I have been posting this on any forum I could find today.I am not sure if this is the best place to look for help, but I am currently three months behind on my mortgage payments. My husband lost his job and we have been strapped ever since. Our mortgage company, countrywide is just out for blood, they don’t care that we can’t even afford to put food on the table. I am at the public library right now because I can’t afford the internet any more. We owe about 110,000 on our home, and we have considered selling our home…but I just can’t face telling the kids we have to move. I think we have some equity, a house just down the block sold a month ago for around 210,000. I am just so embarrassed about this whole thing…I just need some more time. I live in lakewood, CO and i need someone out there who understands all of this to help my family save our home.
What techniques can be used to circumvent short sale assignment problems?
I am brand new to short sales/pre-foreclosure investing and have NO experience. I posted to several real estate discussion boards that I am looking for a mentor to help me. Some investors who replied offered short sale education to me at a price I could not afford.
One gentleman said he ordinarily charges, but he would work with me. He proposed that if all I do is find motivated sellers in foreclosure who are behind in payments and who:
1 – just want to get out of their situation
2 – do not expect any money out of the deal
3 – are willing to let him handle the situation with their lenders and stop the foreclosure process
4 – are willing to sign an offer to purchase and other paperwork
He will take care of everything to close the deal. He has years of experience and knows the ins and outs of short sales…how to deal with lenders, loss mitigation dept, etc. His LLC has all the key ingredients already in place to close a short deal transaction quickly:
- Attorneys on Call
– Title Agent
– Lenders, Private and Hard Cash
– Mortgage Brokers
– Repair Contractors
– Inspectors and Appraisers
The only thing I will be doing is bringing motivated sellers to this investor. If the deal closes, he has agreed to sign a promissory note assuring me that I will get paid $2,000 or 10% of profits (since he will only consider deals with $20k or more profit). He has also agreed to teach me the short sale process, the paperwork involved, etc so I can learn to do this on my own. I felt this was a good way to learn a process that can be expensive to get if I had to pay for seminars, bootcamps, etc. I have decided to work this way…for now.
I have studied and understand how short sales work, but… If one has no good credit or source of private and hard cash and no short sale experience, what other alternative do they have where they could do the deal and keep all the profits themselves? And advice would be greatly appreciated. Thanks in advance.
My son is just getting into the Foreclosure business. I will tell him about your site and e-books.
In the meantime, I have a question in regards to Foreclosure Sale.
We live in Colorado, USA
When the Foreclosure Sale takes place, and the Lender (who foreclosed) out-bids the highest bid to insure they are owner until the 75 day Right to Redeem period is over, does the second highest bidder (not a junior lien holder) have first right to purchase the house if the original owner does not exercise his option to redeem? The reason I’m asking this question, The foreclosure sale has already taken place on our house. We have been trying to redeem our property. We have less than a week left and it is not looking favorable. We do have investor who will buy the house and do a rent-to-own agreement with us. He can’t get his loan closed by May 2nd. So, our lender told us he could call the attorney that handled the foreclosure. But they said he can’t call them until 5:01 pm on May 2nd. What if someone else put a sale bid on the house before our Lender Chase put their bid on our house? Are all bids off at this point? If our investor offers the redemption price plus associated costs does he have a good chance of buying the house from the lender?
I am learning a lot about short sales from 2 books that I bought and reading from lots of online short sale message boards/discussion groups. If I were able to successfully negotiate a short sale deal with the lender/loss mitigation and if the homeowner signed a purchase agreement with me, would I be allowed or would it be legal for me to sell my position to another real estate investor since I don’t have the funds/credit to purchase & rehab the house.
I guess I am asking can I wholesale a short sale deal OR can I assign it OR can I do a double or simultaneous closing. It occurred to me that this might work since my mentor has given me permission to tell people that we are business partners. Thanks in advance for your help.
You actually have several questions here so let me address them one at a time.
No. You can’t assign a short sale. They will not approve it if the agreement reads AND/OR ASSIGNS.
Yes, You can perform a double or simultaneous closing. Happens all the time. However, you need proof of funds to do it. We offer no fee, transactional funding which will facilitate the A-B transaction between you and the bank. Then B-C, you and the end buyer. It’s works seamlessly.
Almost all states will allow you to do this, you just need to find the right title company. That is why you need to have a relationship with your title company so they can help you. Sometimes you have to follow their guidelines or rules in order to do a simultaneous or double closing. It is not a hard process at all, if your title company is willing to work with you.
Most of these questions that you have are explained in our short sale course. I’m sure you’ve seen it on the website. https://www.foreclosureuniversity.com/products
It’s step by step everything you need to do this successfully. It will be one of the best investments you ever make if you are serious about doing this.
I am new and I understand how short sales work. I have a few short sale investors who have agreed to work with me where I find good prospects and do the research and if the property is short saled I get a portion of the profits.
But after I find a motivated homeowner in foreclosure, I need to know how to recognize a good short sale deal. When I look at the numbers, how can tell if it is a good deal? Please advise.
Right now I have an agreement with 3 investors who have agree to share a portion of the profits for any prospects I send their way if they close.
For example, one gentleman has promised if he makes $20k, my share will be $2k. It sounds like a fair deal to me if I find him a good prospect who is willing to let him handle the issue with his lenders, stop the foreclosure process, and be willing to sign an offer to purchase contract and some other paperwork. He is looking for homeowners who want nothing out of the deal except to get the house off their hands. I am in the midst of looking for these prospects from different sources. I am getting ready to try make acquaintance with:
– mortgage brokers
– note brokers
– bankruptcy attorneys
– foreclosure attorneys
– probate attorneys
– Realtors that work
* With County & Circuits courts as
mediators and appointed as Ad
* With REO & BPO for lender and
Asset Management companies.
* BPOs are ordered by many lenders
before the foreclosure is
public. You can promise them
the listing and they have an
inside on the value if they
share with you.
* With Loss Mitigation Consultant
(LMC) for lenders or those who
work directly for those in
These are good source for pre-foreclosure leads before they become public knowledge in newspaper lis pendens or notice of default. But I have one more question. Before I approach these brokers and attorneys, what could I as a finder/birddog have to bring to the table to offer them in return for giving me good leads to give to my investor? Of course I will do as much legwork as I can before giving these leads to my investor.