Hello.

This question is for Josh, Jeff & Bob.

My attorney said that using Aegis Capital Partner’s money WILL NOT work with the 90 day FHA seasoning requirement, because FHA requires that there not be any contract on the subject property during the 90 day period.

Your thoughts?

Thanks,

Mike
http://www.earnhigherreturn.com

What is the latest news in California regarding short sale negotiations and 2945? Do you need to have an attorney or RE Broker handle the negotiations in CA?

What is the latest on 2945?

Is it better to push the short sale negotiation forward and get to an acceptance on your offer with the bank and then go find the buyer hoping to set up the closing in time to meet up with the agreed upon acceptance date, or push to get past the BPO but drag out the acceptable offer sent in to buy time to find a buyer?

Specific concerns are,
- I’ve had the bank ask why the property is currently listed at a much higher price than the offer?
- When should I feel comfortable asking a realtor to go out there to get a contract on a property I am negotiating the short sale on?
- What if I know I can’t find out the BPO Amount from the agent or the bank? Should I still try to find the buyer?

How do you decide whether to do work on the house or not? When do you begin doing work? I want to do the work after getting the BPO to find the end buyer but I am worried about losing that cash in the event the bank kills the deal, i.e., I had one with two BPO’s at 54/58k and one BPO at 85k, I don’t know why they did 3. They came back after saying they could probably accept 48 saying the investor wanted 75k I said 55 was the best we could do, and they said the offer was rejected. The property is worth about 65-70k as is, and 100k fixed up on a 60 day sale, and needs about 10k in work. I think its dead, but how do I judge this in the future, and time the work I put into it so I don’t spend money on rehabs on deals that don’t make sense?

Can I negotiate on debt as the buyer of a short sale in Arizona, California, Idaho, Montana, Utah and Texas? What about if you are not the end buyer and the deal got too skinny so you need to step out go straight A-C but want to make some money for negotiating the debt.

Where can we get the new addendum and notice to short sale?
And for florida the contract would be just a regular FARBAR contract with the addendum???

By the way great call tonight, lots of new content!!
Thanks
Maria

Please discuss the Red & Black flags at Closing that you mentioned at the beginning of the call with Jeff Watson on Wednesday, Nov 4 and were not able to get to during the call. Thanks.

1. how do you determine and verify how much Equity a property you want to invest in has?

2. What is the minimum amount of Equity an Investor should look for in a home you would like to invest in?

3. Should investors be concerned with how much Equity a REO property has?

I am in the middle of a B to C quick turn in IL. I had the option contract signed and recorded it at recorder of deeds last month. I placed the property on the MLS and now negotiated with an end buyer. I have read the B to C addendum and will have that signed by the end buyer besides the conventional purchase agreement.

After reading the “Disclosure to the End Buyer” section in the article by Jeff Watson on “avoiding fraud”, I am trying to figure out how to disclose everything to the end buyer in written form. My question is that does the B to C addendum cover all those disclosures? If not, then what is the legal language that needs to go in the end buyer Purchase Agreement?

“Q: I totally agree with your 2010 plan.. I have been thnking the same thing. BUT, for someone without the cash YOU have .. AND bad credit.. HOW can we fund these deals and hold on to them?
A: –unanswered–
“

“Q: This Contract can doing bussiness in State of Maryland to comply with Forecosure Law ?
A: –unanswered–
“

“Q: I am in this exact situation right now with a million dollar home on the OBX of NC I need these contracts tonight sell is friday. Agent and sellers will not move forward w/o me using there contracts. We have to submit offer tomorrow.
A: –unanswered–
Q: What short sale addendum. The realators standard addendum. or attach our option contract
A: –unanswered–
“

“Q: I totally agree with your 2010 plan.. I have been thnking the same thing. BUT, for someone without the cash YOU have .. AND bad credit.. HOW can we fund these deals and hold on to them
“

“Q: We have the lenders that will not accept the option contract. so our realtors make up a new one with the addendums that we insert in.
A: –unanswered–
Q: Thank you, good content! and great ideas that I am implementing now.
A: –unanswered–
“

“Q: In the State of Idaho, the RE Commission has outlined “”Dealer in Option”" as illegal, specifically if one party has knowledge of another incoming offer before current option is executed. Also curious about title seasoning for FHA end buyers on Options.
A: –unanswered–
Q: Would it be reasonable to paste the exact verbiage into the “”Standard”" Realtor Addendum form?
A: –unanswered–
“

“Q: How do we get copies of ther Notice of Contract and the addemdums for the A to B and the B to C sales?
A: –unanswered–
“

“Q: I called in so now I’m good.
A: –unanswered–
Q: How long do you have the option in place? Meaning, I’m assuming in Ca you use the date which is 5 days later from the “”right of recission”", but when would you have it expire?
A: –unanswered–
Q: we can’t hear you
A: –unanswered–
“

“Q: what contract do you use for Florida, a regular FARBAR contract?
A: –unanswered–
“

“Q: What if a loss mitigator does find it hidden in plain sight and their problem is with ANY “”option”" language??
A: –unanswered–
Q: Hey Jonas’ sister here… I do all of Jonas’ negotiations and I am having issues with all of this especially the Option
A: –unanswered–
“

“Q: We all know that the BPO is the most crucial part of the process. Lately, BPO appraisers will not listen to anyone meeting the BPO. They tell us that the lenders strictly forbid taking any info.
A: –unanswered–
“

“Q: Pls explain how as an agent when you list the property as Active looking for the c buyer and the mls threaens to fine you for not listing as short sale. Pls explain timeframes for all listing activity. Thank you! You guys rock and have changed our lives!
A: –unanswered–
“

Q: Jeff or Josh, What contract do you submit to the bank, the Option Contract or the Florida Bar Contract since I am in Florida? Thanks … Osmany
A: –unanswered–
“

“Q: What about the Red Flags and Black Flags at closing?
A: –unanswered–
“

Does anyone teach how to do the negotiation with the bank?

I also am in MD and because of the MD law SB-761, there are many restrictions for an investor who wants to work with SS properties. For one… a Foreclosure Consultant has to be involved if the home is still owner-occupied. Second… an investor CANNOT be involved as a Foreclosure Consultant AND a buyer. Plus there is a PHIFA 22 document package that investors NEED to comply with the MD state laws.
1)Do you recommend only going after vacant SS properties in MD??
2) Will a bank still accept $100 EMD with the contract?
3) Banks/bank agents usually will not accept Option Contract, so do you then use the standard MD P&S Agreement with the P&S Addendum?

Anyone that has answers can contact me at dreammaker_224@yahoo.com.

Thanks!

If a bank orders and appraisal, how can we convince the bank to do a BPO instead? And, if the bank does do an appraisal and that appraisal comes in about 90k over what every single agent who looks at the property thinks its worth, how can we convince the lender that the appraiser was on crack and we need a new BPO ordered? Thanks guys!

Greeting Josh, 11-6-09

I just signed a high end home in Marin County, California. My realtor explained to me that the MLS rules have recently been changed. If we sign the original listing agreement w/the seller and put it on the MLS, ALL offers have to be considered. There is currently a pending case in Sacramento in which a short sale investor listed the property and negotiated on his own behalf (A:B) w/o “considering” any of the other, higher offers.

Prior to this new knowledge, typically we would have listed the property w/the original homeowner, and cancel the listing agreement after the BPO and put it in our name. At that time we would include MLS comments as “Short sale pending”. Supposedly the lenders are scrutinizing the listing agreements more thoroughly now. I do not want to put my realtor at risk but I need to be the one on the actual listing agreement for the B:C.

Greeting Josh, 11-6-09

I just signed a high end home in Marin County, California. My realtor explained to me that the MLS rules have recently been changed. If we sign the original listing agreement w/the seller and put it on the MLS, ALL offers have to be considered. There is currently a pending case in Sacramento in which a short sale investor listed the property and negotiated on his own behalf (A:B) w/o “considering” any of the other, higher offers.

Prior to this new knowledge, typically we would have listed the property w/the original homeowner, and cancel the listing agreement after the BPO and put it in our name. At that time we would include MLS comments as “Short sale pending”. Supposedly the lenders are scrutinizing the listing agreements more thoroughly now. I do not want to put my realtor at risk but I need to be the one on the actual listing agreement for the B:C.

Please advise me specifically:
How to list the home originally?
When to change the listing, or do we “cancel” the old listing?
What comments should be included so there is no conflict w/the MLS service or lenders to adhere to these new California rules?

I really appreciate your expertise and knowledge! This business would be impossible w/o the great coaching from SREC.

I have another question…
Will the bank (since home is now vacant) sign the Notice that gets recorded at the county clerk? Remember… I’m in MD.

Thanks again for all of the great information. Your program is great.

Josh is definitely a master of marketing.

I opened the email to register for the first webinar of ‘Champions of Short Sales II’ – AFTER the webinar had ended.

Now the email for upcoming 2nd webinar, when I try register, tells me the ’service unavailable’.

Well I definitely want what I seemingly can’t have.

Any chance there is a replay of webinar #1, maybe on a blog somewhere?

Josh and Company,

A question concerning closing:
How can we ensure, as much as possible, that our “C” buyer’s lender will have no trouble w/the transaction. If we speak to them, who is it that we should contact, and should they be contacted by the title company or the investor? Concerning B of A, who should our title company speak to in order to have them take out the non-flip clause based on the inherent problems w/title insurance? On that same subject, when will be know if B of A will drop the clause and let us go back to back? We will need sufficient lead time to alert the “C” buyer and our transactional funder of the need for 31 day funding.

Thanks very much! Brian from California

Hey guys and thanks for taking my questions.
#1 Here’s the deal:
has a 1st and a 2nd (Initially the same company: gmac)
Worth $125-130K
BPO: $90K
initial offer: $62K; current offer: $80k.
We have a buyer:$105K
A few days before the auction date, the 2nd lien was transferred to another servicer (Specialized Loan Servicing). How do we get the 2nd to expedite their approval? The first lien is waiting for me to forward the approval for the 2nd lien.

#2. If we hire a negotiator that works from home for $10/hour and 10-20 hours per week.
How do we know if they are actually working? How do you actually keep up with their time?

Comment: I have enjoyed and appreciate the knowledge that you guys have shared. I believe that the result of what we do is part of the solution. I believe the Banks should be taking us out for steak and lobster and be supportive and help to make it easier but, hey seems like were the only group working with common sense. yada yada ok on to my questions
1) seems like there are and well become more deals where “b party” has to step aside and in those cases the profits will have to come from a fee charged for negotiations. After reading the freddie mac attachment A they suggest analyze fee’s on the hud for unusual payments to/from a third party with out a recorded interest.. Then why don’t we file a lien/interest for the negotiation fee. What would be an accepted fee to charge? What is the avergage fee thats being charged? We end up getting the “c” buyer a better price anyway.
2)Would you say that having the ablity to close on the a-b then record the deed in the name of b then having the c party’s lender order their appraisal will offer the best results moving forward?

Comment: I have enjoyed and appreciate the knowledge that you guys have shared. I believe that the result of what we do is part of the solution. I believe the Banks should be taking us out for steak and lobster and be supportive and help to make it easier but, hey seems like were the only group working with common sense. yada yada ok on to my questions
1) seems like there are and well become more deals where “b party” has to step aside and in those cases the profits will have to come from a fee charged for negotiations. After reading the freddie mac attachment A they suggest analyze fee’s on the hud for unusual payments to/from a third party with out a recorded interest.. Then why don’t we file a lien/interest for the negotiation fee. What would be an accepted fee to charge? What is the avergage fee thats being charged? We end up getting the “c” buyer a better price anyway.
2)Would you say that having the ablity to close on the a-b then record the deed in the name of b then having the c party’s lender order their appraisal and request the title commitment will offer the best results moving forward?

I have a “C” buyer. I need to do “A” to “C” buyer contract.
Can you explain in detail how to implement this properly so that the transaction goes smoothly. Is the release of equitable interest shown on the “C” buyer’s HUD 1 at close? Do I need to get my fee for release of equitable interest outside of the “C” buyer’s closing>
Do I need to redo the “A” contract please explain process from scratch in detail with an example for clarification of concept and techniques involved.

Please walk through the steps and thought process for approaching an RE agent with a listed short sale, where we want to contract the property (A to B) and have that agent keep the property on MLS in search of the end (C) buyer, and clarify how to do it with complete satisfaction of disclosure requirements, fiduciary responsibilities, and (typical) MLS rules.

Hello! Could you please explain the entire procedures in determining the offer price (a-b) and the selling price (b-c) for both a non-rehab flip and a rehab flip? Thank you.

Could you post a replay of Pt 1 with Jeff Watson?
Please?

Seems like Bank of America is doing eveything they can to interfer with short sale back to back transactions. Would you guys recommend passing on deals where they are the lienholder?

These question are for Jerami King. Jerami how much are the banks willing to pay you for negotiation services? Is there a rule of thumb. Is there a process for getting the highest amount? Does your fee change depending on the bank? Or do you have a standard fee or starting point. On average what you say is the amount they will pay?
Thanks for sharing!

Guess I have a few questions-lol
Ok so to the panel. What is the best way to reduce my tax liablity on the profits made on back to back deals or any type of quick turn deal.

What do you guys think is a fair wage to pay the negotiators and bpo agent. I want to be fair and pay well, but at the same time I don’t want to over pay either. Generally, speaking I have ran my operation with pay based on results. How many files would you say each negotiator can handle. Obviously, that would depend on there level of commitment and organization. Assuming were talking about a top skill set type of negotiator.

Hello, My Q. is for Bob I have a short sale that is nearing the end with Bank of America They want 92k after all fees they will net 75k I have a buyer at 115k

How are we going to tackle Rule #10?

What is the strategy to use to close this transaction?

My Realtor wants to know how is it that he can get double commission?

He will be listening so he wants an explanation on how is that structured?

He wants to know if it is legal can you go over an imaginary deal that will explain this?

Thank You

What should you pay a Stay at home Mom to do back-end-office tasks & computer and/or phone work. Is it ideal or suggested to offer them 1099 commission on deals that close for cold calling to find deals?

Does anyone have any verbiage for placing Staff want ads for former Bank Loss mitigators or just loss mistigators in general and is it better to train them the SREC way or have experienced former Bank Losss mit. cadidates?

Does Mike Kleinstub know what to say when you show up in a suite with a sign-up clip board on the 1st Tuesday of every month at the county court house for Auctions when your trying to get names and email addresses to build your buyers list? Can he or anyone give the verbiage of what to say so that we can get comfortable with doing this. Mike mentioned on Tuesday’s call (11/10) something about the vet auction buyers saying something about “O.k whats ready or what’s still/not available. Can you go over this scenario and what we should/should not say please?

With the new limitations of seasoning and FHA end buyers or any C lender with seasoning issues…If Anyone wants to partner 50/50 on the cost to get the extended fix-a-flip 30-60-90 day funding with Aegis please contact me and let me know. Total Cost is $1495
817-727-7279 or 817-710-3160
or info@propertypurchasepeople.com —>just an email server address not a web site.

I am confused when it comes to how the realtors get paid. Here is my scenerio.

If I have a realtor who is working with me looking for shortsales for me to buy how does the buyers realtor and the sellors realtor get paid on the A to B and the B to C. How many closings am I responsible for paying? Do I pay 3% to the list agent and another 3% to my agent on the A to B. Then on the B to C pay another 3% to the original list agent for finding me a new buyer and pay for C’s realtor commision of 3% also. Im confused but I know I need to incorporate realtors to find me these deals to make my business boom.

I also had another question when using the realtors Purchase and sales agreement what addendum do I attach. Does anything still have to be notorized? Do they still sign the affidavit? Please fill in the gaps.

Thanks!

Hello! In your online training you reference a program called realflow and how it can be used to analyze deals. Could you explain this product and the analyzing process in detail? Thank you.

Hey Josh,
You mentioned how important training is to your staff, realtors, title agents, etc. For someone relatively new, how can we get succinct training procedures to guide us? I realize there are some pdf’s on the site, but I’m not sure that is comprehensive enough. Any additional resources would be much appreciated.

Thanks as always,

Brian

How does the Option contract work in a closing? (Cash buyer, financed buyer)

Jeff YOU ARE GREAT!!! Power of Attorney Question.
I had a couple sign POA Oct 08 along with SS option contract, spring 09 they file for divorce. When bank Finally agrees to short sale in August 09 with me using POA to negotiate, since the couple had walked, we get to title company (that had approved POA prior to this) for closing and the title search finds the divorce filing. Now the title company wants ME to find these homeowners and have them sign NEW POA because of the divorce status. My response was, if I find them, let them sign the closing papers and not risk my liability unnecessarily. What are the proper reasons and uses of POA, pitfalls? I have always had one signed in case the people are not available for closing, but this is the first time I had to execute use of one and it made me uncomfortable.

In Ma. we are getting flack from the major title insurance companies to the extent that they want the short sale lender to actually approve the B-C transaction. Do you have any short sale title insurance companies you can recommend for Ma. deals? Also is it ok to get a step aside fee to allow a aa-c closing paid outside of closing?

Hey,
I am working with my attorney to get around Bank Of America. and have found a way to add fees WITH APPROVAL..Any thoughts.
Here is what we do..

I step out of transaction so it goes A-to-C. I submit a “Document, Admintrative and Attorney Fee” invoice to the title company. My attornery reviews the shortsle package….Thus the fees I have to pay.

We then submit to the title company instructions to wire the “fees” to the XXXX Trust Account in the law firm name. He then takes that amount..Holds out his fee and the releases back to me the remainder of the “fee”

This worked with a Bank America and Citimortgage deal..

Any thoughts…

What’s new in OHIO with foreclosures. I’ve been managing my own properties for the last 1.5 years.

Josh, Would you go over briefly how real estate agents get paid as part of your bird dog affiliate marketing team.
thanks

Am doing short sales in Northern California. My question is:

“What is the new ruling in CA that all offers must be submitted to the lender even if there is a pending offer on the property?”

Thanks. You organization is awesome!

Thanks for this precious educational session.

How do you LEGALLY prevent the Listing Agent and Seller from entertaining and accepting offers othe than yours?

What amount should you write for Earnest Money Deposit to minimize out of pocket cost for properties with values ranging $150K to $250K?

What is meant by WHOLESALE? Is there a settlement and TRANSFER of TITLE in wholesale?

How can one prevent being stuck for months with a property they bought to FLIP?

What are the benefits of a homeowner doing a short sale rather than letting the house go to foreclosure? They’re already behind on payments, their credit is already shot, they’re losing the home they want to stay in,… Especially if/once they understand I’m going to make money off their heartbreaking situation,… What advantage is there for them to let me short sale their house rather than just letting it go?

Thanks, guys!! I am in AZ and have spoken to several title companies – all are investor friendly and associated with the local REIA – and all have objections to the use of Option Contracts. Not exactly sure if it is their objection or the lenders objection. How do you work around this? Are your students finding the same problems in AZ? Is there an alternative?

As of the middle of October the pmi companies have adopted the fha guidline for owner of record. The question is have they adopted it chapter and verse in which case the c buyer cannot enter into a contract to buy until the 91st day or did they stop short of that to just say that the current owner of record has to have been on title for 90 days for the deal to be insurable?

You guys always ROCK THE HOUSE!!!!!!!!!!!!!!!!!!!!

If you get to the point in a deal where it no longer makes sense for you as the investor and you simply want to step aside and allow the property to close a to c what are the steps involved to insure that you do not tick off the shorting bank. Is there special paperwork to use.

Would the same hold true if you chose to sell theoption to the c buyer?

And does the “vanilla” purchase offer with the addendum afford you the opportunity to either step aside and proceed a to c or better yet sell the interest in the purchase contract?

How do you “splain” the concept that the same house can have 2 different values on sequential days given the removal of the overleveredgedness to some of the folks doing bpo”s who just cannot seem to grasp the concept?

Also, how do I get in touch with Jerami to get info on his negotiation services? I am very interested in outsourcing that function to a group that is both knowledgable and effective. Thanks

Where can I find information that the OPTION CONTRACT
has been approved by Arizona MLS?

WHEN EF HUTTON SPEAKS…
PEOPLE LISTEN..

WHEN JEFF WATSON SPEAKS…
PEOPLE LOSE MONEY WHEN THEY DON’T LISTEN

WE LOVE OUR LITTLE EF HUTTON

Josh-
After signing purchase & sale agreement with seller on Listed short sales:

1. do we ask the Listing agent to list the property as pending on MLS? or
2. ask listing agent to withdraw listing from MLS until BPO is completed?
3. What is the listing Realtors fiduciary duty on listed short sales that we want to negotiate?

Will this call be posted and archived in the members section for Gold coaching students and above and if so when can we look forward to this?

I was wondering if you could address the pressure that seems to be directed at Option Contracts recently as we gave had a few lenders tell us that they will not accept Option Contracts at all. Are they going to become the “new” land trusts ….

Also, what does recording the Option Contract really accomplish?

Thks

My question is about something I have heard from other webinars in regards to negotiating. Is it true that in 2010 the only people allowed to negotiate Short Sales have to be licensed mortgage brokers and attorneys? Unfortunately I will not be able to make it to the livestream. If possible can you have someone email your response to my question. Thank you in advance for your response.

Jerry

DHS,Inc
S.Fla

Whats the best way to explain the def. judgment to prospective sellers? Here in Nevada we have six month and six year options for the lenders which I explain will be the rule with a foreclosed property as well as a short sale. Many sellers get a little apprehensive about this. Any ideas on how to convey this to the property owners with having them spooked?

Are there seasoning issues w/a VA loan (for the C buyer)?

I have met with several top producing realtors who had no problem with representing me as a buyer’s agent on A – B and as selling agent on B – C. I provided copies of my contracts, etc. for their review. Once their Broker became involved all communication with me ceased. I had one Realtor admit that his Broker said it is against company policy (Coldwell Banker) to take a B-C listing. I need some suggestions on how to overcome this. Otherwise, I’ll never be able to find an end buyer. I’m targeting upper middle class homes in good neighborhoods, so finding cash buyers for lower end properties isn’t a good fit for me – I really need Realtors out there marketing my properties before I close on the A-B. Any suggestions?

Some “gurus” are teaching investors to use a Commission Agreement with No Broker Disclosure for the A-B listing, and regular listing agreement in MLS for B-C. However, we are finding that many banks will not accept the Commission Agreement as part of the short sale package and want to see a standard listing agreement. How do you suggest we get around this?

Brian,
We love to do VA end buyers. We have not run into any issues with seasoning…

I have two properties under contract for a SS that were done directly with the owner, not already listed. My understanding from my short sale negotiator, who has done maybe a hundred short sales is that the lenders want to see that the property is listed and want to see the actual listing document as part of the short sale package, not just the MLS print-out. The bank will expect to see the current owner’s name on the listing agreement. Therefore I will have the owner list the property with an agent I select. Do I need to have this first listing agreement cancelled and then re-listed with me as the seller? What is wrong with leaving the original listing in place and just have the agent continue to market the property and find a C buyer for my sale transaction? What is gained by having a new listing with me as the Seller?

Are there still banks in FL that will fund the C transaction without having an issue with no seasoning?

Are there still banks in FL that will fund the C transaction without having an issue with no seasoning?

Jeff, can you please explain in detail the new rules in regards to rental properties and tenants occupying the property and how that affects short sales and REOs??

Thanks
M

For Jeff

This is a question about real estate agents representing different parties in a transaction. Here in the state of Massachusetts the listing agreements stipulate that it is possible for an agent to represent both sides of a transaction. Although the nature of the relationship would require that certain information would be privy to one side or the other at certain points during the transaction and would not be shared. The agreement further stipulates that it is the responsibility of the homeowner to seek their own consel and make sure that their interests are being represented as they feel they should be.

Given that if I approach a realtor that has a listing and the homeowner signs all paperwork to the effect that they understand that we are an investor, we intend to make money, we offer no guarantees of success, foreclosure still is a very real possibility,
that we will assume the negotiating, marketing acceptance of offers, reccomend that they seek their own colegal and financial counsel, have a 3 day period to change their mind, receive the actual releas of option that they can go and file at anytime, and autograph all disclosures stating that they fully understand, are we safe in having 1 agent operate as a dual agent?

As always you dudes are awsome, I have yet to see any other crew give and give and give the way you folks do.

Josh,
Are these scenarios correct?
When obtaining control of a distressed property via putting it under contract through the option contract or the standard realtor’s contract. If the property is currently listed,then we as investors should have the addendum of listing agreement signed by the distressed homeowner and the realtor giving us control over the listing and the it will be noted in the MLS that the property is listed as required by the lender but not active and in an implied “on hold” pending short sale approval status and the amount money being offered is excluded from the posting.If the property prospect is of organic nature, we would ideally pay a realtor a nominal amount to post the listing on the MLS as required by the lender in the same manner as we would if the property were listed. Subsequently, we would have all legal documents signed and submit them along with the short sale package to the lender. Also, we would record the notice of contract at this time indicating that we have control of the property. The next thing to do would be to order a BPO(this should probably be done by a realtor). The next thing to do would be to meet the BPO agent at the prospective property hired by the lender and submit our BPO to him or her in order to influence their BPO appraisal. We would then periodically interact with the loss mitigator in a professional manner in order to see if our offer is close to the BPO appaisal ordered by the lender by applying the formula of 0.65 ARV minus repairs. We could say to the loss mitigator “We were asking $220,000.00 but we only received offers in the neighborhood of $160,000.00 and obviously we would like to receive offers for more money and knowing what your appraisal is would serve to validate our asking price in the open market”(the offer we would submit to the lender would be around $140,000.00 in this example). If the lender accepts our lowball offer we would ideally purchase with private money and hold on to it or sell it to a “C” buyer for a large profit. If the lender doesn’t accept our lowball offer, we would cancel the listing and re-list with our chosen agent at a flat fee instead of a percentage and submit an offer at .80 ARV minus repairs ideally with buyer/seller concessions and sell it to a “C” buyer for a smaller profit. If the lender will only accept an offer of .90 ARV minus repairs, we would step out of the deal and facilitate an “A” to “C” transaction and command a negotiation fee on the seller’s side of the HUD-1 statement. Am I correct in stating these scenarios? If not, please correct me. Thank you.
Question for Jeff Watson.

Jeff,
Regarding asset protection, is a multi-member, member-managed LLC superior to a multi-member, manager-managed LLC when the LLC is actively generating profits or are they of comparable efficacy? Am I correct in saying that the multi-member, manager-managed LLC is superior to the multi-member, member-managed LLC when the LLC is passively generating profits?

Is this a proper asset protectio strategy?

John-Sally
l
Multi-Member LLC
1
Multi-Member LLC
1 1 1
LT LT LT LT= Land Trust
1 1 1 1=Arrow
LLC LLC LLC
1 1 1
Property Property Property

Plymouth MI, Wayne County
In our area prices are higher than areas 25 miles away. Appraisers are called in from areas over 50 miles away who are clueless about our area. Our PRD records (Public Record Data)are outdated and inaccurate due to permits not being pulled when additions are made and human error. Thus we must challange the appraisal and do all the work that the appraiser who spent maybe five minutes in the property if that much should have done. I have been successful in doing this but, why, do they allow appraisers to come from so far away when they do not understand or have any knowledge of the area? It appears that the appraisers are tryig to get the worst price possible for the banks in some cases and if it is a short sale they go in higher thus causing the banks to ask more.
2. Why are the banks permitted to reject honest fair prices on short sales in order to wait until Fannie Mae takes them over so the sale does not show up on thier books and then Fannie Mae puts them on the market for even less than the last three offers?

I am a RE Agent in CA. I have located and negotiated short sales on behalf of my clients. I now want to become an investor with my 4 sons. As an agent, can I still collect my commission even though I am putting together these deals on behalf of my sons from which I too will ultimately profit?

Second question~I currently have a ss deal whereby I am the agent for Seller (A) ~ my brother is the buyer (B) using transactional funding, for which I am also his agent ~ buyer (C) is paying all cash … Since this is an all cash deal from all parties, are my disclosures the same? Can I collect my commission from parties A&B? As a new agent, also newly involved in short sales I want to make sure all basis are covered.

Do you know if Washington state is doing these short sale flips?

Please explain exactly what to use regading any recording of “An Option Contract “and how it is effective and successful in Fairfax County, VA.
For 3 years we have NOT been able to record a Notice of any kind in Fairfax County because they say its a taxable event and then we get hit with taxes on the assessed value twice.
Thanks Jeff

To Jeff

1. Is it legal for us to market the property after we put it under contract?

2. If not, when can we begin to market the property for sale?

3. If yes, what are the best ways to market the property for sale, (even if it is withdrawn from MLS or listed as pending) before we recieve the BPO?

Thanks in advance for your answer

I am an agent in CA. Just before getting the listing of a seller, they had gotten a (bad) interior BPO in connection with the loan mod they were trying with Aurora.

Your thoughts on the wisdom of having the buyer first agree to the bank’s too high counter offer, and then investing approx $400 – $600 in an appraisal to counter the bad BPO number? Is there a chance this will be fruitful, or just wasting time and money for the buyer?

Do RE Brokers and Agents who negotiate short sales themselves (or have a non-expert, such as a loan processor in their office, attempt the negotiation) make themselves vulnerable to legal liability?
If yes, do you have evidence/proof you would recommend sharing with Agents?

RE Agents often do not want to present an investor offer involving a “quick turn” (A-B; B-C) to the seller they are representing. Presumably, because they suspect it is unethical and/or illegal…

Two Questions:

1) In that situation, if there is no current buyer with an offer, is it the agent’s fiduciary responsibility to make the seller aware of the solution proposed by the investor?

2) If the agent does not want to cooperate/participate, is there anything constraining the investor from approaching the seller directly?

Is setting up an LLC the best means of protecting oneself from potential legal liability?

Also, do you have any suggestions regarding handling tax consequences for short sale investors?

Thank You!

Let me preface this with, I know I need to jump from being a listing agent to being an investor in short sales.

But in my role as listing agent, and looking at what is best for the seller, has anyone analyzed Obama’s MHA? I haven’t finished reading all there is, but am I correct in thinking that it seems like once a homeowner applies for(?, or is accepted into the program(?), they can not have an NOD filed against them?
If I am correct, that could be a useful negotiation benefit?

Some times the 2nd lien holder will require an additional cash contribution over what the 1st is allowing on their approval letter. They don’t care where it is coming form – Seller, Buyer or Agent. Some times the Buyer is willing to pay the difference, but this will be outside of escrow. Is the legitimate or if the 1st finds out will the void the transaction? In addition, does it cause any problem with the county in terms of the correct amount purchased for property tax?

Jeff,

I caught you with Moneyman last night. You mentioned the hazards of tenants to a short sale, and how much fun it can be to deal with Bank of America. Those same sentiments are the inspiration for an idea for those situations where the lender is stupid and a short sale won’t be happening:

what about using a tenant and a long(er) term lease to force a change in the valuation of a single family house to the income method?

for example, in my Westside of Los Angeles neighborhood, the average home is $700k. If I lease it for 3(?) years at $2,500, (maybe even renewable for x years at sole option of lessee), no one (other than me) will want to buy that property when it is subject to the rights of the existing tenant. At 10X Gross Rents, the property is only worth $300k.
Your thoughts?

Out of all the banks, BofA takes the longest to get everything done and if they reject your 1st offer, you start over at the beginning of their process. What is the best way to get them to negotiate with you and shorten the process with them? Are people getting the 30 day holding clause on the BofA approvals removed and how? What other new little nuances (with any bank) are people seeing in approval letters that need to be gotten around and how are they doing this?

this question is for Attorney Watson. I close a short sale deal in September and I didn’t record the option contract
is it too late now to record that paper? also does the homeowners need to notorize that document inorder to be a legal contract? thanks! sorry I won’t be online with you guy while this question is being answer. thank you Mr.Watson.
I’am coming to Scottsdale,Az next year can’t wait!
Louis Wu

Josh and Jerami,

My dad and I have been doing some serious planning for 2010. We want to focus on creating systems for our company so we can fill our pipeline full of deals. I have been thinking about what we need to do in order to accomplish this. One of the first things that popped into my head was outsourcing the Loss Mitigation work to a third party negotiator. This will allow me to focus on marketing for new deals. Also, I believe that our closing ratio would be higher if we had an experience loss mitigator working for us.

I know that Jerami owns a loss mitigation company. Can you please go over the specifics of program that you have set up for investors?

Thanks,

Ben Roembke

Yo sup Josh, this is Dmadd is Cali and I have been gettin my ducks in a row to set up a short sale flippin business here in the OC. However some people who have done or attempted short sale flips with the option contract warn me that the option contract doesnt work in Cali. Now I kinda have my business plans on hold because I dont know what to do, I dont want to set up a flippin business that is doomed to fail. You guys are the experts and leaders of this flippin industry, what advice do you got for California?

Greetings Josh,

Having never officially closed a back to back, exactly how do we get the end buyer to close on the same date as the A:B? They will need a loan appraisal, and other due diligence, and won’t want to put out the money until we have the official approval from the lender. All of these things take time, especially in today’s loan climate.

Please explain the timing issues and how to avoid major problems at closing. Thanks! Brian

Is a copy of the listing agreement acceptable to the bank or must the property actually be listed on the MLS?

I am a licensed realtor. My wife (we are not legally married – had ceremony in Mexico but never competed paperwork – all of our finances are seperate, including tax filings) is the investor on behald of her S or C corp in which I have no ownership. I represent her on the AB BC deals. I do not represent the Distressed Seller and make it clear to them they are not represented by me and that the investor and I have a love interest and I refer to her as my wife. They sign a commission agreement and a notice of non-agency. Banks are asking for CA 3 page listing agreement, so I have the sellers sign a listing agreement and immediatly sign a cancellation of listing. I send in the listing agreement to the bank and keep the cancellation in my file. I put brokers corporate name for seller and then brokers franchise company name for buyer on preliminary hud. Is this scenario okay? Please advise…

Getting a lot of push back from end buyer lenders who don’t want to finance a back to back transaction. Suggestions for overcoming this obstacle are appreciated. Also, we have predominate FHA buyers in this area of Virginia. How do you handle seasoning on those buyers. Currently we only accept cash or conventional (which is becoming a problem.
Thanks

FAF funding that you guys hosted: I can see where the partnership might help when the Short Sale lender is Countrywide and they’re requiring you to hold the property for at least 30 days. But, how is it going to solve the FHA problem if the buyer has to put $5,000 down. If the FHA buyer has a lack of funds, how are they going to put $5,000 down as earnest money? How are we going to fund the A-B if the C buyer has to be in place and that buyer happens to have FHA financing? How is an FHA buyer on the B-C going to get qualified to buy one of our houses if the house isn’t even seasoned yet? The lender isn’t going to say we’ll fund this transaction in 90 days after it’s been seasoned, but we’ll approve the transaction now. Also, what if the buyer decides they don’t like the house after all or finds another house while your seasoning it? What if the buyer can’t close after it’s been seasoned 90 days and it goes beyond the 120 days (which it will)then Aegis owns the deal? What if you buy with a $10,000 spread and the market depreciates further and the buyer walks? Can someone answer these questions?

Will you guys be making any changes to Realflow in the near future to accomodate preparing SS Pkgs, faxing or emailing them through the site? The uploading of the docs doesn’t give me any way to sort, package and send. I’ve been on several calls recently with different SS programs that would make my life a lot easier. However, I don’t want to give up on you guys either. Please advise.

How to hire and train an in house negotiator is top on my list to accomplish in the next few weeks. Just give us the full run down. The art of negotiation is vital as are the tricks of the trade. I need a negotiator who has quick help to solve problems on deals and move on with the best action possible.

I need – please – an early answer to the following questions even though they don’t pertain to loss mitigation and training a new negotiator. I was counting on asking them during this week’s Gold Q&A call.

I’m establishing a new working relationship with a real estate brokerage. In my market (upscale northern New Jersey), I may often be dealing with properties that are already listed on the MLS with a brokerage different from my buyer’s agent’s brokerage.

In going over my documents and the stealth option contract with them, two related questions arose:
1. Can we specify the Realtors’ commission in the contract? My question to you is: Is that a problem; where should that provision be inserted?
2. If the homeowner/seller (A) has a listing agent; I (B) have my buyer’s agent who is in turn responsible for finding the end buyer; and the end buyer (C) has a buyer’s agent, all is well as long as there’s a big enough spread to have two separate closings. If, however, the spread is too thin and I have to back out and let it go “A – C”, how does my agent get paid? (I’ll deal another time with how do I get paid anything.) Do we simply insert a provision in the amended purchase contract to the effect that three agents are going to be splitting the commission three ways?

Thanks in advance for addressing this if you can. Best, Gordon Clark

I’m right at a point where I’m submitting offers on behalf of my LLC, but don’t want to be too close to the transaction to flag any “arms length” questions.

What should I look for first in hiring my first negotiator? And how do you get to the bottom line of compensation?

I found a x mortgage broker to do my negotiations.
What have you found is the best way to pay a negotiator.

What is the quickest way to train them with out giving them full access to SCREC materials?

Please comment on non-refundable deposits, pros & cons. to lock in a buyer for the time needed to close a transaction.

Florida shortly will require that you be a licensed mortgage broker to negotiate short sales in Florida.
I’ve had a law firm doing my negotiations and was just told by them that the California Bar will no longer allow law firms or attorneys from out of state to do the short sale negotiations for the investor buyers.
Shortly the law firm will not be able to do the short sale negotiations in Florida.
California & Florida are my two biggest markets.
I’ve now got to hire & train negotiators, which is a big pain in the ass.
Everybody is trying to protect their little piece of the pie and the homeowners in foreclosure will suffer as a result.
I look forward to your training.

Thanks,

Mike M

How do we keep the investor separate from the the negotiator. When I was doing both, I would sometimes get called out by the bank’s mitigator. Now that I’ve hired a negotiating team, the bank calls me anyway. Also, at what point should we have “in house” negotiators? I’ve got 20 cases and frankly it’s a lot to remember. I like having someone to turn to when there are bottlenecks and problems. Unfortunately the company that negotiates for me has many negotiators so I have to learn to deal with all of them and it’s another layer of complication.

Hello,

Can you explain the process of being able to get the Second Lien holder more money if the First Lien holder doesn’t accept the offer to the second. Is there is a method to use by adding information to the HUD in a different location? For example, the second wants 10k, the first will only pay 1k to the second. How would we modify the HUD in order to satisfy both parties?

Thank You,

Joe Lively

I too have a question unrelated to hiring a negotiator, regarding tax liens.

I just started working on a 1.4 million dollar home where the owners have a $100,000 + in IRS and California State tax liens that they have been paying via a payment plan. Their lender, Chase, has set up a special escrow for them to contribute to the tax debt, and pays the IRS themselves. In spite of the plan, the IRS keeps piling on the penalties and now we are in a short sale situation. When should I start working w/the IRS and State (California), and can I expect a forgiveness of any of their debt? Also, can I put the back taxes that they have been paying on, on pg. 2 of the HUD1 and let the bank pay? Thanks, Brian

I’ve heard conflicting information regarding adjusting the listed price after the BPO has been completed. One source stated that the listed sale price should be lowered after the BPO has been completed and another source stated the listed sales price of the property should be increased after the BPO is completed. It seems like one would increase the listed sales price after the BPO has been submitted to the lender, but correct me if I am wrong. Also, do we order our own BPO and submit the results to the BPO agent hired by lender in order to influence his/her inspection? I never understood why we would order a BPO when the lender always does such.

We are in east Tennessee. We need some input about A to B Funding for Short Sales. I try to buy and sell back to back.
1) What Lenders are available for Funding your Back to Back Cases? Can they operate in East Tennessee?
2) How about Lenders funding for up to 91 days for FHA seasoning? Operate in east Tennessee?
3}Are there National Lenders doing this type of funding?
4)What Percent is the normal Loan Origination FEE?
5)What Percent is the 2 to 99 days use of money for FHA Seasoning?
Thanks for your continued Assistance

What is the going rate for Bird dogs? I have several agents who are out finding deals for me but I’m an agent my self. What is fair to pay them for finding deals?

I really need to hire a negotiator. I have already started a loss mitigation LLC where we got over 25 short sales approved. All were done by my husband and I. Now I need to bring on a negoatiator. Is employee or contractor better? How do you handle the liability of having employee or contractor’s handle file with senative information? Do you do background checks? I am looking to have someone work from their home office and I prefer to buy them when the deal closes. From your experience which works best employee or contractor? What is the going BPO rate?

Please define “Net Profit” based upon the 15% commission you pay the negotiator.

Hey Josh,

Can you tell us from your experience the lenders that have been OK w/funding the back to back closings, and the lenders who have not approved these transactions. If we know in advance who is more likely to close, we can narrow down our offers more efficiently and avoid potential problems at closing.

Thanks as always! Brian

What are the best stalling tactics when the lien holder (i.e. – bank) reads the option contract and knows we are going to flip the property? What are some of the best excusing to stall for our C buyer without lying to the bank?

WARNING: This is a long explanation, but I would like a response. It doesn’t have to be reviewed live, but I would still appreciate some much needed help coaches.

I’m in NC and so are a few other students of SREC’s. One is a realtor that I know of and the other is a lawyer. Both are in the Charlotte Area. I’m in the triangle and have been making realtor presentations for the last 6 months.

I must not be doing something right. I will have the presentation, they will get excited, check the SREC paperwork with the local lawyers. To this point, there is never a problem. THe issue is created with they take my paperwork and their questions to the NC Real Estate Commission. After that conversation, there is fear and they do not want to “risk” working with me. The big question for me is, “Why?” What is the risk if everything is disclosed?

There explanation must get lost in translation, because I get comments like the following:
- concerns of consumer advocacy – listing as seller and option holder.
- contract is a “sham” contract (i.e. – $10 is not enough consideration for a house. $10 is considered “lunch money”.)
- Predatory towards the seller
- Colluding with the seller in dealing with the bank.
- Even representing just the option holder, this real estate commission’s opinion was that it was still Predatory because the seller is desperate and the agent is held to a higher standard by the commission.

This being said, another SREC student, who is also a licensed broker in this state, had the contract reviewed and received a signed letter from the commission’s Information Officer. and this person had no problem with the contract as long as full disclosure was achieved, but along commented that the option contract is “problematic” because “the seller’s lender is unlikely to approve the optionee’s purchase, if, as you have indicated, the optionee intends to ‘flip’ or resell the property for a profit.”

So, moving forward is becoming more and more difficult if I want a realtor on my team. I know I have to kiss a lot of frogs, but this is wearing my down to have so many roadblocks for something you make appear to be so simple once the proper team is in place. My opinion: the commission is uneducated on short sales and is over-protecting the public. What the Commmission is forgetting is that if the seller cannot sell their house, the bank has to foreclose and that doesn’t benefit anybody who is party to that transaction.

Do you recommend that, with educated assistant (someone like Jeff) that I go directly to the Commission to find out “Why” they are planting fear in these agents?

I also have received a “marketing agreement” from the SREC student who is an NC lawyer in which he uses this legally drafted document to disclose who the agent works for. This doc was approved by the commission.

So, once again, I’m not sure what is being communicated or reviewed, but I am ready to go to “into the lion’s den” to get answers.

Do you have a bird dog program?

I recently called every local bank in my area to see who had seasoning requirements. I was told by multiple banks that they follow Freddie Mac / Fannie Mae guidelines and was quoted anywhere from 3-6 months. How does this match up with info on the “The Fund” wherein Fannie Mae expressly says that they recognize that a prompt resell is o.k. with appropriate disclosure? How can I then educate a bank’s mortgage department that providing a loan to the end buyer is o.k. without a seasoning requirement?

I am former Gold level member. An appreciative student and realeflow user for years now. Also recently a SIMS member (great value on all these!)

I have always appreciated and recognized that you guys deliver way beyond what you promise!!! It is not lost on other members & students either, that is why you have such a following, and a super successful business….

You probably don’t know my story, but in a nut shell I am a struggling short sale investor doing deals here in Santa Barbara California. In the 4 years of learning and doing these, I have gone through hell to complete 3 deals, out of about 25 or so that have failed (of these 25 that have failed I had about a 85% success rate of getting a decent payoff approval).
The main reason for failure was because of the end buyer problems you have heard about time and time again involving funding and or the title companies.

Oh, did I mention I am also now a Fix-A-Flip member? So I know all about this solution. I will probably be able to utilize them on some deals.

However, it has been recently brought to my attention that FHA buyers need to contract on the 91st day!! So that means that closing won’t take place for maybe 30 or 60 days after that. Even Fix-A-Flip won’t fix this! Their rate this far out is devastating to any deal….

I am very aware that you guys know that Land Trust’s, Possibly even using a Living Trust along with an Option to Purchase offer is working really good here in California.
I know that title companies are leary of them because of some past abuses. But I also know that used correctly they are the best solution possible. They even allow FHA buyers to purchase the deal with no seasoning requirements.
I am also certain that Jeff Watson and Ron Ballard are very aware of this method, and how effective it is.

Why is it not being presented as a solution to these challenges we face, especially here in CA? Is it because everyone is so invested in just using the Option Method alone?

Who do I need to talk to? What do I need to do to learn how to fully take advantage of this Trust method in order to save my business?

I have been using the Option Contract, and recorded the Notice of Option Contract. When it comes to the end buyer’s lender, the fact that I file that option and have had equitable interest in the property for many months has had no effect on them with the seasoning issue. The banks all say they follow “FNMA guidelines” of requiring the seller to be seller of record for 6 months (although FNMA has no such guidelines). I know many are touting using Aegis to overcome this issue. But would it be a non-issue if a trust was used to purchase the short sale from the beginning? I have never used a trust before so am not sure how it all would work. Could you explain – in application, not theory?
Thanks!

CALIFORNIA,

No matter how many times I hear the contrary,
CALIFORNIA IS DIFFERENT.

Not that that stops me but I would like to
have the exact paperwork for CA for the
option contract and the Rev Living Trust.

Wouldn’t it be more economically effective
if you guys put it together instead of us
all going to a different attorney and get
conflicting information.

Thanks

Steve

St. Lucie county in FL adopted a Mandatory Mediation process for any homeower facing foreclosure on their primary residence. I understand that they have had a 71% success rate in avoiding foreclosure and the State Supreme Court is considering adopting the mediation process statewide. What are the implications for this on short sale investors?

I’ve gotten conflicting information on the upcoming requirement in Florida that anyone negotiating a loan must be a licensed mortgage broker after the 1st of the year. Do you know if that pertains to loan modifications only or if it also pertains to the investor negotiating a short sale.

Doing Short Sales in N.J.
Got one recently approved by Bank of America, and the
next day started receiving 3-4 calls per day from the
modification dept of BofA asking to speak direct to homeowner. This went on for weeks with them calling
3-4 times per day trying to desperately reach the owner, (thru my contact number) until they finally admitted to me they wanted to offer the owner a modification to keep his house.
Now I got an approval on another home thru Chase where the homeowner has PMI and I am waiting for approval on the PMI portion and yesterday someone from Chase showed up personally at the house. What is going on?
Are the banks now trying to offer the homeowners the
deals we negotiated for months? Anyone else experiencing this behavior?

I was working on a short sale in GA and almost done when seller went into Chap.7. Told to get trustee to abandon interest and he did, circulated it to creditors and no disputes. they sent the approval letter at this time. Now, Wells Fargo is telling me seller’s bankruptcy attorney needs to obtain motion to sell or consent order lifting bankruptcy stay entered with the court before we can buy and sell property. Will I not receive this from the court anyway since the trustee circulated an abandonment of property with the creditors or is this something else? Wells Fargo also wants paragraph taken out of my contract that “grants the Buyer or their representatives all the rights to list for sale, market, negotiate and enter into a contract to sell the property to a third party. Buyer intends to resell the property for a profit.” as she states this makes the contract an option contract which Wells Fargo will not allow. I do state later in the contract that “vesting will be determined at closing”. All of this is after we had received the approval letter from them confirming the short sale and they are still making us jump through hoops. Help is appreciated on this as even bankruptcy lawyers don’t seem to know for sure what to do.

Josh,
Do you ever prefer to work the Short Sale from a Realtor standpoint (only) instead of as an Investor?

If we step out of a deal because it is too skinny, can we put a lien on the property or something else so that at the A-C transaction, we at least get something out of our work?

I have three approval letters with Bank of America that all have the dreaded paragraph in them, what’s the best way to handle them at present?or should I send them to walkawaytoday.com to let the lawyers pick apart the deals for mistakes?

You don’t seem to teach loading up the HUD1 with fees, etc. Why is that when the mortgage company will pay for many of them and even expects to? Does it make your deals fly through more quickly?

Thank you

I have heard that some gurus are representing themselves as law firms to get their negotiator fees on the HUD. Do you know of any law firms that are willing to partner with a negotiator like this?

We are encountering problems with buyer’s lenders not moving forward when A-C and getting the loan approved. We have the short sale acceptance on one right now and have been waiting for over 45 days for the buyer’s approval. What can you suggest to move the buyer’s agent to get these approvals so the seller does not have to wait. We were A to B but had to go A to C with seasoning issues because the foreclosure is just around the corner. Thanks for all the information that you give to us to keep us on track.

I’ve read your book and listened to many webinars, and have used the plain option contract with success. Will you please tell me, tho, why is the option or stealth option contract better to use than just a plain standard purchase contract? I have difficulty finding a realtor who will work with me by listing a property when I have an option contract on it. They have had fear planted in them thru the RE commission locally, evidently. So, that also means it will be difficult for me to solicit working with realtors who currently have potential short sales listed. So, along with my above question, how can I make all this work, and build a business doing short sales enmass?
Thanks.

I have another question. If an investor ends up going A to C. How do we structure getting paid a lien release fee from the buyer who has agreed to one but where is it placed on the HUd and what do you call it? I know this can be done because I have heard that investors are doing it however when we tried the lender would not allow it. I know of another investor who closed and made a $7000 release fee. Please tell us how to do this. Thanks

1. Could you review and give specific examples of the differences between Plan A, B, C & D?
2. Could you review how a REO is difference than a short sale in terms of the contracting and how B will proceed if he gets a wholesale buyer or if he doesn’t when it comes time for the closing of A to B? Also, since the contract for an REO is not an option contract, does he always close on A to B if he doesn’t have an end buyer? and how does The A buyer inform the REO agent that he is flipping for a profit? Do you have a contract form for the purchase of an REO property that in the A to B purchase? The REO purchase was discussed very briefly in the contracting session.
3. Jeff Watson mentioned in one of the early webinars that he has a contract for a client of his for Fairfax Virginia. How do I get that contract from him? under what terms?

Ok. I have about 12 deals in the works in California. Let me state is correctly.
I use the NODPA ( that is specific to Cali only guys) and I have an addendum w/options feature attached.

I just need to know how to set up the deal in the A-B in regards to licensed agents so we can have a nice, clean set up

A – has no agent, and no representation
B – I have my buyers agent exclusive to me.

The HUD will show the buyers broker listed, and the lender has asked/wants to see a broker NAMED on the HUD for the listing agent section.

So, how do I explain this minor addition to the broker, if they are NOT DOING anything other than signing on to be NAMED on the HUD.

Next, follow up question.

A- is represented by a broker, BUT NOT listed
B – is represented by a buyers broker.

In this second scenario, the A-broker is not listing the home, but just acting as a “transactional broker”
They sign the appropriate documents to make this effective.

Is this another good alternative to the set up of agents in the A-B or do we need any type of “duty” to exist or not to exist for the seller – A.

I just want a nice, clean set up of the relationships for he agents/brokers in the A-B deal.

The B-C deal is simple. That is a normal transaction. No guess work there.

Thanks in advance. This will certainly help in clarifying how to set this up legally and clean.

Juan E ( in Cali)

Question: If I have my wife who is a Realtor list my short sale properties can she legally sale my properties and get paid a commission on both sides and if so what type of listing contract should she use. Were in the state of Florida. I believe her Broke will be on the call today so I want to make sure that were all on the same page.
thanks guys!

Josh, first thank you for all of the information you had shared with us at SIMSSTOCK, which by the way is the greatest event I have been involved. My question(s) are: How do I overcome a bank requirement that I submit a pre-loan approval letter even when I am submitting a POF from a transactional funding source? Do I need a lawyer, an escrow/title company to be from the same area where the property is located or can I use the out of State attorney and title company I have in my State? In SIMSSTOCK you went over forming an LLC for flips. Can you go over your ’suggestion’ or ‘opinion’ as to LLC taxation under k1 and how can I go about setting the safety shields by forming 5 or so different LLC’s, Land Trusts and LLC’s Beneficiaries? Will you please provide the case law or cite you made mention at SIMSSTOCK as an example you gave if the LLC member/owner runs over someone’s feet? You said it was a very old case law that for whatever reason hasn’t been challenged maybe because no one has gotten the guts to challenge it. Thank you for all of the information, tips and answers you gave us at SIMSSTOCK.

This comment was on your Main Event home page.

Profit: $15,000 from one deal!

This is my fastest deal. I had the end buyer sign a contract drawn up by Ron Ballard to pay $15,000 to release my option and then we used a regular California contract.

I’m in a similar situation with a buyer. What type of contract is this? Where can I get a copy? And can this type of release of option be used for FHA buyers?

If the option is a security with the property as collateral it should be able to be sold or released and then the end buyer exercises at the agreed upon short sale price with the seller’s lender.

Thanks. I like the streaming format.

I am a realtor and was wondering if it is legally acceptable for me to be the RE agent representing my investment company selling the short sale on the MLS as well as to the bank as buyer RE agent representing my investment company. I plan on having an RE agency facilitor agreement with the distressed seller.

Thanks!
RF

Two questions:
1. If the homeowner has been discharged from BK and the house was included in BK, can BOA still come after them with deficiency when we do short sale?
The BK lawyer told the homeowner to let it go into foreclosure.
2. Do I need an entity registered in TX if I do short sale flips in TX but live in FL and alreagy have an entity in FL?

Based on the recent BofA and Countrywide decisions regarding short sales, what can we do to protect ourselves when we go from A to C which may have to be the case for existing BofA and Countrywide short sales being negotiated. We aren’t questioning the Old School Title success fee, but would like your input on how we should work with our REALTORS on this. Presently, we do not have a written and signed agreement with our REALTORS regarding our fees to OST for the negotiations on A to C transactions. With several BofA and Countrywide short sales pending now, what is your input regarding compensation with our REALTORS on these deals? Or do you see this as a cost of doing business?? Thanks.

putting together my first short sale deal, need to know if i have someone in my office who is not a member of my LLC list the property with the seller for the A-C, then i or someone can write up the offer as i am the buyer but in my LLC name, so my question is can i do it that way and when do i release the listing with the seller and I re list the property as the investor being the seller to find a end buyer? is there a better way of doing this?

We just closed a short sale that was that had an pmi and it took months and months to close and chase was blammi g the hold up on the insurance company. Is there any way to speed up the decision process when the loan has pmi

I have been working for months to get realtors to give me their short sales to be their back office for the process so they can focus on selling. My contacts have either indicated they have a set up or they don’t get involved with short sales. How do I get traction in the marketplace to get submissions?

REOs – My interest is to get REOs under contract and sell them to an end buyer with back-back closings. How do I structure an offer to the lender so that I can assign the contract or not get forced in to a closing if I don’t have a buyer? What is the current approach to dealing with seasoning requirements from lenders as well as FHA?

If the distressed seller only has the husband on the mortgage note, do both the husband and wife need to fill out the Financial Worksheet for the short sale?

Thanks!

Here is the scenario:

Florida

BUYER(Me)secures option to purchase and records it. SELLER vacates property because he is served Foreclosure papers and is moving on to new home.

Is it OK to pay for provide foreclosure defense services with Local Attorney as long as SELLER agrees and signs for service?

In order to protect the property from vacancy my OPTION is tied to…. with sellers written permission and Low Priced Lease Agreement with right to Sublet can I legally provide short term housing for Corporate Employees on Business trips and make money from it during the negotiations? I have a connection with a Great Management Company in need of affordable priced short term rentals. Basically I would be profiting from a Distressed Sale prior to taking ownership but would be overdisclosing to all parties involved the intentions.

If I am stepping over a dollar to pick up a dime let me know. Just a thought IF IT’S CRAZY then in the garbage it goes. Love you guys and Thanks for all your help and insight.

Scott Lynn

how do i add the fees to pay Jason Medley on the HUD, since I’m paying cash there shouldn’t be any points or fees to pay a mortgage co. any suggestions?

In AZ, in order to Print out MLS listing you must make listing active, should i do that to print and then make inactive until after the BPO is completed, but at that time the listing changes because now the investor is the seller, or do i have the investor be the seller from the get go?

I just hope you can cover all of the afore mentioned issues with the allotted time on this upcoming webinar. You are probable the sharpest guy on California Real Estate.

If the current market value is below the balance of the first and seconde combined, but not below the balance of the first, is there an opportunity to negotiate a short sale? how does this impact the profit potential compared to a property which is valued well below the balance of the first?

I am from a state that has a six month redemption period after the Sheriff’s Sale. Can you do a short sale during the redemption period?

I’d love to hear of any ways I can resolve this crazy case I have with B of A. Everything that could go wrong has, but there is money to be made, and I hate to just walk away. (And I am cash poor right now!)

Got option contract signed in early June. A supposed short sale expert lawyer I consulted said the option contract was illegal in MA, and I should absolutely NOT record the Notice of Option. So I didn’t!

Then B of A said they would not negotiate with me directly if I’m the buyer. So I hired a negotiator who did NOTHING besides waste time. So I hired another one, who was a (different) lawyer who supposedly specialized in short sales, representing the homeowner. And she did nothing! Not even one phone call to delay the auction that I’d already gotten put off for 60 days in June.

I called Executive Office of Customer Relations who said they would not foreclose and would continue to work directly with me. But I’d have to increase my offer. I started at $150,000 In the interim I sold the house (it took only 10 days) to a cash buyer for $225,000. But they wanted me to come up $235,000.

They knew of my intention to resell the property. I disclosed, disclosed, disclosed. I could not come up to $235,000, but I did come up to $200,000.

They said in order to accept $200,000 they would have to do another BPO. But they would not let me be the contact person for scheduling it. Nor tell me when it was. The homeowner had already moved out.

When the BPO agent went over there they changed the locks, so my buyer could not get in to do his inspection. Though we had a contract til some time in November, my agent called the buyer and released him from his contract, saying the homeowner had been foreclosed on. HE HAD NOT!

She did this without my knowledge or permission, and based that assumption on that the property had been rekeyed.

I contacted the VP of Customer Relations I’d been working with to get a copy of the key or the lock box code. (They had no right to rekey in the first place!) But he refused! He said he didn’t care if I had an intention to resell, or that I wouldn’t close with them without a buyer in place. He would not let my buyer or me back in to the property. I’d seen it already, and if I wanted to buy it I could, or it would go to REO.

I pointed out to him how much money they would lose by doing this, and he said he knew that, but because they had already changed the locks they could not let me back in until I closed on the purchase. Rules are rules!

So my question is… should I try to find 30-60-90-day funding and close with them, adn then sell the house to a new buyer? I have NO doubt it will sell. I could even ask $260,000 and it will sell for sure.

I know that is not the ideal, to not have a buyer in place first, but what else can I do?

Is there any way I can get them to allow me access to the property? Should I find another negotiator (once who WILL make the required calls!) How? Where?

Should I record the Notice of Option NOW?

Should I have a new realtor list it even without access… to test for the right price… to get potential buyers lined up even though we can’t show it yet? I have to hold on to it for 30 days anyway, with the BoA rules.

This is obviously NOT low-lying fruit! But I have worked on this so long! Going on 6 months! I want to find a way to get paid, if I can. At least prevent the foreclosure!

They are making it so hard to complete the transaction! Seems like they don’t really want to sell it at all. Is there anything I can/should do?
I don’t even have an acceptance letter yet!

Should I just walk?

Many issues are represented here. If I could have highlighted in bold, I would have. I hope you can use this to discuss the various issues (bad legal advice, negotiators who did not do their job, BoA not willing to negotiate with me because of being the buyer, them changing the locks, my realtor releasing the buyer without my permission, them not willing to let me show the property now…) as well as what to do (if anything) to still profit from this deal.

Thank you so much!

Pls have Jeff and Bob go through the story regarding how they developed the back-to-back settlement process in conjunction with attorneys who worked for “2 Big Title Insurance Companies” – and how that fits in with Freddie Mac Bulletin 2009-24, Oct 9,2009. Thanks —

On Wells Fargo seconds, they are insisting on promissory notes with payment plans. Any thoughts on how to get around this or the best way to negotiate?

Thank you!

What is the best way to approach NODs not listed? And what are some good hard pressed questions to ask a negotiation company working with your short sales? I’m looking for pitbull to get the job done and all I am finding is pricey poodles.

Finally! I have a partner to work SS deals…how do she and I hold title in our LLC to purchase and whole? Should we have an authorized agent involved in the LLC to sign and distribute our proceeds?

Bit of a novice question but figure why not ask. A few friends of mine were unfortunate to have invested in land plots in FL before the bubble burst. Loan amount far exceeds current value and is with First Community Bank of America. Each one of my friends signed personal guarantees to the loan vs the LLC that was formed which has no credit history. Unfortunately with the bubble break none of them can afford to keep up payments. Although I’m new at this, I see an opportunity for myself, but to help my buddies here.
1) Is there a way to limit risk to their credit with the current lender in Fl (they are thinking about filing bankrupcy worse case)?
2)How would one go about starting the process as there are not one, but 5 partners involved with personal guarantees to the loan and including the LLC?
3) Any other areas to be weary of when dealing with investment property?

Thanks for any guidance to jump start my new beginning!

Greetings Gentlemen-I’m in San Diego, CA, and my question(s)are for Jeff & Bob:

Q-1:Should I record the notice of option immediately (same day)after it is signed, or wait a few days? If so, why? And, does it matter whether it’s called a Notice/Option/Contract/Agreement in Cali?

Q-2:I am a broker, and my corp. is licensed with the DRE. I plan on using the corp. to purchase and sell short sale/REO properties. Since I am a principal to the P&S agreement, would you suggest that I disclose th e fact that I am a licensee to the seller (although i am not representing them) and other parties to the transaction or not worry about it so long as I perform honestly , fairly, and in good faith?

Q-3:I have read Sec. 2945.1 of CA civ. Code and it appears that it does not affect the purchaser of short sale/REO properties, so long as they are not requesting any sort of compensation from the seller. Have you read it, and if so, what is your understanding?

“I’m committed to doing this short sale business the right way!”

Thank all of YOU!!!

Can you recommend companies that negotiate short sales? What are the rates ?

Josh here are my questions:

1. When do you list the property? You have your deal signed with the seller (for me no problem with acquiring the deed)
2. How much to list it for?
3. What is the difference between a preforeclosure vs a short sale?
4. Do you have any property preference? IE condo, quality, etc.

This question is for Jerami. Can we successfully do a short sale for someone who is unable to keep up with payments on some of their properties but is able to keep up with payments on others they own?

3 are in Oregon and 3 in California. They are concerned that the deficiency(s) will attach to the remaining properties that are not now in jeopardy.

Oregon is not a deficiency state but we now are finding some of the servicers of seconds are asking for promissory notes before they will give a settlement in full.

Thanks!

Confused Investor

I am trying to make sure I am doing the right legal thing, then came across this article. Should I disclose to the bank I am shorting the mortgage from that I intend to double close this transaction. If so if I put this in my contract to the bank will it kill the deal dead?

Seller understands that this transaction is a short sale and is contingent upon acceptance of a short pay offer to the current lien holders acceptable to buyer and is contingent upon the relisting of the property with a realtor and finding a 3rd party buyer to purchase and fund and successfully close on this sales transaction. The seller will receive no funds from either closing.

http://www.justice.gov/usao/ct/Press2009/20091008-2.html

TWO CONNECTICUT REAL ESTATE AGENTS CHARGED WITH ENGAGING IN SHORT SALE MORTGAGE FRAUD SCHEMES

Nora R. Dannehy, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport has returned a two-count indictment charging SERGIO NATERA, 35, of Bridgeport, and ANNA McELANEY, 38, of Norwalk, with one count of conspiracy to commit bank fraud and one count of bank fraud. NATERA and McELANEY are licensed real estate agents and the charges stem from an alleged “short sale” mortgage fraud scheme involving four properties located in Connecticut.

The indictment was returned on October 6. Today, NATERA and McELANEY appeared before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport and each entered a plea of not guilty to the charges. Following the arraignment, each was released on a $50,000 bond secured by property.

A “short sale” transaction involves a mortgage holder or lender entering into an agreement to release its mortgage or lien on real property in exchange for payment of less than the total amount owed on the underlying debt. Many short sale transactions are legitimate.

The indictment alleges that in 2007 and 2008, NATERA and McELANEY conspired to defraud financial institutions of the full proceeds due to them on four separate real estate transactions in Bridgeport (2), Monroe and Wallingford. The indictment alleges that NATERA and McELANEY created straw buyer transactions in order to negotiate with mortgage holders to allow sales of the properties to occur without paying the mortgages in full. During the negotiations with the mortgage holders, NATERA and McELANEY knew that legitimate purchasers already had executed purchase and sale agreements with the property owners to purchase the property at higher prices. On each of the transactions, NATERA and McELANEY are alleged to have arranged for two closings to take place, the first from the property owner to the straw buyer at the short sale price, and the second from the straw buyer to the legitimate purchaser at a higher price. The indictment alleges that the mortgage lenders did not know about the second closing and received no proceeds from the second closing.

Question
1. What items are suggested for a credibilty kit when meeting with realtors?
2. If any of those items are already available – where do I find them ?

3. Need to Hang my real estate license somewhere – do you reccomend setting up company – finding broker – …. or hanging it with traditional brokerage ? — I am just getting started with short sale deals.
Part B – any thoughts or KW for a brokerage?

4. as a platinum student – an email regarding the wholesaling course – said to not purchase – said it was located in the gold section – looked everywhere – did not find – can you point me in the right direction to obtain this?

Requests:
1. It would be really helpful to have a website template for Realtors that I go meet and talk with… A credibility B. explain faq’s C. filter D. capture information.. You have mentioned it… can you please make this happen ? ! Thank you !

I am a licensed real estate agent and investor.

You suggest in a short sale flip that the distressed homeowner should have representation either by a Real Estate agent or attorney and a second Real Estate agent represent the investor/buyer.

What are the ramifications for me as a licensed real estate agent/investor and the real estate agent representing me (as the investor) to do a short sale flip with an unrepresented homeowner (FSBO)?

If we must have the distressed homeowner represented by another real estate agent, how do you suggest that agent be compensated?

Thank you for your insight!

An attorney suggested to me that we should list our Equitable Interest only MLS Listing as a simultaneous listing to the Seller Owned Short sale MLS Listing. I am wondering if this will cause greater confusion for buyer’s agents looking to show their customers properties for sale and finding 2 listings for the same property address?

I’m having a problem with a WAMU file. They’ve had the file for seven months. The bank’s negotiator doesn’t respond to my e-mails and when I do get a chance to speak to her, she’s short with her answers.

She keeps saying that the file was sold to an investor, Bank of America, but she advises that she’s the one I’m supposed to be in contact with so first, why am I still dealing with WAMU?

The BPO was done in July. Settlement was supposed to be in August. She requested I change the HUD. Then she disappears for a couple of weeks. Then she requests bank statements from the seller again. She said I would have an answer soon.

She doesn’t respond to my e-mails or phone calls. My second question is how do I get them to respond and move on the file without rocking the boat and having it go to foreclosure? Thank you.

Can Bob close dovetail method deal in South Florida?

Thanks … Osmany

What is the expected items a FHA short sale will pay on the hud-1 for items like Mitigation fees, closing costs, commissions, etc. FHA loans will normally take what % of the BPO/Appraisal as a total proceeds, and do they count the $1000 move out fee in this amount?

My Boyfriend is California Realtor and we live together, and have paid each others bills, but not from joint accounts–we don’t have joint accounts. I have a house that we need/want to short sale with him as the Realtor/Investor “B”. He did live in the house with me, but was not on title. I would not receive money as the owner of the house. Any thoughts?

All I need is a good Escrow company in San Jose/Walnut Creek CA and a C lender to send my buyers to so everyone works together and knows the process. I have yet to find a set of “one day is OK” Title/Lenders. Who are they?

I am working w/ IndyMac now One West bank on a Short Sale. Loss Mitigator says the BPO is coming in at $250k, I had an FHA appraisal done and 2 independent realtor BPO’s which came in at $185k,$185k and $160k. The Loss Mitigator will not even entertain a new BPO and counters at $250k which by the way is the oustanding balance owed.

Do you have any strategies or contacts for Indy Mac or One West to help facilitate the short sale to order new BPO?

Or would you resubmit the original deal at 75% of the FHA appraisal?

From a ground zero starting point, not being a realtor or having an established reputation in real estate, what is an effective approach to marketing to get started getting a business flow from realtors or distressed HOs?

Would love to learn the strategies involved regarding flipping reos…. do you have your course released – if so – how can I obtain? Thanks a million.

Does anyone know anything about FHA or Fannie Mae recently eliminating the 2 yr waiting period following a short sale?

How do you overcome the 90 day deed restriction popping up in Texas? I am being told that the lender who accepts the Short Sale requires the Title Company to place a 90 day seasoning deed restriction on the Title before the home can be resold to the end (C) buyer.

If a bank orders an appraisal, how can we convince the bank to do a BPO instead? And, if the bank does do an appraisal and that appraisal comes in about 90k over what every single agent who looks at the property thinks its worth, how can we convince the lender that the appraiser was on crack and we need a new BPO ordered? Thanks guys!

Hi Josh,
My problem is the buyer’s agents for the “c” buyer
are blowing up my deals. Once they read the addendum stating this is a short sale and contingent upon the successful closing of the A to B.
The buyer’s agents tell the end buyers that there may be seasoning and lender issues and all of these raised issues scare the end buyers away . How do you fix or eliminate this issue. Also should we shop for lender for the c buyer or not? What do you recommend?

great job guys — WHAT DO YOU TELL THE C BUYERS AGENT ABOUT THE TRANSACTION SINCE THE CONTRACT OFFER HAS TO BE MADE TO THE B INVESTOR AND NOT THE OWNER OF RECORD?

On the A-B deal in which we must use a ’standard’ realtors purchase & sales contract, what addendum do I use to for the option language to control the deal? Thanks!

What should I say to a seller when I have to turn them down because it won’t work for me and my business model. In other words, it won’t be profitable for me.

Thank you.

Bob / Jeff – Lets talk end-buyers title insurance.

I close in an attorny state and though I’ve got a great attorney that “gets it” I am still subject to the whims of my end-buyers attorny and their failings to properly present the deal to their title insurer.

Are there any whispers in the title insurance industry about a standard set of guidelines or requirements for these? Frequently the buyer’s attorney scares the title insurance rep bad enough that they demand I get specific acknowledgement from the shorting lender of my profit down to the dollar.
Thanks!

Jerami / Jeff / Bob,

Latly my “for profit disclosure” in my purchase contract has not been enough to convience attornys that I have disclosed such to the lender. I point out that I recorded the same disclosure in my notice in the public record. They want me to get each point signed by the bank in a separate specific acknowledgement.

Can you think of a good way or time to this such that it would be less likly to blow my deal. Also who could sign for such on behalf of the company anyway? My last buyer had to take an exception in their title policy because I couldn’t get a profit statement signed by the shorting lender.
Thanks!

Please publish Jeremy’s company contact information, web site, etc

If the bank makes you use a standard contract and not an option, is there still something you file to show you have equitable interest?

I’ve run into several instances where the bank are offering repayment plans, but the actual payment ends up more than the one they couldn’t afford in the first place! Is this common? Is there anything we can do to help?

I’ve also heard some say you can make money from “dead” short sales. How is that? Does it have to do with the fact that you have a recorded notice of option on the property?

Thanks!

B of A took house back at the sale but says file is still open waiting to be assigned to a negotiator. Whats your thoughts on negotiating after the sale.

I have a 2nd mortgage with Chase that was transferred to a Collections Company and we have an approval from the 1st lender, B of A.

The collections company in 2nd position is refusing to accept less than the $80,000 they are owed.

They agreed to accept $6,000, then uped it to $8,000 and now they are demanding the full payoff and said they are willing to take a chance on the foreclosure auction.

I originally submitted an Option and then in February relisted it and submitted it as a listing agent.

Thank you for any help as i am completely at a loss as to why they would risk loosing everything compared to taking a very generous $8,000 ~ 10%.

Thank you so much!
Tammy

Jerami,

You mentioned ‘before the loan gets solds to SLS’.
I know they are a servicer, but do they have a specialty? or when and why are loans usually sold to them?

How much does your attorney charge you to get billed through him for your negotiation fees?

And you just said that you get between 2 – 3% on the HUD, but are you seeing that percentage decrease if there are 2 realtors on the deal as well?

How much are you seeing that they will pay as a percentage if the realtors are already getting 6%?

Ustream interrupted, Help don’t want to miss Jerami

Regarding the Borrower’s Financial Form, if the property is NOT listed, should we have the borrower to actually list the property with a realtor of their choice and then have them agree to release the listing so that we can use our contract so that they can mark YES on the form when asked if it’s listed? Wouldn’t the bank suggest listing it on MLS before accept the short payoff? What is the proper procedure?

What was your facebook page? Didn’t catch the name?

I understand about not using the same agent on the B-C that is listing the property on the A-B if it is a listed shortsale, but can we use them to sell B-C if the homeowner signs off acknowledging that they know the agent is representing us as well?

How do you escalate a file above the first line bank negotiator?

Ive been breezing through the comments and I saw one that someone said soon Fl will be required to use a Mortgage Broker for short sale negotiations. Ive just taken an accredited Certified Distressed Property Expert designation course and that was brought up. The is NO truth to that. However they will probably require you be a lic mortg broker to have anything to do with a loan mod, charge a fee for it or negotiate it. But the rumor for short sales / mortgage broker is just that…a rumor.

Paying the 2nd without the 1st knowing is now being characterized as mortgage fraud here in Colorado

If you are asking the mortgage company to pay for realty fees, does it always have to come out of proceeds of sale at top of second page of HUD or is there a way for it to appear on first page of HUD and not be in the proceeds amount

You mentioned ‘countrywide and washington mutual’ they no longer exist.

Josh,

Im a SCREC non-paying student (lol). The free material you guys have provided has been priceless. Im one deal short of joining as an official paying student. My question is what can I do as rookie to begin filling the pipeline, closing deals, so I can join SREC officially.

Josh, can you discuss the correct process to acquire and deal with a listed property that you want to short sale? In particular the sequence of the listing, and the fiduciary duties of the sellers agent, and how to properly proceed.- Thanks.

hey guys

I got a deal done with Bank of America. The contract for $34,000…BUT THE APPROVAL LETTER WAS AN ERROR AND STATED THEY WOULD TAKE $7,500..
THINK I HAVE ANY CHANCE AT THIS.. I HAD MY ATTORNEY SEND A LETTER TO BOA STATING WE WOULD AGREE TO THEIR $7,500 ACCEPTANCE..AND HAVE NOT HEARD ANYTHING IN MONTH
WE CLOSE IN A WEEK.. AND HAVE HEARD NOTHING

we lost transmission

I am looking at a property that has a first and a second, both with WAMU (Chase. The market value is $230k. There is a $239K first and a $30k HELOC. No payments have been made for 6 months. How would you approach this from the negotiating standpoint.

video is much better now guys!

the volume is BLASTING!!! Best damm volume I’ve ever seen on a call.

Lost the feed around 8:37 est.

EF HUTTON HAS ARRIVED.. WHOOOO HOOOO

Back online at 8:44

Jeremy,
When training my negotiator I told her its not like dealing with a standard Realtor transaction where the bank usually isn’t taking a discount.
What is the BEST advice you can give to me that I can relay to my negotiator about the differences between investor negotiating and Realtor negotiating..??

Guys, sorry just joined. Was out closing a deal!
Can I buy a short-sale property from the bank under an LLC, then have the secondary buyer buy my LLC for a $1 and avoid the assignment issue. Have you ever heard of such a scenario?

BOB!!
LOL I got arrested for not paying a “failure to wear a life-preserver on open water” ticket!!
HAHAH!!!

Guys be careful. Don’t give anyone legal advice. You are not correct wrt Florida law.
Lisa

Ustream blinked out. Jeff can you go over deficiency judgment explanation to seller again.

Are you recording this for future replay? So many times a question is asked and the stream freezes out during the answer and does not re-establish at the point of freeze.

I cant get a title company to do a back to back closing in NJ.

You guys have any solutions???

TWO CONNECTICUT REAL ESTATE AGENTS CHARGED WITH ENGAGING IN SHORT SALE MORTGAGE FRAUD SCHEMES
HOW DOES THIS EFFECT INVESTORS

Nora R. Dannehy, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport has returned a two-count indictment charging SERGIO NATERA, 35, of Bridgeport, and ANNA McELANEY, 38, of Norwalk, with one count of conspiracy to commit bank fraud and one count of bank fraud. NATERA and McELANEY are licensed real estate agents and the charges stem from an alleged “short sale” mortgage fraud scheme

I recently moved from Georgia to Florida, and would like to do short sales in Florida. Everyone that I run into advise that I need to work under an attorney to do short sales in Florida. Is this correct?

Is it a problem to have a loan modification business in New York and than if the homeowner needs to sell now act as the buyer to flip the short sale ?

WHo’s stronger Greg or Josh, and is it true Jeff is tougher than both?

I think the FL foreclosure statute Jeff and Bob were referring to is actually 501.1377

Bob
also any problem in arizona with the option?
wording i added to option
i added this as # 25. on your option does this wording take care to protect us from fraud The sale is contingent upon the resale of the property to a third party buyer.
Buyer agrees to pay to ____________ (lender), all proceeds obtained from the subsequent resale of the property above a 15% net profit earned by the buyer. Proceeds shall be paid to lender at the time of closing of the subsequent resale.
The net profit shall be calculated by subtracting from the gross profit, all buyer paid closing costs from both closings plus any incurred documented costs not included in either closing, including but not limited to repair or improvement costs made to the property, utilities, yard maintenance, short sale negotiation fees, transactional funding fees, appraisal fees, inspection fees, HOA fees, special assessments and bonus to Realtor.

In continuation to the previous question, How can I structure myself legally with the loan modfication business if I’m now transitioning to the short sale buyer in a transaction?

Thank you – to all of you – for this information tonight! Having the details is so crucial for newer investors.
Thanks again,
Christina

Any hints on getting our deals through quicker? Aurora is up to 120 days to review. Then it goes to the investor

Does it make sense to put some time and money to modestly improve a short sale to be attractive to an end buyer? At what point is the safest to start improvements – after the BPO but before the final negotiations? after a couple rounds with the lender to assess if a mutual agreement might ultimately be reached?

When recording Notice of Option, does this satisfy B of A’s 30 day seasoning issue?

My LLC is called,” RDK Investments, LLC.” Is it true that having the name of the llc having the word “investments” in it, may cause my offer to not be accepted? Is there a way to get around this initially, like purchasing the property in my name, then deeding it to my llc? What do u recommend? I did hear Bob earlier explain that he had received a written letter of acceptance from the bank, but later once the bank realized it was an investment firm purchasing the property; they tried to rescind their acceptance letter. Bob was able to explain that he already had their written acceptance which had no mention of them having issue with that; therefore, they could not rescind their offer. The deal went through. How often does this sort of thing happen? Do you advise changing the name of the llc?
Thank you!

Albatross Property Solutions LLC has 2 properties under option contract with the owners, neither were listed on MLS. My partner who is a realtor broker not broker of record has the 2 properties listed on MLS for sale as contract purchasor as owner of record as the listing agent.

Do you have any issues as why she should not be the listing agent?

I forgot previously, to mention I’m in Ohio. Thanks

TRAVERSE CITY!!! MY HOME TOWN!!

Great job guys! What a marathon!! Everyone did great!

You guys rock!!Keep it up!!!!

Many many thanks for the GREAT Info. Very interesting and very much needed clarificions.

God Bless

Josh, Bob, Jerami, Jeff,

thank you very much.