All Forum Posts by: Felix Liusky

Buy the note/mortgage or doing short-sale and then sell the house back to you. Doing short-sale and sell back to you is ilegal and is a bank fraud which you caused the financial institution a "material loss" in a scheme which you still own the property. Buy the note? That is another FRAUD by the preacher whoever that is. First, big institution don't sell note, they sell at BULK bank to bank. Second, you can't find the note department at the bank, they virtually don't exist. Thrid, if the trickster were able to buy it, they have to demonstrate cash in the bank and your mortgage co will have to do a BPO or appraisal of your house to the current market value. Whatever they are preaching is not possible and can not possibly be done. Ask the con artist "how many deals this was done" and show me some customer satisfactions and proof of your service contract in writing.

Sincerely,

former Bank Vice President

The debt and deficiency is VALID. You should sue or blame your realtor. If he or she materialy "promised" you don't owed anything (must be proven) then she got you a bad deal with the deficiency. The deficiency could be avoid "during" negotiation stage of the short-sale. They could be the follwoing:

a. Full Satisfaction
(meaning you owed nothing and it is paid in full) or Release of the Mortgage or Release of Liability (meaning you owed nothing and it is same as full satisfaction). There is no deficiency collection only 1099c.

b. Agree to the Shortsale the Lender Reserves the Right of Deficiency
(meaning you owed the difference) or it will say "lender may or may not pursue deficiency". The bank will decide later after a "asset search" and "recovery search" on your asset and employment. If you have other asset or are gainfully employed (i.e. full w2 income), it will not write it off; it will pursuit deficiency collection and send to the attorney.

c. Agree to Release of Lien.
In this case, lender will PURSUIT DEFICIECNY COLLECTION IN COURT.

It depends on the SHORTSALE approval language, which your realtor asked you to signed WITHOUT explaining the FULL CONSEQUENCE of its outcome because he or she needs the commission after 5 months of hardwork.

If the lender wants deficiency in the short-sale approval, your option is just to WALK A WAY and denied lender the opportunity of the short-sale and cancel the short-sale and cancel agent's inability to negotiate and the listing and "re-consider" your options.

You had helped completed the shortsale for the bank and you got the collection and judgement against you and who wants to do that.

Sincerely,


former Bank Vice President now
Short-sale Investor

P.S. I negotiate with NO DEFICIENCY right in the beginning.

Yes. No BoA, CW, Wellsfargo and AHMS (dead on arrival). You will do just fine and will put food on the table for those who do shortsale double close. Doing doulbe close/simu close with LandTrust. No problems since 2007 till yesterday. No Seasoning Problem. - Felix - former Bank Vice President

Yes. Cineworks..."I am (not this particular case) the flip investor on the transaction that you are buying and have been doing it for 3 yrs in Ca...call it dual close/ double close/ dry close/ simultaneous close...they are all the same language.

Let me give you some competative edge. These kinda transactions are legal as long as there is disclosure.

First, you want to understand the level of experience this "investor" has doing this kinda double transactions by asking your agent and have him do some credibility check with listing agent and "the investor". You "walk away" and don't bother with the transaction and waste your time (if you listened to me you had be glad you did) if the following is true:
1. Investor has not done any double flip and this is his or her first transaction.
2. If the Seller's mortgage company is a Countrywide, Bank of America or Wellsfargo (i don't want to explain, it takes too long...i been in this business long enough...they all have anti-flip provisions...that means THEY CAN NOT IN NO WAY BUY AND SELL ON THE FIRST CLOSING AND THEN SELL TO YOU ON THE SECOND CLOSING...BECAUSE of the bank's Short-sale approval terms and language to the investor that prohibits investor to do that...i know these greedy bank has our TARP money and they are doing this to us...that is just outrageous...that is another topic).
3. If your price paid is LESS than MLS listed price, the first PRICE investor's offer to the foreclosure bank will never be approved, GUARANTEED.

If you like the house and you can accept the price and the investors is experienced plus this is not a Countrywide, Wellsfargo, Bank of America then you have 50% chance of success...owning the property.

Good Luck.

P.S. By the way. Don't buy REOs too because YOU WILL NEVER GET IT. The only way to get the REO home is go to REO OPEN HOUSE of the "LISTING AGENT". He wants to make the 6% commission and thus WILL TURN DOWN ALL REO offer by other AGENT and WILL accept your offer instead only if YOU DON"T HAVE agent. I am giving you quick and competative info here...i am in the trench everyday and this is what is happenning...REO agent only sell to their own list of BUYER's if you are on their list.

Not ever a deficiency if you put this in your purchase and sale contract for the "to be foreclosed home owner" before you send in the short-sale package:

Subject to: mortgagee's FULL SATISFACTION and lien releases with waiver of deficiency collection.

This is a total "fraudulent conveyance". You are the architech of the scheme with intend to defraud or "short" the bank and cause a material loss for the institution.

Later revert/resell the property back to the owner...You are ready to go to jail?

Sincerely,

Felix Liusky
fomer Bank Vice President

If a Notice of Default has been filed, NO DEPOSIT IS REQUIRED or DEPOSIT NEEDS to RETURN TO BUYER IMMEDIATELY.

The realtor is trying to tide up your money and string you alone.

I have purchased 20 shortsale properties since 2007, NO DEPOSIT has "I given" to the Seller / Listing Agent / Escrow before short-sale approval. DEPOSIT is REQUIRED to "effect legal consideration of the buyer" only when the Short-sale IS APPROVED by the BANK and PAY-OFF DEMAND IS ISSUED.

If in a case of Short-sale Offers, agent is ONLY required to submit one offer that is ACCEPTED and SIGNED by the BORROWER and "NOT" one that has the HIGHEST SHORT-SALE OFFERING PRICE and "NOT" AFTER your contract acceptance.

Bank will accept a lower price. Reason: it is due to the fact that higher price always has a higher probaility of cancellation than one that has a lower price.

Sincerely,





Felix Liusky, former Bank Vice President
Wellsfargo, Bank of America, citibank and Summit National Bank Corp.

see post below
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Brian Wall Real Estate Investor Santa Fe Springs, California

16 Posts
108 Influence



Posted: 08/12/2009 at 10:58PM
0 votes
Hi Nick,

I use the land trust to help avoid the 90 day Title seasoning issues. Basically, after the 5 day foreclosure waiting period, the homeowner puts their property into a land trust, where the homeowner retains 100% beneficial interest in the trust, until such time that the bank issues the approval letter.

I have partnered up with a company that has been doing this for quite a while. They have successfully negotiated over 450 transactions in 2008 and are on track to do over 1000 in 2009.

I am just at the tail end of closing my first deal. Market value = 135k
Approval letter = 85k

As soon as we are ready to resale, I will post deal up here on the site, but really the best buyer would be owner occupied, since it will be priced at about 10% below market value.

I am certainly not an expert on short sales, hence my partnering up.

I am just trying to focus my energies on finding deals, and outsource the negotiations.

Report Abuse
Brian Wall, The Golden Key Realty
[CONTACT INFO REMOVED]
Status: Waiting to get paid on my first Short Sale Flip
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Well as for me...

I have been doing Short-sale Double Close since 2007 but not 450 deals per year. May be 5 deals per year at $50,000 per file.

Just remind your "attorney" that "Not all attornies are created equal".

TIP of the DAY: One thing that I had to do now to close the transaction is to secure an acknowledgement from forclosure lender for the TITLE COMPANY as its requirement ... "...immediate re-sale of the property purchased in the short-sale transaction has no impact on the current approval..."...they all repied "no impact on current short-sale letter approval...or we' don't care...just send us the money ASAP..."

The Country needs people like us to re-cycle the real estate. When we completed the transaction everyone gets paid: the bank, the agent, the tile companies, escrow, Fedex and homeowner gets to avoid foreclosure. Now that is Win Win and Win for everyone.

If the mortgage is Countrywide or Wellsfargo or less than $300,000. I pass. If you wana make money doing double flip, you need to decide which method you wanna use "Trustee Method (Landtrust) or Option Contract (The Shortsale Kid). That's another $2,500 educational seminar you need to take.