I’m not good with spreadsheets. I understand all the cost and fees lenders stand to loose (LLR,Closing Cost, Broker Fees, Lost Interest, Rehab, Etc) but I’ve been putting a breakdown of the #'s in a letter. I don’t feel their reading it. I’m told that a spreadsheet is the way togo. I just need to see a copy of one for a layout?? ANYBODY??
Why are you sending the Lender numbers on a REO?
If you meant a SS I have never sent the lender a list of their cost with the exception of the Net Sheet. I do send them a list of the repairs that the property needs and a RPO. I think you may be over analyzing it too much…
Here is the letter I send.
To whom it may concern,
In today’s economy of rising foreclosure rates and the inability for borrowers to work out a payment modification, most mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. the borrower is faced with a hardship that makes it likely that they will be unable to meet your obligation on their mortgage. Because of this, I am making an offer for short sale approval on the property located at 123 Any Street, Any Town, WA 93332 owned by .
Attached are the following documents:
• Authorization to release loan information (1 page)
• Contract (11 pages)
• Financial Worksheet (1 page)
• Hardship Letter (1 page)
• HUD 1 Closing Statement (1 page)
• Residential Price Opinion
• Last two years of tax returns/W2’s
• Last two months bank statements
• Last two pay stubs
• Your most recent mortgage information on the first and second
• Property tax bill
As you review the documents supplied and have questions regarding them, please call me at 661-555-1212.
Upon your review, if you need clarification about the contract price, please call so we can discuss it further.
It is my intention to see this short sale through completion and I want you to know that I am a professional in the real estate industry and I have the ability both financially and professionally to proceed forward toward a completed transaction.
Thank you in advance for your professionalism and hard work in this matter.
Sincerely,
Michael Quarles
REO spreadsheet is just a breakdown of the #'s the bank stands to loose if they take it back as REO. It shows their net as REO compared to the net I’m offering.
Anyone use REO spreadsheet?? Please share
I understand the logic but I just have never had to… If you need Propaganda cut out a few newspaper articles and send them in with your package… I am fairly certain the lenders understand their position and are becoming more and more willing to mitigate their cost with reductions in loan payoffs.
I think at times we can become to adversarial with the lenders by using too many “if you don’t then this will happen”
Interesting idea however…
Michael Quarles
Michael thanks for the imput.
Question: On your offer cover letter you list the items being submitted. What other items if any do you send in on the second and third offer??
Thanks
I try and supply the lender everything they need to say yes at the beginning… From there its constant dialog… Eventually they are going to need a VOD and I am ready with that for when the time comes. I look at SS as a necessary evil… And a waste of a lot of time. Sub2 investing is so much easier but at times a SS is financial rewarding too.
Happy Investing
Michael Quarles
VOD??
Verification of Deposit
Michael,
Is there a need to open up escrow on SS?
Thanks for the info. everyone
I think I will leave the spreadsheet out. I would like to have one in the tool box just in case still a deal seems to call for it. If anyone knows where it can be found.
I dont until I have an accepted contract…
One last question.
LM fee: do lenders pay LM fee for loan modifications, forbearances, patial claim, etc??
If so how much??
How much on a short sale??
Thanks Micheal
No lenders will not pay fees on loan modification, forebearance, partial claim or deeds in lieu. These fees come from the homeowner which is not always an easy thing to get.
Fees from the lenders on the short sale can go as high as 2 - 3%.