Hi guys , new at the site. Was wondering if any of you can give me some input here:
I was in the foreclosure pre-foreclosure business pat few years .Due to the lack of equity in houses that biz is slowing down.
I want to now start a business helping homeowners preform short sales and loan modifications.
Was curious what ppl think of it as a business doing it for others. How successful that would be ? What can you realistically charge ppl for preforming the short sale and loan modification? Would love to hear from guys who are currently doing that.
Any input on the subject would be greatly appreciated from anyone.
Thanks alot !!!
In virtually all states you have to be a licensed realtor to work with the homeowner directly on “Short Sales”.
You can however run a service for investors doing the paper work and negotiating with the lenders “Loss Mediation Department” to get an investors “Short Sale” approved.
But we are seeing more and more lenders rejecting investor short sale offers and going back to the home owner and asking for the property to be listed by a realtor, and trying to get an offer from a end user.
Except All - Submit All is the lenders mandate!
Loan Modifications are being done by dozens of companies, the only downside is the legal authorities that be are scrutinizing companies, and bringing charges as necessary to protect consumers.
As an investor I have hopes that loan modifications and short sales will be short lived, we would like to hit bottom and start moving property values the other (Upward) direction.
In Arizona & Nevada only about one of every five short sales submitted is being excepted, all the others are going on to the Trustee Sale.
Everything Gold River said is true except that there are so many loopholes that you can use to your advantage. Your best bet is to join a local Real Estate Investor Association and consult a local investor friendly attorney.
But yeah there are enough clients especially right now for you to service. You have a lot to learn though.
I respectfully disagree. There is still a tremendous opportunity to capitilize on the pre-foreclosure market and help sellers dispose of unwanted property. I have never heard that in most states you have to be a licenced Realtor to work with sellers in pre-foreclosure. I know many people in many different states that are not realtors who run successful a short sale business. I am from NJ and I am one of them. One of the wacky states that it is hard to do short sales in is Maryland. Other than that I think your good.
If you are submitting your offers directly to loss mitigation and acting as an investor buyer of course you are going to have a hard time getting your offers accepted. Even if you have a good BPO. One strategy that you can use it to set up a loss mitigation company that will act as a 3rd party to handle your transactions.
Inflated property values and inflation period is a big part of what causes us to get to where we are today so I say I am glad the market is readjusting! ow the qualified buyers can reenter the market.