Any Way To Make $ When Homeowner Wants To Keep Their House ?
A woman called me recently in response to a message i left. She's in pre-foreclosure. Owes the bank a couple of month's payments. Said she sent the bank some $, and she says they sent it back saying she owed more. She's called the bank and says she's been on hold for hours and can't get through. She's gotten calls from other investors and has told them that she doesn't want to sell. Any creative ways to make $ on this one. I heard somewhere about Consulting when the homeowner doesn't want to sell. Has anyone actually tried this? Does it work? How should i go about it in this case? How much to charge?
Any insight is greatly appreciated.
Thanks!
-Ana
quite frankly,
if she doesnt want to sell, you cant make her. Shes not motivated and the more you push her to sell... the more she'll push back that she doesnt. i would advise her as to what she can do in the present situation... dont back out on her because she may come to believe that she has to sell in order to keep things straight and if she does, who do you think she'll turn to???
Advise her as to what her options are (refinance, ask bank for forbearance, deferring) and try to walk her thru it. remember, we're out there to help people in these situations, but trying to talk them into selling is you pushing at a brick wall that pushes back at you. Instead take a step back and let them fall thru to you.
my $.02... i may not know what i'm tallking about but i hope that helps some.
[addsig]
Now that is good advice.
Just walk her thru and in the process explore if she can afford to hold the house. Does she have the income. You just analyse her position.
If she can keep the house then show her how to budget, and build in house cash so she has the payment on time. Also check to see if she will be able to pay taxes.
This type of advice given with great care. May lead her to an understanding that she cannot hold the house. That she must seek more affordable housing.
It is at that point you may both begin to explore a possible sale of the house.
Softly goes the Tiger Lucius
Great post Ahabion and Lufos!
That is absolutely correct! We are in this business to earn a fun living, however, with the knowledge that we have, we can certainly help a lot of people.
You would fall off your chair if you knew how many people called me who wanted to keep their house! It is simple, I help them in any way that I can, and let them make the decision on whether or not it is feasable to continue to own that house. Most of the time their wish is only wishful thinking, but there are some people who can bounce back on track.
Is there a way to make money in this situation? YES There Is!
I have been working with a pre-for for the past 6 months. We talked about every two weeks. I told him what to do if he wanted to stay in his house. The good news is that he accepted and appreciated my specialized knowledge, but he never followed through with what I told him to do. So once again, you can only help people, who want to help themselves. And because he never followed through with what I suggested, gues whose house I bought?
Best of Success!
BAMZ
[addsig]
Great posts Doodz!
That does sound like a good approach. Is there a source of specifics of what an investor can present to a homeowner regarding their options?
Depending upon how much equity is in the house, and how much capital you are willing to invest this might be a possible solutution.
Short sale the property,
then flip it back to the homeowner, take a small fee depending upon how much of a discount you are able to get with a short sale,
but give it back to her at a price so that she can make the payments.
Maybe you can give her financing.
or
if she dosnt mind not owning the house, rent the house to her.
There are plenty of possible ways to profit from this, you just need to think creatively, although I am unsure of any legality of selling the property back to the original homeowner after a short sale.
I hope this helps!![ Edited by jcattin on Date 11/09/2003 ]
Nievana 14:
Nice to meet you!
I work Full time to assist homeowners facing foreclosure for FREE. I offer the ABILITY to CONNECT with their LENDER and obtain Some Kind of Work Out Plan of Offering to PREVENT FORECLOSURE.
I tell the PFL Owner that If I am successful in getting the Sheriff's Sale STOPPED...My fee is $2500 or 1% of the Mortgage loan amount (whichever is higher).
B/C most properties that I look at are in the $250K andhigher range I usually have NO PROBLEM getting 50% to ALL of my fee when I produce desired results.
Other times I usually GAIN the TRUST of the PFL Owner and when REALITY begins to set in that it's DO or DIE they recognize that SELLING IS their ONLY OUT...
I pick up some SUPER QUALITY DEALS!!!
No hassle just 3-4 weeks of Caring Concern, Consistency and PATIENCE.
The company I own uses the servicemark Consumer Mortgage Loan Advocates.(CMLA). This service offering HAS OPENED the DOOR to many a deal for me since 1999.
I also offer a Pamphlet which other RE Investors have use called:
"The 5 Things Lenders WON'T Tell Homeowners Facing Foreclosure?
(and WHY They should Work with YOU If They WANT TO KEEP Their Home)"
I have letters PACKED FULL of HELPFUL CONTENT (read ADVICE)that my many CMLA Affiliate Reps (aka RE Investors) send out to PFLs in need of some real help.
One of the Letters is entitled:
"12 Reasons You'll Sleep Better TONIGHT After Reading This Letter?"
This letter gives homeowners MORE Tips for avoiding and or recovering from FORECLOSURE than any ATTY or Lender ever Will and PFL owners really appreciate getting it...so much I cannot tell it all to you in one post.
Nievana FIRST EDUCATE Yourself on Foreclosure and PFL in your State. Do research(Google etc.) and...
Then Try consulting these PFLs with a little GET-IN-Thier-FACE (as often as you can) to Offer them SOMETHIMNG that Other REI-ers DON'T...
That is---
Your Time
Your Expertise
Your Care/Concern
and PATIENCE!!!
Can add up to money in the bank B4 you know it.
Just be consistent and like BAMZ did
They May NOT Follow Your ADVICE and You'll end up Buying the property anyway.
I am sure you'll find it PROFITABLE for you as it is for many of us.
I hope this Helps! And the Best of Good Fortune to you!
Derrick
Thanks for the info everyone!
-Ana
I have been able to help many people stay inside of their home. I used to buy their home and then execute an lease with option for them. Here is an example of what I did: FMV = 200k. they owed 160k . I bought the house and executed a lease with option. The purchase price was 180k. I verified income and made sure that the monthly rent payment would be sufficint to pay the mortgage, insurance, taxes, plus a little extra. I informed the old home owners that the 20,000 was where I made my money. I had the contract price at 180k, so they would do their best to make all payments on time and keep the house in good shape. I always verify income and employemnt to make sure that they can afford the payment. If not, I explain the reality of the situation (they can't afford the house) and that they need to sell, and move into a cheaper place....
I purchased John Locke's subject to, and have done a couple of deals taking the property subject to. This is a benefit because the homeowners build their credit and I don't have yet another mortgage on my credit bureau....
Just one of many ways to help people and do the right thing...
Good luck and happy investing!
Hi Derrick,
I like your idea of helping the homeowners.
Are you able to send me a copy of your pamphlet "The 5 Things Lenders WON'T Tell Homeowners Facing Foreclosure? (and WHY They should Work with YOU If They WANT TO KEEP Their Home)"
and the letter
"12 Reasons You'll Sleep Better TONIGHT After Reading This Letter?"
Thank you