All Forum Posts by: Skylar Howard

Hello all - I need some advice on a deal I'm working on, I welcome any suggestions.

ARV $250k

1st $82k

2nd $52k

repairs $10k

The home owner is one month behind on his payments. With the 2nd in a vunerable position, at first look you would probably say go beat up the 2nd. But, the seller is wanting $20k to walk and deed me the property. The payments are $1050 (piti). Please help!

Good point Remy! Although the preapproval letter has nothing to do with stopping the sale, including it in your packet is key. The banks want to know that their is someone on the other end who is going to close the deal. They are prevy to all of the investors tactics, but if there is someone solid(still could be a investor) they are more inclined to accept close to what you are offering.... This may have been mentioned earlier, but I can't recollect seeing it anywhere. Kudos Remy that was probably the tip of the day if there was such an award. Serious, ladies and gentleman, this is truly a great tip and will make your SS a much easier experience.

There are a couple tactics you can use: hire an attorney to get an emergency hearing (this gives you time to build a case supposing there were errors in the process, believe it or not, there are many errors that are made along the way), the other is BK, though I just have them file to do my due diligence, I never have them go through with it. There would be no reason for them to even work with me if they were planning on filing BK.... It depends on the value the deal has to me, if it is marginal or the bank is known for being difficult, I would just pass.

Mitch- There are a couple reasons why I do this in the manner I do. First, no more liens will be attached to the property. Second, you gain control rather than just having the right to buy the property, wth no risk. And finally, land trusts give you more options when selling. Not only can you sell the deal, you can assign the trust. Once you fully understand a trust, you will understand how much of a tool it really is..... I attached all of the documents needed for a full package here on the site. Minus the HUD there should be everything you need to send to the lender. I really would not advise anyone to do a ss deal w/o the deed!!!

Mitch- send me a pm, I think I can clarify some some of your hurdles. You can absolutely get the sale stopped!!!

Send the same packet to the 2nd. However, they will take under 10%, because of their position. The 1st will be the tougher of the two, obviously. Do not pay that 2nd holder too much, they will probably take $1000, as mnmoney said earlier.

Lu- I would not get the deed transfered to an individual. You are risking raising red flags with the bank.... I'm assuming your talking about wholesaling the shortsales when you are asking if you can turn a profit if the bank is taking a loss. There are several ways- simultaneous closings; get the buyer to pay you outside of closing, ; close the deal then sell it again; sell the trust. There may be others that I'm not aware of, these are the four strategies I've used.... if there are investors here that are not understanding any small portion of the shortsale procees, I welcome your calls. I feel explanations may not be understood as well getting little snipits here and there on the forum. You may actually have detailed questions that other investors may also be questioning. By taking some of these calls I may better serve the forum by posting these topics that I think are routine but not realize they are issues.

Here is everything! This is an update to my earlier post. Every doc you need for the shortsale is here. PLEASE understand, before you use these documents check your local statues. Also, You will need to change some of the information to make it fit your situation. Read them until you understand everyone fully.

Yes, I can't think of a situation where you would need to deviate from this system.

This is rather confusing if you don't understand the process. I will explain it as best I can. If anyone has any questions relating to my explanation, post them and I will answer.....The deed is put into a land trust with the property address as the name of the trust. The homeowner is the is the benificiary and and you are the trustee( I would advise getting a LLC and signing as as the LLC rather than you personaly). When you get the deed signed, you also get an assignment of beneficial interest, assigning the interset to you. The deed gets filed, the trust goes into your filing cabinet and doesn't get filed. Therefore, there will be no red flags with the bank and no the bank will not come after you for payments. The only time you will need to present the trust is at closing. Please don't hesitate to post questions, as I really do understand it is quite a bit to absorb initially. Good luck!