Fastest Sale After Short Sale
What's eveyones most successful way in "dumping" the property after a short sale? In successful I'm talking about speed of selling the property for the "fairest" price. I've been listing mine on an MLS listing service and then I pay the buyers agent 3% if they bring a buyer. Otherwise I sell FSBO and pay no commision. I've thought about doing owner financing, writing the notes and then selling the note (of course it will be at a slight discount). I've never gone this route and a couple homes I have are over 190K listing price which I know limit my amount of buyers.
What do you think?
I try to have a buyer ready. If not, lease option or resell to the original owners, (if they are able to.
[addsig]
I was recently approached by a lender that helps investors owner finance property. Here is the email text of our conversation that you might find interesting.
Nice talking to you about our note purchase program. This is a great program for rehabbers! In a nutshell, what we do is buy seller financed notes on a national basis, seasoned or unseasoned. I believe we have the best purchase program in the country for unseasoned notes (meaning that we buy them at the time they are created). If you find a buyer for your home with at least 5% down and OK credit (medium high risk credit is acceptable), we can pay you, at the time of closing, up to 92 cents on the dollar for the remaining balance. If they have good credit, we can pay more.
This means that you can market your home "Owner Will Finance" knowing that you will be able to sell the financing at closing for cash when you find the buyer. The chief benefit to selling with owner financing is that it usually helps the home sell much more quickly, since the range of potential buyers is greatly increased. And buyers like the fact that there is no loan fee, prepayment penalty or mortgage insurance.
Below is a list of frequently asked questions about our program. Call with any other questions you have. I am attaching our credit authorization form to this email. All we need in order to give a quote is the basic property info, a look at the buyer's credit and an indication of how much down payment he or she will be putting down. If the quote is acceptable to you we will get right to work on closing the deal ASAP.
FREQUENTLY ASKED QUESTIONS
Q What property types does this work with?
A In order for us to buy a 95% loan to value note at the best rates, the property needs to be a house, condo or townhouse. We will also buy unseasoned notes on mobiles, manufactured homes, and multiple units, even commercial properties, but we will probably require that the seller carry back a second.
Q For houses, condos and townhouses, what is the minimum down payment a buyer needs to have in order for you to buy the note?
A For owner occupants, 5%. Non-owner occupants, 20%.
Q What type of wording should I use in my advertising?
A We suggest beginning the ad with "Owner Will Finance." You also should mention that a down payment and recent OK credit will be required. This is to screen out "nothing down" and bad credit buyers.
Q Do you need to look at the buyer's credit?
A Yes. They don't need to have great credit, but we cannot buy the note if the buyer has major credit blemishes such as a recent bankruptcy, foreclosure, etc. Have your prospective buyers complete and sign the "Authorization to Obtain and Review Credit Reports" form. Fax (or mail) the authorization to us. There is a $10 fee for pulling credit on individuals and $15 for couples. Collect this fee from the buyers at the time they fill out the credit authorization and send it to us. (Note: If they have a recent credit report with scores from all three credit bureaus, you can fax that to us instead.)
Q How should I structure the note so that I will be able to sell it to you at closing for top dollar?
A Generally speaking, we prefer to buy a 30-year amortization note with no balloon payment or prepayment penalty. The interest rate you charge, as well as the other terms, are up to you. However, once we examine the buyer's credit report we will tell you what interest rate would maximize the payout to you at closing. We suggest you tell your buyer that you will discuss the interest rate with them after your investor examines the credit report. Call us at any time to discuss what rates we like to see on seller financed notes. (Note: currently in the 8-9% range)
Q Now that I have a buyer and I like what you are offering to pay me for the note, what happens next?
A We will send you a note purchase agreement for your signature. You can then enter into your earnest money contract with your home buyer, if you have not already done so. The buyer will need to fill out a credit application. You will need to order an appraisal. Once we have all of the documents, closing usually takes place in two weeks or less and you will receive your cash.
[addsig]
Can I Get Contact Info?
Quote:
On 2003-12-04 16:23, Stockpro99 wrote:
I was recently approached by a lender that helps investors owner finance property. Here is the email text of our conversation that you might find interesting.
Nice talking to you about our note purchase program. This is a great program for rehabbers! In a nutshell, what we do is buy seller financed notes on a national basis, seasoned or unseasoned. I believe we have the best purchase program in the country for unseasoned notes (meaning that we buy them at the time they are created). If you find a buyer for your home with at least 5% down and OK credit (medium high risk credit is acceptable), we can pay you, at the time of closing, up to 92 cents on the dollar for the remaining balance. If they have good credit, we can pay more.
This means that you can market your home "Owner Will Finance" knowing that you will be able to sell the financing at closing for cash when you find the buyer. The chief benefit to selling with owner financing is that it usually helps the home sell much more quickly, since the range of potential buyers is greatly increased. And buyers like the fact that there is no loan fee, prepayment penalty or mortgage insurance.
Below is a list of frequently asked questions about our program. Call with any other questions you have. I am attaching our credit authorization form to this email. All we need in order to give a quote is the basic property info, a look at the buyer's credit and an indication of how much down payment he or she will be putting down. If the quote is acceptable to you we will get right to work on closing the deal ASAP.
FREQUENTLY ASKED QUESTIONS
Q What property types does this work with?
A In order for us to buy a 95% loan to value note at the best rates, the property needs to be a house, condo or townhouse. We will also buy unseasoned notes on mobiles, manufactured homes, and multiple units, even commercial properties, but we will probably require that the seller carry back a second.
Q For houses, condos and townhouses, what is the minimum down payment a buyer needs to have in order for you to buy the note?
A For owner occupants, 5%. Non-owner occupants, 20%.
Q What type of wording should I use in my advertising?
A We suggest beginning the ad with "Owner Will Finance." You also should mention that a down payment and recent OK credit will be required. This is to screen out "nothing down" and bad credit buyers.
Q Do you need to look at the buyer's credit?
A Yes. They don't need to have great credit, but we cannot buy the note if the buyer has major credit blemishes such as a recent bankruptcy, foreclosure, etc. Have your prospective buyers complete and sign the "Authorization to Obtain and Review Credit Reports" form. Fax (or mail) the authorization to us. There is a $10 fee for pulling credit on individuals and $15 for couples. Collect this fee from the buyers at the time they fill out the credit authorization and send it to us. (Note: If they have a recent credit report with scores from all three credit bureaus, you can fax that to us instead.)
Q How should I structure the note so that I will be able to sell it to you at closing for top dollar?
A Generally speaking, we prefer to buy a 30-year amortization note with no balloon payment or prepayment penalty. The interest rate you charge, as well as the other terms, are up to you. However, once we examine the buyer's credit report we will tell you what interest rate would maximize the payout to you at closing. We suggest you tell your buyer that you will discuss the interest rate with them after your investor examines the credit report. Call us at any time to discuss what rates we like to see on seller financed notes. (Note: currently in the 8-9% range)
Q Now that I have a buyer and I like what you are offering to pay me for the note, what happens next?
A We will send you a note purchase agreement for your signature. You can then enter into your earnest money contract with your home buyer, if you have not already done so. The buyer will need to fill out a credit application. You will need to order an appraisal. Once we have all of the documents, closing usually takes place in two weeks or less and you will receive your cash.
Stockpro--
I have a couple contacts at home regarding note buying. However, it appears on the surface that your contact might get the whole transaction done much quicker without hassle. I;d like to get your contact info if you're open.
Let me know--Jim