|
Author: D.C. Fowler Article source: http://www.reiclub.com/. Used with author's permission.
1. What happens to the seller's credit rating when they allow an investor to short sell their property?
What typically happens is the loan will show up as "paid" on their credit report; however there will be a notation that says "settled for less than originally owed" or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure on their credit report.
2. Where do you find investors for Short Sales?
Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are experienced in doing short sales and if they would be interested in working with you. Another good place is your local real estate investors club meeting.
3. Define Short Sale?
A short sale is really a form of pre-foreclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale results in a discounted purchase price for the buyer. The buyer would finance the acquisition much the same as in any conventional realty acquisition... but without the luxury of time.
4. Can an owner profit from a Short Sale?
The seller cannot profit (monetarily) from a pre-foreclosure short sale..But there are always exceptions to the rule.
5. How do bankruptcies affect the possibility of doing a short sale?
Most mortgagees won't consider a short sale if the homeowner is in bankruptcy...why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.
6. Can somebody tell me what documents do I have to include in a Short Sale package?
Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, ECOR,settlement statement (HUD 1), net sheet, pay stubs, bank statements,personal financial sheet (monthly budget), amongst other things.
7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?
All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.
8. How late in the pre-foreclosure process can you start a short sale?
Try to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure short sale.
9. What is a Due on Sale Clause?
"Due on Sale" Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender's security instrument upon a sale of all or any part of the real property securing the loan without the lender's prior written consent. For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.
10. Will banks allow a short sale when the owner has some or a good amount of equity?
If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale. Mr. Fowler has been a real estate investor for over 15 years specializing in the area of pre-foreclosure/short sale investing. He has bought and sold over 200 homes in Georgia, Florida, Louisiana, and Tennessee using the same short sale techniques that he teaches in his course, Making Money with Short Sales: The Complete Guide to Acquiring Property Pre-Foreclosure. Mr. Fowler currently resides in Atlanta Georgia. He also spends many hours per month teaching his creative real estate investing techniques to other aspiring investors across the country.
http://www.ShortSaleDeals.com
How to Give a Great Speech
As a former owner of a National Speakers Bureau, I have learned from several thousand professional speakers "How to Give a Great Speech." Here are some techniq...
Rules for Running a Meeting
As an experienced manager, I can announce without a doubt that the primary reason for lack of effectiveness in the contemporary business world is that people do...
Spa Etiquette - What You Need to Know
Canadian spas offer many innovative ways to experience spa. The Spas in Canada website provides a place where premier spas and industry professionals offer use...
Is It Legal? - Indecent Naming With Tradition
When Mitsubishi launched a new car with the name "Pajero" on the Spanish market, it became obvious very soon that the name chosen was not optimal because it imm...
The Healing Power Of Forgiveness
When we forgive others, we learn to heal the wounds that they have inflicted upon us. We forgive them for our own sake. We break the karmic bonds between us a...
131 (Legitimate) Link Building Strategies
131 (Legitimate) Link Building Strategies... "The Definitive Source of Link Building Strategies on the Internet" Co-authored by Robin Nobles, Eric Ward, and Jo...
Finding A Capable Agent To Meet Your Real Estate Needs
Whether you're a first-time buyer, selling your current home or relocating to a different part of the country, the support of a qualified, knowledgeable real es...
Why Cant I Remember Your Name?
You're terrible with names. You forget someone's name within ten seconds of their introduction, and it embarrasses you. In fact, it's possible you won't even ...
Business - How to Build it Using the Media
Have you ever noticed that when someone is interviewed on
radio, television or in the newspapers about a particular
subject, it tends to be the same people? You...
How Does One Know the Difference Between Spirit to Manifest Something and Needing to Change
How does one know the difference between needing to be patient for spirit to manifest something and need to change something in what one is doing? I get confus...
Celtic Jewelry - A Beautiful Mystery Unraveled
Celtic jewelry like the Celts themselves has a rich history and a proud tradition. Immensely beautiful with intricate Celtic symbols and delicate designs, Celt...
The Winning Combo!
Everyone has a passion in them. It may be buried deeply, but it's there. All we have to do is to discover it.
Protect Your Mobile Phone Pictures and Videos
As more and more of us become owners of the latest camera phones and are able to capture information at a touch of a button, a new trend is being set in the wor...
Ability, Motivation, and Attitude
"Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it." Lou Holtz
The Great 8 Eating Tips for Fast Weight Loss @ Body Perfect Fitness
Your Fat Weight Loss Tips for Permanent Weight Loss
Marketing Secrets #101- Your Most Important Sale
What is your most important sale? It's not what you think...
Decorate for Thanksgiving
I am thinking about sticking with the umbers I see outside this time of year (November). I already bought my border for the kitchen at a B&B we went to a couple...
Heart of the Home - Faux Finished Kitchen Cabinetry
Faux finished cabinets are finding a welcome home in today's kitchens.
From the most timeworn distressed looks to high-end lacquered finishes
a decorative pa...
Treat Cold, Flu, and Ear Infection the Natural Way
Salt therapy helps in preventing and treating the ear infection (otitis media) in children and improves your body resistance to cold and flu.
Owning a Wild or Exotic Cat; Information, Laws, and Advice
Have you ever dreamed of living with a bobcat or having a pet tiger? You're not alone, and many people share their lives responsibly and safely with such anima...
Your Image Can Affect Your Success
Looking successful is just as important as being successful. Whether we like it or not, people judge us in a number of ways. To be credible we have to look like...
Using Autoresponders In Your Online Business
The use of autoresponders in online business.
Mortgage Marketing - How to Find Your Niche
What do Ann Landers, Dr. Phil and Roger Ebert have in common?
Hello! I Cant Sell!
What's that you say? You can't sell? Oh, you must be right, although you are selling me right now! A good friend of mine once said to me, "Life is sales....
|
Print this page