i’ve been structuring my business the way they teach on shortsalesriches. i’m curious how reotrans is going to affect this way of doing business. for example. reotrans requires the listing agreement. with short sales riches, you provide the bank with a no brokerage disclosure instead of a listing agreement.
anyone have any feedback as to how to overcome obstacles from reotrans, that also structures there business like that of short sales riches?
The no Brokerage Disclosure and the Listing Agreement are two different documents. Short Sale Riches says to use the Commission Agreement instead of the Listing, but the majority of the time the lenders do not accept the Commission Agreement and you need to send them the actual listing agreement anyways.
short sale girl…thank you for your reply. good catch, i meant the commission agreement. i’ve submitted short sales without listing agreements and with the commission agreement. some have requested, some haven’t.
it sounds like you’re familiar with short sales riches. let me ask you, have you had a seller cosign a listing agreement yet? if so, does the bank balk at this?
Do you mean have the “buyer” cosign the listing agreement?
the seller. this is what short sales riches teaches. if you have to provide a listing agreement, have the seller cosign…since you’re the one signing the listing agreement with the agent.
The listing agreements are all signed by the sellers. They tried having them signed by both the sellers and buyers for ahwile, but that didn’t work out very well either. Lenders did not like seeing both the sellers and buyers names on the listing agreement. Sometimes they noticed, sometimes they did not, but it also became an MLS issue, with our local MLS rules.
correct. but what are you showing the banks if the investor is signing the listing agreement (not the homeowner).
The Investors are not signing the listing agreements anymore, the homeowners are and that is the listing agreement that is sent to the bank.
i guess it depends on how you’re business is structured. i started off having the homeowners sign the listing agreements and have since switched over. i have the agent represent me (not the homeowner), that way there’s no issues with fiduciary responsibility issues.
I’ve always said the owner was selling it FSBO so there isn’t a listing agreement. I put an agent down for 3% commission and tell the bank that the agent put the owner in touch with me or vise versa and that is why they are getting a commission. This has worked pretty good for me.
This is where Short Sales get tricky. Lenders like to see strait up DEALS… They don’t like seeing the LLC or the land trust and the confusing paperwork. Here is the best way to get this all done. CUT A CLEAN DEAL! WORK THE SHORT SALE AND BUY THE NOTE! Thats right avoid the 90 day no matter what the new FHA Guidelines say. Everyone is out there trying to create new ways to get around everything and to be honest the best way is to simply cut a clean deal and move on! This is Real Estate not Rocket Science. Why try to get the poor sellers to sign extra things and wonder if there really going to get out? CLEAN DEALS MIGHT NOT PAY AS MUCH YET OVER THE LONG HAUL YOU MAKE MORE MONEY!!! I would rather make 50% on any deals and do 10 deals a month then to make 100% of 2 deals. The business is better and everyone wants to do business with you. I have been doing Short Sales for years and have done thousands… Here is the thing I personally have people email me and call me everyday wanting me to do there negotiating and I tell them all NO THANK YOU I HAVE PLENTY OF BUSINESS! Yes I turn down more work then I take on. Simply because I am not interested in taking on more business. Do good business and you create a waiting list of people wanting to do business. Do bad business and you might as well practice saying “Welcome to Wal-Mart do you need a shopping cart?”
I have been wondering if the death of the short sale is coming. I am a REO buyer but have noticed the amount of short sales dropping off big time. Realtors tell me flat out no thanks to short sales and banks are saying the same. A national article came out today that banks are going after homeowners for the short sale difference turning it over to collection agencies. Most thought the deal was done when the house sold in the short sale. Banks are also following up on the liar loans going after those in default showing they had lied, even though they had no problem originating the loan. Anyway just asking and wondering what the short sale experts think.
I am still trying to understand the buying of the note process and why it would be worthwhile. What if the homeowner forecloses or goes under bankruptcy protection?
summit, when u mean cut the deal. do u mean offer cash to the the bank. i recently bought a property that has cash flow. now lender tells me my debt ration i very high and i can do anymore loans.
how can i buy more…
We have the seller sign the listing agreement with an addendum that allows us to market the property. We ran this by the local board of Realtors and they had no problem with it.
I like the idea of buying the note, it sounds like it would avoid a lot of problems.
Just so you all know, (probably already do) REOTrans is now Equator.
It’s worth checking out their post on ActiveRain blog - http://activerain.com/blogsview/1527839/equator-short-sale-platform
I’m a bit frustrated, I’ve been trying to contact them because I want to see if they allow 3rd party software providers (like myself!) to integrate with their system for direct file submissions. They haven’t responded back to any of my posts on that thread however. An interesting read, nonetheless.
i’ve heard of this. do you send the addendums to the bank? assuming you do, they don’t balk at the contract when they see you intend to sell for a profit and that you’re able to market while not holding title?
ryan
Rockfordlandlord,
I believe Short Sales will be alive and well for another three years for a number of reasons, predominantly current delinquencies and upcoming Option ARM recasts. If interested go to my website and the Blog tab. About 3 or so Blog Posts down is a Post entitled “Should Investors Consider Short Sales”. Another reason is that 25% of all outstanding mortgages, or 11.3 million homeowners nationwide, are underwater on their values. 11.3 million? Yes, 11.3 million. Sounds like some “SSO” - Short Sale Opportunities. :bobble