All Forum Posts by: Mitch Freed

Guru,

Thank you for the help! Very good info!

Mitch

I like the postcard idea...what would you guys say drives homeowners to call you...the text in the postcard, or do you keep your layout pretty simple...just providing an auction date and if they have questions to call your 800 number?

I have sent out letters, kept the text pretty simple, actually hand signed them...but have not had any responses. I didn't include the auction date which I will do from now on...any suggestions on key words to include for homeowners whose auction date is about 3-5 months away.

Thanks.

Yes that is true. The seller must approve the offer and sign off on it before it gets sent to the bank. Otherwise the bank won't even look at it.

It looks like the seller hasn't quite realized yet the gravity of their situation. One question, how many short sale negotiations has this particular realtor even closed? She may not have even mentioned the possibility of a short sale negotiation to the seller...therefore, if the seller doesn't know the bank may accept less than what is fully owed, then of course he will reject any offer that is less.

Your issue may be with the realtor. Convince the realtor that if she doesn't get the seller to play ball...everybody loses.

Mainly the short sale reason. But also to have more time to allow for a solution.

For the short sale negotiation I see people recommending to always mention that the homeowners are considering bankruptcy...I thought it might be good to know exactly why the lenders see this as such a threat.

Thanks!

Mitch

The article came out in the January 30th Willamette Week. The link is as follows:

http://wweek.com/editorial/3412/10302/

Mitch

Yea I agree timing isn't on my side this time. Homeowners just wait too late to make a phone call.

Josh,

It looks like a short sale negotiation may be your best option. I would recommend presenting a solid case to the previous homeowners and definitely threaten bankruptcy. Is the house on the market? If not, short sale negotiations are tougher. Lenders like to see a solid attempt to sell the home and when it doesn't sell and sits on the market for a long time...negotations become easier.

What about any renovations that need to be done to get the home to saleable quality...you can always get bids from contractors, inspectors etc..your goal is to make the home look like a bad deal for anybody, especially for the previous homeowners who will lose money in the long run if they foreclose on the home (or at least you want them to think so)

If they ask you why you want the home so bad...just tell them that it fits your criteria...size, bed/bad etc...

Hope that helps.

Can anybody elaborate on how exactly a banktruptcy slows down the foreclosure process and delays the trustee's sale? I understand that I would need to consult an attorney to obtain guaranteed advice...but any general outline of what happens to the home would be great. Thanks in advance!

Mitch

I agree, leasing/renting back to homeowners after a short sale is a bad idea for many reasons. I have heard from many sources that a Lease Option to the previous homeowner after a short sale negotitation could be considered as Mortgage Fraud. The last thing we need is a bad rep with the lenders who we are trying to get to release liens.

An article came out yesterday in a local Portland, OR paper outlining predatory schemes that "foreclosure consultants" are practicing. They are targeting the elderly especially. One of the schemes they outline involves purchasing the home and renting back to the homeowners. This leaves the homeowners with no equity and wide open to eviction. The article has a picture of a big Vulture with house keys in its mouth sitting on top of a mailbox...nice depiction huh? This may not be illegal, but there is a police detective involved investigating what she calls "Mortgage Rescue Fraud," along with legislators aimed at shutting down these rescue scams.

I am confident nobody here has any intentions of practicing these predatory habits, but we are all exposed to potential claims when dealing with the previous homeowners.

Hi MnMoney,

In your mini-book you mentioned the conversation with the lender attempting to get them to reveal their BPO or appraisal. I like that tactic but what if the lender asks you how you obtained the information..I am sure they would be curious how you got your figure before they just open up completely and reveal the BPO they received. Any thoughts as to a good response if they come back with that question?

Thanks!

Mitch