Step By Step Short Sale Completed In 2 1/2 Weeks!
Man o man was this easy or what?
1. Found a property in Foreclosure (10 mos)
2. Prop. had 2 liens. (Did Tract & Judge. search $75. bucks)
3. 1st was $125.133.17 (Foreclosing lien), 2nd $30.866. (The Junior/Jeopardy lien)
Total debt = $156,999.17
4. Buyer found me through my advertising.
5. Buyers max. loan amt. = $147k
6 Negotiated with 2nd lien holder based on the auction coming up soon and we had a buyer with a max. loan amt. $147k. " It's my understanding that your loan will be wiped out if the prop. is sold at auction, is this true? yes"
7. Showed fininacial hardship from the sellers in the Short Sale package + closing costs, my fees and the appraisal came in at $153k as is. (already lower than the payoff amt.)
8. I offered a payoff amt. of $131k. They balked saying they needed at least $20k.
9. I came back with "because of the fees involved and the urgency of this deal, my buyer can only offer $135k to make this thing work. (again mentioning the wiped out lien and the auction coming up soon!)
10. The next morning I called before they opened and left the message, "Hello, this is Clif, just wondering what decisions you've made on the Anders prop. in Plainfield.....and ah...I really need a decision on this today...you can fax me at --- --- ---- or call me at --- --- ----.
11. I came home a few hours later to find a fax with the approved amt. $19,000 less than the original lien amt....I sent a "Thank you very much for your cooperation" letter.
12. I then received all the paperwork from the sellers about their prop. from their original purchase.
13. Took these papers over to my attorney and placed a lien on the prop. for services rendered in the amount of $10,000....(attorneys fee = $75 bucks)
14. Had the buyers attorney set up the Purchase Contract with the seller. My Attorney is for the seller (knowing about my lien on the prop.)
15. At closing, the buyer and seller will settle and the difference between the buyers max. loan amt. $147k and the payoff $137k is ........yours truly. 
$10,000 (from my lien)
The buyer came in and paid all the closing costs, title insurance and other fees associated with getting the prop. cause she was getting it for nearly $12,000 less.
She really wanted it...
Maybe I should start a course on "the 15 steps to cool cash with foreclosures"
My story for the day
Clif 
[ Edited by pbodys on Date 06/26/2003 ]
Clif,
Way to go! Where did you learn the short sale process? I have an opportunity property in Florida that requires a short sale, but I haven't done one of those yet. Would you show us what your package included...documents, how you connected with the right person at the mortgage company etc?
Thanks in advance and kudos to you.
Steve
Good Job Clif. Not a bad way to make 10k in 2.5 weeks.
Tom
Hey Steve,
Welcome aboard.
I learned it the hard way...I needed cash and new (from reading on this board) that depending on the circumstances, some lenders will be more than willing to work out a deal (knowing their lien is going bye bye)
quote:
Would you show us what your package included...documents
Don't really know what package you're referring to: unless you mean the Short Sale package. That went to the seller to fill out from the 2nd lien holder. The buyers paid the Mortgage Broker for the appraisal.
quote:
how you connected with the right person at the mortgage company etc?
I called the Loss Mitigation Dept. or the Foreslosures Dept. (only to find out the loan had been released) they told me who picked it up and I contacted them to discuss the possibility of a Short Sale/discount on the note due the conditions surrounding my reasons for the request.
Hope this helps, and Thanks Tom..you know how we do it!
Clif
How did you go about putting a lien on the property. For what reason? I need to do sorta the same thing. I need to put a lien on a property for a large sum? Can you give me soem details.
Thanks
Tim
Hey board,
Like so many others waiting and waiting for something to happen, I felt discouraged and wanted to give up many times throughout my "so-called"(Hello John. ) investing career.
Once you get past the first couple of deals, it gets easier and easier....
John, I assure you that Sub-To is for me but just couldn't let this deal past, fell into my lap.
Saw the house, saw the profit, saw the sellers, saw the buyers, did the deal and now it's just saw dust
Everyone, listen up! NEVER GIVE UP ON YOUR GOALS! Where there's a will, there's a way....and remember, goals are just dreams with a deadline.
MAKE it happen, don't wait for success, go out and grab it!
Clif
Steve,
I put a lien on the prop. because the difference between the loan amt. and payoff bal. would go to the seller....You think they would've endorsed their check over to me? not likely.
The Mortgage Brokers Lender did not want me a part of the transaction since I was not a broker....They didn't want my assignment contract a part of the deal. So I did what I had to do.
Get all the doc. from the seller concerning their original loan and take them to your attorney to file a Lien on the house.
Clif [ Edited by pbodys on Date 06/30/2003 ]
But what if the property is out of state? Can this work if I am in a totally different state? I'm in SoCal and the property is in WA!
WTG though! I love hearing stories like this. This is the real reason why I got into this. GOOD JOB!!!!!!!
t
Her's my scoop.
Mortgage of 110,000, UNRECORDED at the court house that they are not aware of. I already have a Sales and purchase agreement and warranty deed for the property, that I haven't recorded yet. I am paying the seller $2000, and about $15,000 in deliquent taxes and a tax lien to get the property. But, I am still working with the mortgage company to do a short sale.
I would somehow like to file a lien on the property, so if they went down and placed their Deed of Trust on the property it would be after my Lien. How could I do this?
Tim[ Edited by bgn2fsh on Date 06/26/2003 ]
Hey T,
It's my understanding that it doesn't matter where the prop. is as long as the lien is filed in the same county as the prop.
Clif
Tim,
Totally confused about what you're trying to do here. You should post this ? in the Liens Forum
Clif
Hey Clif,
Plainfield is my old home town! Maybe You bought my old girlfriends house...
schallerp,
Hope not!
Unless she lived in filth, had a bunch of animals running around with five kids she let destroy the house by kicking in the walls.
Living in a foul urine smelling home with the epicenter of the smell coming from the lower level where the ferrets hung out. .....when I met her at the house, she was......uggg....cooking dinner
If so, I can see why she's your ex.
Plainfield, IL
Clif
Clif,
Great job! Thank you for the success story, keep it up...
Tanya
Clif:
U Da Man !! Nice Work
[addsig]
GREAT WORK pbodys,
but I have one question, what did you say your fee was ? 10,000 ?
thanks in advance, businessman624
Hey businessman624,
Believe it or not, my fee started out at $7k over the payoff. Things were going slow and people looked at it and thought it was overpriced (which it was!).
I then lowered my fee a few times till I got all the way down to just $2500. over the payoff, still they balked, with only a few showings. I then placed a FSBO sign in front of the prop. and the phone started ringing off the hook...Finally met a lady that really wanted the prop. buy didn't have the money to rehab it.
I then let my guard down and thought I was working for the buyer, so from reading posts here at TCI and figured I'd try to get a discount on the 2nd lien to get cash back at closing buy realized the seller would get the cash....
So I decided to put a lien on the prop. to get cash back to give to the buyer to help rehab it...(after I took my fee out).
But,
after a few disturbing phone calls late at night from the buyers boyfriend (from impatiece), I remembered I was working for the seller and decided to keep the cash back from the lien.....
When the buyers asked what about (their $), I told them my lawyer suggested I do things differently and that it was the sellers $ and they had to pay me personally.
It's amazing, they got the house for $19,000 off and realized an immediate discount of about $12,000 and still wasn't satisfied because they didn't get $ back at closing.
Some people are never satisfied...
This will be my last foreclosure unless I need to pick up some quick cash.....concentrating on Subject To's from now on.
Hope this helps.
Clif
great job....
You have inspired me....
one thing though....I would have never thought of the lien....You really had me there....I had to read over the steps 5 times before I realized it.....wow...that was "creative"...
from a newbie to you....KUDOS...AND KONGRATS!!
Yep, its these kind of stories that coined the phrase Carpe Diem
Pbodys
Glad you had a deal but I'm wondering....
how you could charge a fee without being licenced as a realtor or agent, or did you say you assigned the contract?
Just trying to get it straight
LynLinz
You didn't really read the whole posts...did you? Your answers are there.
Thanks,
Clif
Clif,
Sounds like a great deal! I've got a couple of questions...
1.What kind of lien did your attorney put on the property?
2. How did your dealings (offer) with the loss mitigation rep change over from your hands to your end buyer's?
3. What type of transaction details did the hud-1 reflect? Was it strictly between the end buyers and the original lender?
4. How did you explain the lien to the seller?
Thanks for any help!
Quote:
On 2003-07-01 21:08, pbodys wrote:
Hey businessman624,
...Finally met a lady that really wanted the prop. buy didn't have the money to rehab it.
....and figured I'd try to get a discount on the 2nd lien to get cash back at closing buy realized the seller would get the cash....So I decided to put a lien on the prop. to get cash back to give to the buyer to help rehab it...(after I took my fee out).
But,
after a few disturbing phone calls late at night from the buyers boyfriend (from impatiece), I remembered I was working for the seller and decided to keep the cash back from the lien.....
When the buyers asked what about (their $), I told them my lawyer suggested I do things differently and that it was the sellers $ and they had to pay me personally.
Hope this helps.
Just so I understand. You told the buyers that you would give them cash at closing for repairs but then re-nigged on the deal and kept the 10k, or did I miss something?
Quote:It's amazing, they got the house for $19,000 off and realized an immediate discount of about $12,000 and still wasn't satisfied because they didn't get $ back at closing.
Some people are never satisfied...
Perhaps they are unhappy because they thought they would have money to fix up a house you described as..." filth, had a bunch of animals running around with five kids she let destroy the house by kicking in the walls. Living in a foul urine smelling home with the epicenter of the smell coming from the lower level where the ferrets hung out"
I'm not trying to rain on anyone's parade, but are congratulations in order?
Yes, I agree with savvyyoungster. The way I read the story, it sounds like possible ethical malfeasance. If I am understanding this, I will have to say this....Thieves, liars and cheaters can always come away with a handful of money. A deal is a deal in my book. If I told the buyers that I could work it to give them rehab money, I would come through on my word. If I decided to choose to lie or cheat to make money in this world, I would just go all out and become a crack dealer, or a tote-the-note car dealer.
just my $.02
Well, I'm not trying to accuse, I just want to make sure I'm understanding the story. The way that it is presented it certainly seems to be some smoke and mirrors....
But everyone else (not chuck) seems quick to congratulate, saying that this was a "success" story. Am I just naive to think that for me to make money in this game someone doesn't have to get screwed?
Chuck and Savvy,
You mentioned ethical malfeasance, I was approached by a 2nd couple that offered me more $ to put them ahead of my buyers. It is BECAUSE of ethics I did not do this....
I worked diligently on getting this deal done for the woman that had no $, poor credit and a bad attitude boyfriend that had absolutely nothing to do with the deal and constant meddling in my affairs concerning the deal.....totally confused even after giving them thourough explanations every step of the way.....It was THEIR lawyer that misled them into believing there was $coming back to them...(A standard RE attorney that knew nothing about CREIing).
and yes, you read it wrong.....it states:
"When the buyers asked what about (their $), I told them my lawyer suggested I do things differently and that it was the sellers $ and they had to pay me personally."
I made this plainly clear to the buyer and point blank asked her if she still wanted the property......SHE SAID YES!
The only way for me to get paid from the sellers was to have them give me a promissory note and attach a lien against their prop. upon closing. (WITH THEIR PERMISSION!)
Is that ok with you?
Clif
[addsig]
Clif,
Great job on that deal. When I am out on an appointment looking face to face with a seller and he tells me his story although my method is Subject To, but if I see a short sale, or 60% of FMV deal guess what I get my check book out or find financing pronto.
If you don't make the effort to get in front of the seller then you will keep on wishing. There are many deals out there some you may bird dog, some you take for yourself, some you do not want. Clif you were pursuing your goal and it paid off, I am very proud of you.
Get a Subject To deal your giving me a bad reputation.
John $Cash$ Locke
chuck1933
I don't recall hearing about any of your exploits of courage.....Have you gotten down and dirty and dealt face to face with this biz. or are you just trying to get more postings.
You should be very careful NOT to insinuate the ethics of others until you know the whole story.....very unethical!
Clif
[addsig]
Thanks John,
Got one!, a super nice Condo with an attached storage unit, about the size of a kitchenette. The owner is moving to Tenn. and wants out....She's made loads of upgrades and it's really a shame that she has to leave it.
Appraisal came in at $154k, the payoff is $133k. She gave it to me for $138k and I dont have to take over the note till Oct. 6th.
She'll be getting $2500. from the tenants downpayment (which means I'm asking for at least $5k down) and another $2500. when they re-fi. + half the stamps payment....
Asking $158k. Her int. rt. is 6.25% and will be (adjusting) that to 7.75%. Should come out with $2500 down, about $10k at closing plus about $1500 pos. cashflow for the yr. for a total of about $14000. when it's all said and done.
Now just need about 10 more of these.
How's your rep now?
Clif
[addsig]
and I didn't have to call you!
Clif
[addsig]
Quote:
On 2003-08-11 16:47, pbodys wrote:
Chuck and Savvy,
You mentioned ethical malfeasance, I was approached by a 2nd couple that offered me more $ to put them ahead of my buyers. It is BECAUSE of ethics I did not do this....
I worked diligently on getting this deal done for the woman that had no $, poor credit and a bad attitude boyfriend that had absolutely nothing to do with the deal and constant meddling in my affairs concerning the deal.....totally confused even after giving them thourough explanations every step of the way.....It was THEIR lawyer that misled them into believing there was $coming back to them...(A standard RE attorney that knew nothing about CREIing).
and yes, you read it wrong.....it states:
"When the buyers asked what about (their $), I told them my lawyer suggested I do things differently and that it was the sellers $ and they had to pay me personally."
I made this plainly clear to the buyer and point blank asked her if she still wanted the property......SHE SAID YES!
The only way for me to get paid from the sellers was to have them give me a promissory note and attach a lien against their prop. upon closing. (WITH THEIR PERMISSION!)
Is that ok with you?
Cliff
Well, that certainly makes more sense. The way you worded it previously was very confusing to me. I didn't want to accuse as much as to receive clairification. I'm not completely sold on REI yet (no pun entended) so I'm trying to make sure it's something I want to be a part of. Thanks for telling the rest of the story.
Kool! What are the names of the lenders?
I know you are asking for general SS help. But there are entire courses on SS and there is nothing that I can tell you is a short reply. So I will answer your direct question about hardship letters. Hardship letters are the least of your problems. I have never had a single question about the hardship letter. I have the home owner write a short letter, using questionable grammar that states their problems started just prior to their missed payments. The problems are either divorace, job loss, loss of income, health problems, hurricanes, increase in expenses - something beyond their control.
To whom it may concern.
I am sorry for not being able to pay my mortgage. In October 2004 I lost my job as a toll collector. I had been a toll collector for three years and was making $10 a hour. Since then I have not been able to find another job. I am an honest and hard working person but without my paycheck my family can not pay our bills. We are working with Brenda Grossnickle to sell our house. Brenda says that she needs your approval to sell the house prior to the foreclosure. Please work with Brenda to get the house sold. We pray that we will not have a foreclosure to add to all our other problems.
Sincerely
Your sale is approved...........
Sincerely,
ABC Mortgage Co.
[ Edited by happyhome on Date 05/11/2005 ]
Tear drop..Teardrop..Applause.
Oh that was good..really good.
Quote:
On 2005-05-11 16:15, bgrossnickle wrote:
I know you are asking for general SS help. But there are entire courses on SS and there is nothing that I can tell you is a short reply. So I will answer your direct question about hardship letters. Hardship letters are the least of your problems. I have never had a single question about the hardship letter. I have the home owner write a short letter, using questionable grammar that states their problems started just prior to their missed payments. The problems are either divorace, job loss, loss of income, health problems, hurricanes, increase in expenses - something beyond their control.
To whom it may concern.
I am sorry for not being able to pay my mortgage. In October 2004 I lost my job as a toll collector. I had been a toll collector for three years and was making $10 a hour. Since then I have not been able to find another job. I am an honest and hard working person but without my paycheck my family can not pay our bills. We are working with Brenda Grossnickle to sell our house. Brenda says that she needs your approval to sell the house prior to the foreclosure. Please work with Brenda to get the house sold. We pray that we will not have a foreclosure to add to all our other problems.
Sincerely