real estate investors

I’m still getting responses but it is very even between all 3 answers.

Show up and accept $2000
Let the house go to foreclosure because no $5K check showed up
Don’t go to closing and see if a $5K check shows up.

Here is what my student did. She didn’t show up at closing. They called her back a couple weeks later and paid her $500 more to release the Notice and close the transaction. She received $2,500 total.

The foreclosure was filed and there was still six months before the sale. They had time to come to some negotiated terms.

I think what she did was right. All three people had a signed agreement and should have had a scare about not fulfilling their part of the agreement. I would have negotiated more than $500 but my student was happy. The transaction closed then everybody was happy! It was still a win-win-win.

The Best Short Sale Training AvailableClick here!

Here is the prisoner’s dilemma.

When you cloud the title of a short sale with the Notice of Option and your C buyer goes behind your back (after signing a contract with you for $10,000 more than you owe the Seller A) to Seller A and creates their own deal, cutting you completely out of the deal, do you show up at closing?

Here’s the rest of the story.

We knew C had gone to A because A called B and was furious.  You’re making $10,000 on my house!  How could you do that and not give me any of the money?

C had proven to be a sneaky snake oil salesman.  And he painted the picture that B, the investor, was really the sneaky snake oil salesman and A believed it.  When in fact, B was the only one doing what the Option paperwork and subsequent Purchase Contract to C said she would do.

• Buy the property,
• Find another buyer,
• Resell the property and
• Make her money on the spread.

The investor had spent months working on this transaction only to be left out in the cold at the end.  She did need to close by the end of the month to meet the banks’ requirements.  She would have made it too but C went to A, took more time, C decided he could negotiate better with the bank and get an extension into the following month, making up a story to A and forcing B to back out.

B did however, send an acceptance letter to the attorney who was to close the now A to C purchase that she would uncloud the title for $5,000. – release her Notice of Option.  Just 1/2 of what she would have made had everybody done what they originally agreed to.

A mistakening sent an email to B (which was meant for the closing attorney) saying she felt sure B would “get out of the way with a payment of only $2,000.  Just tell her to show up at 4:30p.m.  she’ll show up and take it, we don’t have to pay her $5,000″.

I’ll publish the results of the survey here in a few weeks.

Are you aware than many borrowers, after a loan modification, falls
into foreclosure again?  Loan mods often don’t work.  Isn’t that what we said years ago about Forbearance?  The stats have not changed.

The 14 largest banks in the nation said that over half of the loans they modified in 2008 were delinquent again after six months.[1] Smaller mortgage companies are having better results, but still are reporting 25 percent of modified loans becoming delinquent again.

That says Short Sales are here to stay.  Loan mods are often just putting off the inevidable.  Foreclosure and the defaulting homeowner must move out of their house.

Short Sales save their credit, their house from foreclosure and their self esteem.  Do short sales.  We are helping people and helping ourselves.  It’s not stingy.  It is a needed service!

www.shortsalequeen.com/?coaching

Deb McMillan

Anecdotal evidence suggests that there is a dramatic increase in the number of homes that are being sold while still in pre-foreclosure.

For example, Ocwen Financial noted in a recent New York Times article that they modified half of their delinquent loans last year, foreclosed on one third, and most of the rest were sold pre-foreclosure for less than the amount owed.[1]

Typically, according to the National Association of Realtors, distressed homes sell for 20 percent below normal market price, although discounts of 40 percent or more are not unusual if the home is not in good condition.

[1] New York Times. “Modifying mortgages can be tricky.” February 19, 2009.

How many of you are seeing these kinds of discounts?

Then check out www.shortsalequeen.com/?coaching

Dear Ohioans:
(Everybody else, this could be coming to your state next!)

Have you read, I mean really read, Issue 5 to be on the ballot in Ohio on November 4th?

Here we are real estate investors, trying to find buyers, realizing credit is tightening, trying to keep the government out of our business and Issue 5 wants the State level to keep track of borrowers of short term loans, ss#, and the number of short term loans we get per year. Next it could
be long term loans.

The Government, the politicians, the law makers just keep chipping away at our ability to make our own decisions and chipping away at our rights. It will only stop when we let them roll over us.

I have always told my tenants to not use “rent a centers”. They will pay much more for a stove, refrigerator, washer or dryer than they would ever pay for it in a store or on a credit card.
This is another option of free enterprise and charging more for a service than necessary. But people need the commodity they sell. And they do have a choice. And isn’t that what American has always been
about? Capitalism and choices?

And now they want to pass a law allowing us to limit our use of check cashing stores. What happened to
capitalism? Free enterprise? Isn’t it the right of the people to make a decision? Good or Bad? And then pay the consciences? (Ya, I know. Then there was the Bail Out)

Education is good. Manditory education on a financial literacy course is a little different. Why don’t they
teach this in schools? How to balance your check book.

• How to create a budget
• How to stick to that budget.
• How income should be MORE than expenses.

I’m voting NO on Issue 5. I want to:

1. Keep my personal information out of yet another Government database
2. Make my own financial decisions
3. Protect good paying jobs with benefits (voting Yes will put 6000 neighbors out of work)
4. keep 1600 lenders with jobs
5. Preserve my choice of lending options

Read BEFORE you vote!

http://www.ohioans4financialfreedom.com/

Deb This is an unpaid political comment McMillan

The Short Sale Queen

PS
The elections will be over soon and my new membership site will be up. Hang in there. I’ll be back to website updates, short sales and changes in the market place soon!

Did I mention I’ve closed 3 short sale deals in the last 2 weeks?

AFter all that and the bill still passed.  Less availability to get checks cashed.  One more time where we lose one more right.  Dictated by the State Government and agreed to by the people. 

Sometimes I convinced the people don’t read or do any research before they go to the polls.  Do people realize that voting is a priviladge as well as a right?