All Forum Posts by: David Styles

Great! thank you.

So, once the lenders accept the short sale I can sign another contract with my rehabber as myself being the seller and this is totally legit?

Then all I need to do is call the title company, let them know I'm needing to do a double closing, send them both contracts and thats all? They take the rest from that point?

And as far as the homeowners, all they have to do is show up and sign some papers?

Thanks again

Okay, when working a short sale and the bank accepts, how do I go about scheduling a double closing with a title company?

Here is a make believe situation:

-Sellers sign contract and other info needed to get bank to work with me
-1st accepts $70,000 on a $100,000 loan
-2nd takes $1,000 on a $40,000 loan

At this point since I dont own the property, is it illegal to meet with my rehabber and put the property under contract with me as the seller?

When the lenders have accepted to short sale and the end buyer is lined up and under contract, what would happen from here in terms of setting up a closing?

What paper work do I need to turn over to the title company to schedule a double closing and what responsibilities do the homeowners have at this point in relation to the closing?

Thanks.

I'm curious if anybody has a script for cold calling or a questionaire for screening the callers who have resonded to your marketing. I guess I'm just looking for some ideas.

Thanks guys!

Thanks guys

If the Act was passed that the 1099s can just be wiped out, why do these institutions still hand them out?

You guys who have done SS, what percentage of banks waived the deficiency judgement?

What type of damage does a "90 days late" to a credit report?

Thanks again.

Okay, so when a person facing foreclosure gets bailed out by an investor who works a short sale, are the sellers free and clear?

I know they will get a credit ding of about 70pts and possibly sent a 1099, but what about deficiency judgements? Are these still handed out to the sellers or did that bill a few months back change things? I could have swore I heard something about Bush passing something to that effect.

Thanks.

WOW! Great response. Thank you!

Really, I only ever heard of the term "short sale" a couple weeks ago and have just been very interested in getting to know more about the process. I've read a couple entry level books and spent a good deal of time pouring over this site.

Okay, so I'd call the bank that the homeowner had gotten the loan from and speak with loss mitigation. After I give them the loan number, owners name, etc....tell them I'm getting ready to fax over a short sale package. At this time the person I'm on the phone with will direct me to the people who are going to be dealing with this process? Who are they usually? Are these people more than likely going to be located in a different state or many miles away?

What type of offer is rediculous? I know it varies but 45 percent of repaired retail value seems to be the number individuals wishing to wholesale say to start at, then 50 and 55 percent as the third time being the final offer.

Again, I'm just learning right now so excuse me if I seem a bit dense here.LOL But, how many offers and how much effort is needed on average for a bank to accept deals as low as fifty cents on the dollar?

Oh, last one for tonight. If one is planning on wholesaling as an exit strategy, can an attorney perform the same tasks as a title company in terms of closings, buying time with the banks, etc.? Which is cheaper? Which is the better option?

THanks again.

Okay, I've been trying to educate myself about short sales and right off the bat, I have a question. After getting homeowners to sign an authorization to release information, who am I calling to start negotiating?The bank from which they got their loan?

If I'm asking for the loss mitigation department, how do I know I'm talking to a person who can make decisions on the situation?

Oh, and should I ask if they have a specific short sale package? I'm aware of the basic hardship letter, net sheet, repairs, comps, etc, but I'm starting to understand that certain lenders have different criteria, like wanting to see proof of funds, listing agreements, and hardship packages filled out by the homeowners.

Dont worry guys, I'm not about to start making phone calls. I'm just trying to understand a few things.

Thanks!

Thanks Kenny, those are some good ideas. I've gotta head into work but thanks for giving me something else to think about today.

I actually brought this situation up to my girlfriend and she is being really supportive. Actually, I think she was more excited than me! Buying a house to live in seems secondary right now, as I'd really like to get the ball rolling on finding some properties to invest in. I'm still very green and have a lot of learing to do, but I cant remember being this fascinated and motivated about something for a long time.

Hello everybody, just wanted to say hi and thank all of you who contribute to this amazing nest of information. I found this website while looking to answer a few questions, and now that they have been answered I have a hundred others! LOL.

Okay, first let me start off by saying that I really had no intentions on becoming a real estate investor until about a month ago when my girlfriend and I decided that we would like to purchase a house. When we first moved out here to Idaho three years ago, the market was going crazy and literally in a matter of weeks, our loan would not buy the type of house we were looking for, which I might add, was well within reach just months before we sat down with the bank.

Well, after getting sick of living in an apartment for the past couple years, we are ready to get into a home. Now, the market has slowed considerably as I'm sure you all know, yet since the "boom" out here, houses are still a bit more than I'd like to pay.

Now, I started with this thought of how back in high school I used to pay $150 for a new pair of Jordans at the mall. They are out there at every Foot Locker and sold like they are goin' out of style. Yet, if you go online, you can often find the same pair for 60 cents on the dollar, hence I do not shop at the mall anymore. THis applies to many other material items also. And, I thought to myself, why not a house too?

I'm gonna try not to get long winded as I've been know to get a bit tangential. Here is what it comes down to:
-I'm in the market for a house
-I do not want to pay nor can I afford what we want at retail value
-I do qualify for a decent loan under a first time homebuyers program fixed at 5.2 percent for 20years.

So, I'm really looking for some advice here. After reading online for the past couple months along with reading half a dozen beginner type REIng books, I think I want to get involved persuing real estate as a means of trying to grasp some piece of mind in terms of having financial security down the road.

I'm very interested right now in wholesaling, rehab, and short sales. I was wondering how to use this one time "1st homebuyers loan" to my advantage. I dont want to look at things this way, but I figure if we are looking to buy a house anyway, why not try and chase down some foreclosures and haggle with some banks in order to get my feet wet and just see if I can find a good deal. If I do, I feel that we will live in it and rehab while I continue to network and build a buyers list. If the place wont sell, I feel we have a safety net, as we still got into a house. If it does sell, well, then maybe I'm one step closer freedom :).

Sorry guys, this got a bit wordier than I expected. I'd like to hear your thoughts of how I could possibly work some of these things out. Or, you can just tell me I'm crazy and in over my head already LOL.

Thanks!