All Forum Posts by: Jozef Forgac

Great post Moe. It's exactly mine and my partner story.We do it the same way. Either we are in FL we have also few agents partners in CA and all is done the same way and we are facing the exact same chalenges with agents what you mentioned.

Also in our case we spent and still spending a lot of time to build relationship with agents. Countless conversations with agents are part of this business but if you get aboard few active agents who get it you can get floaded with deals with no marketing cost.

Just want to confirm that we use the same sytem and face the same chalenges as Moe in his business but deals are out there and with right people in place it works.
Good luck and don't get discouraged by agents who don't get it. Just move on to the next one.

In my opinion it's better value in using real estate attorney who specialize in short sale negotiations. You should not need to pay for attorney as they get already paid from lender loss mitigation fee and if the same attorney perform also short sale closings attorney will make money on it without you paying any money from your pocket.At least mine don't charge me any money, but you wouldn't have any problem when you do little research.

Your other issue agent versus attorney. If you will have a choice to use salesman instead of professional negotiator you must think. Short sale transaction is about to get it correctly done and especcialy negotiated to the amount so it will be attractive to resale in this market. If there is no attractive price for the end buyer in today market you will not be able to atract any buyers. Short sale is time limited transaction not as conventional sale. Your time is ticking, so you don't have this leverage as maybe your neighbor selling conventional way with some equity in and in fair market value.

With all due respect to all agents out there doing also negotiations work on their listings by themself I saw better results with more short sales closed when agent was doing salesman part and short sale hassles get outsourced to the attorney to perform with legal and negotiation part.

Your choice. This is only from my own experience.Not many investors, agents, sellers work this out with attorneys because most of attorneys charge you and agents money upfront . If you will be able to have one without any cost to you than I'll leave it for you to decide if you will use one or not.

Another mentioned issue especially for FL deficiency judgment. Not many lenders pursuet with it, but it started to change and we see more cases with this issues, However good attorney / negotiator structure the whole deal from the beginning so no or very minimum chance of deficiency judgment will affect your short sale.

There is another thing.Most of this lenders usually try to sell judgment on the secondary market for 25-50 cents per dollar sometime the very next day after judgment. Then seller can offer low settlement on it. This create really win situation for seller even with very little obligation to pay it will have better sence to proceed with short sale instead of foreclosure.

Short sale in most of today cases is much beter to proceed with than foreclosure and good specialized attorney on your site will be able to help you with after short sale ( deficiency judgments ) issues and work it out with your lender and implement that in short sale negotiation.
Even if you might have to pay for some help, at the end it will cost you less than you just let it go to the foreclosure. With foreclosure you will most likely end up with deficiency judgment and lender will add everything what they can possibly add to it, so you might end up with foreclosure and maximum amount of judgment.
If short sale will not cost you anything and with all professionals doing their part not paid from your pocket and with better chance to avoid deficeincy judgment or if any than reduced to the minimum amount with settle it later on for let say 20 cents per dollar it might be much better for you than with foreclosure.

Also remember one more think this kind of attorneys are usually involved in debt settlements and and they might be able to proceed with yuor deficiency judgment settelement and save you thousands for fraction of cost.

Again this is only my opinion and my and my partners experience with this issues.

I always try to tell people standing before decision to proceed with short sale or not to take a blank paper, divide it in half and on one half just write scenario what will happen when you will let it go to the foreclosure with all concequences and financial loss and what will happen 6-12 months from now with you and your family and at the other half what will happen when you proceed and close on short sale and how it will affect your life in your next 6-12 months.

If you don't know usual foreclosure concequenses, just let me know and I can get you free foreclosure vs short sale list FREE. There is more bad concequences with forclosure than many people know about.

I hope this will help you understand your choices in FL better now.

Cheers,
Jozef

I forgot to mention for property in FL short sale negotiation will include also closing with title insurance all done by the same RE Attorney free for sellers and RE agents.

Jozef

If you still need negotiations for short sale you can PM me for attorney performed short sales negotiations with coordinations, tracking system FREE for Sellers and RE Agents, more. You don't need local or in state negotiator, but anyway we are in Jacksonville.
In FL. I will suggest you to use attorney to do that in FL and because it will not cost you any money it is no brainer to have an attorney perform only short sales and mortgage retention plans.
PM me and I'll be happy top help you.Either you already have negotiator,but you need some help just contact me.
Jozef

What I do I go to my county courthouse to the civil record department ans ask for list of lis pendens. They charge me $2 per page and on one page is 9 cases.Than I take this list and go to filing dpt. They will bring me over files and I look in to every file just for name and address. Then I mail it to this homeowners directly and to some I stop in person and I left my letter in their door.
That is the cheapest, quickest way to get them. You have to sort them as there will be also vacant lots, or hard to undesratnd trust or corporations. Keep it simple and just choose the area what you know you want to do a business in and residential with the name and full address. Don't concentrate on mortgages or try to read the whole file. Whn you get respond homepowner will tell you all what you need to know. It will take me about 30 sec. on file and I go to courthouse twice per month.
I believe this will work well also in your area.Some counties have on line access. Mine has also on line but I can get only case number wthout name or address so I have to make my 10 min. trip there twice per week.
Have fun.

Sean, You are the right example why we are in business. We are buying, negotiating and coordinating short sales while you do what you are trained to do.
We do not charge we are co op with RE Agents. Contact me if you want to hear more. By the way we have a main office in CA and we do business in your area.
Jozef.

Chris, Appreciate your input in this topic.

Based on one of my educational short sale CD's one short part mentioned there that experienced short sale investors targeting only HUD homes backed by FHA loans making a fortune in it. FHA required to fill in additional forms to proceed with short sale, but is worth to do it. If anyone is one of them and want to share this techniques using short sale system i believe anyone will appreciate to share this with others.
I'm familiar with HUD's ( I used to bid on them amd work it out back in 2004 in CA market), but I want to see if there is any other loop wholes to get this work out in today market.

The idea is from my educational CD for short sales. There is a part about HUD or VA properties. If they didn't sell it to the end buyer, then investors can bid on it. If no one will buy it, then HUD is still available and sits in the bank portfolio as a non performing asset as any other foreclosed homes sitting as REO.
Then you can submit a bid on this HUD or VA and just do the same as with short sale directly with the bank who owns this non performing HUD or VA property.
Bank on HUD should accept 83% of BPO or 63% of the original owned amount.
I want to ask if anyone tried to do that or has any experience at all to work out these discounts on HUD or VA. Option contract and double close should work and many experienced short sale investors doing that (base from my educational short sale CD !?). There are more forms to fill in as it is with short sales, but is worth to do it !?
There is buyers who doesn't like to deal with this lenghty paperwork and want to just buy with discount and from wholesaler who has this deal approved and then do double closing. Wholesaler basically brings funds to the first closing and sell to the end buyer at the second closing with own financing or cash.
There is the same profit margins as with short sales, but instead to deal with the homeowners investor wholesaler deal only with lender and with vacant property from the beginning.
Of course, numbers must work for everyone.
I just heard this theory, but I'm curious if anyone has any knowledge about this ?
Do you think it will work ?

I have recently found a Realtor specializing in HUD & VA properties in Florida with many available inventories for sale, such as non performing assets.

Does anyone have experience with flipping these properties to rehabbers or end buyers?
What I mean is to negotiate a discount (as in short sale) and buy these properties under Trust or LLC using Option for Purchase and Sale Agreement. Then, pay cash with transactional funding (24 hours funding) at the closing and resale them in double close with my buyer (rehabber or end buyer) with financing provided by my end buyer.
If this is possible, I will have to disclose to the lender that my intent is to buy and resale to the 3rd party?
Could I use the same approach as with short sale?
I'll appreciate all suggestions. Thank you all.

:roll:

Good advice,
I will follow up with it.
My intent is to short sale it and sell to the end buyer.
This is my first short sale where I will work on it alone.
I did some coordinating, but I never did it all alone.
Did you have any formula how low can be initial offer to the first lender as far as % of the BPO?

Thank you, all.