time, without the borrowers knowledge?
Any help/suggestions/insight would be awesome!
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Leave your card and move on! Do not waste your time.
Hi Kevin,
If the homeowner will not work with you, just walk away. Or better yet pick it up at the court house steps or sheriff sale.
Yes you can purchase a 2nd or 3rd, but why would you if the 1st is in foreclosure. If the 1st does foreclosure your will most likely have a nice write off. The 1st will have priority over the 2nd and 3rd. The house would have to sell for more than the 1st with cost. What ever is left over will go to the 2nd and so on.
Yes you can contact the subordinate note lender and purchase notes, but most sell in bulk not just one note at a time. A lender usually will not give you the time of day unless you are talking several mill.
You are still obligated by the terms of the note, regulation z, fair credit reporting act, fair credit lending and the list goes on.
If you are interested in investing in re notes let me know and I can direct you from there.
You would be better served seeking out deals that you can make.
Hope this helps,
John Michael
KEVO:
John Michael and LaCashman are both K-REKT AMUNDO!
You don't EVER NEED TO CONVINCE ANYONE that THEY Are in a BAD SITUATION!
There are simply TOO MANY other GOOD DEALS out there for you to WASTE TIME wearing yourself out attempting to SAVE SOMEONE from THEMSELVES!
Look at my post today on PreFORECLOSURE SCRIPT to use...KEVIN just follow the calling method I outlined to ENSURE YOUR SUCCESS!
You will KNOW right there over the phone whether you GOT A LIVE ONE or A DUD!
If you have trouvle finding it I send it to you Email!
Much Success,
DERRICK ALI
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Hey Guys your all right, in foreclosures it's all about Motivation, Motivation, Motivation.
When that is present you should almost close them on the phone. Fax the Auth to release and get it faxed back, Don't waste to much time meeting with these people, meet them at a place close to your house if you need to see them. Have them bring pic's of the house and any paperwork, get them to sign and notorize a irrevokable power of attorney, and a deed, This is so you can take total control of the property, they don't need to show for the closing, great huh? Explain all of this on the phone with the people, Remember, You are interviewing them they are not interviewing you the sooner you realize this the more deals you will do!!! Have them sign a blank sales contract and tell them that when you get the short sale accepted you will call him with the price. Most RE sales cotracts have the sig page diff from the price page.
For most of you this is a pretty aggressive approach, you'll learn it soon enough, just stay on tcinvestor for more updates.
Welcome to my friend Rob Michion.
Boy, we are having fun now! right
Bill Twyford
Hi, everyone!
Great insight! That is exactly what I was looking for.
My thinking about the 2nd or 3rd was to acquire them, bring the 1st current, then foreclose yourself with a subordinate. I thought it might be a unique way to acquire a pre-foreclosure property before it went to auction.
In this case, however, I will certainly NOT WASTE MY TIME! Off I go....Life is too short to try and help someone who won't help themselves!
Keep that fantastic advice coming!
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