My Short Sale Plan - Your Thoughts?
My Plan: Approach investors in my area and offer an outlet for any short sale leads they come across. I will use my time and energy to work the leads and pay them a percentage of the profits.
In my experience the majority of investors get these leads and trash them. It takes several months and hours of frusration working with the banks. I believe it is better to have a piece of something than 100% of nothing. Do you think investors would be willing to share leads they were going to throw away?
Investors might be not understand what your proposing.
would getting a subscription to NOD be easier?
What is NOD?
Notice of default... the start of the foreclosure process.
Presumably, the "investors" have already done some due diligence if they discard the prospect.... (because it is a short sale candidate and represents additional hours upon hours of work)
IF the speculative investors are interested in purchasing the property... but at the right price, and are willing to go into contract at that price... you could work something out such that you can "facilitate" the deal and get paid at closing.
I have never heard of debt being charged off prior to foreclosure.
Why not just offer to buy the Note yourself?
Because the 2nd is completely underwater, I would not consider it unless and until the 1st agrees to a price where I can make a profit.
Maybe that should tell you something about the contract?
be glad the close at all. in CA it seems no one will do a double close w/o full disclosure to all
Have you tried the yellow pages?
you were talking about transactional financing and having a hard time educating the title people, so you much be doing something outside the box.
That seem like a pretty aggressive price
The house is 36K underwater, and you want the bank to eat 101K.
I cant figure the $105k offer?, unless your market value is wrong. You your self said the only 6k repairs...which isnt much at all for a $210k house
You would probably need some supporting info for a 105k offer or you will be promptly disregarded and not taken seriously.
If you think an item is a good buy, would you buy it?
If you could by that same item on sale at a discount store, would you still buy it?
If believe real estate is a good investment, then foreclosures are how you buy real estate on sale. The discount store you go to is the bank.,
To be clear, are you buying foreclosed properties (REOs) or properties in foreclosure(pre-foreclosure)
The latter is much more risky.
What is your concern or risk you see?
newkid, why would you say they always had the right to a deficiency judgment?
The shorts I have don, fully released the borrower. Maybe more due to being a purchase money mortgage?
You have to realize that each lender has different investors, and that each investor has different guidelines.
I would be very uncomfortable living with the contingent liability of them coming after me for the deficiency.
"FYI the lender is Countrywide, it appears that they changed the standard approval letter they send out approx 30 days ago, so be prepared on all your CW shorts to expect this."
There was never a standard approval letter from CW, or any major servicer. Each "approval/demand" letter is crafted to comply with the criteria imposed by the owner of that particular loan.
CW services loans for multiple investors who own mortgages. Each investor/owner has its own set of criteria for accepting short sales, DILs, modifications, etc.
In the past I have done numerous CW shorts and the letter was virtually the same with the expception for the fill in the blanks parts. CW even stated to me that the letter they generate was changed in general approx 30 days ago.
Thanks.
Any solutions?
This seem like a simple contracts issue.
It seems the boiler plate signed (potentially) gives the power to peruse.
Why would a new note be needed?
was the bofa loan used to buy the place, or a cash out refi?