I Am Door Knocking But People Don't Want To Give Deed
I am doorknocking and talking to people... I am finding that people just are not interested in deeding me the house...
What kind of words need to come out of my mouth in order to get the deed?
Is it all right to wait to get the deed until after we have negotiated the sale?
Get John $cash$ locke's subject 2 manual.
It will detail the steps you should take. I dont think just outright asking for someones deed will work. You need to convince them to trust you and that they need you first.
Quote:
On 2004-08-10 18:20, 4ndy wrote:
Is it all right to wait to get the deed until after we have negotiated the sale?
Generally, you don't get the deed until closing. You don't close until you have negotiated a sale and paid your money. What am I missing here?
Hey General,
Thats a good point. Having deed in escrow is a way that is taught by many leading foreclosure gurus to make sure that the investment of time and money you make in negotiating a shortsale is secured...
Also if close on the house subject to the existing mortgage I can then sell to whom ever and have my buyer come to the table with the money to close the discounted mortgage.
Andy
Whoah hold on there buddy! Whatever you do, DO NOT RECORD YOUR DEED.
The banks are ONLY willing to work with the previous homeowners who are on the mortgage. In a short nutshell, here is how things work:
1. Sign purchase agreement with sellers subject to the mortgagee's short sale approval.
2. Get signed authorization to release information and use that to receive a short sale package.
3. Work with the sellers putting the package together with the desired items the bank needs
4. The bank will either accept, deny, or counter your offer.
5. Once they accept, and only when they accept, can you start getting ready to close.
Getting the deed will kill the short sale and also kill your reputation as an investor.
I do give you props for going out there and doing it but you do have to realize that you can't drive on the interstate when you've never driven around the block. Take things a little slower and learn a little more. I'd definatly look to invest in some courses--maybe The short Sale Pro's short sale primer which i believe is on sale right now.
GOOD LUCK and I do hope everything will work out for you.
Frogger,
We haven't recorded the deeds, however, every short sale course I've seen says "always get a deed when you can." Ron LeGrand preaches this over and over. We just weren't quite sure on how to approach the mortgage holders...
Tim
I agree with frogger. First good job on getting out there and doing something. How did you find your leads? Second, If the bank knows that the homeowner tranferred the property they will not work with you. Sometimes it is hard to get them just to give you info concerning the loan even when you have an authorization. It will be a nightmare if they find out you have the deed. Get a purchase and sale aggreement from the seller. There are ways to structure it so that they do not know how much of a discount the bank will take. Frogger pretty much has given you the steps to take though. Follow his lead and good luck.
We send out letters to people in foreclosure. We also have signs up through out our town. Both methods work pretty well for us. However, I'm wanting to get into the lease/option and wholesale markets--but finding it somewhat difficult to generate leads for l/o and wholesales... Any suggestions?
Tim
By the way... How exactly would I structure the deal so that the homeowners don't know how much of a discount I'm going for with a short sale?
Tim
Getting the deed is the best way. (stops anyone else from stealing the deal.)Find the head of the loss mitigation dept. at the www.bank.Get friendly with them and play dumb,Allow them to educate you on what you do. And what they need .Stop talking and START LISTING.Do things there way. We do short sales all the time. We always get deeds if possible. I have gotten a house run down condition that had $64,000 owed for a short sale of $7,500.In fact i am now focusing on this bank and have gotten 9 short sales.
The best deal was a penthouse condo on the ocean for $842,000 with taxes,hoa,$20,000 to owner to deed to me. Condo appraised last month for $1,250,000 NEVER GIVE UP.
[ Edited by charlottehomebuyers on Date 08/02/2004 ]
From my limited experience I have found NO way to hide the purchase price from the seller. I always put a lowball figure down and tell the seller this is how I start negotiating. I usually end up changing the purchase price throughout negotiations and then eventually have the owner initial.
I haven't run into an issue where the owner cares what I am buying it for because I made it clear that I'm a problem solver and anything I do for them must be win-win.
I would assume that this may be possible to avoid by getting the deed BUT WAITING TO RECORD IT. I would assume the purchase agreement would be in tact still but in all reality purchase agreements aren't required. They are just agreements that spell out the terms and conditions the buyer must have before they buy.
GOOD LUCK
PS--Excellent website design!!!
Hey Guys
What would be wrong with telling the owner you in order to make a profit you are going to try to get a discount on the property's purchase? Why would you want to hide this information from the owner?
If you get the deed..and the bank will not accept a shortsale what do you do? Just sign it back over to the sellers?
Quote:
On 2004-08-02 10:48, Niceguy1 wrote:
Hey Guys
What would be wrong with telling the owner you in order to make a profit you are going to try to get a discount on the property's purchase? Why would you want to hide this information from the owner?
That's a good question. Wouldn't having them sign a purchase agreement stating you'll purchase the house pending a shortsale happens be enough to bind them into selling the house?
Be honest with the lender. Or you will never do business again with them. some do have a list of people that they will not work out short sales with.
Have completed many short sales for my clients. I have found trying to make friends with the lenders in the loss mit department works best. do not be afraid to ask some questions. The will will take this as you are try to learn how to make their job easier and you are willing to work with the bank.
#1 problem I find people make is they never make it to the loss mit. department and get stuck in all of our favorite custermer (no) service.
Also having a deed to the property will make it look like you have a arm lenghth transaction. a big no-no
Burgerman, I think you meant having a deed will make it look like you do NOT have an arms length transaction...dont you?
What ever way you purchase the home you need the bank to feel you are doing them a service in purchasing this property. But some federal rules banks have to make sure certian properties do not go back to the seller. So that means family members can not purchase the homes.
Just a quick not. going through several NTS here in spokane and have run across due on sale clause being triggered "unauthorized sale" needs to be cured.
That is quite the deal! Where in the country are you operating in?
How do you get about meeting the Loss Mitigation department? I am assuming you are talking about smaller local banks than big chains. As someone pointed out, most people would get lost in the bureacracy.
Just looking to start out with some short sales and looking for some general advice.
clegg
Quote:
On 2004-08-02 09:20, charlottehomebuyers wrote:
Getting the deed is the best way. (stops anyone else from stealing the deal.)Find the head of the loss mitigation dept. at the www.bank.Get friendly with them and play dumb,Allow them to educate you on what you do. And what they need .Stop talking and START LISTING.Do things there way. We do short sales all the time. We always get deeds if possible. I have gotten a house run down condition that had $64,000 owed for a short sale of $7,500.In fact i am now focusing on this bank and have gotten 9 short sales.
The best deal was a penthouse condo on the ocean for $842,000 with taxes,hoa,$20,000 to owner to deed to me. Condo appraised last month for $1,250,000 NEVER GIVE UP.
<font size=-1>[ Edited by charlottehomebuyers on Date 08/02/2004 ]</font>