All Forum Posts by: Kristian Peter

@Raymond Hill make sure that your offer covers the 1st and gives a little bit of money to the 2nd.  You don't want to have to negotiate with the 1st, as they would probably just want to foreclose and get paid in full.  Once you have acceptance from the 2nd, you can attempt to cure the 1st (reinstate the loan), and avoid the property getting foreclosed on.  Or you can ask the 1st to postpone the foreclosure sale until you can obtain financing to pay off the 1st and the negotiated amount to the 2nd.  Good luck with everything, and have a great weekend!

@Raymond Hill - you may want to offer less, and attempt to "short" the 2nd mortgage.  The 2nd will lose their entire investment if they don't agree to a smaller payoff, and that could free up some room for your potential flip.  Have the owner provide a letter of authorization (you can google it for a sample), and then contact the lender with your request to reduce their total payoff to $10k, and if they refuse, hopefully they will counter with a number that is less than $64k, and give you the ability to buy and flip.  Hopefully that helps!

Hi @Maryl Carpenter! BP is a great resource, and don't forget to check out their podcasts with a ton of interviews and content about investing - on itunes...

@Jonathan West - you may want to use Legalzoom.com - I've used them for all of my LLCs and Inc in various states across the US, and you can speak to their attorneys.

BofA has never been "investor friendly" IMO, as we consistently have issues with "fair market value" on their BPOs...

Until the property goes to trustee/foreclosure sale, you can attempt to purchase it via the owner (short sale), otherwise you will probably have to wait until the property is auctioned at the courthouse, and the trustee either reduces the bid to an amount that you can purchase at and make money, or the property is purchased by the lender, in which case the property will be given to a Realtor to do a BPO, and eventually sell at market value, depending on the condition of the property, and the market conditions for real estate in your area.

We are currently getting good results from door knocking, about 20 doors per person per day, and about 6 contacts, with 1 to 2 potential sellers. Most sellers indicate that they are trying loan modifications (about 90% want to stay in their underwater home)...

Anyone having success using other methods for marketing for short sale sellers?

We are always looking to buy in Las Vegas. We've bought 7 in Vegas in the past 3 months, but the market continues to decline, so forecasting ARV is difficult.

KP

Jack,

HUD always sells propeties in as-is condition. You have the right to conduct inspections and find out what the costs would be to bring the property into livable condition, but they typically do not make any repairs. You can cancel your contract anytime prior to removing your inspection contingency, and you will get your Ernest Money returned.

@Ryan, banks can definitely just hold out until they make enough profits to comfortably start selling REO again. The mark-to-market accounting changes that took place 18 months ago now allow banks to sit on their non-performing assets, and they do not have to write down those "assets" until they are sold. Thus, no sale = no loss.

In CA the market is going to definitely dip another 20% plus in the next 4-6 months. By the beginning of 2011 it will be a severe "buyers" market in CA, and the inventory levels are already getting big.

Will this lead to a double-dip recession? My bet is 'YES" - what's your's?