All Forum Posts by: Ayo F.

It is very unfortunate that we all let these banks get away with a lot of things. It's worse when investors also ignorantly agree with the atrocities being committed by these banks.

Since when has buying something at a lower price and immediately selling it at a higher price become "fraud"

The truth of the matter is that, where there are humans, there will always be a potential for some bad apples to spoil the whole lot. However, that does not mean that the idea or concept of flipping is wrong.

Sure, if there are any deed restrictions, I believe they should be adhered to. That is why this country is going down gradually. We are killing capitalism. The govt wants to dictate everything and we allow it. Now, the banks want to make flipping illegal cos they are losing money.

But, we have not held them accountable for the credit boom that resulted in the whole real estate crash. Banks giving loans to people that cannot afford them because they banked on the house values increasing....

so when things didn't turn out as they thought, they are framing it that "flipping" caused or played a big role in the housing bubble.

We are all not dumb, their greed to exploit the consumer did.

OK. So, has anyone been successful in getting the verbiage removed and if so, pls can you share how you negotiated the removal.

Thanks!

So I have read in many places and discussed with many attorneys about the 30 - 90 day anti - flip requirement for short sale acceptance.

However, has anyone ever bothered to question the banks legality for requiring this?

Can a seller or anyone tell you what to do with what you "own?"The bank does not own the property. They only approve that the seller sell the property for less than what is owed. That's all.

Its like me buying a Mercedes Benz and the dealer telling me that I cannot drive it for 90 days or I cannot resell it to a willing buyer!

Who gave the banks the power to dictate what you can do with a property that you own?

The only reason I haven't done it is that I haven't found a title company that will close such deals.

By the way, its not a fraud unless you used deceptive means in getting the lower price.

However, if the bank accepts a price and I find someone a week later who is willing to pay considerably more for whatever reason, then thats fraud? Just cos they lost some money.

I'm so happy for the foreclosure settlement deal. They can defraud everyone (the whole mortgage crisis, predatory lending, stated incomes to qualify people for loans, robo -signing, mortgage back security frauds e.t.c) and it all good as long as they are making money?

I say it is not legal for the bank to tell anyone what they can do with their property or how much they can sell if for.....

It would be nice to have some discussion around this by anyone ......

I have had negotiators tell me that my Homeowners should sign a promissory note in order for them to grant a short sale.

It's up to the homeowner is they want to remain in debt all their lives or if they want to fight.

If the house is sold, the the note becomes an unsecured debt. Hence, can easily be wiped out in a Chapter 7 as stated by Joel.

I have seen instances where a homeowner has got a letter from a BK attorney stating that they will qualify for a Chapter 13 and a 7. Then the bank came to the negotiating table.

Homeowners can win if they decide to fight but many decide to just let the banks have their way NOT knowing that they will get a deficiency judgement esp in states that allow it. At the end, they either have to short sale the judgement or file a chapter 7.

If the bank bank is willing to accept a short sale, it means they will make more than if they foreclose.

I always say that's not a problem, we will just file a chapter 7 and wipe the debt out. The last time I tried that, this bank came back and offered my client $5,000 move out incentive...It's all playing hard ball.....The homeowner will lose the home in any case but they don't go down without the bank bleeding tooo and they making something....it's all negotiations..... LOL

I quite agree with Will. I do factor those into my offers when I make my offers to the bank. If they take it, fine. If not then its not a deal for me. I get estimates of needed repairs, comps and the likes to support my offers. It works at times and at other times it doesn't depending on the rep and the note investor

Jonathan, what if you could find an investor friendly real estate agent who is willing to work with you. The banks require that you list the properties most of the time right? Then you investor friendly agent could get all your listings while you do all the work (negotiations).

You get him more listings and he/she gets commissions just for listings. btw, my agents do not even negotiate. All they do is list the properties and upload documents.

I negotiate my own deals. I think i'm getting better at the process. I'm by no means a pro yet but i'm getting there and BP has helped me a lot as well.

Hello,

First, I look for my own distressed home owners. I don't place offers on existing short sales on the MLS. You need to understand that very few agents understand short sales. They claim that they do but in actual fact most do not. Most short sales on the MLS are not deals. Agents really cannot fathom why they need to hugely discount a piece of property neither do they know how.After all the higher they sell the high the commission!

For BofA, are you going after HAFA short sales or BofA COo-op Short sales or traditional short sales?

They all differ and the discounts will defer. The processing time will also vary depending on the type of SS you do.

J. Scott, Sorry for the confusion, my deal was 47% below market value NOT ARV.

We are getting it at $55,000 and it needs $15,000 repairs.
ARV is $115,000

so we are getting it at 60% of ARV (of course I have not factored holding costs and Realtor commissions and closing costs) but I do think this is still a good deal for a SS.

The discount you are able to get also depends on the underlying investor. Is it a VA, FHA, Freddie or Fannie loan?

I will keep everyone posted on more successful SS I complete.

I guess I will answer my own question. I just got a short sale on a 4 bedroom, 2.5 bath and 2 car garage approved for 47% of ARV by BofA!

So I guess it is very possible to get shorts at 40%-50% of ARV.

Thank you will. I got a pre-approval letter in addition to the bank statement and got an email via equator that a BPO has been ordered. I hope that is a positive sign?

BofA asked me for POF and I provided them with my uncle's bank statement (He is funding the deal for me). His account had the purchase price. Cool Ca$h :)

They declined my short sale the following day stating that the name on the sales contract does not match the name on the bank statement and that both needed to match.

Please, has anyone experienced this problem when using private money (Not HMLs)?

Thanks