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Marketing Durring Short-sales...

#1 User is offline   Merrick 

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Posted 06 November 2006 - 11:52 AM

just a quick question, Do any of you market a home you are currently negotiating a short-sale on? If so, What price are you using for your marketing? FMV?

Example, Say I find a pre-foreclosure, the homeowner owes about 295K and the home is worth about 300k, it appears to be a good short-sale candidate (based on my other imaginary criteria), I get the deed on the home, and begin my negotiations with the bank to discount the note, at this point I would like to go ahead and market the home for sale, but have no idea what price to put on it. I know there are people out there doing this very successfully, but I have no idea how to go about it. In this scenario if I got the discount payoff approved for say 235K I would want to market the home to sell as quickly as possible, so I'd probably price it at 275-280K? What's the trick if the negotiation isn't finished yet?

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#2 User is offline   AndyVA 

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Posted 07 November 2006 - 08:38 AM

Don't list it until you have your BPO completed.

If your BPO agent is competent, he will check the MLS to see if it has been listed recently. You don't want him finding your full price listing!

After you get the BPO results, it's reasonably safe... Just know that there's a slim chance the bank might find out from a nosy BPO agent.
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#3 User is offline   Miles 

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Posted 12 November 2006 - 10:53 PM

Does the property need a significant amount of repair? How much time will you be investing in the deal?

I believe you should have either a net or gross profit goal in the deal. On a short sale I am finishing up, I decided I wanted 20k out of the deal, and that is how I set my price, 20k above what we are paying for the property.

I always try to keep the price below median average in the area because I prefer to sell properties quickly, and my money is worth more now that it will be in the future.

Best of luck!
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#4 User is offline   Jonathan RexfordFL 

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Posted 13 November 2006 - 05:39 AM

I do market the property. But I don't list it or place a sign on property until after BPO is ordered. Which is usually about 10 days after I make first contact with Loss Mit person.

I always set my price based on what I want from deal as other posters post. I let all buyers know that we are working a short sale with lender. Since most of my buyers are coming in with mortgage money I will most of the of the time pay cash and then sell.

Now if I know its a condition of getting the Short Sale approved I will list it. But this has been rare as it was in the past.

The most important is to control the process.
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#5 User is offline   Das11157 

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Posted 09 January 2007 - 11:37 PM

View PostJonathan RexfordFL, on Nov 13 2006, 05:39 AM, said:

I do market the property. But I don't list it or place a sign on property until after BPO is ordered. Which is usually about 10 days after I make first contact with Loss Mit person.

I always set my price based on what I want from deal as other posters post. I let all buyers know that we are working a short sale with lender. Since most of my buyers are coming in with mortgage money I will most of the of the time pay cash and then sell.

Now if I know its a condition of getting the Short Sale approved I will list it. But this has been rare as it was in the past.

The most important is to control the process.


Jonanthan I did this exactly like you say

1#Put Under contract (lock box house vacant)
2# BPO already done (I order another one still hasn't been done, so no sign)

3#Short Sale was in last stages

4# Told buyers that IT was Under Contract Pending Short Sale!!(via email)

5#What turned out happening is that when I emailed , have over 300 on my buyers list, One of them still don't know who, found out who lender was, contacted the lender, and offered more then I did,

Here I did all the work, I was told that I needed to up my offer, Because another offer came that was higher, Just so happened that offer came in 1 day after I sent out the email!hummmmmmmm

I was told that even though I had a contract in that this was a SS and the bank could accept any higher offer!


So My question is there anything I can do in the Future, to make sure this doesn't happen again, and maybe change the wording in my email from Under Contract Pending Short Sale

Any help I would be grateful
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#6 User is offline   WeBuyHousesInGA 

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Posted 10 January 2007 - 07:14 AM

Before you even start working the short sale you need to include a bilateral Memorandum of Agreement, notarized and witnessed, and record that document in your local county deed room, cross referenced to the deed held by the seller. That way when another investor tries to snake your deal you can get paid to release your interest in the property or you can stick to your guns and fight for it.
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#7 User is offline   IBUYHOUSESINCT 

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Posted 18 February 2007 - 09:57 PM

I never market a short sale property untill I know what it will be discounted to, so I can make the spread as much as possible.

For a past short sale that I had a 1st lien of 160k discounted to 84k, I had a buy and hold investor that wanted to buy it. I offered it to him for 155k, knowing he would jump at it considering it would appraise for 220k. he agreed after seeing the property, I then explained that he could finance 84k but had to come to the table w/ 71k cash. So I assigned the contract to him for 71k, that he got a hard money loan for and he financed the 84k. 3 months after he purchased the property he refinanced out the money to pay off the hard money. You just need to make sure you tell the bank right before closing the entity you will close out the loan under, explain that it is your partner and your closing under their name.

That is one way. I am currently working one that I had a 2nd lien of 29k discounted to 1k and a 1st of 215k discounted to 136k. I have a realtor that say's he has a buyer for it at 238k. I think on this one I might have to do a double close. They way I am going to do it is to take the property into a trust first, then sell the property to the end buyer and use his money to pay off the bank. I have never done this before, but my paralegal has said they have done it for another investor. I am going to have a long conversation with them to understand it better and I will post the info.

Hope this helps.
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#8 User is offline   Merrick 

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Posted 23 February 2007 - 03:29 PM

View PostIBUYHOUSESINCT, on Feb 18 2007, 10:57 PM, said:

I never market a short sale property untill I know what it will be discounted to, so I can make the spread as much as possible.

For a past short sale that I had a 1st lien of 160k discounted to 84k, I had a buy and hold investor that wanted to buy it. I offered it to him for 155k, knowing he would jump at it considering it would appraise for 220k. he agreed after seeing the property, I then explained that he could finance 84k but had to come to the table w/ 71k cash. So I assigned the contract to him for 71k, that he got a hard money loan for and he financed the 84k. 3 months after he purchased the property he refinanced out the money to pay off the hard money. You just need to make sure you tell the bank right before closing the entity you will close out the loan under, explain that it is your partner and your closing under their name.

That is one way. I am currently working one that I had a 2nd lien of 29k discounted to 1k and a 1st of 215k discounted to 136k. I have a realtor that say's he has a buyer for it at 238k. I think on this one I might have to do a double close. They way I am going to do it is to take the property into a trust first, then sell the property to the end buyer and use his money to pay off the bank. I have never done this before, but my paralegal has said they have done it for another investor. I am going to have a long conversation with them to understand it better and I will post the info.

Hope this helps.


Thanks for the reply, I still haven't made it completely through the short-sale process, so my first question is, how are you getting such deep discounts? I have been taught that the silver-bullet of your short-sale package is to show the bank that you know exactly how much money they're going to lose and exactly how long it's going to take.... then offer them more, it was suggested that this number usually falls between 79 & 82%? Definitely doesn't sound right according to your numbers. Thanks again for the help.

All the Best,
Merrick
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#9 User is offline   WeBuyHousesInGA 

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Posted 23 February 2007 - 04:15 PM

View PostMerrick, on Feb 23 2007, 04:29 PM, said:

... I have been taught ... to show the bank... how much money they're going to lose... then offer them more

Yes and no. You definitely want to make an offer to the bank that they will consider to be a tempting deal given the circumstances. Your offer shouldn't be more than they could get by foreclosing and selling to someone else (or letting a senior lien holder foreclose and hoping for the best) but when they factor in the time value of money and the risk they may go with you as a sure thing. You are supposed to be the "bird in hand" offer -- you know the saying, "a bird in hand is worth two in the bush." Your offer should be tempting but not a slam dunk better-than-foreclosing offer. (If they say yes right away... YOU'VE OFFERED THEM TOO MUCH! :D)


View PostMerrick, on Feb 23 2007, 04:29 PM, said:

it was suggested that this number usually falls between 79 & 82%

Consider that the cost of foreclosing is a regional figure, as is the demand for fixer-upper property, so you can't say "between 79 & 82% [of the AS-IS value is what a bank in first position will take]". Also, banks have quotas and internal circumstances that you probably won't be able to know about that might make them go higher or lower than whatever is typical for that bank. In my area it is my opinion that most banks with a senior-most lien want to see a sales price of 80-90% of what they think is the AS-IS value. The art to a successful short sale is therefore convincing the bank that the AS-IS value is less than what you really believe, usually due to repairs that you can/will do for less than the bank can. That's win-win.


My friend in Connecticut is a fairly seasoned investor and he's darned good at short sales. From talking to him and picking his brain I am clear that he is a natural for making everyone believe that they are a winner by taking his deals. And it's not a trick. Everyone really IS a winner!
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#10 User is offline   IBUYHOUSESINCT 

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Posted 23 February 2007 - 07:45 PM

View PostMerrick, on Feb 23 2007, 04:29 PM, said:

Thanks for the reply, I still haven't made it completely through the short-sale process, so my first question is, how are you getting such deep discounts? I have been taught that the silver-bullet of your short-sale package is to show the bank that you know exactly how much money they're going to lose and exactly how long it's going to take.... then offer them more, it was suggested that this number usually falls between 79 & 82%? Definitely doesn't sound right according to your numbers. Thanks again for the help.

All the Best,
Merrick



I have to tell you I have been working short sales for a while and I don't ever look at a short sale as I have to show them how much money it will cost them opposed to how much money I will give them. I look at it as what kind of discount I WANT and then show them WHY THEY SHOULD ACCEPT THAT DISCOUNT considering all the negatives with the problem. I never look at it like I should not offer that low, I do any how. Sometimes they come back and say absolutely not and other times they say yes or we need a little more, but it is a starting point that is not exceeding my bottom number (with a lot of room). So leave your comfort zone and try to push the envelope. But also back it up with facts and don't fold when they question it.

Your numbers fall between 79 and 82% ------- I'll stick to mine, they work just fine for me!!!
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#11 User is offline   IBUYHOUSESINCT 

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Posted 26 February 2007 - 07:27 AM

View PostIBUYHOUSESINCT, on Feb 18 2007, 10:57 PM, said:

I never market a short sale property untill I know what it will be discounted to, so I can make the spread as much as possible.

For a past short sale that I had a 1st lien of 160k discounted to 84k, I had a buy and hold investor that wanted to buy it. I offered it to him for 155k, knowing he would jump at it considering it would appraise for 220k. he agreed after seeing the property, I then explained that he could finance 84k but had to come to the table w/ 71k cash. So I assigned the contract to him for 71k, that he got a hard money loan for and he financed the 84k. 3 months after he purchased the property he refinanced out the money to pay off the hard money. You just need to make sure you tell the bank right before closing the entity you will close out the loan under, explain that it is your partner and your closing under their name.

That is one way. I am currently working one that I had a 2nd lien of 29k discounted to 1k and a 1st of 215k discounted to 136k. I have a realtor that say's he has a buyer for it at 238k. I think on this one I might have to do a double close. They way I am going to do it is to take the property into a trust first, then sell the property to the end buyer and use his money to pay off the bank. I have never done this before, but my paralegal has said they have done it for another investor. I am going to have a long conversation with them to understand it better and I will post the info.

Hope this helps.



Well this is the way it as unfolded. The Realtor came through with a contract for 253k. Buyer wants 8k back, Realtors want 10k, First Lien 136k, Second Lien 1k and 98k left over for my company and closing cost. I have pulled title and it is clean, just two liens (mortgages) even the taxes are up to date. So the closing on the short sale is scheduled for 3/30 and the final buyer closing is for the week before. We are going to do a double close, I have already told the realtor this is what we are doing (minus the number breakdown) and he has contacted the buyer’s bank and asked about chain of title and seasoning issues. The rep said no problem. So I am keeping my fingers crossed because we all know nothing is certain until the money is in the bank. The way the double close is working;

1. Contract for sale between my company and end buyer
2. First close the bank out and have the Hud representing the 137k and my company as new owner
3. Then close with the end buyer, the end buyers money used for the bank
4. Have the buyers attorney record in the correct order
5. Double close complete

Sounds good on paper, now just gotta make it happen!!
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#12 User is offline   NJinvest 

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Posted 04 April 2007 - 10:58 AM

View PostIBUYHOUSESINCT, on Feb 26 2007, 05:27 AM, said:

Well this is the way it as unfolded. The Realtor came through with a contract for 253k. Buyer wants 8k back, Realtors want 10k, First Lien 136k, Second Lien 1k and 98k left over for my company and closing cost. I have pulled title and it is clean, just two liens (mortgages) even the taxes are up to date. So the closing on the short sale is scheduled for 3/30 and the final buyer closing is for the week before. We are going to do a double close, I have already told the realtor this is what we are doing (minus the number breakdown) and he has contacted the buyer’s bank and asked about chain of title and seasoning issues. The rep said no problem. So I am keeping my fingers crossed because we all know nothing is certain until the money is in the bank. The way the double close is working;

1. Contract for sale between my company and end buyer
2. First close the bank out and have the Hud representing the 137k and my company as new owner
3. Then close with the end buyer, the end buyers money used for the bank
4. Have the buyers attorney record in the correct order
5. Double close complete

Sounds good on paper, now just gotta make it happen!!



Can you please explain #2 - #4 further:
You're closing the bank at $137k, is it cash or mortgage?
Then a week later, how are you using the end buyer's money for the bank? Shouldn't the bank already have been paid off when you closed with them?

"So the closing on the short sale is scheduled for 3/30 and the final buyer closing is for the week before."
Do you mean the final buyer is closing the week after? I'm confused here..


This is a great thread, lot of useful info. Sorry for all the questions, but I'm new and this is really a great way to learn .. thanks in advance for the replies.
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#13 User is offline   Merrick 

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Posted 05 April 2007 - 06:32 AM

View PostNJinvest, on Apr 4 2007, 11:58 AM, said:

Can you please explain #2 - #4 further:
You're closing the bank at $137k, is it cash or mortgage?
Then a week later, how are you using the end buyer's money for the bank? Shouldn't the bank already have been paid off when you closed with them?

"So the closing on the short sale is scheduled for 3/30 and the final buyer closing is for the week before."
Do you mean the final buyer is closing the week after? I'm confused here..
This is a great thread, lot of useful info. Sorry for all the questions, but I'm new and this is really a great way to learn .. thanks in advance for the replies.


#'s 2 - 4 simplified... basically, should be scheduled for the same day, generally one right after the other. You sign all the paperwork and close with your seller, walk in to the next room, sign all the paperwork and close with your end buyer. The second transaction funds the first, and your original seller and your end buyer never even see each other. Do a search for double closing or multiple closing, there's a barrage of great info out there. Once both transactions are complete, your closing agent (title co. or attorney) just has to record the deeds in the correct order.

all the Best,
Merrick
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#14 User is offline   NJinvest 

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Posted 06 April 2007 - 09:59 AM

View PostMerrick, on Apr 5 2007, 04:32 AM, said:

#'s 2 - 4 simplified... basically, should be scheduled for the same day, generally one right after the other. You sign all the paperwork and close with your seller, walk in to the next room, sign all the paperwork and close with your end buyer. The second transaction funds the first, and your original seller and your end buyer never even see each other. Do a search for double closing or multiple closing, there's a barrage of great info out there. Once both transactions are complete, your closing agent (title co. or attorney) just has to record the deeds in the correct order.

all the Best,
Merrick



Merrick,
How on earth do you fund the first closing with the second transaction? My understanding is that the first transaction has to close w/payment. Then you can go and take care of the 2nd closing.

For example,
In a shortsale, I close with the bank for $400k and I own the home.
Then I walk into the next room, and I close with my end buyer for $430k.

In order for the first transaction to close, the bank would require the $400k payment upfront.
So how you fund the first transaction with the funds from the 2nd? Please explain...


Thanks,
Omar
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#15 User is offline   WeBuyHousesInGA 

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Posted 06 April 2007 - 01:27 PM

The closing attorney handles the payments. If the closing attorney is OK with it then it can be done. The money is held in escrow until both transactions are cleared and then you get the difference.

My attorney in Georgia does not do this but I'll bet there are others that will. My attorney wants me to fund the first deal and then get the bigger check from the second, even if both deals are taking place at the same time.
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#16 User is offline   NJinvest 

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Posted 06 April 2007 - 07:58 PM

View PostWeBuyHousesInGA, on Apr 6 2007, 11:27 AM, said:

The closing attorney handles the payments. If the closing attorney is OK with it then it can be done. The money is held in escrow until both transactions are cleared and then you get the difference.

My attorney in Georgia does not do this but I'll bet there are others that will. My attorney wants me to fund the first deal and then get the bigger check from the second, even if both deals are taking place at the same time.


Yea, it seems like a very rare occassion where this would be done. But, it's an option that I will try to present to the closing attorney if I'm in this situation in the future.

Also, in order to fund the first closing, do you use your own cash reserves? hard money lender? mortgage?
Which do you prefer most? If it's a hard money lender and you're closing on the same day, usually within hours, what type of return do you give them?

Thanks.

This post has been edited by NJinvest: 06 April 2007 - 07:59 PM

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#17 User is offline   WeBuyHousesInGA 

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Posted 07 April 2007 - 09:14 AM

I use the cheapest funds that I have available, of course!

I haven't used a hard money lender... ever. I am fortunate to have good personal credit and a track record of commercial real estate loans that have been paid as agreed. I have several lines of business and personal credit that enable me to purchase a property for all cash. Once upon a time I had a chunk of my own cash, too, but it always seems to be tied up nowadays.

Immediately after a simultaneous closing I am either heading to the bank that day with the larger check from the sale or I am heading to the bank with my original certified funds check because the closing fell through. At auction or in some other all-cash purchase I apply for alternative financing to get all or most of my cash back just as soon as I think I have a lock on the deal. My going rate is 1% of the loan amount to get an interest only Prime plus 0.50 - 1.25% loan. The loan amount depends on the lender. Some tie it to After Repair Value (e.g. 75% of ARV) but most tie it to Purchase Price (e.g. 90% of PP).

I have not worked on my private money lines despite receiving the Dealmaker's training but I know that private money would be great for "bridge loans" for simultaneous closings and other such situations where you only need money for a brief time period. You can give your money or credit partner 1% of the loan amount if the deal closes and you can even invite them to come with you to the closing if they like. You never take possession of the money directly. You only use it to facilitate the purchase side and you only do that if the sale side goes through. If I didn't value my ability to quickly pounce on a deal so much then I would have no problem loaning out $100k for 10 minutes and making $1k for the trouble, for example.
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#18 User is offline   IBUYHOUSESINCT 

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Posted 08 April 2007 - 09:12 PM

Simultaneous Closings are done all the time, but you do have to have both lawyers in agreement and on the same page; which doesn’t always happen. I just had a incident were I was set to double close and it couldn’t happen in time because of the financing of the end buyer. It was explained (obviously not well enough) that seasoning could not be an issue, because there will be no seasoning. So I used private funds from lender I use a lot, this person already had 400k out in loans with me and know I asked for a additional 185k for short term. I usually get 10% rate on the money I borrow; because it was short term and he was not completely comfortable w/ lending additional money we agreed on 20% for this loan only. I bought the property on the 3/30/07 and selling it tomorrow afternoon. The interest works out to be $1,115.00; I would rather of not had all the cost of closing, insurance and reselling but if it is necessary 1k is not too bad to pay to borrow short term. The 1k return for 11days made my private lender happy and I will clear 80k for my work.
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#19 User is offline   ctoilman 

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Posted 09 April 2007 - 10:56 AM

Well, even though you didn't do a double closing this time like you wanted, at least the deal is going thru. Nice job!
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#20 User is offline   Movtivatedsellers 

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Posted 17 April 2007 - 05:31 PM

View PostMiles, on Nov 12 2006, 09:53 PM, said:

Does the property need a significant amount of repair? How much time will you be investing in the deal?

I believe you should have either a net or gross profit goal in the deal. On a short sale I am finishing up, I decided I wanted 20k out of the deal, and that is how I set my price, 20k above what we are paying for the property.

I always try to keep the price below median average in the area because I prefer to sell properties quickly, and my money is worth more now that it will be in the future.

Best of luck!


Miles,

how many short sales have you closed? I too am trying to close some, but I'm finding it hard to do double closings with most title companies. They want a document singed by the lender stating they are aware WE are making a profit.... do you have this issue?
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#21 User is offline   Merrick 

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Posted 17 April 2007 - 07:15 PM

View PostMovtivatedsellers, on Apr 17 2007, 06:31 PM, said:

Miles,

how many short sales have you closed? I too am trying to close some, but I'm finding it hard to do double closings with most title companies. They want a document singed by the lender stating they are aware WE are making a profit.... do you have this issue?


Someone correct me if I'm wrong, but I understand the title company has a feduciary responsibility to all parties involved... on both sides of the transaction. The lender feels that they negotiated the best deal with you, you both agreed to it... what you do with the property after you close with the lender is literally nobody's business, and your title company must keep the info private. Sounds like you need to find a new title company.

On the other hand, how difficult would it be to get the lender to sign a document that they understand you will profit from the house?!?

All the Best,
Merrick
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#22 User is offline   Movtivatedsellers 

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Posted 17 April 2007 - 08:44 PM

View PostMerrick, on Apr 17 2007, 06:15 PM, said:

Someone correct me if I'm wrong, but I understand the title company has a feduciary responsibility to all parties involved... on both sides of the transaction. The lender feels that they negotiated the best deal with you, you both agreed to it... what you do with the property after you close with the lender is literally nobody's business, and your title company must keep the info private. Sounds like you need to find a new title company.

On the other hand, how difficult would it be to get the lender to sign a document that they understand you will profit from the house?!?

All the Best,
Merrick


I've contacted around 5 title companies and all 5 require me to get the lenders approval that i'm making a profit from this transaction. Most guru's state never let the lender know it's a double closing nor that youre making a profit from the short sale. The Los Mit Agents job is to get the lowest lost on each short sale. I agree with you Marrick, it's not their concern if I'm making a profit and was able to find a buyer that is willing to pay more, but the big picture is I have 8 deals coming close, and I dont want to lose 3 months work if I can help it... Are there any suggestions?
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#23 User is offline   Kevin 

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Posted 03 May 2007 - 06:44 PM

Quote

Someone correct me if I'm wrong, but I understand the title company has a feduciary responsibility to all parties involved... on both sides of the transaction. The lender feels that they negotiated the best deal with you, you both agreed to it... what you do with the property after you close with the lender is literally nobody's business, and your title company must keep the info private. Sounds like you need to find a new title company.

On the other hand, how difficult would it be to get the lender to sign a document that they understand you will profit from the house?!?

All the Best,
Merrick


In Georgia the closing attorney represents the lender.
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#24 User is offline   Das11157 

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Posted 11 May 2007 - 06:04 PM

View PostWeBuyHousesInGA, on Jan 10 2007, 06:14 AM, said:

Before you even start working the short sale you need to include a bilateral Memorandum of Agreement, notarized and witnessed, and record that document in your local county deed room, cross referenced to the deed held by the seller. That way when another investor tries to snake your deal you can get paid to release your interest in the property or you can stick to your guns and fight for it.


YES ON ALL MY SHORT SALES I DO RECORD MEMORANDUM, SO THAT WAS NOT A PROBLEM

HE OFFERED ME 1K , NOW HOW COULD I HAVE MARKET A SHORT SALE, WITHOUT THIS HAPPENING OVER AND OVER AGAIN
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#25 User is offline   Das11157 

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Posted 21 June 2007 - 08:30 PM

View PostJonathan RexfordFL, on Nov 13 2006, 04:39 AM, said:

I do market the property. But I don't list it or place a sign on property until after BPO is ordered. Which is usually about 10 days after I make first contact with Loss Mit person.

I always set my price based on what I want from deal as other posters post. I let all buyers know that we are working a short sale with lender. Since most of my buyers are coming in with mortgage money I will most of the of the time pay cash and then sell.

Now if I know its a condition of getting the Short Sale approved I will list it. But this has been rare as it was in the past.

The most important is to control the process.



Hi Jonathan

You list it after the BPO is done .. Makes Sence what if a Nosy REA did find that out, are you in big trouble with the LAW! What I mean is it Legal?


Currious How I could market longer, usually when the Lender approves a Short sale they want it closed quickly, and I am just trying to gain more marketing time..


dave
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#26 User is offline   Das11157 

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Posted 21 June 2007 - 08:32 PM

View PostWeBuyHousesInGA, on Jan 10 2007, 06:14 AM, said:

Before you even start working the short sale you need to include a bilateral Memorandum of Agreement, notarized and witnessed, and record that document in your local county deed room, cross referenced to the deed held by the seller. That way when another investor tries to snake your deal you can get paid to release your interest in the property or you can stick to your guns and fight for it.



I did do that with mem

I did release it for 3k buy it was a sweet deal

Was wondering How I might word it when selling in the future without hinting that it is a short sale

das
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#27 User is offline   asianwolf 

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Posted 04 April 2008 - 12:58 AM

View PostDas11157, on Jun 21 2007, 10:32 PM, said:

I did do that with mem

I did release it for 3k buy it was a sweet deal

Was wondering How I might word it when selling in the future without hinting that it is a short sale

das



Did anyone answer this one?
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#28 User is offline   HOUSEHUNTER 

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Posted 23 February 2009 - 05:15 AM

The discussion doesn't seem to cover the obvious question of actual marketing.

The price is usually the most attractive thing and that overcomes many objections to the home being a hassle to deal with from an agents perspective. However, choosing a seasoned agent in the short sale process (seasoned meaning one who loves investors - like I do *shameless*) can be a real upgrade. Add into the fact that most banks factor in that money to pay the agents and you've got yourself some free labor.

Just leaving it there would be a big mistake.

We all know that statistically (maybe not in your real life experience) agents get more money for homes. Why wouldn't you hire an agent to market the heck out your Short Sale? It's a win/win/win/win deal.

Not sure what I mean?

Investor wins - A higher overall price
Agent Wins - Commission paid, hopefully a buyer off the listing
Another Agent Wins - Their buyer likely bought the home (consider yourself a stimulus package)
Home Owner wins - they avoid foreclosure
Bank Wins - They avoid foreclosure

All is right with the world.

It's important I think to treat your short sales as if they were your "fix and Flip" deals. Market them as the great homes at awesome prices.

Final note:

There are 2 sides to the marketing time frame.

List at payoff - shows the bank that the owner is trying to get the most. I've had more than one account manager tell me that played a role.

List at BPO (done by your agent for free for you) - It's likely the other BPO agent will contact your agent if you list the home pre-bpo. Often, they will work together or at least talk.

I'm loving short sales. They are such a win/win deal. I could type all day.

Visit the ones I'm working on.. http://www.atlantash...alelistings.com
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