Realtor question for Listing SS for Equity Profits...

Foreclosures, Short Sales, Tax Foreclosures
1

Question for experienced SS experts…

I was wondering how you are handling a motivated seller who has moved on has an 80/20 loan say 160/30K total of 190 owed…
They are 5-6 mo behind… and have walked away…

How can i make a profit with these types of deals… since im a Realtor i dont know how to handle it… I probably shouldnt list and represent them… I want to act as an investor and make more…

How do i write a P&S agreement to the lenders… when i dont have financing and dont want to close unless i have a 3rd party buyer… I wish to do a simultanious closing but… what i dont understand what docs or method to get the banks price so i can market it for more but below FMV for quick sale…?

It would be great if someone could answer these questions for me so i can move fwd… and make some $$$ with SS…

Im thinking these steps correct me if im wrong…
1st. ill need a preapproval letter to submit with offer/ P&S agreement with a deposit or maybe none…jus offer…, is this correct…?
2nd I will set closing 30+ days out…? Is this good…?
3rd Contingent of and inspection acceptable to buyer / partners approval to get out if i cant sell with in the 30 days
4th Do a simultanious closing…?
5th Did i miss anything…?

Should i be using a trust, get the prop. deeded to me…? Get pwr of attny…?
am i mistaken on anything or mislead…?
Is there a better way as an agent with mls access who has negotiated a ss…?

All members :shocked comments apreciated greatly…

Mohegan

PS: who has Land trust docs to share…?

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Well the first thing you need to do is contact the mortgage company and request a short sale package. Are both mortgages with the same company? If not you have to do the same thing with both companies. they’ll tell you everything that you need. You need to get the owners to sign an authorization and release form so you can talk to the mortgage companies on their behalf.

Then you put together everything that they ask for. They don’t care about most of it, its just procedure.

As far as the purchase and sales just send it with you being the buyer. Now you’re going to have to send multiple offers. Start off real low on the first offer like $65k. show on the hud $64k going to the 1st then $1k going to the second. Then go up from there. but make baby step offers.

With all the short sales i’ve done. I’ve never had to send a pre approval letter, maybe i’m just lucky.

30 day closing is normal

If you can’t get the short sale done, you can’t get it done. No need to look for a way out.

And yes if you don’t want to be the purchaser, then the simultaneous closing is the way to go.

The companies will send you any forms you need to get back to them.

As far as some other things you can do to help get them to take less.
Look in MLS for all sold expired and withdrawn listings .5 miles from that property. Look at the properties that are comparable to yours. Print out every withdrawn or expired listing that is comparable to yours at a price that is at or lower than the ammount owed.

Print out everything that will support your case in bringing the value down.

Also when they mortgage company orders a BPO. Meet the agent there and get in his or her ear, show them EVERYTHING that is wrong with the property. And I MEAN EVERYTHING. Let them know that you’re trying to do a short sale and that you want this property to come in as low as possible. Most BPO agents are just there to make a few dollars so hooking you up won’t be a problem.

You can also send over to the mortgage companies any bad information. Crime rates, Burgalries, Sexual offenders that live nearby. unemployment rate. Take pictures of any properties nearby that that are boarded up or are junked up. Just make the area look horrible.

If you’d like to contact me you can send an email to lem@atlantahomeinvesting.com

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Awsome thanks for the great info !!
So youre saying dont woory @ preapproval…

Set a closing date or 30 days…

So Ill have to get a SS package from sencond also eh…

So on inital offer, offer like 64K on the first of 160K and 1K for second… do i give them a deadline to accept my offer…?
So you say start at 40% and go up baby steps… how much is a baby step 5 % each time… so i should expect many counter offers…
What is the max you would go 60% or so. just for a rule of thumb…

So when they accept I will market for higher on MLS … do i have any escape clause in to get me out if i cant get another buyer…?

Thanks again…
Mohegan… :biggrin :biggrin :biggrin :biggrin :banghead :biggrin :biggrin

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First, learning to do successful short sales is going to take a lot more than asking a few questions on a public forum. Entire books and courses are dedicated to the subject, so it’s highly unlikely that you’ll get anywhere near enough information here to even attempt to do one, as it’s pretty clear that you really don’t know anything about them. I’d suggest that you visit the local library, maybe the local REIA and educate yourself some more on the subject, THEN come back here with more detailed questions.

Second, don’t know your state, but in most, you can’t simply “turn off” the RE agent title. You got it, you have to live with it. That’s true even if you’re the buyer in the situation. You may want to run your scenerio by your BIC. Just guessing, but likely, you’ll have to represent the seller as well as yourself. Pretty hard to do.

Third, have you ever, as a Realtor, presented an offer to a bank? The reason I ask is because if you use something like “subject to partner’s approval” they’ll laugh at your offer and likely any others that you send. Bottom line here: if you can’t close, don’t do the deal. It’s not beneficial to you, not to the bank, and especially not to the sellers. As an agent, you could probably lose your license by mispresenting yourself if you can’t close the deal without finding a buyer.

Fourth, you’re throwing out numbers on amount owed, but no numbers on ARV, which is really the important figure. If they owe $200K on a $400K ARV property, you aren’t going to get a SS, period. What’s the property worth, both in current condition and after repaired? Then look at the possibility of a short sale.

Raj