Is is true that in order for the banks to consider a short sale package more quickly, the seller has to be in default with the payments?

Hey Josh,

Im glad to see the series doing so well. Ive read about it online, on a few forums, as
well as got your emails, congratz!

Nick Cifonie

Host http://www.REI-TV.com

Sarah, sorry I did not reply above… but anyway, yes, the loan must be in default and well on its way to foreclosure to be considered.

Why would a bank discount a property if they’re getting all of the payments?

Nick Cifonie
Host: http://www.REI-TV.com

Josh the call last night was great. WIll it be available for a replay so that we can listen again? How about tonights call. Can’t make it becasue I will be on a plane.

Thanks!

Hey Greg, Josh, and Jeff,

Great calls. I have always been impressed with your level of professionalism in this business.

I really like the concept of using an option to do short sales. I’m all for getting rid of the trust, I have had trouble with it in the past couple of years and have been looking for a solution.

I do have a concern that I can’t figure out. I like to “load up” my Huds with Realtor fees, etc. because many times my BPO’s don’t come in low enough and if I can pull a realtor commission on top that helps my deal become more profitable. I saw on the deal you closed the other day you do the same thing – you make money between the purchase price and resale price and make money with the brokerage fee and with the negotiating fee you add to the price of the short sale deal.

The question I have is: when you do the option agreement you can’t “hide” who the ultimate buyer is by using a trustee. Aren’t you using your LLC as the buyer? Then, the lender will want to see your articles of incorporation to determine who is the owner of the LLC. If the realtor is related to the LLC or the negotiator is also related to the LLC purchaser the lender could disallow all those additional costs. This probably works fine for you because you own the brokerage and own the negotiation company so you can easily pull money from all those sources using someone elses name as the negotiator/realtor. How does someone who is not as “large” manage this? i.e. if the realtor and the owner of the LLC are family.

This may be too in depth of a question for this blog but that is the main concern that is is holding me up right now with the option contract.

Heather,

In response to your question I have never yet had a short sale lender ask to see the organizational papers or the operating agreement from the LLC seeking to buy the house via a short sale. If you are attending the world short sale main event there will be some time for me to answer that ownership question in detail.

Jeff- I wonder if you could take the time to answer Heather’s question here so other’s might be able to benefit.

The question I am referring to is the question you said you would answer in detail at the “short sale main event”.

I understand this might take some time, and perhaps it could be the subject of a future webinar.

Thank you sir, I quite enjoy each and every one of the webinars, articles, reports, etc., that yourself, Josh and Greg have shared.