Newbie To Texas

New to investing in Houston, TX area. Looking for contacts in north Houston. confused

Comments(8)

  • TheShortSalePro27th March, 2005

    While the property is an asset to the bankruptcy estate.. the Homeowners lack the capacity to transfer title.

    Generally, as far as "deed snatching" as a technique used in the short sale process, I disagree that it can help the process. Perhaps... perhaps in the negotiations with a junior mortgagee.... But "deed snatching" flies in the face of generally accepted ss criteria for consideration.

  • bnorton27th March, 2005

    I cant help but weigh in here. "Deed Snatching" as SSPro calls it is how many of the scam artists are making money. There are many states like Maryland who are looking at this practice and starting to regulate those of us who are in the pre-foreclosure market. It is a practice that gives us all a bad name, and needs to be stopped. The deed needs to be transferred at a traditional closing.

    Second, if you actually record the deed, many banks will call off the short sale, because the property owner is no longer in distress. Either way you look at it, it is a bad practice.

  • bnorton28th March, 2005

    You protect yourself with a purchase and sale agreement, and your honest and ethical dealings with the seller. Will you get burned sometimes - possibly yes. Will you get burned sometimes if you get the deed - possibly yes. It is part of being in business. But if you are genuinely doing what you think is best for the seller, and not just trying to steal the house, your problems will be minimal.

    Bruce..

  • bnorton29th March, 2005

    I agree with SSPro completely. It is both a philosophical and practical abhorrance to the practice.

    From a practical stand point, as soon as you snatch the deed, the homeowner is no longer in distress, and the lender has no reason to approve the short sale. In addition, if you do this without a title abstract, you have no idea what you are getting. Without title insurance, you have no protection from a title defect. This is an unbelievably foolish thing to do, regardless of what acquisition technique you are using.

    From a philosophical stand point, you are taking the asset without taking the liability from people who are in distress and have no idea what is really happening. That is unconscionable.

  • bgrossnickle23rd March, 2005

    If the AS-IS FMV is 140, then repairs are not an issue. The 140 already has the repair cost factored into the price.

    I usually find the ARV (after repair value), then the repair costs. I get my FMV by

    ARV - (repair cost * 2.5) = FMV

    Appraisers multiple the repair costs times 2.5.

  • pinstripe23rd March, 2005

    Question for bgrossnickle: Is the 2.5 just for appraisers in your area or is that good for all appraisers regardless of location?


    Quote:
    On 2005-03-23 08:22, bgrossnickle wrote:
    If the AS-IS FMV is 140, then repairs are not an issue. The 140 already has the repair cost factored into the price.

    I usually find the ARV (after repair value), then the repair costs. I get my FMV by

    ARV - (repair cost * 2.5) = FMV

    Appraisers multiple the repair costs times 2.5.

  • bgrossnickle23rd March, 2005

    I do not know about appraisers everywhere. My appraiser told me he multiplies repairs x 2.5 to subtract from the FMV.

    ARV - (repair cost * 2.5) = FMV

    fmv * .82 = net to bank

    So work backwards from the net to bank to get to your offer. you must factor in closing costs, realtor commissions, etc. But the number is what it is. You can not just make up a number and wish the bank would take it. We would all like a really low number and be able to deduct all our costs from that number. But that is not how it works.

    Many FHA programs will have the BPO and then tell you the price that they must net prior to you having to submit a contract. That is ideal.

    Brenda

  • InActive_Account30th March, 2005

    Does the BPO use this 2.5x formula?

    Anyone had the lender do a bpo for fha loan? Was this formula used in that case?

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