All Forum Posts by: Eliza Parsons

Hi all! I've noticed that a lot of rehab/hard money lenders have been tightening their guidelines recently, for obvious reasons. I am hoping someone out there knows of some decent lenders that are still around. I am looking for lenders that can fund in FL, CA, TX, and NV mainly.
I need a no doc loan (got a 750 fico), no out of pocket costs, fast funding (within 5 days, after receiving all required info), and preferably one who can wrap up the payments into the loan amount.
There used to be lenders that would do these, and I know they can't ALL be gone, or have changed their guidelines.

Thanks in advance!

Well, since not much has happened on this thread so far, I thought I'd drop a line or 2. Whereabouts does everyone live? I'm in Costa Mesa. What aspects are you interested in? How long have you been investing in real estate? I think we can all help each other and benefit at the same time. Let's get some action going! :superman:

Hey JW, I would! Anyone else? Come on, don't be shy!

Yes, Ohio, you are right, but I think I need to clarify my earlier response. When I said "The lenders don't really care about how much a home sells for, as long as they get their investment back as quickly as possible." I meant they don't care about making a profit. They are not in the business of selling houses. They are in the business of lending money. They just want to break even and reclaim their costs. Obviously they don't want to lose money on the deal. Although, if the property sits for a long time, which really isn't common, they will lower the price.
The RE market and home values are different here than in Ohio. Maybe out there, you guys work things differently. I won't argue with you on that particular point, but coming from the mtg industry, Ive spoken to a few people, and this is what a few of my friends in the business have told me. It's possible that they are just blatant liars, but I went a little deeper into this, and again, from what I've seen, they seem to be correct.

Take care!

Well, you definately CAN contact them early on in the process. Please forgive me, but I don't remember how long Florida has to cure the loan after the NOD has been issued, and I can't find my list. Anyway, while some states homeowners can have over 10 months to cure the loan, others can be much less...like 2 months. But you're right, even early on in the process, people aren't always rational. Remember, to them, it's not always just a piece of property, it's their HOME, and most are quite attached to it. But then again, there are those that realize pretty quickly that the best thing for them to do is sell with an agent.
Why don't you try to market to them early on in the process, with a letter, or flyer, or something, and contact them again down the road to see what action they took? That wouldn't be my style, I would just wait until about a month before the auction.....but that's just me.
When are you planning on starting? Or have you already? Let me know how things go.

he he! Come to Ca. and see :superman:

Out here (again, from what I've seen) REO realtors work closely with these lenders. They get a kickback out of the listing/selling price for selling the home quickly. The lenders don't really care about how much a home sells for, as long as they get their investment back as quickly as possible. Maybe you should try it, Ohio. I would if I were an actual realtor.......if I could

Well, being in sales has helped me quite a bit to use the TRUTH to my advantage. I always suggest to tell the truth, because if it were me on the other end, I wouldn't want to be taken advantage of. However, you can help people see the truth that you want them to see.
Now to make some sense - yes, the homeowners can definately just sell their home on their own. However, I can tell you from firsthand experience how homeowners feel about this situation. I used to work for a company that helps people currently in foreclosure work out a repayment plan with their lender. The majority of the homeowners I spoke with were just plain in denial. Most of them waited until a week or 2 before the aution date, hoping for a miracle.
Also, when selling/persuading the homeowner, remind them how long it can take to sell a home. The housing market isn't the same as 2 years ago. Homes aren't appreciating as fast, and therefore, homes are on the market for a lot longer. There are a million issues that can come up in a sale, even after they find a prospective buyer that can hold things up. Depending on the state, termite inspections might be required by the lender, home inspections, and not to mention other contingencies. Also, escrow can take a while to close. Depending on the way you want to proceed, you seem like a more surefire way of getting things taken care of. Either way they might lose their home, but if they go with you, they don't have to worry about an actual foreclosure on their record.
hope my rambling helps a little :roll:

I tend to agree with juzam. I'm assuming the appraisal is coming in higher than the comps? The way I've seen it, is it can go both ways. If the company doing the appraisal is legit, well, they can't blatantly lie, but they can stretch value, which is pretty common. Although, I have seen scenarios like this where the subject property has had major rennovations, upgrades or additions, such as a new swimming pool, granite countertops, wood floors, etc, where other homes in the area didn't. Also, coming from the mortgage industry, I have pulled comps from a few different companies. And even though they were from title companies, some were more up to date then others.
Unfortunately, there isn't a black and white answer to this; there are a few different variables so you kinda just have to investigate each situation separately.

Hi all, just wanted to put my 2 cents in. I have been looking into REOs for a while and I think they are a great opportunity. Well, long story short, obtaining one for for it's true default value (or close to it) is harder than one would think. Maybe I was just barking up the wrong trees. I tried contacting the lending institutions themselves and asking for the loss mitigation/foreclosure department. Well, after getting the run around, the only answer I got was "we don't have any REOs" Perhaps I should have been more persistant, but I also found out that almost every direct lender works closely with a few realtors. So of course, they get all props first, as they come up.
After that, I did more researching and found and "REO realtor". Now I'm not saying anything negative about realtors by any means. They are great and a necessity. However, from what I have seen is that the person getting the steal isn't you, it is the Agent. They get huge cuts out of it, and the buyer usually only gets a slight discount. Of course, if I were the realtor, I'm sure I would do the exact same thing. Who can blame them?

Anyway, to tie up this long novel I've just written, this was just my experience. Hopefully others have had a happier ending, and if so, please speak up! I would really love to have my faith in REOs restored!