Need help with HomEq!

Foreclosures, Short Sales, Tax Foreclosures
1

Sorry for sounding like a broken record, but I need some advice! I’m doing a short sale for a messed up guy, who is upside down!
He owes $165k, the house needs about $25k to get the house marketable!
HomEq has rejected my offer of $112k and told me if I want the house, I can buy it at auction! I feel so sorry for the owner and his Mother, I can’t let it go to foreclosure without trying my best for them!
The BPO guy appraised it at $160k as is and $180k-$200k fixed up!
HomEq said they needed $197k to sell!
Any ideas would be appreciated!
TB

2

Take lots of pictures get a good estimate of repairs, write a good letter to Home Eq ask them how they propose to sell the property for less than it is worth.

At auction they will probably bid it up to the outstanding judgment amount. If it is not worth it they will get it back and have to put it out on REO. They will then probably loose even more money.

If everything you try fails move on. Remember the old saying: SWSWSW next! Some will, some won’t, so what, NEXT.

Also don’t get emotionally involved with your customers. You are in business to make money. You will make money if you help people but you can’t help everyone. If you get emotionally involved you will end up wasting a lot of your most valuable commodity, your time, trying to make deals out of non-deals.

3

Thanks Dick,
You’re right, I have become attached to this family and their plight! I do have to take a step back and look at the whole process objectively!
TB

4

Dont let emotion get in your way. It will ruin your deals.

5

Tommy-
you need to come up on your bid to 128k-134k that still leaves a good profit margin. my gut tells me home eq would accept an offer in this range.
this is a numbers game, when I play I know by doing the numbers that 1 in 7 Shorts is going to be a “whale” 40k profit or more, but the avg profit is more likely 15k-25k.
Pigs get eaten hogs get slaughtered or something like that.

6

I just got a call from HomEq concerning my offer! The LM told me that since the loan has 25% PMI on it (since it was a 80-10-10 refi), the PMI company is insisting on HomEq receiving the entire amount of the loan ($165k), because the PMI company is on the hook for $165k x 25% = $41k that is due the lender.
Since I own a mortgage company, my friend who is the east coast sales manager for one of the five PMI companies said that the lender and the PMI company normally split the loss at the last minute!
Now, I’m trying to derive a decent offer that is in the ballpark.
ANY COMMENTS OR IDEAS WILL BE APPRECIATED!!!
TB

7

Find another deal. There are plenty of them out there. Keep this one in the back of your mind and revisit occasionally to assess viability.

8

Tommy,

I have been in your place. those that haven’t, haven’t done enough deals, aren’t passionate about the business or just careless ***tards. This is a people business. emotions do come to play. this is someone’s HOME not just another piece of property.
You can

  1. Make the same offer only offer to pay all costs and a sooner quicker closing date.
  2. Make a higher offer (145k), everyone pays their own costs
  3. give in and offer 165k, they pay their costs.

Thats all you can do- don’t drag it out. The sooner you resolve to either play or walk away gives the owner the ability to make alternate plans.

MG

9

MG,
I’m glad someone feels the same as I do! I do care about the feelings of hurting people! We’ve all been there and it’s great to have someone in your corner helping trying to help!
TB