All Forum Posts by: Mitch Freed

Well one thing with the banks...I can't imagine they've got the time or resources to investigate issues like this.

But let's give them the benefit of the doubt for arguments sake. Are we even sure they have a claim? So they write up a letter stating that the property cant be sold for 30 days...or else what? If they make a claim what is the damage done to them? They accepted the wire transfer in the short sale closing...if they thought the property was worth more then why did they approve the contract sales price. Good luck convincing the court that even though they accepted the money in closing...they somehow have claim to more just because the property was re-sold within 30 days.

And about the 30 days...they came up with that number...whats to stop them from saying 6 months...12 months..etc...

So I think they are full of it....but it is working because title companies don't want to do anything that compromises their business.

So, if the B to C transaction really wants to close in escrow but the title company doesn't like the 30 day wording in that letter...you can always sign a document to indemnify the title co. in case the bank tries to pursue something after the fact.

But here is what I don't get...the bank has no ownership interest in these properties, they are just the seller's lender...therefore how can they make a claim regarding ownership and future transfers?

I mean, we don't have the right to go back to the bank (or the seller) after the Short Sale and make a claim if the property value decreases 30 days later.

Hi Will,

It's actually not as complicated as it initially sounds. I have closed some deals like this already.

I write the offer, get the approval in my name (or LLC name) and actually close in that name. My end buyer is most likely another investor that I have done business with in the past...therefore there is a relationship between us. I agree that if the end buyer doesn't know me then there could be some trust issues...especially since I am using their funds to close. But wholesale deals are done all the time between parties that didn't know each other before hand...if everybody is comfortable with the situation and the proper paperwork is drawn up...no big deal.

Now, as far as doing anything outside of closing...once I own the house I can do whatever I want with it. If I choose to deed the property to my so called "lender" for a consideration of 5k...how is that illegal?

What if we decide to go down to the county recorders office and file the deed...not everything has to be done through a title company.

And as far as a title policy...everything is taken care of in the short sale closing...plus, as a real estate investor paying cash, others can attest to this, we do so much due diligence before we purchase...how many can say a title policy is really worth anything? I believe they exist for those who are getting financing to purchase because the lenders require it. Read through a title policy...there are so many ways a title agency isn't liable its rediculous. I'm not saying don't get a title policy in the short sale closing, just saying let's not let these deals fall through due to that being an issue.

In this scenario the end buyer is funding the deal in the short sale closing...at which point a title policy is issued...the protection is there.

If the big worry with B of A is the title company not writing a policy to the end buyer within 30 days...just have the end buyer take the deed down to the county recorder immediately after the closing...don't even wait 30 days, and that solves the other problem you presented of the end buyer holding the deed with all their cash in the deal.

You could just tell escrow that the end buyer is your private money lender and that they require to go on title with you.

After the transaction is completed, deed the property over to your end buyer.

If they don't like your "lender" going on title with you..then secure them with a deed of trust...and then deed the property to them after the transaction closes.

So here is an update for anybody still interested...and for those who encounter RTR in the future.

RTR finally settled at 6,499...the original figure they demanded was 12k. The approval letter doesn't state how we need to come up with the funds...but in an email they stated:

$3,000 comes out of the contract sales price...which is what Litton allows in their approval letter.

$2,000 comes from seller

$1,499 comes from commission reduction (5% to 4%)

I was forwarded an email thread from the higher ups at Litton and RTR...very interesting stuff...I will attach it if I can figure out how...or send it to anybody who wants it. It provides some insight on how the first and 2nd work with one another.

Assuming the end buyer is cash...why not secure them with a deed of trust in the short sale closing...use their funds to close...sign and notarize a deed...stick it in a drawer for 30 days...and once that time passes...have the end buyer record the deed.

Anybody currently purchasing 60 day late leads? If so, from who?

I have previously purchased from a company called Kingsbridge Lists...but can't seem to get a response from the salesperson I used initially...and the phone number provided on their website has been disconnected...not a good sign.

Anyways, any help would be greatly appreciated. Thanks!

The tax lien and the child support lien will be tough to negotiate...what kind of tax lien is it..property or income? Either way they follow the property so they really don't have any reason to sell short.

The 5k lien you can certainly work with.

Have you decided what price you will start with?

Bank of America actually isn't that bad to work with...they are more organized than the other lenders...at least that is the experience I have had with the shorts I've closed with them so far.

I'm hoping the $13,487 figure is a typo...if FMV is around 130k...a BPO will come in close to this..making adjustments down for the fact it is distressed and if it needs any work. The value has to be backed up by comps.

B of A has preliminary evaluators...if your offer fits in their range..they will order a BPO...but if it is something like 13k...cmon.

Well it looks like RTR has become a thorn in the side of Litton for sure.

I received an update from the Litton negotiator this morning letting me know RTR has become a major issue for several accounts.

They are working to resolve it....we will see.

I like the idea of the settlement outside of closing...convincing the seller to contribute however may be harder than getting RTR to play ball.

I believe Craig may be the same level as Eric...apparently they are both senior negotiators. But I do know that they have a supervisor...so I'm trying to get contact info for whoever that is.

I imagine there is some middle ground...could be a combination of realtors giving up some commission dollars and Litton allowing a bit more to RTR in closing.

RTR must figure that if they play hardball long enough eventually some more money will come their way...other bigger lenders/servicers seem to settle at 3k no problem but that could be because they don't have the time/resources to negotiate for more money.

Scott,

Many thanks! I will definitely call you tomorrow.