My 1st Short Sale Is Trickier Than The Book Said It Would Be
I'm at the point where I made an offer to the 2nd mortgage holder. It was my understanding that they'd be willing to take a deep discount when the 1st files foreclosure. It turns out that the 2nd is doing their own BPO and was very upset with our offer of 7% on what they're owed ($50,000). They also said that they plan on filing foreclosure in the even the owner suddenly comes up with the money to pay the first (this is NOT happening - these folks are destitute). Lastly, the house in question is an absolute mess - the place needs attention throughout. Any help for you folks out there would be great!
Guess what, they are all trickier than the book said they'd be.
That said you are not yet at the end of the line on this deal.
Have you talked to the first already? How much discount were they willing to take?
Could you raise enough money to buy the first?
Most of what's hawked as 'How to, Secrets, or Short Cuts" are little more than smoke and mirrors... not reality., and certainly the most heavily pitched are the exceptions to the rule.
I get a chuckle at the comments/questions/expectations from many people who have just finished reading the latest (and only) book, or attended the latest seminar or bootcamp and are let loose into the real world..... Don't get me wrong. All materials have some value... and provide some insight into a particular process, but are best used to complement existing experiences or knowledge.
Usinging a baseball analogy, Short Sales aren't typically a 'home run" acquisition, but more a "single" with an ocassion "double." Hit enough singles and you have a career.
No, shortsales aren't easy, mortgagees just don't roll over and play dead... and unless you have a fundamental understanding of the process.... and anticipate what your adversary will expect, and do, you are destined to experience more failures than successes.
But nobody wants to learn the basics. Everyone wants to run before they know how to walk. This (foreclosure) is a keenly competitive business, but few will take the time to articulate in writing a business plan or develop a business model.
Think GM or GE set out without a plan?
Many folks pursue presumed opportunites, then, while holding them by the tail, wonder what to do next....
Every short sale candidate must first be prequalified, then a factual, comprehensive, and compelling Proposal devised to accompany the mortgagor's application.
There is no substitute for experience. And, there are no shortcuts, Alice.
At least, that's been my approach since 1979. Sorry for the rant.
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....
[ Edited by TheShortSalePro on Date 05/25/2004 ]