Quick Cash and Short Sales

Thank you

Or a loan that they new they couldn't afford from the get go?????? >>>

Are you insinuating since these banks gave these loans they deserve to be "taken advantage of?" Were the banks solely at fault? Did the borrowers have nothing to do with it? How about the brokers? I personally don't know anyone who lied on a stated income app... do you? I still know people over their head, under water and in dire straights, but if they got into a loan they couldn't afford from the "get go" who's fault is that? Really?

Look like your always on fire, do you have anything against honest investors, no insinuations at all just fact.

Thanks James great for people who don't get it.

who made this mess?

A short sale is never in my experience been easy, however, as an investor

in short sales, the property at hand sells whatever the market will bare,

the negociation with the lender takes an experienced professional to

be successful in doing so. It is challenging and rewarding for all parties.

The banks in most cases love us, because what would they do with out us? I am finding more and more agents turning down short sales, just letting them go back to the bank, then try and get on their listing list and

get 1 to 2% commission and then having to split with their broker. Are you seeing the same?

Well...some good points for the "other" side have been pointed out, however I think these "investors" should be approaching the lenders through their legal departments in an attempt to effectuate these sales ethically. Even though the sellers are still the owners of the properties, the lenders (with authorization) could put together a package of minimum nets on a block of distressed properties in cooperation with legal counsel.

It could be executed through a real estate attorney by offering to buy these short sales at the deep discounts needed to turn profits. These "investors" would probably receive even better pricing if they were willing to commit to these positions in a multiple fashion. In my world, this is the better, safer, and more ethical process real estate investors could pursue. That goes especially for the ones saying that these "sales" are helping the economy & the real estate crisis in correcting itself more quickly.

Now, if lenders "balk" or "stonewall" at these type of open and honest investor inquiries I say....go ahead, it's fair game because "all's fair in love and war". Since then the investors at least have the "proof" that they really tried conveying these offers through the correct channels I would feel confident that their liabilities are much more limited.

You see...the best point against these deals is the FACT that the seller's potential deficiency is being increased by a premeditated "venture" that defrauds the buyer, seller, lender, and (if it applies) the mortgage insurer.

It really IS a great concept, but NOT ONE to try to "mass produce" on every single deal...that to "me" is when it becomes more "sinister"...if you will. Disclosure, disclosure, disclosure!!!!

Remember, these "investors" would be much better served to attend the courthouse steps for auctions in their respective markets. FYI...The lenders have been sending representatives to "the steps" writing down principal balances for over a year and a half now. The profit margins that are available here are awesome and VERY REAL!!! As long as your team has the best "INTEL" gathering the facts like the properties "quick sale" value, title situation, units condition (interior & exterior), and the time/ability to perform quite title (if needed) you're "in the money." I call these properties "accelerated REO's" when I list them because they are always "corporate owned", and I can produce very FAST answers on offers dealing directly with the trustee.

At least by doing it this way there is no homeowner who can come back and try to sue your firm for "increasing their deficiency judgment by leading them into a PREMEDITATED transaction that was suppose to be the highest & best offer" only to find out the whole deal was part of a "double dipper"...and I'm not talking about 31 Flavors!

Not to mention the buyer who bid on what was advertised as a SHORT SALE may be a little pissed when they find out they closed on a "flipped property" or on an assignable contract. What if this guy does his homework and calls foul?

I guess, there are always people that find ways to get around things, but if you have the correct intentions (helping the distressed homeowner reduce the possible deficiency as much as possible, lessening the blow on their credit, and doing your part to rebuild a communities real estate market) you shouldn't have to look over your shoulder.

My firm, after receiving a short sale offer on one of my 60 or so listings, actually writes in the contract (in the special clauses area on the Florida FAR/BAR "as is" contract...we do this when the seller executes the contract before we send it to the lender):

"By accepting, lender agrees to remove all liens and to waive and/or disclaim any and all legal rights to pursue a money or deficiency judgment against the seller."

Shoot...half the time the lenders don't even comment on the "fine print"...its a real nice way to "repay" them for their inequities...no "pun" intended.

LOL!

All I have to say is "Realtor" beware, no one care about what we do or what we stand to lose and we lose everyday that we show property or list and it stays on the market, now we have these hot shot investors trying to make money on the backs of people who can afford it the least!

Quoting Catherine Myers:

Or a loan that they new they couldn't afford from the get go?????? >>>

Are you insinuating since these banks gave these loans they deserve to be "taken advantage of?" Were the banks solely at fault? Did the borrowers have nothing to do with it? How about the brokers? I personally don't know anyone who lied on a stated income app... do you? I still know people over their head, under water and in dire straights, but if they got into a loan they couldn't afford from the "get go" who's fault is that? Really?

I think what he's saying is this:

If you're going to question ethics or the morality of this investment strategy consider this...

If you've been in Real Estate in the last 5 years

and you've had a listing and it was your job as the listing agent to get the highest offer from an end buyer and you, to get the highest offer, have used an APPRAISAL to justify that offer...

or maybe as a buyers agent you have helped someone buy a home with their "pre-approval" letter from their lender that they gave you...

YOU HAVE BEEN "POSSIBLY" INVOLVED IN A SCAM OR FRAUD.

To be so quick to judge and be slinging of ethics here is assuming that things are being done unethically but the thing is any money making opportunity can be used in such a way.

It isn't the strategy...it's people abusing it. And the option contract isn't the issue...you can achieve the same thing with a standard mls contract with contingencies and addendums.

Please...get off the thrown of righteousness...it's okay to build awareness of possible wrong doing especially if you have your license at risk but don't do it from behind your license and "from above". At least that's what these comments insinuate.

Here's to helping the homeowner in need. We need more help...not segregation from investors who do it right.

Peggy, Excellent comments! Look at these numbers people. don't forget the auction fees, legal fees, carrying costs etc. We can make good spreads and save the banks money and they know it. That's why they allow it. We save their assests!