{"id":311,"date":"2012-12-05T14:21:41","date_gmt":"2012-12-05T18:21:41","guid":{"rendered":"http:\/\/www.realestatejunkie.com\/blog\/?p=311"},"modified":"2012-12-05T14:21:41","modified_gmt":"2012-12-05T18:21:41","slug":"short-sale-flippery-gets-slippery","status":"publish","type":"post","link":"https:\/\/www.realestatejunkie.com\/blog\/short-sale-flippery-gets-slippery\/","title":{"rendered":"SHORT SALE \u201cFLIPPERY\u201d GETS SLIPPERY!"},"content":{"rendered":"

Turn TRASH deals into CA$H deals!!!<\/em><\/strong><\/h2>\n

Now is the perfect time to purchase and resell short sale properties.\u00a0 Why do you ask?\u00a0 Our market is filled with many homes in which the Lenders are willing to accept short sales, due to all of their major mistakes made at the time the Homeowner obtained financing.\u00a0\u00a0 Homeowners that financed homes from Lenders such as Bank of America, Wells Fargo, GMAC, CitiMortgage and Chase from 2006 to 2008, have major mistakes in their Lender\u2019s paperwork.\u00a0 Lenders are reaching out to Homeowners asking them to do a Short Sale or a Deed-in-Lieu.\u00a0 However, many of the Homeowners aren\u2019t aware of the fact that they can\u2019t do a Deed-in-Lieu if they have a second lien, and if they owe Homeowners Association dues, they may still be liable for the difference.\u00a0 Homeowners Association dues are a personal debt against the Homeowner that need to be satisfied in full so that if a house is deeded back to the Lender the Homeowners are no longer responsible for any more dues.\u00a0 There is a statute which states that the Lender that forecloses on the property will be responsible to pay only 1 year of Homeowners Association dues.\u00a0 When conducting a short sale, this statute has little or no meaning to the short sale Lenders, meaning they may not agree to even pay a full year.\u00a0 I have seen Homeowners deed their property back to the Lender only later to find out that they are still liable for the difference owed on the Homeowner Association dues.<\/p>\n

TRUE STORY:<\/span><\/em><\/strong>\u00a0 On one of my deals, Nationstar would not agree to pay the full year of past HOA dues, even though the statute states they are responsible for that.\u00a0 To add to that, the A\/C didn\u2019t pass inspection and needed repairs.\u00a0 Deal killers?\u00a0 If you aren\u2019t experienced\u2026..yes.\u00a0 And I wasn\u2019t about to give over $500 from my profit.\u00a0 When you know what you are doing, you can even get the sellers to help close your deals.\u00a0 Yes, the sellers who have NO MONEY.\u00a0 Well, I closed this deal on Friday, August 31st<\/sup>!<\/em><\/strong><\/p>\n

Having the Homeowner take control of their property is the best thing that they can do, versus letting it just go to foreclosure.\u00a0 They can decide whether they want to short sale the property, make sure that all liens are paid off, and confirm that there is no one able to come back after them, versus letting the Lender and\/or Homeowners Association chase them for up to 25 years.\u00a0 Yes, I said 25 years!\u00a0 The lien holder has the right to file a Complaint in order to obtain a Judgment for the balance still owed to them plus interest and attorney fees for up to 5 years from the initial foreclosure action.\u00a0 Once a Judgment is obtained, then it is valid for 10 years and after the 10 years, they can re-certify the Judgment for another 10 years.<\/p>\n

TRUE STORY:<\/span><\/em><\/strong>\u00a0 An Investor friend from out of state had her Agent negotiate her short sale instead of using me.\u00a0 Her Agent negotiated a lien release only for her 2nd<\/sup> lien.\u00a0 Now Chase Bank has been calling her every day for the last 21 months.\u00a0 Yes, she closed in December of 2010 and they are still pursuing her.\u00a0 <\/em><\/strong><\/p>\n

This leads me to my next point.\u00a0 Many Homeowners are downright tired.\u00a0 They are tired of being taken advantage of; it has affected their health, confidence, financial situation and their family.\u00a0 Investors and Realtors need to learn how they can help the Homeowner by either purchasing or selling their home and obtaining a full satisfaction of all liens.\u00a0 I\u2019ve heard many Investors and Realtors say that they do not want to negotiate a short sale.\u00a0 I believe everyone should know the tricks that each Lender plays and understand the negotiating processes whether they choose to negotiate the transaction personally or have someone else negotiate.\u00a0 Having someone else negotiate a transaction without your full understanding of the entire process and the tricks the Lenders play is like handing your checkbook to someone you don\u2019t know and letting them write whatever check they want.\u00a0 If you want, you can make the check payable to me!<\/p>\n

Understanding the Homeowner\u2019s financial situation and hardship will help you obtain a short sale.\u00a0 Lenders believe that all Homeowners are bad people when, in fact, bad things happen to good people.\u00a0 Homeowners decide to hide money, hide their IRA\u2019s and 401ks, or not disclose ownership on secondary properties.\u00a0 They don\u2019t understand that the lender can pull their credit report reflecting mortgages on other properties and showing minimum payment amounts on their debts.\u00a0 They don\u2019t understand that their pay stubs reflect money being placed into their 401k and their tax returns may reflect dividends paid out to them on their investments.\u00a0 Having a Homeowner who is honest about their financial situation will help you get your deal done with less bumps, bruises and denial.<\/p>\n

As Investors, it is important to know your exit strategy.\u00a0 The Lenders have started to include deed restrictions from 30 to 120 days to the new buyer wherein they are not allowed to resell the property to another individual.\u00a0 So, what do you do?\u00a0 Investors are purchasing the property and lease-optioning to their end buyer during this time frame.\u00a0 This process can be very tricky and Investors should be reading <\/span>all the terms written on their Arm\u2019s Length Affidavit and Short Sale Approval letter to make sure that they are complying with the terms of the short sale.\u00a0 Should the Buyer\/Investor not comply with the terms of the Arm\u2019s Length Affidavit and Short Sale Approval letter, the Lender has the right to cancel the short sale terms in the future and continue to pursue the Seller.\u00a0 In addition, lease-optioning to your end buyer may work as long as your terms, dates, and compliance with your Arm\u2019s Length Affidavit and Short Sale Approval letter are all in coordination with each other.\u00a0 \u00a0I call these the \u201cmoving parts\u201d of the transactions.\u00a0 Just like a car, if any part doesn\u2019t fit properly with another, or if you put diesel fuel in a BMW, the car dies.\u00a0 I have reviewed some of these \u201cdeadly\u201d transactions and saved many students from making major mistakes due to lack of knowledge and lack of compliance.\u00a0 Had they closed their deals as they originally structured them, they (and their Sellers) would have been seriously affected financially and legally in the future.\u00a0 Another reason that it is a perfect time to do short sales is because competition has decreased.\u00a0 Investors and Realtors are shying away from short sales due to the ever changing requirements.\u00a0 Good money isn\u2019t easy, in any business, but hard work definitely pays off!<\/p>\n

TRUE STORY:<\/span><\/em><\/strong>\u00a0 An Investor friend brought me a disaster deal that she had structured and she was in way over her head.\u00a0 The property was in a trust, there were two wholesalers involved with no clear understanding about how they were each getting paid, and the purchase agreement was written up with a cash buyer who was actually getting a hard money loan.\u00a0 If I hadn\u2019t stepped in, restructured the whole deal and funded it for her, she would have been facing serious legal ramifications in which she was totally clueless.\u00a0 She didn\u2019t have a Seasoned Mentor and she was using an old program from last year that was missing the crucial pieces of how to structure a complete transaction.\u00a0 This left her guessing and taking advice from some wholesalers who were only in it for the money and not even on title\u2026..scary!<\/em><\/strong><\/p>\n

There are 14 steps to a successful short sale.\u00a0 Missing any one of these steps will turn your deal into a trash deal costing you time and\/or money!<\/p>\n

Step 1:<\/strong>\u00a0 Having a complete Short Sale Package per each mortgage company\u2019s requirements<\/p>\n

Step 2:<\/strong>\u00a0 Knowing the real reason why the Seller is behind on the payments<\/p>\n

Step 3:<\/strong>\u00a0 Understanding the true and accurate financial status of the Seller<\/p>\n

Step 4:<\/strong>\u00a0 \u201cSuccessfully\u201d meeting the BPO\/Appraiser<\/p>\n

Step 5:<\/strong>\u00a0 Knowing the Investor (Lender), the type of loan and the specific requirements<\/p>\n

Step 6:<\/strong>\u00a0 Knowing if there is Private Mortgage Insurance (PMI) on the loan and the name of the company<\/p>\n

Step 7:<\/strong>\u00a0 Asking the right questions to the negotiator to get the response you need<\/p>\n

Step 8:<\/strong>\u00a0 Knowing the experience of the negotiator<\/p>\n

Step 9:<\/strong>\u00a0 Knowing the procedure of each mortgage company for the short sale<\/p>\n

Step 10:<\/strong> Knowing if the negotiator receives a bonus for the short sale<\/p>\n

Step 11:<\/strong> Understanding every single line of the HUD and what items must be included at first submission<\/p>\n

Step 12:<\/strong> Determining if the negotiator is lying or telling you the truth<\/p>\n

Step 13:\u00a0 <\/strong>Keeping a list of names, numbers, email addresses of the Negotiators and if they are Good, Ugly or Helpful.<\/p>\n

Step 14:\u00a0 <\/strong>Comparing the approval letter with your HUD for accuracy and understanding terms<\/p>\n

Learning all the tricks of the Lenders by having the right Mentor, whether you are an Investor or a Realtor, will put CA$H in your pocket without having mistakes.\u00a0 Short Sales are changing on a weekly basis and Investors are trying to keep up.\u00a0 What was acceptable last week is longer applicable this week!\u00a0 Many Investors are using old techniques that use to work that are no longer working. \u00a0They are not reading or understanding the documents that they are signing which is resulting in dangerous consequences.\u00a0 I provide you with a step-by-step process that fully discloses your intent.\u00a0 I teach you the \u201cAh-ha\u2019s\u201d and the \u201cOuches\u201d on short sale transactions.\u00a0 Join me at this month\u2019s meeting at IRC and find out how you can avoid some of the major mistakes that other Investors are making when it comes to purchasing and reselling short sales.\u00a0 This will be a night of teaching and sharing.\u00a0 Please be sure to bring all your questions, as I will answer them all!\u00a0 Of course, those who want to take their real estate career to the next level, you will have a chance to partner with me!\u00a0 How would you like to have my office do all the master negotiating and funding of your transactions?\u00a0 Come and spend 8 hours with me for a ONE Day Training Event on Saturday, September 29th<\/sup>, where I will take you step by step from A \u2013 Z through a short sale and how to turn Trash deals into CA$H deals!\u00a0 I look forward to seeing you all there!<\/p>\n

 <\/p>\n

Kimberlee Frank<\/p>\n

www.ForeclosuresGoneWild.com<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Turn TRASH deals into CA$H deals!!! Now is the perfect time to purchase and resell short sale properties.\u00a0 Why do you ask?\u00a0 Our market is filled with many homes in which the Lenders are willing to accept short sales, due to all of their major mistakes made at the time the Homeowner obtained financing.\u00a0\u00a0 Homeowners […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-311","post","type-post","status-publish","format-standard","hentry","category-local-guru"],"_links":{"self":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/comments?post=311"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/311\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/media?parent=311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/categories?post=311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/tags?post=311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}