I have been having problems getting lenders to respond, and when they do they want market value or MORE!!! Anyone getting any real deals out there (30% below market) :banghead with short sales?
I have had a few deals go through in the past 3 months. One for 68%-repairs and the other was right at 70%-repairs. I see that you are also in California. The lenders are still playing hardball somewhat, but if you handle it right, and have the right property, you can steal it. I am in San Diego. Good Luck!
Ok good to know that at least someone is out there getting them done in CA. I’ll just have to keep truckin’ along and find another one!
Thanks for the response.
yup. :bobble
Yes i am getting short sales approved as well. I am just wondering are you cover letters well written and are you including everything the lender is asking for?
I am not in California but the situation in Florida has been much the same. Three years ago is was fairly easy to do a short sale. When the bubble burst the banks started playing hard ball. Now, as the banks are acquiring more and more REO property, they are discovering what they feel is market value is too high. As a result we are starting to see some movement in Loss Mitigation towards more realistic offers that are based more on market conditions.
Some lenders are still terrible to deal with but many of the larger ones are coming around. Good luck to you and just realize that there are plenty more deals out there.
Hey Marketingmaster I too live in FL. specifically in Miami, maybe we could keep in touch and network sometime.
I have included everything the lender asks for in every package I send, including a really strong hardship letter. We’re getting them approved at only around a 10% discount. So it’s not an issue of whether or not I can get an approval, it’s getting a deep enough discount to make a profit. I had one deal that was around a 30% discount with the 2nd walking away for $2,000 in cash, and last minute the loss mitigation department on the 1st renegged on the deal and wanted 20k more. So I walked and the house went back to the bank. Don’t know why they wouldn’t take what’s on the table vs. taking the property back and dealing with the 6 month marketing time but oh well. Next!
Are you present during the BPO? Are you presenting comps and repair estimates that justify your offer?
No, I have tried but they don’t return my phone calls or tell me when they will be doing the BPO. They are wise to investors trying to influence them at the BPO.
You must use the force young Jedi, initially when you make contact with the bank give them your info. as a contact for the BPO, tell them you have a lock box on the property. Take pictures prior to the BPO, the realtor may appreciate that you saved him some time, network with him exchange buisness cards, build rapport, this is your only shot. Make it worth it. Good luck on the next one! :crossfingers
Don’t give them any option but to contact you. Each deal I do I make sure that once I begin working on the project that I am the single point of contact for anything to do with the property. It’s the number one rule of doing short sale, maintain control of the situation.
The lenders will do everything they can to deal with the homeowner as much as possible. If you allow this to happen then it creates a counter productive environment. Every deal I have done, the lender asks me almost every single time I talk to them for the homeowners contact info. I tell them that anything they have to say to the homeowner can be relayed through me. If the homeowner does need to get on the phone with the lender for whatever reason, they do so through a 3 way call with me as the middle man connecting them. This way if the lender starts to try anything tricky, I disconnect them.
From the beginning I have the homeowner agree to send EVERYTHING to me that is related to the property. If someone else contact them wanting to do a short sale, they are referred to me. If the lenders or other lien holders contact them, they are referred to me. If a potential buyer contacts them, they are referred to me. You see where I’m going with this?
As long as the homeowner remains strong and does not talk about anything related to the property without me as a part of the conversation then I maintain complete control. If the homeowner is not able/willing to do this then I don’t waist my time trying to help them.