All Forum Posts by: Ayo F.

So I spoke to an Equator rep about using the system as a non licensed investor and here is what he said:

[REP]
You will need an agent account, Ayo. I would advise you to create an agent account (not a vendor account) using a different email address and providing a valid professional identification number when prompted for a real estate license number (bar numbers work, as do EIN numbers). You simply need to go to www.equator.com under 'create an account' on the upper right hand side of the page and enter in the required information after you select 'agent' for account type.

[ME] ok so i dont necessarily need to be a licensed real estate agent...Have I understood you correctly?
[REP] That is actually up to the lenders using our site, Ayo. We have observed non-licensed and non-attorney agent accounts conducting short sales, but as a third party software provider we cannot comment on which lenders approve of this and which do not (if any).

Keep in mind that FHA will only accept 82% of ARV if it is NOT less than 63% of the loan balance. so in this case, 82% of the appraised value cannot be less than 63% of $160,000 (loan balance)

the minimum FHA will take is actually 82% of appraised value

Are they sending an appraiser or a BPO agent? If it is an appraiser, then it could be an FHA or a VA loan. If so, then FHA will take btw 88%-84% of what the appraised value is. U can negotiate below that so you should know where u will be before you even go through the trouble. The key is you being able to influence the appraiser and have him come in at the lower end of the scale. I'm not sure how you can do that if you are not present.

I am an investor who has no real estate license. I would like to negotiate my own BofA short sales. BofA requires that all properties be listed with an agent.
1) Does that mean that my offers have to be submitted by the same listing agent?

If I want to negotiate the deal directly with the bank, can I get my own Equator account? If so do I select the "buyer/Investor" option or is the "agent" option the only option that allows document upload and bank interaction?

Thank you

Do you know what the property is worth "AS IS" ?
Also do you know what it is worth fixed up?
How much work does it need?

My rule of thumb is to offer 40% of what is worth fixed up

what is the "AS IS" value?
What is the fixed up value?
How much work does it need?
What is your exit strategy? Wholesale or rehab?

I generally start by offering 40% of fixed up value. They can only say NO and if they say yes, I still dont sweat...40% of ARV is good any day

Hello April,

Here is a link to the TX contracts

http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

You need the "One to Four Family Residential Contract (Resale)" and I also use the TX "short sale addendum"

Hope this helps

Hello all,

I have heard of people getting short sales at 40% - 50% below market value.

Can a few of you share your success story and what factors contributed to such successes.

Getting shorts at 20% below market value is quite common as long as its not a Fannie or Freddy or a loan with PMI. But 40%, that's unbelievable.

Any thoughts?

Hello Michael,
You need to know the bankruptcy process if this is a situation you often run into.
First you need to know if it is a chapter 13 or chapter 7.
Chapter 13 is a reorganization of debt while 7 is a total discharge of debt.

With a 7, there little to nothing you can do.
With a 13, there's a lot you can do. I really like when homeowners have filed for bankruptcy cos thats a good ammunition when you eventually talk to the bank.

After a homeowner files for a 13, they have about 30-45 days before they are required to appear in court for a 341 (meeting of creditors) hearing.

during this period they are not required to make any pmts and the bank can never sell the property...so the bank will have to push the foreclosure about 45-60 days forward. regardless of whether the homeowner has filed a 13, they are still in foreclosure. After the 341 hearing, the judge determines how much the homeowners can afford to pay their creditors and puts them on a pmt plan. Now to the bank, this is a FORCED FORBEARANCE situation. The bank CANNOT sell the property unless the homeowner stops making that pmt. If they do stop making that payment, then the bank will file for "Motion to release from Stay". This allows the bank to take the house ALONE out of the bankruptcy. Once this is done, the foreclosure date becomes a HOT sales date. Keep in mind that during that whole process, the bank never took the homeowners out of foreclosure, they just kept postponing the foreclosure sales date by 30 days as long as they are receiving the pmts from the court.

It is erroneous for homeowners to think that they cannot loose their property just b/cos they filed a 13. If they do not stick with the pmt plan, then the bank is has the legal right to file that motion to release the house from the bankruptcy.

85% of homeowners default on that payment plan and the banks know this.

If you know the process, you can maximize it to your advantage and that can even help you negotiate with the bank. A good attorney can keep the bank from selling the property and the homeowner can live in the house for FREE for 1-2 years. Would the bank like to loose all that money?

PS: I am not an attorney and as such this is not a legal advice. Please consult your bankruptcy attorney