Short Sales

CMitchell - from my experience, I did notice that its easier to deal with lienholders for a short sale approval on owner-occupied homes compared to non-owner/vacant homes. I think it is due to maintenance reasons. Thanks for the info!

It’s very lender specific. FHA, Fannie Mae and Freddie Mac have specific guidelines. But when you’re dealing with a first and a second loan, you’re basically doing two different short sales with one transaction. Sometimes it’s very difficult to get the second to play ball with you, very difficult. A lot of times I’ll have a borrower who’s not delinquent yet but there being proactive and the banks won’t talk to them, some of them won’t. We’ve had to wait until they’re behind before the bank will talk to them. I think it’s lender specific.

Tell me about it. A property with a second lien thru a different lienholder from the 1st, can be a nightmare. Like you mentioned, its lender specific. I've dealt with one whose 2nd lienholder is ready to give the approval as soon as the 1st gives their approval, but the 1st lienholder is waiting on the 2nd's approval. But we got it resolved eventually after a week of negotiations of who is going to show approval first.

And I had similar experience with lienholders not entertaining the short sale package since the property owner is not in default yet, which at that point they could not see the hardship as the loan is still current. Yes, Indeed - we also had to ride it out and waited for the homeowner to be deliquent (2 months minimum they said) before they can review the package.

Overall, it is all worth it - because for the price you get for your buck, it is the only motivating factor why I deal with it on a regular daily basis.

Thanks again for the info - I'm glad to know that I am not alone with my experiences. You are awesome!

Ali, thanx for stating this post...and Shiela, you are an all-star! First of all, congrats on posting as an experienced "short sale" expert with 40+ in about half a year...second, your answers to folks regarding patience coupled with a realistic timeframe and understanding that a package MUST be complete to even start the process is great!

Thanx to all!

Marvin, just curious what state do you work in?
I am in MD and short sales are hard to do here. Now you are supposed to be licensed to speak to the homeowners.

Renee

Good night Shiela, i am in New York and i want to bid on this short sale,

("Remarks: Bank Approved Property, Must Be A Cash Deal Property Will Not Pass Appraisal, Not In Livable Condition, One Of The Largest Most Spacious Propertyes You Will Find In Brooklyn, Great For Investment Or Owner Occupied****All Offers To Be Submited With Proof Of Funds**** All Offers Must Have Down Payment At Signing Of Contract****)"

As you notice they say it will not pass Appraisal,i do have a buyer lineed up so i need to now how to go about deciding on how much to offer.

Can you are anyone help me on the best way to start on this deal. I would love it if i can get some help on how to proceed.I have two other deal i am working on but this is my first short sale deal i want to get int.

I forgot to mention they are asking $489,000 on the property.

Thanks Wib! We are all learning in here. So, no I am not an all-star yet. I have lots to learn still.

Congrats! Sounds like you are ready to make BANKABLE RESULTS! This is awesome!

I personally haven't been involved in an investment that is not in a livable condition. However, there are lots of details to this before deciding on the price to offer. You will need to do comparables for the area then minus the work that may need to be done to the property to make it livable. Feel free to PM me, I have access to help you find the best comparables. I may be able to help you start from there.

Sheila, Anita, Elena & anyone else

Does anyone have a sample 3rd Party Letter of Authorization form. I working with a couple who's only option is a short sale and I would like to be able to speak with the bank on their behalf.

Also have any of you had experience with dealing with Countrywide. I have done some research and hear they are more difficult to deal with. What do you reocmmend or any suggestions and do you have a particular contact that can get my foot in the door so to speak.

Thank you and I look forward to helping this couple out.

I forgot to ask one other thing to my last post. The couple has the house listed with a RE Agent presently. Should I be dealing with their Agent & have him submit the short sale paperwork or would it be better if I work with my own to submit the paperwork? Please help, I'm still trying to understand who does what & exactly what has to get done.

Thank you & God bless.

Hello Misses Baily thanks for the advise,at the time i did do all the numbers on the house.However like i stated i was unsure if i should counter offer or take the first offer.I went with a counter offer and to my surprise he agreed so it went good. now i am looking at a $120K deal on a 4family i am working on. i have it in contract for 14 to 30 days and so far two of my investers are fighting ovver it.Wish me look and i will let you and the crew now how it work out.

from: Brooklyn next Millionair.

Please excuse the miss spelled words.

Darlene,

If someone can help me with how to attach a file to the post I have a 3rd party LOA I'd be happy to attach.

Thanks,
Jeff

Hi Jeff,

Thank you very much; I really appreciate you helping out on this one. I'm not sure about placing an attachment here but I know it can be done if you PM me. There is a place below your message for an attachment.

Yes, please let us all know about your success story!!!

trying to do my first short sale,and assign the propert to an invester,but the bank want proof of funds how do i handle the matter of proving the funds, in a way that it looks like i have the funds to do the deal. thank you for your time, Patrick

Are they legal? Example: I've worked with a homeowner and her bank to negotiate the short sale. She (homeowner) has in fact already found a buyer. The bank assumes that I'm going to purchase this through the short sale. I planned it out so when we close, the title company will just put it into the new buyers name instead of mine with the money in escrow. So in essenece I plan to walk away from the sale with the difference. (I just don't want the bank to come back at me and say why didn't we settle it for what you sold it for.)

Thanks for any advice.

Hello Everyone,

I am very happy, I made it!!!! I finally close escrow on a short sale I had been working on since August. I had many obstcles that stood in my way, but with faith all things are possible. My son lost his house on September 27, 2008 and came to stay with me with his family, and on October 9, 2008 they were moving into this short sale you guys help me get, and the reason I say you guys help me get it. I use this web site to get the immediate answers from people who did not know me, but cared enough to give me the answers and courage to move forward. I thank all of you for supporting me. And I thank Dean for writing his book, and having those conference calls that kept me motivated, he has help me get my first house.

GINA

That is great news! You should start a new thread with the details of your deal. It would give all the DG members another boost in the fact that deals are taking place all over, and not just for a select few. Thanks for sharing, and we're VERY excited for you and proud of your accomplishment!

Rina

is it possible to assign a short sale to another investor?

Yes, it is possible to ASSIGN a Short Sale to another Investor, assuming the contract your using is ASSIGNABLE, or you write in AND/OR ASSIGNS, the only problem is, you may have a difficult time getting the bank to Accept your offer with this language, but if they do, then your good to go, SULLY

Sheila - thanks for all your great short sale info. I have had two offers in for 2 - 2 1/2 months now. My realtor keeps in touch on a regular basis and like you say - they compile a large group of offers and then decide upon best offer and buyer. I would add one thing to your suggestion of list of repairs to justify low offer - add pictures! Both my packages have contained detailed pictures to go along with my repair list, and have been complimented on them by all involved. You must remember that these houses are only numbers on the books to the banks. They will look at comps sales and think they can get a good buck, but they never actually go in and see the holes in the walls, the cracked foundations, the broken windows...etc etc. So give them visuals!
And Gina - congrats on your deal! I'm sooo happy for you! Please do post details like Elena suggested for us all to read and learn from!
Wishing everyone a happy thanksgiving filled with joy, love and laughter!

How does short sale affect your credit score. Short sale I guess can have its pros and cons. What happens if the property sells for much less than the owner owes to the lender. Will the fact the the owner is liable for the difference be a disadvantage and great expense. What do you think?

Sandra

Marvin - Thanks for sharing this process as this is very helpful.

I have a client I'm doing a loan modification for their primary residence and they asked if I could help with a rental that isn't selling even though it's listed with an agent. A short sale seems to be their best option but I'm afraid we don't have enough time as they have a notice that their rental is going to auction in February 2009.

If anyone has suggestions or is interested in talking #'s let me know.

Best,

Kenny

When somebody goes into pre foreclosure, where can I go find the Lis pendens at the Clerk of Court office? Besides the use of bird dogs, what are other ways gaining knowledge of pre foreclosures or Lis penden? Thanks in adavance

I live in a home right now that the owner has let slip into preforeclosure. I love my home and the neighborhood and my son really doesn't want to move.

I want to know how to go about doing a short sale and purchasing the home so I can stay in the house.

I've had Dean's book for about 3 months now and I am looking forward to this being my first deal. Any help/advise will be appreciated.

Jannette

If I couldn't find a buyer for my short sale deal what would be the best way to get out of the house and not worry about monthly payments? I heard of some called "deed in leu" and "cash for keys." Can you explain how would either of those work and if there is any other way out?

Hi Sheila, your information is great. I have a question, I've been making offers on several short sale deals and I was told that we cannot write a contract with the Assignment (And/or assigns). Could you please clarify this matter?
Thanks a lot.

Banks do not like and/or assigns. They want to deal with the end buyer not someone, according to them, wanting to pawn the property off.

There is one way to get around this if you still want to assign the property: Make your offer in the name of a LLC then sell the LLC to a new investor.