short sale bible

I know.  It seems like an oxymoron.

• Necessary and attorney
• Reasons For an attorney

All in the same sentence.

Very scarry and I hope you haven’t stopped reading because you think I’m on drugs or something.  I’m not, really.  And it’s too early for a glass of dry red wine.

However, it is 5 o’clock….nevermind.

Back to the attorney thing.  I actually met one who might be worth his weight in gold.  Wait before you doubt me.

He represents homeowners who are losing their house.  He actually goes to court and represents them when necessary.  He does loan mods for them.

He does seem to understand that HAFA and HAMP is a bad idea

The cool thing was he had a great idea to confirm no deficiency jusdgement after the sale almost no matter what the acceptance letter said.

On attorney letterhead, have the attorney write back to the bank that twe are confirming their belief to this letter means the bank will revmove the lien from the property and not now or ever come after the homeowner the unpaid balance of the loan.  That this letter says paid in full and no more money is due ever on this loan.

OK, see why an attorney should write it?  It needs to be in legal ease – but the point is, if the bank doesn’t respond and say oh no that’s not what we meant, it is a binding contract.  And you take the signed copy (signed by the homeowner) and record it with all the closing docs.  Deed, etc.  So it is there for future debt collectors to see!

See, an attorney who gets it!

For $200 he’ll do a document review making sure everything isin place and write this letter to the bank.

This makes an attorney (one who gets it, of course) an important part of your team.

Call me, I’ll share his name and number!

Deb McMillan

The Short Sale Queen® and Coach

Always looking for better, smarter ways to get short sales done better!

www.shortsalequeen.com

What do you think? Has the FHA Seasoning rule changed for the better even if you are doing short sales and double closes? Do you think you can still get them done in 1 day?

So many “special” requirements. Only 20% profit or you need 2 appraisals and probably all your receipts that show how much you spent to improve the value, property marketed open and fairly, no previous flipping with the past 12 months…and the big one. The one all the vendors are coming out of the woodwork selling their new program so this one will work.

The Seller Must Hold Title to the Property

If you are already one of my coaching students you know we already fit that criteria. No need to depend on somebody else’s money for 7 – 14 days while you get on title, no need to hold the property HOPING the C buyer really does close the sale 2 weeks later. No extra stress keeping your fingers crossed convincing your lender the buyer will buy.

No need to do lots of repairs and keep all your receipts – at least in most cases.

If you are buying short sales on an Option to Purchase Contract…and Know How To Explain It to the Underwriter of the end buyers lender…You are Good!

When we record the Notice of Option at the County Court House that the buyer and seller both sign and notarize (if you are already my coaching student – yes I have changed the form and you should be getting the updated version soon) you know you already show up on title with all the rights of the seller.

That’s why we’ve been able to complete double closes already with conventional lenders, without trusts and a comfort lender from the end lender. We did, can and could act as the seller.

OK, so I’m probably one of the few who are saying this. And Yes, it does need to be tested. And it will be just like the conventional loans – each one will be different and get special approval from each underwriter. SO…

Start your conversation early with the buyer’s underwriter. Let them know exactly what you are doing. How you are buying the property, that you are reselling for a profit and you believe it will appraise at the higher value.

This is why the Options have worked in the past. The deal is transparent. Those who need to see all about the deal see all they need to see about the deal.

We’ve had 2 appraisals before we could close on other deals. That hasn’t changed. We haven’t shown receipts of the work we do. Can we get by with that now? I don’t see why not.

Again, each case will be different but don’t start spending money anticipating you can’t do these deals. Be persistent, be proactive, be confident in the Option Contracts.

If you need more convincing – check me out for my coaching. You will be persistent, accountable, proactive, confident and get your deals closed!

www.shortsalequeen.com
Check out these websites for freebies and more Short Sale Information!

www.theShortSaleTips.com

www.BestShortSaleCourse.com

www.ShortSaleTerms.com

www.MyShortSaleTraining.com

To Your Real Estate Short Sale Success!

Deb McMillan
The Short Sale Queen® and Coach

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.

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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