Currently, I have 12 short sales that I’m cworking on and at the same time I’m work a full-time job. I find it frustrating that most of the homeowners that I’m marketing are people in default and have bought theirhouse within 6 months - 1 year. None of them have any equity and most of the houses are pretty brand new. They are between 1-3 years old. Which makes it hard because, how do you convince the mortgage company to short sale a house that doens’t need any work? I’ve got a couple of short sales that I’m working on where the homeowner was not able to make the 1st payment after buying a new house.
I am particularily frustrated because most of the homeowners who are calling have no equity and the ones that do call me, in default have it listed through a realtor. Those are the ones that have at least 30K in equity. With that being said, they are not too motivated to work with me since it’s listed and they feel that the realtor can help them get out of the jam.
I’m not sure what I’m doing wrong here but I’ve been doing the REI thing since Dec. '05. Haven’t landed a single deal yet…I guess I’m all over the place with this post. This may be off topic and maybe be better to put in the main general forum. But all I can say is that I’m trying my best, and staying optimistic. I got it down to the point where it’s easy to lock these properties up and getting the documents, it’s very, very time consuming. I’m just frustrated because working on the bank’s time is tough. I had two houses that I was trying to short go to foreclosure, and the toughest part was telling the homeowner the bank was not willing to negotiate on any type of discount.
well,
i can relate and understand your situation, having been in
the same boat myself.
Its hard and timeconsuming. However, it all varies between
lender to lender and the condition of their total loan
portfolio. You will get some and some not. So keep pushing.
About the homeowner, its a risk that they take as a last
resort prior to the auction, by going for a short sale.
About the ones that have hired a realtor, go and talk to
them and have them draw performance measures for the
realtor to get a contract within a month prior to the auction.
Some state laws allows for a cancellation
after the signing of a contract to hire the realtor.
Tell them that, if and when the deal happens, you will be
able to purchase their personal belongings and pay $X
outside the settlement. Now can their realtor do that? I
guess not.
Now, how are you getting these folks to call ya? thats a
good size of deals to chase at any one time. Do ya have
2 phones surgically placed in the ears to follow up with the
lenders
Kinda off subject a little, but keep trying at it, it will work for you in time. You win some and loose some 50% fail most of the time for whatever reason. Sometimes it’s better…My favorite is a first time in forclosure customer that has a FHA loan and has made at least 12 payments to the mortgage company, with no equity…Look for these type of short sales. The bank will do 50% of them for you. And hey if not team up with a realtor to close the one’s that you can’t, worth a try…and remember you can get 90 days to close on a property…take advantage if it’s not a good deal…list it and take 3% on the buyers side…there is always creative ways to get paid on a bad deal from the mortgage company.
The Good News is your marketing efforts are working. the bad news is no equity in the homes, but you should be able to create some for some of the deals. These are new houses? First phase, second? They should have gone up in value… Where do you live?
? (“this statement is troubling” - “I’ve got a couple of short sales that I’m working on where the homeowner was not able to make the 1st payment after buying a new house.”
You might want to refer these homeowners back to the loan originator and find out how they qualified in the first place. There is something wrong here…
Just got a call from a homeowner who qualified for a $308,000 loan with an income of 35,000/yr. Loan originator took 2nd borrower off the loan because he was afraid it wouldn’t go through since these people had tried to get a loan a couple months earlier through the same lender.
Seems the loan orginator forged some documents, lied about income and took over $15,000 in loan fees. . The two individuals together did not make 7,325 that the documetns stated. The bank wants to know Where did this figure come from… who knows but we do know there is some fraud involved. we are requesting all documents to do a SS for this property
I’m working on my first short sale. It came by word of mouth, which is the best kind of marketing. Nevertheless, 12 short sales at one time, that’s great. What type of marketing are you using? :o
THe cheapest and best marketing I do is mailing numberous letters out and sending postcards. It all depends on you city and how educated most of the homeowners are. Small cities have no clue what a short sale is were Dallas, Texas is well informed. Take this into toll when you write your letter to prospect customers. The letters really pay off, real quick!!
I FEEL YOUR PAIN!!!
Suggestion…find someone via your local real estate investors club, contacts here, etc, that will mitigate your short sales for a cut of the action. That way, you can concentrate on getting deals and not on battling with mitigators.
You may also want to consider a very infrequently stated fact about short sales. Unless you are really picking and choosing, short sales work a lot less than half the time. It’s a game of numbers if that is the way you are getting clients.
About the realtor problem…ask your potential client what they are going to do if the realtor can’t sell their home? What then? Is the realtor going to buy it from them or give them a money for personal possessions? If that answer is not, why aren’t they working with you?
I know what you are feeling, what ever method you used to get those shorts is great.