All Forum Posts by: Bill Patterson

Hi Andrew,
Our questions are mostly short sale specific. We do verify the info that we get from their website or referral. You can ask questions that pertain to the type of investing that you are doing such as buy & hold, rehab & flip, etc. Also, set expectations so that you and the Realtor both know what the other will be doing and when. Especially, since you are not local, you will need a good working relationship with your agent! You will be depending on their competence and work ethic to help provide you with a good investment!
Good Luck!
Bill

We ask for BP referrals and search websites. Then interview over the phone. As Realtors ourselves, it may make it easier. We still get some that we will not work with again, but for the most part, it works well. We count on their expertise in their area, but still check the comps ourselves, to verify value.
Good Luck!
Bill

Lots of good replies! Another option, if the extra commission on the concession is an issue, would be to counter the offer by an amount equal to the added cost. The buyer probably wouldn't resist paying an additional $500 for a $300,000 house. From his perspective, it’s like trading $500 for $8,000!

I know the old saying..."If you take care of the pennies, the dollars will take care of themselves". I'm just not sure that considering Jason's good perspective, that it is all worth it if the net to you is within the boundaries of what you would accept as a return on the sale.
Bill

Ned,
This is the good ole' U S Of A!! They have to follow the law or one of two things will happen (or both). The losing attorney will appeal to a higher court. When elections come along, a bad judge should not get re-elected!
Bill

Mitch,
It's tricky, but you can slide new fasteners in from the end of the deck or work them in as you ease the new board down, then slide them into place. I would try to avoid a junction box or some other reason to take a board out though. To get the old one out, run a skillsaw down the middle of it.
Bill

Ned,
That is what I was saying, too. The law is interpreted by the perspective of the parties in a case. The court determines the outcome. There are very specific criteria that all have to be met to be guilty of fraud. To do a short sale purchase and resell at a profit, if done correctly, with disclosure and in the proper sequence is not fraud.

I would be interested in the cases in Maryland that you speak of. Can you get me a link to them?
Thanks,
Bill

Joel,

I don't think that "perspective" changes what is legal and what is not. Perspective has more to do with what is good for the particular position of the person involved.

As for fiduciary responsibility.....That is cut and dry. The agent has a contract with his client and that is where his fiduciary duty lies. Certainly not with a lender that has an arguably adversarial relationship with the home owner as they attempt to foreclose on the property. While it is within their rights to do so, many home owners caused their own problems and it is the correct business decision for the lender, it does not infer any duty upon the agent other than to disclose the facts that are required by law.
Bill

Jeff,
I just spent my BP time for the day just reading your post! You make lots of good points. I did not go to the Freddie Mac article since I have already read it, but I remember it just as you state...lots of misleading statements and little fact.
Bill

Hi David,
The value and what a lender will approve really has nothing to do with the price that the property is listed at. Like the others have mentioned, a BPO will be done and that will be the main basis for the lender's approval. I would ask your Realtor to do a CMA with 5 sold comps within the past couple of months, 5 pending comps and 5 comparable listings. Make sure the agent includes REO's & Short Sales if available. That will give you an idea of where a lender's BPO agent "Should" come in with a value. I wouldn't be afraid to offer 10% less than that value. Be prepared for a few months wait. Short sale approval time seems to be getting shorter, but an average of 3-4 months is good to plan for.
Good Luck!
Bill

That's OK Ned! Those articles are written for their "shock value" to attract hits. Either that or to advance an agenda that would be in favor of the author.

Manny, your offer needs to be submitted to the seller (or a person that has a contractual right to receive offers in the seller's place). He has apparently accepted an offer that is being negotiated and it would be breaking that contract to accept and negotiate another offer while the first one is still in effect.
Bill