Archive for the ‘Short Sale Investing & Pre-Foreclosure’ Category

Negotiating With Lenders – Loan Modifications

Oct 30th, 09 / 2 Comments

Do you have homeowners calling your office that DO NOT want to lose their home?
Have you heard about doing loan mods? Many of you may have heard about them, but don’t know what they really are or who would be a good candidate for a loan modification.

This is an area that I want to know more about as well and have found someone that is an expert in this area. I know some of the basics, but I like to know more about a topic before I actually try doing something, I don’t like to just know a little bit and then try to wing it.

So, what is a loan modification?
A loan modification is when you work with a lender to modify the original terms of a note to bring them more in line with what the borrower can afford. Lenders don’t want everyone to know about these because they stand to lose a bunch of money. This is very understandable. However, in the back offices of the banks and mortgage companies, they are becoming more popular because it helps keep them from having to foreclose on a home when the borrower is underwater. The other reason they are becoming more appealing to the lender is because of our Government’s involvement in the banks affairs. That’s right, our Government is pushing lenders to do loan modifications as well. You may have even seen a headline or two about it, but it’s all very mysterious stuff unless you learn from an expert.

I have a webinar scheduled for Tuesday, November 3rd, at 9PM EST with Richard Geller, one of the truly cutting edge people in the Loan Modification industry. Richard has been doing loan mods and teaching loan modification for several years.

There is no charge for the webinar but we only have 200 spots.

Register here
http://RapidREIresults.com/loanmod

Richard is going to go over the following topics, plus many others.

* Loan mods and violations, forensic audits and how they fit in to get principal reductions – this is HUGE.
* You can still do loan mods for profit and Richard will show you how to do it LEGALLY, and why you would even want to!
* Why investor owned properties NEED loan mods and how to get them.
* Turning Cash-Flow Negative deals into Cash-Flow Positive
* Repairing your credit (or your client’s credit
* How to use loan mods to attract people who want you to buy their house as a short sale opportunity.

Plus, many other great tips. He will definitely over deliver on this webinar.

Don’t delay, register now, your clients need you to know this information and we only have 200 seats for this webinar.

Register here
http://RapidREIresults.com/loanmod

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Notice: While there is absolutely no charge for this webinar, since I’m referring you to this webinar, if you decide to buy something down the road from Richard Geller, I will likely get a commission on the sale. However, the fact that I have sent you over there, will NOT change your price at all, it is just a way for Richard to thank me for sending a potential customer his way.

P.S. Do you have a website for your business yet? What about your own domain for your business e-mails? Raise your businesses credibility and get your own domain name. It’s easy to do.
24×7 support, world class service.
http://www.RapidWebDomains.com

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Forbearance and Loan Modifications, Short Sale Investing & Pre-Foreclosure, Uncategorized

Short Sale Real Estate Investing Basics

Oct 29th, 09 / 6 Comments

These are some basics on short sale investing that I put together because people keep asking me what a short sale is. Once they understand what it is, they want to know how best to go about working on a short sale home and how to determine if a home is even a candidate for a short sale. So, I decided to put together a list of things you will need if you are getting into negotiating short sales.
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Disclaimer: This is not legal advice or even financial advice. The opinions and information here are written to entertain and help educate you with my knowledge and experience from Real Estate Investing. As always, before embarking on any business venture, you should consult with your financial advisor, accountant, lawyer and other professionals to help you determine if it is a worthwhile venture and to discuss the risks. I make no claims about how much money YOU will make with any of my information. As in ANY business, your results will vary based on your own knowledge, determination, motivation and financial resources available to you.
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You need to be prepared for the calls and e-mails you will get. You need to have a property information sheet to gather the correct info on the property. You are going to get calls from underwater homeowners whether you are marketing specifically for them or not. When people hear that you have rental property or they know that you buy and sell houses, they will find you. I personally do not run marketing specifically for pre-foreclosures because I keep busy enough with what I’m already working on. However, I have learned what needs to be done for short sales so that I can gather the proper information and either work the deal myself or refer it out to someone that specializes in negotiating short sales. If you want to focus on this type of investing, you need to get a good education on handling these deals.

1) First and Foremost, find out where the homeowner is mentally. What do they want to do with the home? Do they want to try to stay in the home or have they thrown in the towel and just want to move on? These are TWO EXTREMELY different cases. You can not in most areas and should not charge the homeowner anything upfront for either scenario and there are specific laws that may determine what you can do in your area to help these homeowners. Consult with a knowledgeable and experienced Real Estate attorney in your local area to help guide you in the right direction.

Paperwork needed to work a short sale deal.

1) Property Information Sheet
2) Financial Information Sheet – lien holders, account numbers, employment/income information, anything that you may need to help work with the bank.
3) Hardship Letter – written by the homeowner stating what their hardship is that caused the house payment to fall behind. Some lenders refer to this as a “Hardship Letter” some even call it a “Sad letter”. Very important, this needs to be a real letter, not some canned letter, and it needs to be written by the homeowner and signed by them with a date on it.
4) Pictures of the property and condition report
5) Purchase and Sale Agreement

After you gather the information on the property, determine if it is a deal you would even want to pursue. Most of us would like to be able to help EVERY single homeowner that calls. It is in our nature as compassionate human beings to want to help others, but we have to be realistic with ourselves and our potential customers. We do not have enough time in the day to help every single person calling. Now, you could try to get close, but your business would have to get significantly larger to handle all of the calls.
So the name of the game is to focus your efforts on the most important deals. It’s all about sifting and sorting your leads. Do you have a process to determine what leads you are going to work on today, tomorrow, next week? This is something EVERY business needs. If you don’t you will be spinning around chasing your tail not getting very far.
This was not a comprehensive list. I have gone through several Short Sale courses to learn different methods to work shortsales. If you would like a reference for a great short sale course, add a comment and also, while you are at it, join my newsletter mailing list.

Happy Investing

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Short Sale Investing & Pre-Foreclosure

What is a Short Sale?

Oct 28th, 09 / 2 Comments

Short Sale is a term that many media outlets are throwing around right now not really understanding what the term means.
The basics of a short sale in real estate are a mortgage lender accepting less than the full amount owed to payoff the note. Example: Current mortgage balance is $200,000. The owner has found a buyer for their home, but the only buyer they could find after having their home on the market for 6+ months was someone that is only willing to pay $175,000. Who makes up the other $25,000? Well, if the home is underwater by that much and the owner is not financially able to come up with the $25,000, the lender may accept a payoff for less than the full amount.

Why would a lender do this?
1) If the homeowner can not afford the house payment and it is headed for foreclosure anyway, it is actually less expensive in many cases for the lender to accept less than the full balance as a payoff.

2) Foreclosure is very expensive for a bank. I have seen some estimates that the bank expects to lose anywhere from $30,000-$40,000 on every home that goes into foreclosure. If they can find a buyer that is willing to pay $25,000 less than the full balance, they actually come out ahead by selling before the forclosure sale.

3) Once a home is foreclosed on and becomes an REO (Other Real Estate Owned on the banks books) the property is no longer properly cared for and begins to deteriorate very quickly. In fact, the longer an underwater homeowner stays in a home, the likelyhood of the home deteriorating while they are there goes up as well. If someone can’t pay their mortgage and knows they are going to lose the home in foreclosure anyway, what are the chances they are going to spend any of their hard earned money on keeping their house in good working order.

Someone heading for foreclosure is usually in a very bad place mentally. It is an extremely stressful time for the family and often times is caused by some major life event. Coupling that major life event, e.g. job loss, death in the family, major illness, etc, with the prospect of losing their family home can be extremely stressful.

I receive calls frequently from homeowners that are underwater. Some of them can be helped, others may just need to go through the foreclosure process. I am coming up with a way to handle more of these cases, but it is never the easiest type of deal to work.

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Short Sale Investing & Pre-Foreclosure, Uncategorized

Join My Newsletter List and Get the Following: 1) My $97 eCourse on marketing your RE Biz. 2) Priority Notification of upcoming training calls. 3) Post your properties on my website.

Join My Newsletter List and Get the Following: 1) My $97 eCourse on marketing your RE Biz. 2) Priority Notification of upcoming training calls. 3) Post your properties on my website.