I am new to this post, and would like to know if anyone is having luck with short sales in California? I have attempted 7 of them and have gotten no’s every time. One was worth $330 ARV with $70k worth of work, the bank wants $330 no less? Any ideas?
No. I’m here to verify for you they do not work. Sorry, but that’s the truth. At least you made the effort. Now go onto something else. Short sales do not work.
Anyone that has a completed short sale deal can give us the info. But it must be verifiable.
EH
Verifiable? If someone died and made you the boss, please, let us know.
We had a property in Wildomar, CA. that slipped through our fingers. Chase postponed the auction the day of the auction, and HFC had released their note for $.2 on the dollar. We stood to make approx. $40K on that one, but the owner had not signed over the deed and once she knew the auction was postponed she took her business to someone less ethical who promised her money.
We run things a little tighter now. I’ve only been at this two months. Hope to close on two properties in the next thirty days. Will let 'ya know.
To answer the question first asked, yes short sales work not every one but they do work. Do you really think all the good people on this board would be wasting there time asking questions if they did not. Sorry that was a little blunt but true.
Now for my question to wheelema, I have never taken a deed to a home. Do you record it, or just take it to make the HO feel they are more obligated? I have always gone under the assumption that the contract was good enough to hold them.
Keith
EH this will probably shock you, but your word alone is not verification that short sales or any other methods don’t work.
What is your basis?
Short Sales work for some and not others. To truly understand what is happening, you must get into the mind of the noteholder.
The noteholder, depending on whether a local bank or a big institution, will have certain price points that they will be ready to sell quarters, dimes, or nickels on the dollar. They all work by looking at their entire portfolio. Some may have already written the note off, so when they collect on it, it actual shows up as unexpected earnings! A windfall for the Bank.
Be aware of the quarterly reporting calender. A Banker may be willing to let a note go at a discount on March 30th if he feels it will make his quarterly report look better.
Also, if you walk into a bank and ask them if the have any notes that have defaulted and the tell you no, they are not telling you the truth. Every Lending Institution has bad debt, so don’t take No as the final answer.
Lastly, don’t be cocky. Don’t come off as a fat cat negotiator. That is the Bank’s job. Just be the humble guy or gal coming in offering to help them out on some delinquent notes.
The bottom line is that they do work. They happen all the time…under the proper circumstances. My clients have made gobs of money on them. But the Bank has to be motivated.
The Investor Loan Pro.
Please go somewhere else, you are the most uneducated person I’ve yet to meet on this site and do nothing to help the membership with your rediculous posts.
Put your magical “powers to delete” to good use!
EquityPoacher,
Short sales do “work”. If they didn’t, the term wouldn’t exist. Sure, it’s not common to walk into a bank and have an offer accepted at 10%, but it’s happened and will continue to happen. The average short sale is going to be 5-10% or less off market value. With most deals a short sale ain’t gonna happen. But just as in basketball, you never make the shot you don’t take.
P.S. You’ve started a thread about how wonderful lying is and most of all; you contribute absolute garbage to this forum. It’s blatantly evident of every member and moderator. When you find yourself in a hole, STOP DIGGING! Abra kadabra- now make yourself disappear.
They Absolutely work. As a Realtor we have done many the past few years. I have not bought one personally. We are selling them straight out. No double closings or anything creative like that. The banks are typically taking anywhere from 10-20% of as is value. It really just depends. there is no magic formula across to use that works everytime. I am in Ohio by the way. I hear California is really tuff right now to get shortsale deals. Certain areas are better than most I am sure.
The problem with taking the deed to the home is that the homeowners know, most of the time, that it may not be the smartest move. We put our Wildomar house under contract, but let’s face it. Are you going to sue them? They’re in foreclosure!
We no longer keep the homeowner abreast of where we stand. Where we fell down with Wildomar was being upfront with the owner. Once we had the auction postponed we should have told her that we had an extension of only seven days (instead of 60) and had to close immediately.
I want to help these people, but I also want to be paid. People in foreclosure are pretty desperate and grasp at straws. Someone just showed up after we did and offered her a straw.
Also, understand that a notarized Grant Deed isn’t REALLY a Grant Deed until it has been recorded. Until then it’s just a piece of paper. I asked my title agent if the homeowner couldn’t swear out TWO or more Grant Deeds.
And indeed they can. I am told that things can get pretty loosey goosey at the Recorder’s Office.
Thanks for the reply wheelema: Is there any draw backs from taking a deed things I should watch for or be repaired for. I think I understand the benefits but not sure I understand the pitfalls that it could create if any!
Thanks
Keith
Keith,
I am just parroting the responses of others here, I have no direct experience.
California has some (relatively?) scary laws in place to protect homeowners against being scammed. Disclose disclose disclose.
Personally, I don’t see much benefit to placing the homeowner under contract. The less paperwork they sign the happier they seem to be, and suing them because they broke their contract with you is throwing good money after bad.
What I want first is a buyer, even if I have no home to sell them. What I want second is to have the homeowner know I am working on their house and have their signature on a authorization to release and disclosure. Lastly, I want the subordinate lienholders releases on their notes.
For what it’s worth.
Yes short sales do work. I have letters from lenders stating that they will accept the discount as payment in full.
Once you get your first short sale accepted, you will know which properties qualify for a short sale.
I don’t know why you can’t get any of your deals accepted. Maybe your comps are proving you wrong, or you are not directing the bpo agent.
My first deal that i got under contract for a short sale was a homerun.
I learned about short sales in may of 05’ and sept i had my first deal. It took about 6 months to negotiate, but it only amounted to about 12 hours of work. And a 10 dollar deposit.
Also if you are worried about losing a deal, record the contract at the clerks office. This will protect your interest, in case the seller loses their mind.
I had a homeowner that tried the same thing with me. I got the sale postponed and the deal worked out.
She told me she would give my ten dollars back and she would use the buyer she had before she met me.
Luckily the buyer had a time limit in their contract. And all my contracts have time is of the essence unless the seller request otherwise. I recorded my contract soon as i got first wind that she was trying to screw me.
So I told her to let me speak to her buyer, because if the buyer was going to get the property it was going to be through me. Since i have already recorded my contract.
I wanted 15k and the buyer only wanted to give me 5k.
Two weeks later, i closed the deal.
The seller apologized and hugged me at closing, saying “you have a nice operation going.”
You are the professional, don’t let an uneducated seller that is desperate play you like a sucker.
Word of advice, put all of the documents in your file that you will need to protect your interest.
If i have a seller that is dealing with another buyer that they are in contact with, i will not deal with that owner. They have to have some sort of loyalty.
I work hard to get my deals accepted.
CharlottePlayer
I did find low comps but no matter what I tried to tell these appraisers they shake their heads and agree with all I have to say and then they bring the BPO in at the highest level.
These appraisers are now directly associated with the bank, i.e. Countrywide. So regardless of what I tell them they don’t care. This has happened on all six deals. They also tell me that even if they come in with a low BPO the bank will just disregard it and send out another appraiser.
I also spoke to two separate LM reps at Countrywide who told me after weeks of negotiations that they will discount from FMV $10,000-$20,000 tops no exceptions.
Short sales work here. We picked up a few sweet deals, but cash is best. We’re waiting to hear back on one soon. The bank wanted $125k and we offered $66k.
I agree. Short sales work…for the bank. Give us a success story .
EH
Ok EH,
The homeowner owed, 59k. The property is worth 80k. BPO agent valued the property worth 51k. This property was not an FHA backed one.
The lender agreed to a 35k payoff. Then came back with a payoff of 30k.
I flipped for 5,500. The property needed 10k in repairs.
The rehabber purchased the propert in Oct. Needed time to go by to satisfy FHA.
Now the end buyer is buying the propety for 78k three months later.
That’s good. No figures. What do you think, I’m stupid? Give me all the figures of the deal and the address. All you are providing is some numbers that sound good. You are not dealing with a newbie here. And what is your relationship to this site? Since you have so much time to answer all my posts as I post them. Do you have a life or are you paid to respond?
EH
It’s fun to stuff the mouth of a low life.
What does that mean?
Eh