If I have a homeowner sign a contract that is less than what the bank is asking, how do I explain why such a low offer? I’ve had a homeowner almost yelling at me 
Has anyone else had this problem?
Sorry, I forgot to add…
I wanted the homeowner to sign 3 contracts with 3 different offer so I can submit to Lender the lowest offer first for short sale payoff and if they refuse, fax over next one. … but the homeowner refused to sign multiple agreements. Am I approaching this wrong?
I generally have them sign 3 blank contracts that I fill in later.
You might explain to your soon to be exhome owner that time is of the escience. That when you’re on the phone with the loss/mit folks that you may need to fax another offer immediately. That to have to wait another day to come back to you and get another one signed makes you look unprofessional to the loss/mit folks of the lender and could severly jepordize your negotiations.
And the homeowner freely signs a blank contract?
they sign them every time. If you havn’t gained their trust…after all…you’re helping them out of a bad situation…you need to refine your approach to the homeowner.
Hi Crzy8,
I would suggest checking the laws in your state rergarding agents having ‘blank’ forms signed by principals.
If time is of the essence, as it often is, you get them with you and your fax machine, or near their own fax machine, and hammer it out until the deal is signed.
you can get them to sign a blank contract or put payoff amount as the purchase price and add a clause that the payoff is subject to successful short sale with lender.
i’ve done both ways and its work fine.
It never hurts to remind the homeowner that you are trying to save their home from foreclosure and time is limited.
Good Luck,
Tony
I heard that you can simply put ‘payoff’ in that spot, if the lender asks it will go into the hud 1 whatever you finally negotiate. That way you dont go back to the homeowner and keep on bothering them. Heard that from an audio.
steve
thanks everyone for the feedback so far.
kikaider69: what do you mean “it will go into the hud 1”
if you put “payoff” for the purchase amount don’t forget to put in the addendum that it is subject to lender short sale or discount. I forgot to put it on one before and the lender call me and asked if I was agreeing to pay off the full amount owed because thats what the contract says. Luckily the contract expired before they called me anyway. It was fixed and I got them to discount a 55k mortgage to 30K. and waived the deficency judgement.
Tony
kikaider69: what do you mean "it will go into the hud 1"
SOrry, its also known as AKA settlement sheet.
steve
Is the settlement sheet prepared by the attorney or myself? In my state we cannot just use a title company.
From what I understand the different experts out there is that you can send in a preliminary settlement sheet, but I believe the final needs to be prepared by your attorney/title company. Again, as always, if I missed something. those more knowledgeable about this than me can correct me.
aspriing short sales florida newbie
steve
:bouncemulti:
hi all,
i’m curious…why is the homeowner accepting your help in the first place?.
what inducement is in it for him to be so cooperative with you,
are you paying him money ? etc.
We dont pay him money per se, when short sales are done, the banks mandate the homeowner doesnt get a red cent from the transaction.
Because he doesnt want to deal with the mortgaage anymore, it could be to high for them to pay. maybe they went thru divorce or somebody died. There are myriad reasons why. They want to get on with their lives, maybe save their credit so they can buy a house down the roadwhen they are better financial shape. From what I understand(not having pulled the trigger on my deal yet), you need to empathic with the homeowver so that they decide youare the one to help them and not somebody else.
hope this helps
steve
Hiya Virtual:
You can try this suggestion. If you’re doing a short sale and you want the seller to sign the contract, write down the info down, except the area of the lender’s name, leave that area blank…
Here’s why…everything else is filled out, right? with the except of the “lender” part. While that line is blank, make copies of the signed contract and you’ll have however many copies you want, say one for the lender and/or attorney.
Try that. You’ll have only one form signed. I always tell the homeowner why I’m leaving that blank. I explain that I’m leaving the lender line blank so in case I have to deal also with the attorney, I’ll have that form already signed. Just make sure you tell the homeowner. You’ll save time and paper and the embarrassment so you won’t have to go back the 2nd time to get them to fill out the form for the attorney if needed.
Hope that helps.
Hiya Virtual:
The HUD1 sheet is part of the short sales package. It’s included in the package everytime you close on a home.
You can see what a HUD1 sheet looks like by taking a look at your own home’s closing papers.
It’s a requirement to show the lender on the HUD1 what you’re intentions are to paying them off. They will see this in their package and determine what to do from there.
Hope this helps
You don’t show the addendum to the lender, do you? I don’t because in the addendum, is between me and the seller, as far as if you’re putting some money in their pocket to help them move on.
The lenders don’t like if they knew the homeowner was receiving any money. We as investors look as it as getting them out and the seller moving on with his/her life.
Hiya Duh:
The reason why some homeowners are asking for help is because they are in a bind and don’t know what to do. There have been a few homeowners that I’ve come across that simply refuses to deal with the lender directly because they know the lender wants their money. The banks want their money, it’s their “job” to collect.
When you’re in a desperate situation involving your home, most folks want to protect their home. Some folks out there think that by intentionally advoiding the lender, that the problem will disappear. They get in a jam at the last minute and don’t know all the options.
There are sincere investors out there but there’s a few that aren’t sincere. We’ve come across homeowners who have talked to another investor in the area and this particualr investor charges the homeowners money to “help them stop foreclosures”…this investor gives other investors, who’ve been in the investing business a long time or starting out, like I did then. I never charge the homeowner money period. That’s not business.
Thanks all for your feedback. My first deal fell through
The home sold at the auction.