Question For ShortSalePro
Hello,
I am hoping you can help with some guidance.
My cousin bought a certificate of title from an investor in his REI club for $35K. Turns out it was not a great deal maybe. Turns out that the property has a $94K mortgage from the Section 502 program attached despite a title search the seller showed him that said the property had no liens or encumbrances. The place needs $32-40K repairs. A similar property sold for $164K recently.
He cannot afford to lose his $35K. He is concerned that they might accelerate the loan and demand payment.
At the same time the property has no equity to try to tap for the repairs. I was thinking he could contact the homeowners insurance company to see if they will repair the damage that was done during some sort of storm last year.
I also though he might try to get them to reduce the balance as the loan paperwork says they can reduce it if they want.
Have you dealt with a government loan before? Do they Shortsale? Is there anyway to save this deal?
Thanks
The property was foreclosed by a second lien and the investor bought the property at a foreclosure sale.
The certificate of title is the document he was given assigning him the property. He then sold the certificate of title (hence the property) to my cousing.
So the seller of the property showed your cousin a title search that did not show a 94k lien? Do you think that the seller knew about the lien? Have the seller contact the title company that performed the title search. I would go after the seller and make him go after his title company.
Charlotte Investor,
I have left my job to invest full time. My wife an I have prepared for this a long time ago. I will also making additional income working with my wife to offset the loss of income.
My main deal is that we have a very professional, well thought out short sale package. It seems, however, we are getting hit with high BPO amounts. This comes after we present our repair estimates by a licensed contrator and CMA report by our realtor. I meet with the BPO agent and go over all of this and it ALWAYS comes back too high and our deal is shot regardless of how we present the complete case to the LM.
I am equiped with the necessary paperwork to do wholesales and subject to investing. However, the subject to is a concern due to all of my other properties I currently have in my portfolio. I really feel I need to make some additional funds before I get on the subjedt to bandwagon again.
I could wholesale equity opprtunites by assigning the contracts. Likewise with subject to opportunities.
I have all this time and getting a little aggravated; which usually I do not over anything really.
Is short sales a viable investing mechanism? I am advertised on google adwords, send postcards to homeowners in foreclosure; basically marketing all the right ways. I get leads but is every opportunity a short sale opportunity; no. But, how is this decided upfront before I waste my time?
Again, we get calls. Mostly with no equity so I thought it would be best to concentrate on short sales. I have the financing lined up.
Thanks,
Daryl [ Edited by daryl1234 on Date 12/04/2006 ]
Dealing with the BPO agents: They call me via the bank. I am very personable with them. I usually send them the informtaion I have gathered prior to meeting them. If not, I bring it and review once we are at the property. I explain the hardship that the homeowners are going through currently. I put a very personable approach to this.
So, do you go after the short sale if the subject to is not a good option on any and all types of conditions of the property?
On the good condition ones with minimal cosmetics, is the 70% off of your comps (fair market price minus your cosmetic repairs)?
Daryl
What type of marketing are you doing? Also, who are your target markets, that you are mailing too?