Sep
22
Closing and Funding Short Sale Deals With Transactional Funding
Filed Under Justin Lee Foreclosure Course | 1 Comment
If you’re a preforeclosure investor, with the tightening
credit markets, you have no doubt noticed how much more
difficult it is these days to close short sale deals.
Short Sale Formula is a comprehensive course that will
provide you everything you need to put together a short
sale packet, outsource your short sale negotiations and
then use a back-to-back closing to close your shortsale.
In the past, plenty of hard money options, along with
double closings and simultaneous closings made closing
short sales a breeze. However, with the credit crunch,
mortgage fraud, and tighter restrictions with lenders
and title companies, closing shortsale isn’t as easy
as it used to be.
However, there is still one very simple and easy
way to close your shortsale transactions without
using double closings, hard money, simultaneous
closings, or even the over complex land trusts.
That method is using back-to-back closings to
get all of your short sale deals closed and
funded on time. Short Sale Formula will teach
you how to conduct back-to-back closings once
a short sale has been negotiated. Back to back
closings take a short sale deal and turn it
into two separate and distinct transactions.
The first transaction is the homeowner facing
foreclosure selling to the preforeclosure
investor. The second transaction is the real
estate investor then selling the property to
the end retail buyer. However, even if you
are using a back to back closing, and your
end retails buyer has secured their funds,
what makes this work is that you need to
secure your own funding, as the real estate
investor.
So where do you get this funding of your deals?
This is often called transactional funding,
and today, there are many lenders making these
types of loans. Lenders love transactional
funding, because they are only lending for
a period of a few hours.
With the end buyer’s loan already approved
and in place, two separate and distinct
transactions take place on the closing day.
The first is the investor purchasing the short
sale deal from the distressed homeowner.
This is funded by the transactional funding company.
Immediately after this transaction has closed,
the investor is then turning around and immediately
selling the property to the end buyer.
The end buyer is using funds obtained by him through
a traditional loan, or cash. Most conventional lenders
today won’t have any issue funding these loans.
The only such exception are FHA loans, which at
the time of writing this article, have a 90 day
seasoning requirement. However, as the real estate
market changes, and the housing market remains
volatile, it is very possible that the FHA might
change its guidelines.
Transactional funding is the perfect way for
preforeclosure investors to fund their short
sale deals in today’s foreclosure ridden market.
There are plenty of choices for funding companies,
all willing to fund these simple, easy shortsale
transactions. Short Sale Formula provides a short
sale training that shows you exactly how to put
together a short sale packet for successful
negotiation as well as how to close and fund a
deal once the successful negotiation is complete.
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Sep
22
Closing Short Sale Deals With Back To Back Closings and Option Agreements
Filed Under Justin Lee Foreclosure Course | 1 Comment
If you’re a preforeclosure investor, with the
tightening credit markets, you have no doubt
noticed how much more difficult it is these
days to close short sale deals.
In the past, plenty of hard money options,
along with double closings and simultaneous
closings made closing short sales a breeze.
However, with the credit crunch, mortgage fraud,
and tighter restrictions with lenders and title
companies, closing short sales isn’t as easy as
it used to be.
However, there is still one very simple and easy
way to close your short sale transactions without
using double closings, hard money, simultaneous
closings, or even the over complex land trusts.
That method is using back-to-back closings to get
all of your short sale deals closed and funded
on time. Back to back closings take a short sale
deal and turn it into two separate and distinct
transactions. The first transaction is the
homeowner facing foreclosure selling to the
preforeclosure investor. The second transaction
is the real estate investor then selling the
property to the end retail buyer.
The easy, legal way for the real estate investor
to do this type of transaction is through the use
of an option contract. The option contract gives
the real estate investor a vested legal interest
in the property through an Option Agreement.
The option is subject to the approval of the
short sale.
Once the short sale is approved, then
preforeclosure investor must complete the
second transaction. That transaction involves
the investor selling the property to an end
retail buyer. The preforeclosure investor can
legally sell the property, because he has executed
an Option Agreement. This Option Agreement, which
should be recorded at the local county courthouse
for where the subject property is located, gives
the investor the legal right to sell and market
the property.
Before attempting to use a back to back closing,
the preforeclosure investor should make sure that
they have all of the necessary forms and documentation
to remain in compliance. Without the correct forms,
addendums, and notarized signatures, the preforeclosure
investor risks the transaction not closing on time,
or even worse, not at all.
Short sales do not have to be a complex transaction
if the investor arms himself with the proper tools
and techniques. Back to back closings are the simplest
and easiest way to close short sale deals in today’s
ever changing and volatile real estate market.
They are widely accepted by lenders, title companies,
and title insurance companies throughout the United States.
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Sep
22
Outsourcing Your Short Sale Deals For Preforeclosure Investors
Filed Under Justin Lee Foreclosure Course | Leave a Comment
If you’ve been investing in real estate, and more
specifically preforeclosures, then there’s no
doubt that you’ve come across a short sale deal.
A short sale is when the lender agrees to accept
less than what is owed against the property in
exchange for full acceptance of payment of the
loan. In other words, if the loan balance is
$400,000 but the bank accepts $300,000 as full
payoff, then a short sale has occurred.
Many investors find short sales different to
negotiate and complete. The reason is that
lenders are constantly changing their rules
and practices, and short sales by nature are
complex and time consuming. This is a reason
that many smart preforeclosure investors
today choose to outsource their short sales.
Outsourcing your short sales is simple.
You would still meet with the homeowner
and get all of the necessary paperwork to
ensure a complete short sale packet. But
after that, the ease and simplicity of
outsourcing takes over. The investor simply
sends the complete short sale packet to their
outsourcing company, and they are the ones
that then do all of the work on behalf of the investor.
The investor’s time is freed up considerably,
as they no longer have to sit on hold, fax
paperwork, or do other mundane tasks associated
with negotiating a short sale. The outsourced
short sale company takes care of all of this
work for the investor.
Outsourcing your short sales makes perfect
sense as a real estate investor. Since the
outsourcing company is working on many files
for many different investors, they are
building more relationships faster at a wide
variety of lenders. They have a larger rolodex
of contacts at more banks, and have a proven
track record of closing deals with many lenders,
thereby making their files and their deals
more desirable for the lender to look at.
In today’s world of outsourcing, it’s no longer
necessary for a real estate investor to negotiates
his own short sales. In fact, it’s not a good use
of their time. Preforeclosure investors should be
focused on buying and selling properties, not
negotiating short sales or faxing documents to
lenders trying to get a short sale deal closed.
Outsourcing short sales allows real estate investors
to work on more deals at once, and have a virtual
team of experts on his staff, without the overhead.
The best outsourced short sale companies are paid
on performance, after they have negotiated the
short sale deal to the price that the investor
has set. This makes outsourcing a no risk
proposition for the smart preforeclosure investor.
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Sep
22
If you’re going to be working on a short sale as
a real estate investor, a realtor, or even a
homeowner, one of the most important things
that you need to do is put together a
Without a complete short
sale packet, your file will not even be opened,
let alone reviewed. In other words, you can
forget about getting your short sale approved
if you can’t even put together a proper package.
So how do you ensure putting together a proper
and complete short sale package? Well the first
step is realize that every single lender in
America has different requirements. So what
does that mean to you? Well, that means that
the first step is to contact that specific lender.
I would recommend asking for the loss mitigation
department, or the workout department, or the short
sale department. Every single lender has different
terminology.
Remember that many lenders won’t even send you a
generic package unless you have a signed Letter of
Authorization from your borrower. However once you
have this letter signed and dated by your borrower,
including their loan number and Social Security Number,
you can easily obtain the short sale packet from the lender.
Once you have the packet back from the lender,
make sure you review it carefully. Different lenders
have different requirements. However, all lenders
have some basic requirements that you’ll need to
get your short sale packet complete.
Next is a hardship letter, which is written by the
borrower and should indicate exactly why they fell
behind on their mortgage payments, and why they
can’t afford the property anymore. It should be
typed and then signed by each borrower on the loan.
A purchase and sale agreement also needs to be
included in the packet, showing that the homeowner
does indeed want to sell the home.
A borrower’s financial information form is also needed.
This shows the lender a snapshot of the borrower’s finances.
The borrower has to indicate exactly how much money
he is making, each month, after taxes. He is then
comparing that to his monthly expenses. Monthly
expenses not only include his mortgage and taxes,
but all of his bills, utilities, transport costs,
groceries and anything else that he spends his
monthly income on.
The homeowner is also going to have to compile
2 months of bank statements and pay stubs,
along with his last two years of tax returns.
Investors should also include other supporting
documentation to strengthen their argument
about the value of the property. This can
include comparable sales, otherwise known
as “comps”, along with contractor repairs
for estimates.
Finally, a HUD1 or a “net sheet” is something
that every lender is going to want to see
included in your short sale packets.
Remember that every lender is different, and
will have different guidelines, but if you
follow the outline of this article, and
combine that with the specific short sale
packet from the lender that you’re working
with, you should quickly, easily and accurately
be able to complete a short sale packet,
and have the lender review your file.
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Sep
9
Andy Proper is releasing Be A Virtual Bird Dog Blueprint on September 10, 2008
Filed Under Probates by Preston Ely | 10 Comments
A new Real Estate Investing Training System helps people become
a Virtual Real Estate Bird Dog. Andy Proper is releasing Be A
Virtual Bird Dog Blueprint on September 10, 2008.
Terry Wygal reviews the How To Be A Real Estate Bird Dog
http://andyproperandterrywygal.com and gives some ideas on
how to become a real estate investor. Learning how to invest
in real estate is one of the most difficult challenges for New
Real Estate Investors and is teaching successful clients through
real estate investing video training. Being a Virtual Real Estate
Bird Dog is a great way to start and Andy has provided a
fantastic and very successful blueprint to follow.
This great system can be found at
http://www.AndyProperandTerryWygal.com
Terry Wygal – The Quick House Buyer
http://www.AndyProperandTerryWygal.com
said “I am going to make sure that everyone of
my private clients have a copy regardless of their experience.
That way if they tell me they don’t know where to start I can say -
Go Read Andy Proper again.”
Terry Wygal – The Quick House Buyer ”
Successful real estate bird dogs are making good amount
of money by locating deals for their investors whether in
good or bad times.
That is real estate “bird dogs” get a referral fee for finding
good deals for other investors.
This is often where people begin their investing career as there
is only time at stake. They are typically paid when the deal closes.
Typical fees for real estate bird dogs range between $500
and $3000.00 dollars.
On the other hand, some real estate bird dogs bird dogs will
structure companies and partnership arrangements as they’re
frequently not real estate agents and may not be able to
collect a “referral fee” for their services.
Terry Wygal – The Quick House Buyer , in discussing
Andy Proper’s Virtual Bird Dog Blueprint from
http://www.AndyProperandTerryWygal.com
added
“I gave up my Labor Day Vacation to read The Virtual Bird Dog Blueprint.
Andy, When I started out I knew that I was just not comfortable
enough to sign my name on the dotted line – and that I did not
have enough experience to find deals on my own. How I wish
I had a course like this! Being a real estate bird dog was a great
way to get started in learning How to invest in real estate.
I have given this Virtual Real Estate Bird Dog Blueprint course
Two Thumbs Up!”
Becoming a real estate bird dog provides a number of benefits
as it allows you to earn while learning the ways and means
of real estate investing.
And the old adage which says practice makes you perfect
works perfectly well when it comes to real estate bird dogging.
Being a real estate bird dog allows you to practice real estate investing,
because you can follow the progress of each of the homes that you
were paid to locate, and eventually learn many things from the
experts in real estate investing while doing the business.
To find out more about this great system please visit
http://www.AndyProperandTerryWygal.com
Yes Terry! Please Rush Me My FREE Gift CD's
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Kiss My Job Goodbye By Discovering...
"The Most Phenomenal FREE Real
Estate
Investing Gift Ever..."
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Information
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