Replies

1. 
   blue_eyed_devil_ | Jan 14, 2002 08:42am | #1

   *
   The concept was startling easier than I had thought it would be. I'm pulling out my seller's folders tomorrow!

   Basically, you find a motivated seller, preferably one that is in arrears, and sign a forebearance agreement, an authorization to release, a sales contract (about half of the existing mortgage). Then, contact the loss mitigatin dept and fax the stuff in. Include some comps (walk around with your appraiser and point out the uglies), a nasty angle pictures, and a detailed estimate sheet.

   Oh yeah, also send in a letter from the homeowner explaining the bad financial circumstances that won't change soon. Also in the letter tell that this is the best and only offer that they've had. Explain that the house is in need of repairs and that if the bank does't accept the short sale, they will be forced to file bankruptcy.

   There was some impressive numbers shown.

   blue

1. 
   Scott_R | Jan 14, 2002 04:39pm | #2

   *I don't think they were true blonds. However they were pleasing to the eye for a couple hour presentation.Unfortunate as the circumstances are, that the only option for a homeowner is foreclosure, this agreement creates a definite win win situation for everybody. The investor gets a property well below fair market value, the seller (homeowner) save his/her credit and the lender does not have to spend thousands obtaining the property, keeping it as a liability, and trying to sell it.Scott R.

1. 
   blue_eyed_devil_ | Jan 14, 2002 05:12pm | #3

   *Scott, it's not exactly a win situation for the bank, but at least it's their decision. They are making a non-emotional business decision and they can take it or leave it.Incidently, is there any women in America with natural colored hair?blue

1. 
   Wet_Head_Warrior | Jan 14, 2002 07:07pm | #4

   *depends on the location of the item in question blue

1. 
   Sean_Parker | Jan 14, 2002 09:09pm | #5

   *About 6 years ago around here the real estate prices where in the dumps and a lot of the houses being offered for sale where short sales. The home owner and realtor would get preapproval from the bank/lender then put the house up for sale. They would even advertise the house as a "short sale" trying to get people to think they are getting a great deal etc....

2. 
   Scott_R | Jan 14, 2002 09:24pm | #6

   *You're right not exactly a WIN for the lender but it's defiantly not a "defeat" either. The so-called loss that they take on the property is less severe than the loss of going through foreclosure. The money invested in this property by the bank is on loan from somebody else so if they are holding this REO they are still making their payments until they can pay off there loan or re-loan that money on another mortgage.Scott R.

3. 
   Tim_Mooney | Jan 17, 2002 02:16pm | #7

   *One thing that Ive not understood is why bankers dont listen to this kind of reason. The ones here dont.Try it on for size guys. Let us know.

4. 
   blue_eyed_devil_ | Jan 17, 2002 05:28pm | #8

   *Tim, the bankers do understand. Here in the Tri-county Detroit area, we have 300 houses per month going through the foreclosure process. Imagine a big banker exec, in the Loss Mitigation dept, sorting though thousands of these properties each month. Their not agonizing over a mere 15 or 20k loss like you or I would. They are just trying to expedite another file.It's a business decision. Probably more than half will eventually sell close to the mortgage. The other half will sell short.Grab as many as you can.blue

5. 
   Mike_Maines_ | Jan 22, 2002 02:54am | #9

   *Blue, thanks for all the real estate tips--I'm learning a lot. I've been reading and re-reading the creonline.com articles and following your posts here. I'm working on some ideas for family property that I'll ask your opinion on when the ideas are thought out....I know it's not the easiest money...but what can you recommend for books or sites for rehabbing or new development?

6. 
   blue_eyed_devil_ | Jan 22, 2002 05:05am | #10

   *Mike, I'm not sure about any books regarding rehabbing or new development. I will recommend this website however: http://www.dealmakerscafe.com/It is a great site that deals with bying properties "subject to"blue