Date Posted : 2010-01-21 | Category : Short Sale
Found this great post today on
ShortSaleArtisan.com If you are pursuing short sales you will find this useful.
1. Pre-list on eBay. While eBay has become a household name and is frequently used to drum up interest in short sales, it is also a time consuming headache fraught with problems for short sale investors. Homeowners routinely screen listings and are likely to take issue with price variations especially once their relatives begin telling them how it is worth so much more. Be prudent and use eBay with caution.
2. Playing Nice with Bad Lenders. It’s essential to separate the good from the bad when it comes to lenders and obtaining financing. Don’t even think of playing the role of investor until you have all your ducks in a row when it comes to finance.
3. Making a Stupid Offer. Really, it’s done all the time. Have an escape clause in place especially when just getting started so you can kill your offer without having to lose face or a lot of cash. Better yet, have several contingencies in place but keep them realistic so you don’t frighten away other stakeholders.
4. Selling to Everyone. The world might be your oyster but it’s not your target audience. Know your market and make sure the message fits to maximize results. Know the needs of the homeowner, broker, agent, appraiser and all others then make a point of giving them exactly what is required every step of the way.
5. Fake it Till You Make It. Seriously, you are not as fly as you think. Take a step back to determine what you really need to succeed otherwise, you risk ruining your reputation before it has a chance to take flight. Arm yourself with the right process, the right people and the right property before you sign on the dotted line.
6. Assuming Dates Don’t Matter. Everything is time critical when it comes to short sales. Get it in writing, get it on time and deliver by the dictated date…always.
7. Irrational Exuberance. Don’t spend money before it’s in your account. Don’t forget the taxes and whatever else you do…don’t fall in love with any property.
2010-01-22 14:08:26
thank you for giving us real information and not pie in the sky. Have a plan, have confidence and always be professional, because the first person you deal with may lead you to more clients and deals.
thanks again, Gabriel
www.money4iou.com
2010-01-23 08:16:02
Thank you Gabriel. I'll be on the look out for more quality blogs to share with the community.
2010-01-27 06:18:03
One thing you forgot about short sales ... that is ... the bank's legal right to sell it.
My research (including talking to several attorneys experienced in real estate and contract law) indicates that most of the time, the lender who is selling this short sale does not have legal title to the property and is not the holder in due course. If I were to buy a short sale, the first thing I would do is locate all of the UCC documents on that property with the Secretary of State to make sure that all of the recordations are in place. Nine times out of then, they are not. This means the chain of title is fatally flawed. So the lender is actually selling property and pocketing the money while leaving the real owners of the property, the SPV or the SIV, stuck holding the bag, while they pocket your cash, leave you with a property that has defective title (here comes more legal fees, quieting the title and bringing the real lenders forward) and not only that, if the homeowner that is losing their home to this short sale were to become aware of all of this, you as the short sale buyer are now in the legal tangled web woven by the pretender lender. It's best that if you're going to buy anything, make sure the lender has the legal right to sell the property in the first place. Go to livinglies.wordpress.com for more info on this. What I do is help homeowners stay in their homes, I sue the lenders and foreclose on them. If the homeowner still wants to leave, I put the home in trust and sue the lender as the trustee of that trust and make the lender put up or shut up ... then I take the house away from the lender because of fraud. So ... short sales, aren't what you think, are they?
2010-01-28 12:02:55
what's your take on REO and Motivated Seller's
Do you think it important to get a Realtor on my team to get properties from the MLS
Do you have a script on REO's and Motivated Seller and if you do can you seen it to me asap
2010-05-06 23:52:13
Very nice information
2010-09-26 18:48:49
Dave,
In short sale you only negotiate with banks the amount that they will accept as payoff to satisfy the mortgage and release seller from liability. The actual sale price is negotiated with sellers which has to be approved by the bank.
