All Forum Posts by: Kris Fox

Oh man. It's quite apparent when it comes to short sales, I don't know what I don't know.  Is there a resource I can read that discusses what will make or break a decent short sale listing.  I've read pretty much every post in the Short Sale subforum over the past year and I have a lot more reading to do.  I'm just trying to see if there's an angle to take my garbage marketing for flipping leads and turn them into a commission.

@Steve Vaughan  I'm not understanding something.  It sounds like you're saying that banks will only pay commissions on listings that have equity.  I thought that, by definition, short sale listings do not have equity.  Why would a realtor every list a short sale if that were the case?  

No, I was just going to try to convert all of the leads that didn't have any equity into listings for commissions.  I've read about short sale-related mortgage fraud and it seems like I wouldn't be able to list and buy.  Should I refer the properties that I DO want to buy to another realtor?  Is there a way to increase the chances that I'm able to get it under contract?

@Ron S. Thank you for such a thorough response. It's what I was looking for.

@Bill Gulley  Thanks for the response. I'm not a new realtor. I've just been throwing away a lot of underwater leads from my marketing and I figured I'd try turning it into a listing and see where it got me.  I wanted to have an idea as to when it's too late to talk to them or continue with marketing to them. 

For my purposes it seems like I shouldn't bother talking to underwater leads once they're within 3-4 weeks of the sale.

I was wondering what happens in the following two scenarios.

Local foreclosure/sheriff's sale and there's a $10,000 HOA lien that is foreclosing. Let's say that the property is worth $150k and the principal on the first is $50k. What is the correct play if I'm bidding?

Same scenario as above except that the principal on the first is $125k.

I have a feeling that the answer to the next question can be inferred from the answer to the above question, but what happens if I own the second (say I bought a mechanics lien/judgement from someone) and the first is $50k and the lien I bought is worth $10k and the property is worth $150k.  

Thanks a lot guys.

In my county you can do the following.

Download the entire parcel list
Sort entire parcel list by property type
Delete everything except for the multifamily types (i.e. Duplex,Triplex,Apartment Building, etc)
Now you have a list of all of the multifamily units
Now you have to sort by owner address
Delete every record with an owner address in your state. Everything that remains is absentee-owned multifamily units.

If you can't find this list online, then you can definitely go down to the county and talk to people and they'll be able to get you a list.

These were theoretical questions.   I have read a few times that people that are going through the foreclosure process have had the foreclosure postponed once they've had it under contract and listed the home for sale. Is this not true? I was just trying to figure out how close to the sale people have had success with getting a postponement on the foreclosure.

I would be the listing agent and the buyer in the following scenario:

1) I do some marketing and find a seller wanting to do a short sale
2) I get a listing agreement and put the home on MLS
3) I ALSO put an offer in on the property and get it under contract with the seller

Thanks for the reply.

There's a foreclosure sale happening in my area in two weeks.  A few of these properties look distressed from the outside and based on what is owed and the likely BPO, I feel they're excellent candidates for a short sale.  What are the chances a bank postpones the sale this close?

Another question I have is I am a licensed realtor and an investor.  Are the banks going to have any problems with me being the listing agent AND the buyer?  Do you think I would get the 6% if so?  

There's a building with 3 condos in the historic district of the town I live in available for sale. The whole building is selling for $400k and is being marketed as a triplex. Is it possible to hire an attorney to draft an HOA and then start selling off the units separately once current leases end? Currently a SFR of similar square footage in that area sells for $200-$250k. Do condos lose that much value compared to SFRs in the same neighborhood?

Update:

Adverse Possession did not apply to this case. A full wall of the 50 ft long was over the property line 3" on the front of the house and 9" on the rear of the house. But, to the bad news. Apparently, in most encroachment cases, the only thing they really consider is "damages". My lot was still buildable, so the only real damage would be the loss of the 50 or so sqft of land I lost. It would cost me at least $5k in litigating fees to get a $1000 or so award. We ended up walking away.

UPDATE:

I wrote a letter and submitted in writing to both the listing agent and the asset manager at the bank.

The gist of the letter is "I am Kris Fox of xxx, LLC. I have an ownership interest in ABC property and have an executed contract. I am writing to notify you that I plan on enforcing my rights."

After submitting it, I realized I forgot to write "...rights in regard to the encroachment"

"This is a piece of paper...is there an actual contract? First of all, I do not see how any material fact regarding the ownership of "ABC Property" has changed from what the current buyers are already aware of, they are fully aware the bank does not own that lot, and it is not part of their purchase agreement with the bank. The present owner could absolutely "enforce her rights", whatever it is they mean by that?? Do they have some legal basis, or some additional information on what rights exactly they are referring to? If so, that might be something they would want to include in this "notice" they have provided us with. This note/notice as presented seems almost like a threat of some kind? They are welcome to clarify what action they intend to pursue against ABC Property. Our legal staff is already looking into how it came to pass that these lots were separated prior to foreclosure, any new information these folks want to share would be welcome. IF they had actually purchased/ and closed on the property from the seller of the lot, then that would be a material fact worth mentioning to the current buyers, but as far as your duty goes at this point, I don't see how anything has really changed?"

The contract has been forwarded with purchase price and closing date blacked out.

I plan on submitting a new letter that says "I plan on enforcing my rights in regards to the encroachment". It seems like that doesn't matter to him though until I own the property.