All Forum Posts by: Larry Moore

Hi Sylwia,

I am in Belvidere as well. I have done a few wholesale and a couple of short sale deals. I am by no means a guru, buy perhaps I can help you get started.
Feel free to contact me.

Wondering if anyone has used any of the dp assist programs, where the homeowner buys a membership into an alliance of sorts that has different discount programs, and the home buyer who sold him the membership earns income towards a down payment. The down payment plus fee is repaid at closing from the proceeds of the sale. DPFunder used to be a popular one, but their site now says they are out of business. I don't know if anyone is really doing this anymore, or if lenders would allow the program to fund a down payment for their loans. Anyone used this type of program recently?

Thanks again , Douglas. Unfortunately, the auction sale date is May 7th, so it is already getting pretty close to the wire. As you said, on to the next one, which I am already in the middle of negotiations on, and it is looking pretty good.

Thanks, Will. $60K is what I came up with also. Unfortunately, EMC held firm at $70K.

Wondering if anyone has dealt with Litton Loan Servicing recently. I wanted to speak with the negotiator now that the BPO has come in about my offer, but her voice mail states she does not listen to her voice mail due to high volume. Her notes state that my offer is too low and needs to be $59K or higher. Is Litton one of the servicing companies that keeps the negotiators off limits, or do I just have to try to entice her to call me via fax or e-mail? I got the impression from the tech that I either meet their min counter offer, or game over.

thanks

Thanks, Douglas. Actually, I did point out all of the negatives, including the Chrysler plant down the street that has caused a lot of the foreclosures in the area, and two flea markets nearby. The house had no real damage or repairs needed, but needed updating, which I pointed out. Bottom line, I didn't get the "sale", so I will have to do better on the next one.

By the way, for a $92K ARV home, with approx $3K in repairs needed, what would be your maximum offer, and what formula would you use to arrive at that number?

Thanks again.

I purchased the Inverse Purchase program about 4 or 5 years ago and it did work; I was able to complete about half a dozen deals. It was no more than wholesaling, using an option contract, to retail buyers who didn't think they could qualify for financing. It was kind of a bait and switch, offering owner financing, then steering them to your mortgage broker and getting them qualified for a mortgage. You still offered them owner financing, but better terms were available through lenders, which of course they took. The thing that made it work was the abundance of financing at the time. What allowed you to get paid when conventional financing was used was the "special invoice" that showed up on the HUD. The credit scores that we got approved then couldn't buy an outhouse now, so I doubt this program would fly in the current market.

Thanks for the replys. As I already knew and you have confimed, short sales live and die by the BPO, and there really isn't much more that I can do. Actually, this home is in very good condition, just needs some updating. Not a lot to work with. Oh well, on to the next one!

Working on a Short Sale that my realtor evaluated at just over 90K ARV (not listed). I met with the BPO agent, and thought she was extremely simpathetic, but the BPO came in at 78K. My offer was 52K, less approx 5k in closing costs and taxes for 08 and 09. The mitigator (EMC, now owned by Chase), at first wanted 100% BPO. After he found out that I wasn't that naive, I immediately got him down to 90%, or about 70K. After some back and forth about market conditions for the area, etc., I told him I would consult with my partner to see if 70K would work for us, knowing already that it wouldn't. I'm looking at a maximum offer of 70% of 90K = 63K, less a minimum of 3K in repairs and replaced appliances. The kitchen and bath need updating, but they are not in the budget at that price. I sent an updated offer of 58K, highlighting negative market conditions, problems with the property (small, needs updating, one bath, etc.) and included 3 comps in the 62 to 68K range for similar or better REOs that sold in the area within the last 12 months.

My questions are, does anyone have any suggestions regarding something I might do to further my case for a lower accepted offer? Should I follow up immediately, or, just wait it out and let him respond to my counter? Have I done anything wrong? Or, should I just chalk this one up to a bad BPO.

Any input would be appreciated.

Hi Jen,

I am in your area (Belvidere) and am focusing on the Rockford area. I am relatively new to this business, having done only a few deals. Be happy to network with you.

Larry Moore