Question regarding short sale that seems to to falling to the way side and i don’t understand….1st mtg holder negotiator gave me a span of what the bank would except as a net between 85% and 82%of thethe 225.or between 191,250and 184,500. the second mtg holder would (third party investor invoved (MI) ) would not take less than 11000. first mortgage holder will not pay out more than 5K we are 6K apart….the offer is a great offer the buyers are ready to close on the 27 of april… if the 1st mortgage holder will pay the additional 6k they are still ahead. Right now our net to the 1st mortgage holder is 200,000.00. What am I missing. Is this something that needs to go to supervisor level????
look forward to the call and some direction…..

Once a BPO has been done and it came in to high.. How do you continue with the negotiating from this point on. The lender has either closed the account or they don’t want to negotiate at your price. What are my options?

[...] prolinknHlevel ending mitigator from a earth husbandly mortgage company. I power be interviewing him for nearly 90 minutes. He’ll be on the call to style specifically most a whatever topics:. 1) The current realty of the mortgage outlet and ending … [...]

You can’t get better than that. A free call with an experienced Loss Mitigator Manager/Trainer with Real Estate Investing Experience!

I learned several things tonight (and so did Josh) that I did not know in five years of doing short sale. Cool!

The Best,

Bob Deschner,
Manager, BeneSol, LLC

This may be an obvious and dumb question, but will banks only negotiate a SS if the borrower is in default and/or a NOD has been issued? The reason that I ask is that I come across a lot of owners that are in financial difficulty, ARMs kicked in, cannot afford the payments, and need to sell their home. BUT they owe more than the home is worth, they have made all their payments but soon will be behind, and cannot afford to hire a Realtor (me) to market their home.

Is there an approach to negotiate a short sale in this situation? The last thing that I want to do is counsel clients to purposely default their loans so that a SS can be negotiated. And this leads me to another question brought up at the end of the call: what if my client does have a ‘blacklisted’ bank? What are my options then to help?

I appreciate any advice. Love the seminars

What do you say when the mitigator counter offers after the BPO with a specified dollar amount, which in most cases is higher than what you need it to be? Case in point, I am working a short sale where the mitigator countered at $118,000, however, I would like to purchase the property at $100,000.

By the way, it was a very informative call with Jerami. Thanks for all of the great information.

Great session. My question is how do you proceed when you know the lender is outright lying about the BPO number? I have one lender who gave us a number that is significantly higher than the number they received. We verified twice and are stumped about how to proceed.

Kyle Ford: Unless there is a bankruptcy involved the anser is “yes”, there has to be default, typically 30-60 days. Homeowner DOES NOT have to be in foreclosure. Exceptions involve negotiating with PMI or Investor directly.. in your scenario, find the PMI company and try that avenue. Re: the blacklist.. you can try, but don’t expect much cooperation, and counsel your homeowner to that effect. Ocwen has shown a recent tendancy to “modify” everything in an attempt to lower the NPL (non performing loan) balances.
Stephanie: Did you answer his counter offer? You need to go back and look at the percentages and if you’re within the guidelines for that investor, be persistent! Good Luck and thanks!
Kate Ott: See above; contact a supervisor, or try the PMI company. However, there are certain reasons that a bank may refuse to negotiate (and the loss mitigator can’t tell you). Most have to do with fraud at origination; if the bank takes a short sale they have no recourse to pursue the appraiser, or originator, or whoever.

Hi Bob!

Great call with Jerami.
Question: can you be more specific as to the location on the FHA.gov website where we can find criteria that would exclude a property from an FHA loan?

That was a DAMN sweet call. You guys are giving me hope that I can do this. It doesnt have to be that hard

Mark Raatz: Thanks!
See Chp 4 in the below link specifically, most everything is covered there, although it’s not a bad idea to be familiar with the rest of the document.

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4910.1/index.cfm

Big banks like Countrywide, Chase, etc, will not give you the name of the supervisor.
What do you do when they, the negotiator, will not give you straight answers?

Kyle Ford: Just so you know, most of the time an ARM adjusting can be presented as a hardship.

Jerami,

RE: most of the time an ARM adjusting can be presented as a hardship.

This is the case with many of my clients, but does the ARM Kicking in have to be accompanied by a default of 30 to 60 days to negotiate a SS?

I missed the first 20-25 mins of the call, plus I tried to record the call because I like to get things into my hearing, but I didn’t know that my ear piece would keep me from getting the call recorded. So please post the call again…and what I did get to hear was very informative, especially for a beginner like myself.

Jerami, thank you for the call!
Question: have you ever dealt with SLS (Specialized Mortgage Services)? They were servicing the 2nd mortgage on a condo i did a short sale on about a month ago, and they said they didn’t release the promisory note! As in they accepted 2,500 (their minimum) as a “short payoff”, but still held the seller liable for the promisory note of the ENTIRE remainder.
We are now trying to do a note modofication for that seller. Any pointers?
Thanks

sorry, “Specialized Loan Services”

There’s a lot of info on the internet and being stated by various realtors about what really happens to a person’s credit when their house is sold via a short sale. Some say it’s just as bad as foreclosure, others say it’s better because it’s only the late payments that are on their credit history, and others simply don’t know. If we’re telling the realtors and the property owners that we can help by keeping a foreclosure off their credit history then we need something from a credit bureau to refer to when talking with these folks. Does SREC have reference info from a credit bureau(s) that actually say what the results of a short sale are on someone’s credit history?

I have been told by several real estate agents (Polk county, FL) that if I have the option to purchase a property (A-B), am negotiating the short sale, and have the property listed for sale (B-C) that if and when we receive any offer from a C buyer that we MUST disclose that offer and all terms to A’s lender with whom we are negotiating the short sale. I would certainly provide information if requested, per terms of the option, BUT must I volunteer this information?

EDIE C – that info absolutely does not have to be disclosed to the lender. The listing agent lists with you to sell to the end buyer. The listing agent had a fiducairy duty to the seller (YOU). They end buyers offer doesn’t have to be disclosed to the lender foreclosing. If they tell you this tell them to show you the ruling where it says that. The listing agent has a fiduciary to the seller (YOU) and if they disclose the offer to the lender they actually violate that duty.

I have negotiated several short sales so far, and when I first started doing them was asking for the payoff (the amount owed + penalties, etc). But now do not even bother to get that info. IE just submit the authorization and find out where to send the SS package, etc…
My question is: Why do we need to order the payoff in the first place?

Josh,

I would add Countrywide to your “Black Listed” lenders. From my experience, and the experience of others I know that are trying to work with them, they are Difficult at best.
A local realtor trying to do a short sale with them said when she called, the rep said to call back because they lost their mitigator, and don’t have anybody to work with her right now.
What do you know about Countrywide?

I’m an agent trying to help a few different (Novice) Investors complete ss transaction A to B and B to C through a similtaneous close. I recently read death of a land trust. Two questions: Does the option contract pose a problem for negotiation between investor B and seller A’s lender? I’m sure it is not nearly as desirable as a purchase contract , plus it kinda tips Investor B’s hand as a FLIPPER. Is there a specific way you suggest writing submitting or recording the option in conjunction with a purchase contract so as to “fly under the Radar? Question number two: Hypotheticly if a land trust were used and you did avoid all legal land mines how would it work? A contracts to sell to B, B negotiates with A’s lender ss sale is approved, and escrow period begins. B forms land trust with A called A’s trust. B’s company or friend acts as trustee and A signs over benificial interest to B and deeds prop to trust. B markets prop finds buyer C. C funds deal. dosen’t the deeding of the property to the land trust foil transaction A to B? as A no longer holds title to sell?

I’d like to learn more about using option contract in short sales. Is this part of a course you guys sell or can I buy the contracts separately?