hey guys. how does one go about negotiating this type of deal? lets say im dealing with a HO in preforeclosure and they want a little more money than i can shell out at the time (i imagine this would be the reason for paying the HO money once the home has been sold?).
any info appreciated!
Let’s see if I understand this correctly. The HO failed to make their mortgage payment thus forcing them into foreclosure and they want money up front?
Sounds like the HO of the SS I’m working right now. I laid it out point blank for mine. I told him that the bank will not approve my offer if they think you are getting any money out of it. In fact, they specifically state that you are NOT to receive any money from the sale of the property.
Look at it from the banks point of view. They will be loosing money by selling me the property at my offer, why would they want to allow you to get any money?
You (the HO) failed to hold up your end of the contract with the bank by not making your mortgage payment for whatever the reason may be, thus becoming a liability investment for their portfolios. You should be grateful enough to keep a foreclosure off your record.
I then told him based on the bank accepting my offer, that I would purchase his new coat and his old cell phone for $2k. It took repeating my self 3 times before he figured out what I was talking about.
If you need anymore FREE SS assistance let me know. I have a bunch of stuff to share.
thanks for the offer
i’m speaking from what I have read throughout various forums etc. I was under the impression (maybe this doesn’t go on) that the investor (for this particular situation) was going to have the owner quit claim the property to them, rehab the house, then sell it. once the home was sold for retail value, they would receive the amount agreed upon. now once agian, this is just how i interpreted this…maybe this isn’t a common route and i just misunderstood.
as a side note i like how you mentioned you were going to give $2k for his coat and cell phone. i was going to do this with my first deal…sell my car for $50. i was told that i should read an RE contract where it says somethign to the affect that the deal does not involve any other “outskirts”. basically i was discouraged from doing so because it can be construed as a side deal based on the RE contract. at any rate, i thought it was a clever work around perhaps I will revisit in the future.
it sounds like you have some experience on ShortSales. would you mind sharing some of your techniques which get the bank to “play ball” and accept your discounted offers? i’m just starting to tread in these waters and am trying to obtain some helpful pointers. i greatly appreciate your info
Remember there are different ways to do things. Every property will be different which in turn will always offer different options for you to reach your goal, closing the deal and getting paid.
You are correct about the contract from the bank stating that the HO is not to receive ANY payment of any sort from the SS of their property. This is a legal way to pay the homeowner even though you’re going against the banks contract. Technically speaking, as long as you have a bill of sale for that coat and the cell phone, it’s legal and there is nothing the bank can do about it. Even know everyone knows what you did there’s not much anyone can do about it. Honestly, the bank never even knows about it unless you or the homeowner tells them. So don’t flaunt it.
As for dealing with the banks, I will be posting that on my website. Send me a pm for the link as I don’t like getting “nasty grams” from the admin for putting links in here. ;D