Bill Bronchek

It’s true! The big czar of the Treasury Secretary. The home he bought in Westchester County New York in 2004 for $1.602mm won’t sell for that same amount. He’s dropped the price to $1.575 million and still no buyers. He’s renting.

The answer when you can’t sell. Rent. And hope for almost enough money to cover the mortgage and not kill yourself coming out of pocket for the rest.

He owes $1.25million with 2 loans and is renting the house for $7500 per month.

finance.yahoo.com/news/Geithner-faces-sluggish-apf-15419661.html?.v=6

According to my handy dandy payment calculator, an interest rate as low as 6% ON BOTH LOANS will cover the mortgage payment. You know the 2nd mortgage interest rate is never that low. Unless he got a special deal. And of course there is taxes and insurance on a $1PLUS million dollar house.

I think he might be hurting…or looking for another way, ethical of course, to get his mortgage paid.

Maybe I’ll send him one of my marketing letters to get him to do a short sale.  Maybe we should all send him letters. 

Read the article.  It’s a shame actually.  Maybe he can find a solution…like taking offers from people – whether they are too low – and sell the house for what people want to pay.  We could get more short sales accepted.

It’s sad. The stimulus money isn’t working according to USA Today. Lots of money going to different states and the states are seeing no change in the recession.

In fact, the foreclosure rate across the county is 12%. Prime fixed rate mortgages are the mortgages that will have start seeing increased foreclosures soon. When will it stop?

Even though I did write it a while ago, the Loan Modifications proposed by the current administration will only increase the foreclosures. Some of the banks I am calling to get a loan modification still don’t have the guidelines from the government to start the process for homeowners to get a loan modification.

Some of these same banks are so frustrated with this, they are setting their own guidelines.

One half of the total foreclosure rate in the country is in five states:
California
Arizonia
Nevada
Florida.

What does this mean for us? Now is the time for short sales.

If you are a new investor – meanng never bought an investment property or maybe only have one or two – now is the time to be buying properties at these all time low values.

If you are an investor who bought houses and financed them to 80% and now the value is only 70% – you need to be buying properties at these all time low values, renting them out and using the cash flow to keep your other properties from going to foreclosure.

It’s simple really. Turn off the radio and the gloom and doom news. Stop filling your head with lies and trash the “they” people want you to believe.

Research your area and find out what true rents are in your area. Buy lower! It can be done easily in today’s market. You can be the new real estate mogel, the new real estate millionaire in your area.

Stayed tuned to other great ideas to keep your head out of the news and improve your attitude, your cash flow and your belief in your own success!

Deb McMillan
Short Sale Queen and Coach

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If you haven’t heard yet, Countrywide is including in their acceptance letter after a short sale has been verbally agreed to that if you are to resell the property – you have to hold it for 30 days BEFORE selling or notify Countrywide.

If your profit is huge, Countrywide probably won’t like it or allow the 2nd close. 

However, I have had students who did tell the bank they were doing a 2nd closing right away and the bank had no trouble with it.  Remember, it’s all about disclosure, disclosure, disclosure.  And apparently they aren’t reading the Option Contract or they would know we were immediately reselling.  I’m guessing they just want to know “how much” we’re reselling it for.

Well, you know there are ways around this.  One is to use two separate title companys.  The first title company does the closing with the short sale bank-Countrywide.  The second title company does the closing where you sell to your end buyer.  Countrywide is out of the picture, they don’t have to be told anything.  The title company didn’t violate anything and you got your proft. 

They apparently think we aren’t solution makers!  And that’s the definition of a real estate investor:  finding solutions to real estate problems!

For more tips and techniques and solutions to short sales log on to

www.shortsalesqueen.com  

Deb McMillan

The Short Sale Queen and Coach