Real Estate Short Sale Secrets
Anyone actively investing in foreclosed and distressed properties has no doubt come across one major problem… Finding deals with equity! Trust us, this is a nationwide problem.
There are so many foreclosures out there; unfortunately most of the homeowners owe what their property is worth. We find that most investors walk away from deals with no equity. They either don’t know what to do with a no-equity deal or they are unwilling to put forth the effort necessary to make the deal work.
In situations like this, we short sale the mortgage. “What is a short sale?” You ask. A SHORT SALE means getting the bank to accept less than is what is owed as payment in full.
There are several steps that will ensure your success when short selling mortgages.
First of all, you must have the homeowner under control. Many investors are under the misconception that they can buy the property directly from the bank while it is in the foreclosure process. Not true! The bank does not own the property until the moment of the courthouse sale. You can buy the mortgage and finish the foreclosure process, but you cannot buy the property. You’ll have to work hand-in-hand with the homeowner if you plan to short sale mortgages.
Here is how it works: A homeowner calls you and tells you he is in foreclosure; owes $95,000 on his property; it’s worth $100,000 and he is 8 months in arrears. He wants to move on with his life but can’t sell his house because he owes what it is worth. Here is where you come to the rescue. You meet with the homeowner and have him sign an “Authorization to Release” form (this gives the bank permission to speak with you about the account) and a sales contract for the amount you are willing to pay for his property. In this scenario we are going to offer $50,000.
Next, you call the bank and ask for the Loss Mitigation Department. This is the department that handles properties that are in foreclosure. Tell the person handling the account that you are trying to help Mr. Smith with his foreclosure and you are willing to buy the property from him. However, due to it’s poor condition you are only willing to pay $50,000 as payment in full. Fax the sales contract for $50,000; comps in the area; an extensive list of repairs that are needed to bring the property up to marketable condition; a net sheet (a title company will help you with this); and some really bad pictures. The bank will then review the information and make a decision. Let’s say they counter at $65,000; you counter again at $55,000; they accept! It’s that simple! We short sale many, many mortgages every year. Banks are not in the business of owning properties. They would rather short sale a mortgage than go to the courthouse steps.
We’d like to share an incredible deal one of our Foreclosure Fortune Hunt graduates put together. Her name is Cathi Dubois.
Cathi was helping some friends find a home in which they would live. They came across a property valued at $200,000 in a distress situation. The property had a mortgage of approximately $197,000 and was in need of several thousand dollars of repairs. Based on the fact that the current owner owed what the property was worth Cathi did what any prudent investor would do, she short saled the mortgage.
She contacted the bank and began the process. Her first offer was $50,000. The bank laughed and told her to make a higher offer. After several phone calls, the bank agreed to accept $130,000 as payment in full. That is a $67,000 discount!! With the new payoff of $130,000, she then flipped the property to her friends for $140,000 and made a smooth $10,000 in less than a week!!! Personally, we think she gave the property away too cheap (smile).
This is a typical case where having a firm grasp on creative real estate enabled Cathi to turn a “nothing deal” into a “something deal” just by picking up the phone. She made money (and a lot of it) on a deal most investors would have passed by. The bank was happy with the short sale, Cathi made $10,000, and her friends bought a home with $60,000 equity!
So… the next time you get a call from a distressed homeowner with no equity, what will you do? Walk away or make a few simple calls and turn your time into cash? We certainly hope you will make the small effort it takes to short sale the mortgage. It is such an easy way to make money in an industry where great deals are tough to come by. When you short sale a mortgage, not only are you helping yourself; you are helping a very distressed homeowner and giving them the chance to start over.
One can never go wrong when win/win is the solution.
Okay, folks.... if I get some good feedback....I may write some more articles
. The better the feedback, the better the next article
Dwan Bent-Twyford
Dear Dwan & Sharon,
Thank you very much for the great introductory 1 hour session on the Short Sales. Sounds like a very reasonable opportunity and you are very good in explaining the material. I am definitely recommending your course to my friends.
Best regards,
Dmitry.
How did Cathi's friends obtain a mortgage knowing that lenders don't like lending on distressed properties? Cathi probably did the wise thing by not getting too greedy. Lenders are very aware of flipping and if the value goes up too much too quickly they want to see want was done to the property to increase the value so much. Lenders are starting to limit flipping by requiring 12 months seasoning.
Excellent article, thank you for your post, I hope to try this in the very near future here in GUAM. Wish me luck:O
Dwan,
Great Article!!!!! I have some specific questions that were ellude by a previous response.
1. How did you you pay for the outstanding expenses like lawyer fees, country fees, arrears, money to homeowner, etc.
thanks
darin
Great article. It leads me to another question, though. If this is so commonplace, then why do so many investors turn to a "subject to" strategy when they encounter deals such as this? Would you try to get the deed first, then go to a short-sale strategy? Vice versa? Thanks,
Eric
Hi Gary,
Good questions. When you do a successful short sale the bank wants to be paid off in full. What we do is short sale the property and then we wholesale it. Because the bank will not allow you to make an assignment fee, we do a double closing. For example, we short sale a property to $50,000... sell it to another investor (maybe a rehabber) for $60,000 and we make $10,000, less some minor closing costs. We average one deal per week with this exact method.
You can do it too!!!!!
Good Luck!!
Dwan
Great article, really gave me a better understanding of a short sale. Is there anyway this would work on a non foreclosure property that's in really bad condition and depreciating at a high rate of speed. Could you convince the bank that the property is going to fall into the ground and they should get out now!
TBARBER
Does anyone have a net sheet they can provide me with ?
highly appreciated .
i like your story but there is just one thing wrong with it. cathi did not make $10,000 because the bank would not let cathi assign a short sale to her friends. and if cathi would try and be slick and double close this deal.cathi would have paid back the $10,000 in closing cost. the other thing is if cathis friends are not cash buyers .there lender would see that cathi does not hold title to the house. so no loan for cathis friends. nice story . i sign up for your course
Excellent article, I've never heard of short-saling the first, awsome....another tool added to the arsenal!! How many (number wise) would you say you were able to discount?
That's a winner, who'd ever thought of that? Makes good sense though. I thought your article was very complete and easy to understand. Sometimes this stuff can go over my head, but this was explained well. I feel like I could start today. Let's hear another!!!
gtrzndrums
Yes, I have the same questions as everyone else.
How do we pay for the other costs involved?
Is it wise to negotiate a loan with that same bank, if the property is going to be flipped?
Ty : )
This article opened my eyes to yet another creative method of investing. I do have a few questions:
1) What happens to the seller? He still owes the bank some money?
2) What happened to the back payments and taxes?
Thanks for the detailed discription
Rudolf
Interesting article.
Always looking for more information on Short Sales, forclosures, etc... My question is you say this last deal is a win-win situation. Isn't it actually a win-win-"LOSE" ? ie: Short seller gets $10M for sale to friend and friend gets house with a lot of equity ($60M) but Seller gets stuck with the difference owed to the bank and the Amount the bank reduced the mortgage to. ($60M) Not trying to be the Devils Advocate but just wonder what benefit to Seller there is. Mike
Mike- we ask for a waiver of any def judgment the bank will have against the homeowner. If the bank absolutely refuses to waive it, the seller can opt to not work the short sale with us (seller's choice). Seller never does because even if the bank takes back the home, they will incur a loss. That loss will be pursued against the homeowner. Atleast with us, the seller has the chance of it being waived, no foreclosure to follow through on their credit report and a few bucks to leave with. It is definitely win-win-win. Thanks for this question.
I believe the bank "forgives" the balance. The Bank is discounting their paper in order to save on foreclosure and possible REO problems. Seller walks away f&c (no deficiency) with maybe a few $s depending on how hard a deal one makes. The seller being "under control" would be some kind of option or purchase contract. Seller has nothing to lose and something to gain by woriking with the "investor"
Buyer would usually have to come up with independant financing or cash for the bank to play.
“What is a short sale?” You ask. A SHORT SALE means getting the bank to accept less than is what is owed as payment in full. "
ie.:the bank forgives whatever difference there may be...
regarding the other expenses the buyer would likely pay for those (as the seller is broke)...so out of pocket would be a little more...but for 60k equity... who wouldn't?
Good luck
J.
This is very much a win-win for everyone, even the seller.
The seller was in a difficult situation, he was on the brink of loosing his house in foreclosure, in which the bank could pursue a deficiency judgement. With the investors help, a request for a waiver of the judgement is requested and many times is accepted. So with out our help the seller has a stronger chance of loosing.
I believe the bank "forgives" the balance. The Bank is discounting their paper in order to save on foreclosure and possible REO problems. Seller walks away f&c (no deficiency) with maybe a few $s depending on how hard a deal one makes. The seller being "under control" would be some kind of option or purchase contract. Seller has nothing to lose and something to gain by woriking with the "investor"
Buyer would usually have to come up with independant financing or cash for the bank to play.
Thanks for the prompt reply. Your answer was "I believe the bank forgives the balance"
Do you have a definite yes they do forgive or no they don't forgive. The reason I'm asking is when I was in Banking "Commercial RE" a ways back the bank might forgive a debt but the original borrower was stuck with a large tax bill based on amount forgiven or they were asked to make up the difference. (In this case $60M) Sometimes the bank would quality grade loans and if the loans were bad enough they would write off loans. I'm only wanting to get the right information so that I know how to best approach potential sellers and to sell them on the reason for doing what I'm wanting to do. Again, I enjoyed the article but just want to know the "facts" going in. Thanks mike
1st: I didn't write the article so I'm commenting on what seems logical.
Each deal will be different. As you yourself have experienced. Sometimes the banks will write it off sometimes they won't. No hard promises to the seller or you may be in trouble.
Seller will most probably have to declare any debt relief as some type of income. Not really your problem though. They are behind the eight ball.
What would they rather owe? $60K or the taxes on $60K? If they are going south financially they may not have a serious tax liability.
BTW a seller will often negotiate the same deal for themselves, if they think of it.
You must have seen deeds given in lieu of foreclosure. Or the owner approaching the bank with a low ball buyer before the foreclosure and cutting a deal for some relief.
Sometimes these kinds of things work sometimes they don't. As with all REI strategies one just puts this in your bag of tricks so that if you come across the situation you may have a way to profit from it.
EXCELLENT ARTICLE!!!!!
THANK YOU FOR SHARING.
WOW - Great Article - A+++ for this one.
Gave me the worm and fuzzy felling, even made the hair on my legs stand up!
I just gotta put my 2 cents in.
Banks and mortgages companies have recently become much smarter about selling foreclosures than they have in the past. They now have pre-foreclosure departments that allow a "short sale" of properties and Real Estate Own (REO) departments to market the properties
You need to ask for the non-performing assets department, Banks want to sell at the best price they can, even market value; they do not want to dump the properties.
Most Lenders must counter your offer the 1st time to show auditors that they tried to get the most possible. Always have a counter to their counter.
Each asset manager has a level of responsibility; your offer may have to be approved at a higher level. Even in an accepted offer, the bank may insert wording like “. Subject to corporate approval ".
You should include an inspection contingency period that allows you to terminate the sale if the inspection reveals unanticipated damages that the bank will not correct.
The game of getting your offer accepted is based on what the bank took the property back for, how long have they been foreclosing on the subject property, if they have just taken the subject property back they are less apt to sell at a discount Vs having the property on the market for 6 months.
If you shoot them an offer of 30k on a 100k MV home and they have 80k into the came, your offer will most likely get turned down with no consideration for your future offers. Offering 60 to 70k will get their attention. 30 cents on the dollar will only serve to insult them.
Hi Everyone,
I'm going to try to answer as many questions in one article as possible....
* When working a short sale, ask the bank to waive any deficency judgment against the homeowner. Most times they will just because you ask.
* Bank won't waive.... the other option the bank has is to send a 1099. Because of red tape, the bank usually does not follow-up with the actual 1099. When they do, the homeowner can file insolvency or bankruptcy.
* We don't EVER push for bankruptcy, but it may be the only solution. The homeowner can recooperate from bankruptcy in a few years just as well as they can recoop from foreclosure. Working with you at least puts cash in their pocket.
* Call the Loss Mitigation at the bank. They can help you.
* Fax them a sales contract, list of repairs, area comps, pictures, net sheet, hardship letter, cover letter from you. With these items we average a 70% acceptance rate.
* Check out our two day short sale boot camps... we cover every step... in detail. We're on the calendar on this web site.
* Most investors do a "subject to" because they do not know another option exists. DO NOT file a deed if you take a subject to and plan to short sale the property. The bank is doing a short sale to help the homeowner... not you the investor. If the homeowner deeds the property away, the bank will most likely say NO!!!
* It's win-win for everyone.... the bank has a bad debt off its book... the homeowner gets some money and is saved from a foreclosure... you have a nice profit for being smarter than the average investor!!!
* 9 out of 10 deals have no equity... will you make more money working on 9 deals or working on 1 deal? Banks will short sale 70% of the time so you do the math.
* We make so much money because we step outside the box.... we hope you will too!!!
Any more questions????
Dwan
Dwan
I have one.. what forms are used in a short sale between urself and the owner other than a sales agreement ?
Thanks Much,
eliteprops
I have a question that hopefully someone can help me with.I do shortsales and not many people in my area know how to do them or don't want to take the time to do them.
My question is, with this information that very few agents if any use, which is to my advantage, how could I advertise it to Sellers so they know that this option is available to them?
I would love to place it somewhere they would see it and be able to use it,with all the foreclosures going on, this could be a goldmind to work,if you knew the right way to advertise it.
I do lots of advertising in the free real estate books but am open to anything.I was even thinking of newspapers,in the for rent section,or possible by the public notice section if they think they are about to lose it they may be checking there to see if there house is listed. But where would someone be looking who is losing there house or behind on their payments ?
Thanks for the advise!
Hi Dwan,
Do you have examples of the following items: net sheet, hardship letter, cover letter
Where are you seminars held?
Thank you
Jeff
Great and informative information on "Short Sales"!
But I have a question. How could she sell or "Flip" the property within one week when the prime banks have a 12 month seasoning / chain of title rule? How did the final buyer get the mtg?
I would imagine the response you will get is "you wholesale the property to other investors with cash to buy". Not only do prime lenders require 12 months seasoning, so do 99% of the sub-primes. Those numbers are approx. but either way, it severely limits your ability to retail the property....which leaves a ton on the table.
Not applicable, because she is buying the property and the bank who extends the new mortgage or trust deed only looks at value of the purchase. This is not a refinance.
The only problem we have is at the higher amounts in the extended Los Angeles area. Banks are loth to take the loss, they keep thinking that it is better to go to sale. Complete sell and then market through their selected broker the property.
I have one which is a very expensive doggy. Bad Taste personified. Should sell easy.
But the amounts are large. Bank has two notes on the property $900,000 and $200,000. The owner is living in an apartment under house arrest and I have presented all the documentation on his behalf. I have a contract of purchase and I have escrows standing by to tie into the one open escrow. My price is $565,000. I have presented a bill of repairs etc. that would shake an elephant. Move the great room to its proper place at entrance, drop bedrooms and supports down to the second down story. Yes it is a hillsider.
The Loss Mitigator informs me that my bid is much too low and will not examine my comps and suspects my cost as much to first cl*****.
As I left his office I noticed one of my competitors waiting in his lobby. So I sat down and chatted. Yes same deal. He is talking about giving the bank two CD's to hold which total $800,000. They will bid the property short at the sale. Of course this kills their ability to sue for deficientcy. But I think the Loss Mitigator favors my competitor. More money and real money in the form of two CD's. What to do. Strangle my competitor? Steal his two CD's. Cry a lot and offer to sponser his ignorant oaf of a kid into the Magnet High School Program? Oh I know, join forces, have him leave now and cut him in for half. Well what does everybody think. I await your postings.
Lucius
Awesome article!!!!!!!!!!!!!!
very informative. Where do we get the release of information form? From the bank?
Well anyway, thanks for this very informative article!
did you find where to get the short sales forms? I'm from tx.
HELLO I WAS ABLE TO CALL IN ON THE SHORT SALE CLASS LAST NIGHT. JUST WANTED TO SAY YOU HAVE BOTH INSPIRED ME. THANKS FOR TAKING THE TIME TO EXPLAIN EVERYTHING. I KNOW I CAN DO THIS.
GOD BLESS AMERICA
IRENE
nicely explaind Sharon, but what do you tell the sellers about gettihg such a good deal
It would seem that if they are permitting you to do a short sale they would feel entitled to something other than just paying for them to move or etc
How do you establish that kind of rapport w/ a seller in such a short bit of time and they know you willbe walking away w/ all tha money They should get their family member to do this and maybe they'd get something more out of it.
You would be amazed at how many people can't do anything more than pump thier own gas for themselves. 99% of the people in this world don't think like we do and they are very happy and relieved that someone will help them out of thier situation.If they do figure it out for themselves ,good for them .
There are lots more deals out there for us.
About 90% of the time, banks will not allow the borrower (or immediate family members) to profit off of a short sale. In fact, in order to make the sale legal, you normaly offer a $1 deposit on a contract with the seller (before you contact the bank to try and short sale) with it clearly stating that the seller will receive no funds or compensation beyond the initial deposit. This satisfies most state laws that a real property must be sold for a legal tender, and satisfies banks that the mortgage holder isn't just trying to get out of a loan.
Great article. When you do your short sales, do you do a Warranty Deed, a Quit Claim Deed, or do you do a Land Trust? You could do either of these right?
Also, just to add to what you told everyone, It's good to do a Limited Lien Search to make sure what your getting as far as the number of liens attached to the parcel.
I am a little confused by how to do this, my question is ...how do you find the money to give to the bank? I do not have the money to buy this house from the bank and then turn it around and toss it to someone else! Does the friend give you the money upfront or ? This article was great but need more...help!
This is one of the better posts that I have read. It was very informative and to the point. Thank you for this article.
thank you mucho grande for the secrets to short sales! a similar scenario has happened to me...i stalled, i froze, i kept the owner on hold for a week because i didn't know how to correct his arrears of 6 or 7 months, or $6000! now i do, but am still nervous about proceeding. knowledge is so valueable! it almost hurts my dogbrain to stretch so much! thank you!
Very informative article! I am facing an opportunity much of the same. Neighbor is facing Foreclosure with not much equity but a wonderful home that could easily be rented for a year or two and then sold. I just didn't know where to start and your article helps me very much. Thanks and WRITE more!
I am not a in real estate but I am a homeowner looking at foreclosure or short sale. We have an agent right now that is specializing in short sales because of the demand in our area. What does a short sale do with a 2nd mortgage? Can the short sale still happen if there is a 2nd? Thanks
Dwan-
This was some great infomation even though it was "short" it was some great advice.
Thanks for your time and continue on.
Bill
HI,
I am extremely green in the real estate investing area, but highly intrested. I would like to ask a question regarding your Real Estate Short Sale Secrets article.
After you purchase these properties from the bank at a very reduced rate, do you then turn around and sale the property back to the orginal homeowner a a reduced rate, but making sure it's above what you paid for it.?
Secoundly. Are these properties generally occupied?
Possible but unlikely. Why? because you are the one who ask them to lower the price because you'll pay their non performing asset in cash. So you want to use their cash to make them lose on the previous loan. Think again and you'll figure the truth alone.
Possible but unlikely. Why? because you are the one who ask them to lower the price because you'll pay their non performing asset in cash. So you want to use their cash to make them lose on the previous loan. Think again and you'll figure the truth alone.
Great info! Thanks
Do banks with FA and VA loans consider shorts? After All they are backed by the government and have mortgage insuranse insured, so why should they?
That would be like me wrecking my car not filing on my insurance and selling it cheaper to a stranger. Not logical.
If the answer is "no they would not" This brings me to this. Arnt 90% of all morts insured this way? Then how can others say that they have a 70% success rate on shorting??
WheelerDealer
Now you have to stop applying logic and commonsense to the human condition. Yes, some banks with insured federal loans do entertain a short sell. It is just that the area of offer and counteroffer is a little more restricted.
The common sense answer is that they should not, as the insurance from FHA or whatever will mostly cover any loss. But it does happen. I think they are not too happy that FHA gets to look at their loss ratio and that may give them a dirty name in the secondary market as they sell their portfolios of loans. Soo On occasion they deal in a short sale.
In those occasions I may start a short and then abandon as I get delayed responses or no responses from the Loss Mitigator. Very annoying but a fact of life.
If when I research I find that the particular property has been through this process two or three times (even more) I walk from it as the amounts involved are such as to be counter productive time wise. I then look for others.
My suggestion is to climb the hill a little and deal with properties in the higher loan amounts. If I am up over $300,000 I am usualy dealing in non federaly insured trust deeds.
The Causes: The income spread. Very few increases in lower middle cl***** salaries. They are reaching the point of too high a housing payment for their income. The cost of houses has increased and will continue until Greenspan cuts the interest rate. You see there is a tie in between monthly payment and the amount you can pay for housing. If interests stay low and thus house cost high. You can but just make it. If the interest rate jumps a bit it may put you over on the short side. If your housing cost is over 30% of income I think you are in a danger area and subject to any little bump, like job change or down size and you are in trouble.
I see lots of this. Little things, buy a new car cause the old one wore out and the increased payment takes away from income which normaly would cover house payments, taxes, repairs etc. etc.
A payment is missed, it is covered with a cash withdrawal on a credit card. Next month this is no longer possible. The payment slides and on it goes.
That seems to be the target at this time in history. Most Investors do one of two things.
Try the short sale if a cooperative owner of the house.
Or just take over and try to lease to another who can afford a payment which generates at least $100 a month to you and the hope of a Christmas Present on some future purchase which has an amount in it for you. But that is a little scary at this time. I would not count on the Christmas Present. The $100 a month is probably it plus whatever amount you could get on the option payment.
I am as you know a little out of it at this moment. Containers to Housing takes a lot of time. Mostly arguing with Plan Checkers etc. But I did one for a friend the other day and they took over a house. The monthly payment generates about $100 to me. The money to bring current the existing foreclosure consisted of the old owner coming up with a payment to get out and I came up with a payment or so. Took about $4,000 altogether and it is off and running.Bank is happy and looks the other way, I am happy some friends have a really nice home.The old home owner who had lost his job on a down size is happy cause he has cut his expenses, dumped the expensive wife. Has no kids, now in a tiny condo and is starting his own business which he runs all by himself to start. I think his first employee goes to work on Monday.
WheelerDealer, I hate to sound pesimistic, but this type of situation is not too upward directed. The mean price for a house in my slumy area is $425,000. A proper down would be $80,000. Within a mile radius of my house nobody has that kind of cash for a downpayment. Ok lets see you work out a no down deal. Normal int. at 6% 30 years. the payment is: $2,684 a month just P&I. That means for safety (25%) the buyer would have to make $10,738 a month. This is a slummy working cl***** some lower middle cl***** area.Our top salery types make $4,500.
This type of situation cannot continue without major social changes.
With your background in cars this interest rate may look like Chump change. But believe me to the average non movie type person working for a living here in the wilds of LaLa land it is a Catastrophe and I feel the wind in the trees.
I think if 70% is true and of this I am not sure. If you run close to the actual sale, I mean within a few days you might have a high sucess rate. But then you are really close on equity. Cause if it was any good it should be gone.
Thats my bite on it. Lucius
So I have to stop applying logic AND commom sense!!?? Geeze, that is just not logical!
That little bitty interest did sound like chump change untill I started playing with my handy dandy mortgage rate calculator!! Boy what fun is that thing. I have officially started my rise to financial well being with being able to help those folks who have maxed out their credit cards eating out and developing film during the time it took them to find another job.
I have secured financing on any house I buy with a 15 year note with no DOS clause in it. I have sence figured out that if I sell my little darlings on a 30 yr ARM at just 2 points above my buy-rate I will not have time to count all the paper with this nice picture of Ben Franklin on the front them. Yep 2 chumpy lil' points!!! They get to decorate!!
Im guessing that you are no longer active on this site. We will miss you.
WheelerDealer,
It's called "The Long Game" and it is a winner. I use a HP12c calculator. You can do any variation of the mortgage structure you like and then read the differences. You sir have captured the golden apple. Your plan is absolutely right on. It is something I have done in the past and it works. Some call it 15 for 30 and the kicker is the no DOS. I think the deal is that they know you are on the paper from then on and thats what makes it fly. Congratulations get rich in your case richer.
Cheers Lucius
Lucius,
Yes Yes Yes, "the long game" 15 for 30 EXACTALY!! I knew if I sat long enough I'd come up with something. I know its not new.
After reading all these posts, I picked out all down sides to this gig, Dos,Seasoning,etc.etc. and went out to see if they really are hurdles, and I found out they are not, at least for me. That was phase one. I am going to do this at 500k intervals.
Phase two will be to apply a pricnipal I have lived by to be successful in the car biz. That is not buy a "unit" that wont wholesale first.
Retail was always a bonus.
Thank's for the support.
One day I'll have the "Sprit of Ecstasy" flying o'top of my hood so my ex's can knock them off too!
How does one get the "owner" out of the picture after getting the short sale agreement from the bank? And Usually doesn't the bank require all cash?
I just wanted to tell you that you wrote an excellent article. I have just began working with people in distress, and I find that the banks are not always willing to negotiate a short sale.
I was just wondering if you had any knowledge of trying to do a short sale on a property when the client is in the middle of a bankrupcy and the home is on the call list for sheriff sale.
I am going to try sending pictures along with sending list of things needing to be fixed on the property, I did not know that this could be a contributing factor to the banks making a decision on a short sale.
Thanks you for letting me pick your brain for my knowledge
thank you for explaining short sales for us very novice, yet eager investors. I appreciate the simple terms you used as well as the examples
please keep the articles coming!!!
I recently made several offers on two bank owned properties one that was 70% complete they were asking 165k. after working the #'s the cost to complete exceeded the fmv of the property. I offered 100k , through a realtor and got a quick "NO" . This is the second bank owned I have gotten a "No" from. I havn't found banks to be eager to discount. I usually factor in 10-15% profit on these types properties. They are a lot of work.
if i lease my multi famoly dwelling for 40 years, does this satisfy the 1031 exchange?
Fantastic article, do another one
Excellent arrticle with an accurate representation of the process.
Looking forward to more articles.
The article helped me understand short-sale mortgages a lot better but i was just curious if you have to go to the bank with the amount of cash that you agreed to pay for the distressed property, or if you can continue paying a percent of that mortgage
In the example for Cathi Dubois where she negotiated witht he bank and preformed a short sale for $130,000 who she be able to finance that amount of did you have to pay cash up front?
Great article. What advice do you have for someone who is going through a foreclosure on investment properties? I tried to a deed-n-;ieu and a short sales both was turned down
Do you know if there is any tax implications if the property is under sold? Please shed some light on these questions