Hi,
I have been out of the loop for about 5 months or so now. I know a lot has changed in this market over that time. (this school semester was a killer)
Anyway, that’s the deal with short sales now?? Has the success rate gone down? On the forums I rarely see people posting success stories about them getting approved…when before it was frequent.
Just trying to figure things out.
Thanks!
Dennis
i’ve heard different. since the lenders are beefing up their loss mitigation departments, it seems they are taking them alot more seriously to take advantage of obtaining some income on these properties instead of taking them back.
this obviously will vary from state to state
I see,
In NC, it almost seems like they’re just letting them go into foreclosure, the last few I tried to complete were thought to be solid deals (ugly house, 2 liens, solid hardship) and I could barely get the banks to budge…
You would think that banks would jump at the opportunity to do a shortsale… but theory doesn’t always work in application 
I don’t know if come January, I’m going to focus more on shortsalees, or more on wholesaling… I don’t know what to do… i just know I don’t want to get a job after I graduate, I prefer to be fulltime REI.
Hello Friends,
If opportunities emerge in which lenders can sell distressed properties without registering big losses, they will do it.
For example, consider that a homeowner with a $200,000 mortgage is late on his or her loan payments and is facing foreclosure. With the consent of the homeowner, you offer his or her lender $150,000 as full payment for the loan, which is accepted. That means you instantly save $50,000 on a real estate investment.
This is a short sale.
xDennis,
it’s been said that banks are in the lending business not the real estate business. i imagine that as the lenders taken more and more properties back, they will be more open to short sale deals. i’d keep tabs on the market.
good luck :biggrin
I have done a few Short sales as well (FL) :beer… and I have noticed the slowing as well. I have noticed that the banks are countering more and more…
I think they are buying time to see what the next bail out is…
I have also been dealing with holding companies to purchase blocks of homes (200 At a time) and here are big big discounts but you have to show big money! COD!!!
*there are no escape clause with these boys all cash thats it! ($10 Million Plus)
But I think the lenders are waiting to see the bail out…
Also it depends how the mortgage was set up. so many ways and not always is the sale up to one person… It could be a panel of people or a board, etc, this is realy hard to deal with.
A shortsale investor need to deal with the banks that can say yes, and each deal is different.
All I can say is, Build a killer case, and see how they progress in discounting, some will say yes some wont, if one doesnt give you a big enough discount Move on to the next one…
I like to keep 20-25 files going on at the same time… If i get to much resistance I just close that file and let them get back to me…(move on!!! :rolleyes.)
example: I had a shortsale with a mortgage on a home for $465k and after dealing with them for 4 months :arguethey sent an acceptance letter for $177k, so it is possible.
Closed with a partner and cashed in with a built in tenant…
Was a great deal… But it took 75 deals :banghead to get to that one…
good luck! :smile
matshingdo001,
would you mind sharing how you’re getting that many homeowners to work with you? mailers, mls, word of mouth? other?
alex
Ya i will share for sure!!!
If you want to get people to work with you its pretty easy, This is what I do:
In short the most effective are calling fsbo’s and direct mail, but if you are persistant with the cold calling every day for 2 hours, for 4-5 weeks you will get 20-30 people that will shortsale with you…
Ok guys good Luck and get that discount!!!
matshingdo001
It seems like you know what your talking about. I am just getting into Real Estate and looking for short sales. I noticed you basically talk about FSBO only why not go for preforeclosed homes? Shouldn’t there be a bigger profit there?
I do short sales for a major bank-
A year ago I was closing around 20 a month, now I’m closing about 50-60. I don’t think the time frames have shortened much (if at all) but I know that the internal process is much more streamlined to get things pushed out as quickly as possible. The bank is reviewing the hardship much more than it used to- needing to verify legitimate hardships. If a borrower has good credit (anything above around 650 fico) they should be prepared to either sign a prom note or bring cash to close or the bank might not even continue reviewing the account because management/investors/MI companies will never approve the deal.
we are seeing it take a little longer in my area also
In general I find the time it takes to get a deal moving in the bank pipeline is taking longer. My close ratio is a little bit lower too, but I’m pushing for pretty hefty discounts.
I’ve been doing short sales since 2003 and it does get a bit tiresome going through the lengthy process. Of course, when they close it is a good payday.
I think I’ll start cutting back on the short sales and focus a bit more time on my Internet marketing since it provides a better steady revenue stream.
Going for Short Sale home runs only should cut back on the work load.
Best of Luck!