I sent 120 letters to people with equity in preforeclosure last week. I got my first call tofday.
House may be worth 150
Tax roll shows mtg at 98
Repairs unknown
Owner has had foreclosure proceedings twice already on this property and has stopped it.
Owner has had problems with her husband/childs father and caused her to loose her job. The husband is now receiving 3 hots and a cot (jail). She is now working.
She is undecided on whether to save the home, or just sell it but it goes to auction in 2 weeks.
I meet with her tomorrow AM at her home. I will be bringing a LOA to talk to the bank
I am considering getting this Subject2, rehab and sell
If she goes for that, what do I need her to sign? Do I need to do a title search before recording any documents? ( i am thinking big YES here)
Should I contact a RE atty to walk me through this since obviously its my first one?
2 weeks is really a short amount of time to try to save a homeowner form foreclosure if your trying to do a short sale. If your just trying to purchase the home, then you should be fine.
If you want to save her, you will need to have her sign a purchase agreement stating how much you intend to purchase the property for.
Make sure you have “good” clauses.
Do your research tonight to check comps in the area, and see how much it is worth.
You do not need to do a title search untill after you figure that its a good deal. Title searches costs money. Make a clause in your purchase agreement that you will “purchae home upon satisfactory title”. That means, you must like what you see.
Its also helpful to have the pro walk you through your first deal. But of course it costs money, that you dont need to spend.
Head over to local book store and find books on “pre-foreclosure” they are great and will walk you through the steps and interview process.
I keep hearing that. That theres not enough time. But here the NODS come out 4 weeks before auction since GA is non-judicial.
She has improved her situation and is interested in bringing the loan current or getting the bank to work with her.
I will meet with her tomorrow AM. I will ask her questions about her situation and find out what she wants. I will try to make it easy for her and friendly. she already said shes been bombarded by investors and she said she seems to like me so far.
I guess if she wants out, I will fill out a purchase and sale agreement with contingincies on clean title, no liens and further inspection. I will CMA
Also remember that you will have to deal with the hubby.
From your posting it sounds like she wants to stay. The only way that will happen is if she has the money to make up the arrears. You can help by pleading her case to the bank and asking for some sort of forebearence or loan modification. When you talk to her find out how much she can afford to pay each month. Then talk to the bank and see what they would accept. Again plead her case by telling them that the default was a temporary incident, if that was the case. Explain to them what steps she has taken to never let this happen again. Will this work, I cant say but its worth a try.
If you really really want to help another option might be for you to buy their place and lease/option it back to them. This option is very risky for you. Many states now are coming out with these “mortgage rescue fruad laws” that frown upon investors buying and then leasing back to the owners. I had a chance to do this but turned it down because I do not have deep enough pockets to battle the states attorney office even if I was in the right. If you have a lawyer he/she might be able to advise you better on this path.
As you most likely know your best bet is to buy the house and help to move her. Report back after your meeting in the AM.
OK. situation looks bleak but i am going to follow through to see if I can help and get some experience out of it.
1st mtg with Bank of America 95K principal
owes about 14k in arrears
2nd mtg with CitiFinancial 17k principal
owes 10k in arrears
I have a LOA and will start contacting these people ASAP
She wants to stay, but has no money. She can make 1 mtg payment and the next payment. But she doesnt know how she can pay the arrears. I told her at 14k, she will need to make at least another 1k payment per month on top of her 786 payment and that would still be unlikely.
I know i dont have much time to do a short sale, but if I can get the banks to come down on those mtg some and forgive all the past due stuff, i can make it work i think. I will run the #'s
[i]Can I work the loan modification angle and the short sale angle at the same time?
Should I contact the atty handling the foreclosure or deal with the bank directly?[/i]
I think that you have a pretty good customer there. The problem is you don’t have the paperwork needed for her yet. If you seriously want to close the Short Sale, have the paperwork ready tomarrow, if not she will play you and wait until the last minute, when she’s out of opoitions. If she want’s to keep the house, tell her what the bank can offer her, if she can’t afford that, then a PFS is here best bet! You will convience here into a short sale by letting her know ALL of her choices with the mortgage company. GET THE PAPERWORK BEFORE YOU GO, Position yourself into a short sale, get all the docs signed, exit and send it to the bank a.s.a.p. 11 days before the auction is normally the deadline for most short sales, but try if you get it late, they still may accept your request. Does this help any?
If you need the docs let me know a.s.a.p I can help you get ready to close this transaction
Long story short, I am having a hell of a time talking to the banks. I still havent gotten to speak to anyone at BOA or Citibank. It sure isnt for a lack of trying though.
The lady doesnt need to be convinced of a SS, shes willing to go with it.
You can email me the paperwork, that would be great. You should still have my email
Banks can be very difficult to work with, but it goes with the territory. Some banks are very easy to work with, however.
Stay persistent if it is a deal you want to close. Be polite but also don’t let them push you around when you do reach them. Also, ask the rep for their email address. I just closed a deal with Ocwen where I never spoke live to the rep. We started trading voice mails, shortly after I asked and received her email address. After that, everything was via email and fax, EVERYTHING. It was great because it was easy for me, easy for her (and she was very responsive on email), and it was a $26k pay-day for me on the day of closing.
By the way, I would have no problem asking for a team lead, supervisor, or manager if it came to that.
Just remember that often times, these reps are handling a case load of 300 files or more. Banks don’t often fund their loss mit department very well, so they are usually under-staffed. So, it may not be a case that they don’t want to talk to you, or that they are ignoring you. It could be just that they are over-whelmed. That is why I stay polite, because… what is that saying; “honey attracts more bees than vinegar.”
trust me, i am trying very hard to keep a smile on my face when I call. I am usually VERY quick to fly off the handle so I prep myself before i call.
Heres the latest.
BOA is working with me and they sent over a financial statement for the borrower to fill out.
I finally got someone on the phone at CitiFinancial that could help. The amount owed is 27k with a principal of 17k. I offered 5k and he said he cant go below the principal based on the value. I told him the house needs work. So we are at a standstill there. 95k from BOA and 17k from citi puts it at 112k. too high. i need the house for a 100 to make this work.
Will the 1st mtg get just the principal at auction or will they get the past due amount including atty fees etc?
Depending on what BOA’s BPO came in at, I suspect that BOA would bid it up to near their total payoff (principal + arrears) if it goes to auction. Also, unless you’ve aleady got BOA’s settlement, I don’t think they are going to eat their arrears while allowing Citi to receive their full principal anyways. If the first is taking a loss, they want to second to take a HUGE loss, or else they won’t go through with the sale.
Try to find distressed comps if possible. Also, how much work does it need? Get a contractor’s estimate if it may help with negotiations. Your job is to convince Citi that they would get SQUAT if it goes to auction. Get a modest short on the first, make the second go away for a $1000 or two, and you are sitting on some nice equity.
Well looks like I may have gotten some progrees, though I feel jipped.
I got the foreclosure postponed but nobody bothered to tell me until I called Friday at 6:00PM and the auction was Tuesday. They are getting a realtor to list the house and an appraiser to come out. I TOLD the homeowner to tell the NACA guy to use her realtor, which was really my realtor (the NACA guy told me she could use her own realtor).
I guess we’ll see what happens but I am pissed that the homeowner didnt bother to tell me what was going on.
Hello? Why would you want to use a realtor for? Where do you get paid in this? I love helping people, but using a realtor is definaly not the way to make money
well when the bank demands comps from a realtor, what am I supposed to do? I figured if a realtor was to be involved, why not use mine.
They are saying my offer is too low and they need the realtor to pull comps for them. Plus they are going to list it and see if they get any other offers in the meantime… I cant control that can I?
can you say quitclaim deed or deed of insurance notarize and court house research to check for other liens :o :o :o
I’ve been there done that use a quitclaim deed got it signed notarize walked the paperwork thur at the court house paid property tax transfer tax was recorded in pubic records also found out amount of missed payments and fees of lawyers representing bank took less than two days cost me 17,000 to clear up all fees and gave 20000 in cash to owner. The owed balance on loan was $272,000 the market value was $525,000+ I saved their credit from foreclosure and when I sold the house after I refi into my name I gave them 30000 to put down on their next house I netted more than 150000+ Their happy and now they are learning how they can make money doing the same thing ;D ;D ;D
welcome to the eastcoast MD VA DC metro area where the market is as hot as you allow it to be move quick be smart 8) 8) 8)
thats a great story but it doesnt relate to this situation. If I could just pay off the liens and still make a profit, I would. This is about a short sale.