All Forum Posts by: Ayo F.

Hey Erick....I always work with Southland title...2400 Augusta Blvd Ste 453, Houston, TX 77057. Ask for Trisha and let her know that Ayo sent you. I don't have rentals...just flip those bad boys like pancakes :)

Great info Ed. Those numbers are spot on the money! Sean, try and make adjustment for your area thou. Labor might be more expensive in PA than here in the South. Contact a contractor and ask them what those numbers are for your area, just to adjust for higher cost in PA.

Hello BP World,

Please I would like some recommendations on a good list brokering company to supply quality leads on 30 - 120 days delinquent homeowners.

Please, you can inbox me if such info cannot be publicly disclosed.

My current list brokering company just told me today that they can no longer offer such products due to the loads of hassles with the bureaus.

Thank you!

The deed restriction period depends on the investor holding the note. I have had approvals from BOA requiring only 30 days. All my Chase short sales have required no holding period. I have wholesaled them the following day after buying. It all depends on if you are dealing with Fannie Mae, Freddie, FHA e.t.c

Some loans are easier to short sale than others. It all depends on who owns the note NOT the servicer.

Michael Quarles: So what I think you re saying is that the seller as described on the listing agreement is not the Homeowner, but a trust that you own or whose beneficiary you are. Am I thinking right? Also, the buyer is also a trust that is owned by you, hence what you are really saying is that, you are both the seller and the buyer, is that correct?

@Michael Quarles: I'm not sure I understand how you can be the listing agent and also be the buyer at the same time or I'm I getting you wrong?

For example, I just flipped a Chase deal 2 weeks ago where I negotiated the deal myself. However, on a deal i'm currently working on, the loss mitigation manager told me only on Friday that I cannot negotiate the deal as the seller already hired an agent to list and sell it for them (even thou I do have auth to release info to me). I was told that they would only speak to the agent and negotiate directly with the listing agent. Btw, the agent is one I always use to list properties for homeowners

Also, I was told that I could not represent the seller and be the buyer at the same time...

@Monica Breckenridge: I do what you do. I list the properties with an investor friendly agent just to satisfy the listing criterion and if the deal doesn't work out, the agent end up selling it to whoever is interested at the price the bank is asking

@ Michael Quarles: You said that the seller never has any agency and you always manage the transaction. Please, my question to you is this; what do then do when the bank requires that the property be listed and marketed by a real estate agent? Lots of banks require that now.

Thanks!

Yes I would be interested in how Michael gets these clauses taken out.
To think the bank doesn't need to sell is really erroneous. They HAVE to sell else, they will continue to lose money on the loans. Banks are in the business of making money not sitting on bad debts. I guess, they get away with it because we allow them to when we investors/buyers continue to buy with ridiculous restrictions.

Anyways, I do abide by the terms and I have flipped some that did not have the restrictions. I just don't think banks should be regulating the real estate industry by imposing restrictions.

FHA was wise enough to realize that imposing such restrictions does more harm to the economy than good. Else why would FHA temporarily suspend such restrictions?

@J Scott: Let me ask you this? Who owns the house that is being sold and bought? Bank or homeowner? So my question is when a bank releases a lien it has on a piece of property, should it still have the right to impose how you use that property?

If I understand a short sale correctly, the lien holder agrees to release their lien (all rights to the property) for less than what they are owed....is that right?

So they don't own any product here. The product that is being bought and sold is owned by the homeowner not the bank.

So what do you mean by the bank having the right to do whatever it wants with its product?

The product is a loan that was sold and is then secured by the property. They own that loan product not the property. So if they decide to release their lien on that property (for any reason), that should be a business decision for them. What we then decide to do with the property, in my own opinion should be none of their business.

It would be nice to see some attorney generals sued the banks for these clauses...let's see how the courts will rule

I work for one of the big 3 banks and in as much as I know that we have to abide by the rules of the banks, it still doesn't make it right for the banks to impose a deed restriction on a sale. If I am buying a property, I should own it and whatever I decide to do with it should be no ones business.

The banks do all these things and get away with it, but the common street investor cannot? Banks wholesale money ALL day long. They even invest in overnight trades where they make unfathomable returns within 12 hours!

A classic example is banks saying that we cannot do a leaseback to the homeowners but now, they have suddenly realized that a foreclosure to rental program saves them loads of money on the long run. So they will begin to allow homeowners to rent the houses they used to own.....Isn't this the value investors like us wanted to provide distressed sellers?

Bottom line is the banks only care about themselves.....if they are loosing money then no one else should make money off them.

We have guys that build all these decision models that lets the bank know if foreclosing or doing a short sale minimizes their loss....sometimes, a bpo value is useless.....getting way less than FMV now could make sense if it will take them 6-12 months to get it or if they have to spend all the money to foreclose....(every time a bank moves the foreclosure date, it costs them money)....so if a small bank is motivated enough to sell way below FMV for other reasons, and I in turn wholesale the deal, that's illegal?

Since when has wholesaling turned into an illegal activity. Every industry has wholesalers....the bananas we eat passes through series of wholesalers before it gets into the stores....

It is only fraud when a bank makes a decision based on wrong information provided by agents, appraisal, buyer or sellers....

However, the notion that flipping a short sale at an "artificially inflated price" is just one way their legal armies are using to frustrate the common investor.

By the way, there is nothing called an artificially inflated price in a free market ....buyers and sellers are free to negotiate any price they want and as long as a buyer is willing to pay what i'm asking, because he feels i'm providing him value for the service of getting him a good deal, then there is nothing artificial in that....

Where were all these restrictions when they were mass producing these bad mortgages and re-packaging them to be sold on wall street and exported all over the world? Of course, the absence of these restrictions increased their bottom line back then