Today I would like share with you maybe the most important principle in Short Sales. This simple principle will make you lots of money and ensure you earn well for years and years, not just in short sales but in any business.
Be Helpful: Take care of your clients, and they will take care of you.
The Short Sales business is a clear example of a business in which one person's poison is another person's meal. To be successful in Short Sales, you need to resolve the seller's and the creditor's financial problem associated with the property. Whether you are an agent or an investor, as a short seller, your job is to fix this situation such that the both seller and creditor arrive to an acceptable compromise. It is your ability to solve these issues that makes you valuable.
For you to provide a solution, and therefore be helpful, there needs to a real and perceived problem.
The seller and the creditor need to have a problem
The seller and the creditor need to perceive the problem
Let me explain you:
In life, perception is reality. That a client's property is causing a huge financial problem doesn't necessarily mean that the client is aware of the long term consequences. Sometimes the client perceives that loosing the property is not a big deal. As a result, despite truly needing your help, the client will feel that you are un-necessary. In this case you can't be helpful to him. So move on. It will be a waste of time.
The same is true in the case of the creditor. If the creditor, correctly or mistakenly, perceives he can recover more of the debt through a foreclosure sale, the creditor will not cooperate. In this case, arrive at the best possible solution, or move on.
Work Only Motivated Clients & Creditors
As you can see, it is not just the problem that makes clients and creditors cooperate, but almost as importantly, their perception of the problem. Motivated clients and creditors correctly acknowledge and perceive the situation. Therefore they consider you helpful to their needs. Work only with motivated clients and creditors. You will have a lot more closings!
Short Sale Effectiveness
If you are serious about Short Sales, I strongly recommend you to take Short Sales A-Z. This downloadable online video course is comprehensive. It will teach you all the ropes of the business. The knowledge you will acquire will pay for itself over and over. Not only that. Unlike other short sale materials, this course is concise, enjoyable to study and easy to review. With this course there is no need to go through tons of binders and endless repetitive CDs. In five hours you will be ready to start acting. HERE is what other students say.
Invest in Your Education
I guarantee you Short Sales A-Z will be one of the best real estate investments you will ever make. What you will learn will pay for itself over and over!
A Great Value
Short Sales A-Z gives you the most value of any of the courses out there. Do your own research to confirm this. There are plenty of courses available. Most of them are several times more expensive and offer less. Others offer un-necessary coaching with far away trainers. If they cost less, they are usually teasers designed for you to buy a more expensive program.
Thanks for contacting me for this. I am in the process of creating a "Do It Your Self Debt Settlement" course. "Charged Off" means that the creditor sold the debt for to a third party at a loss. You will most likely get a 1099C for the lenders losses. Now you owe the debt to someone else. You can pay that debt when you can. If you can't right now, don't stress too much but be on top of it. It will not be forgiven. If you don't pay it, it will eventually become Zombie debt. That is debt likely to re-surface sometime in the future. That will probably be at a bad moment for you. Most likely the people that bought your debt will track you for triggers until you pay them on a settlement (and beyond). So settle them when you can. Another thing to look at is bankruptcy. The thing is to eliminate the problem as soon as you can. You can also work with a debt settlement company. I can connect you for this. Does this help? Let me know.
NOTE: I replied you last Friday. Washington state does not have a purchase money protection statute. You attorney is right. You owe that money.
Let me know about this developments. That will help me better attend clients. Thanks.
Sincerely,
Oscar
Oscar, the second mortgage amount was for approximately 65,000.00 and it was purchase money. After consulting with my attorney xxxx regarding this matter, I asked him to draft a letter explaining my situation and asked to settle for 6500.00 or essentially 10 percent which is what most banks agree to if there is a short sale on the property. A couple weeks later the lawyers for Citibank counter offered with 16,490.00 and two months to pay it off. Although that is generous and I appreciate their grace in this matter, the truth is if I had 16,490.00 I would have been able to keep my house and avoid foreclosure. Also, I would need a lot more than two months to pay that kind of money. I havent responded to them yet as i've been seeking a second opinion. I looked at my credit report and it says the debt has been settled and written off. Im a little confused then as to why im being pursued. Is this just a lawyers office/ debt collection agency that has bought the debt and is looking for a return? I dont want to and cant afford to pay 16,490.00 for something that has possibly been written off anyway. I know you are a busy person and I greatly appreciate you taking the time to respond and look into this for me. xxxxxx
One of my clients just inquired about the following. I consulted this with my local real estate attorney.
Situation:
The client had two mortgages on the house. This were original purchase money loans. NO refi or Heloc. The client got foreclosed. The second mortgage holder is now after the homeowner. They are threatening law suit. Can that happen?
Reply:
Oscar:
I do not believe there is any protection for "purchase money" mortgages in WA.
Here is the relevant portions of the statute. There is no deficiency judgment if the elected remedy is a non-judicial trustee sale foreclosure and the sale is active or goes through. However, any lender can elect to seek recovery on the note instead of foreclosing, which is what a second-position lender out-of-equity is likely to do.
RCW 61.24.100
•(1) Except to the extent permitted in this section for deeds of trust securing commercial loans, a deficiency judgment shall not be obtained on the obligations secured by a deed of trust against any borrower, grantor, or guarantor after a trustee's sale under that deed of trust.
(2)(a) Nothing in this chapter precludes an action against any person liable on the obligations secured by a deed of trust or any guarantor prior to a notice of trustee's sale being given pursuant to this chapter or after the discontinuance of the trustee's sale.
It seems like the 1st foreclosed so now the 2nd is coming after them personally on the note, which appears to be allowable.
I understand that you did not refinance. You bought the house with the mortgages present at the time of foreclosure. Is that right? The majority of states have purchase money protection statutes. Oregon and California do for sure. Maybe Washington does not. There are some caveats as well. For example, in Oregon, once the second mortgage is over around $120K, it is treated differently.
I work in Oregon and Washington, so this knowledge is very important to me. I will ask my local Washington attorney for my own knowledge sake. They deal with this issues all the time. Often they take legal action against the banks. That seems to work. Maybe I can get an answer for you today. If not, in a few weeks. He is about to go on vacations.
The issue is this. Lets say that Washington state does not have purchase money protection. If they want to force you into paying they need to take legal action. This takes a long time to even get started. Depending on how much is that second mortgage, interest rate, arrears and likelihood that you can ever pay, it may not be worth them suing you. Chances are you can settle them for less. You may look into bankruptcy alternatives as well. You may discharge them that way, or force them into settlement for less than owed. Keep me informed. This is a hugely important subject.
Oscar
At 10:52 PM 10/29/2009, you wrote:
You've received a contact message from your Contact Form on the ActiveRain network.
Oscar, after an exhaustive number of attempts to work with my lender to keep my home i sadly lost it to foreclosure. Now the second mortgage lender is threatening to take me to court for the balance on the second. The different professionals i worked with through this ordeal told me that the second mortgage goes away after a foreclosure when its purchase money (which it was) but they can come after you only if its refinance or equity line of credit money. After I recieved the letter from the attorney supposedly working for Citibank, I contacted a real estate lawyer in Lynnwood, WA and he stated that I was in fact responsible to pay this debt. Im being referred to you by my friend and mortgage specialist xxx of Lynnwood, WA and I hope you can advise me on this matter or put me in contact with someone you work with and trust. Thank you for your time. xxx Bothell, WA xxxx
Oscar Morante www.bestshortsales.com oscar@bestshortsales.com Ph: 971-222-3734 Fx: 503-296-5663 9220 SW Barbur Blvd. Suite 119 - #159 Portland, Or 97219
This is the list of most challenging lenders for getting loan mods and short sales.
Need short sale or loan modification help? If you are in the Portland Metro area call me a 971-222-3734 or email me at info@bestshortsales.com
LENDERS THAT ARE CHALLENGING TO WORK WITH: (We recommend a Forensic Loan Audit be conducted with these lenders) · Indy Mac* · US Bank · CitiMortgage · Wilshire Credit Corp. · First Franklin · Flag Star · Ocwen · Credit Unions · Sun Trust Mortgage · HSBC · Downey Savings
*Are not postponing sale dates even if the file is in review and will not do investments regardless if it's occupied.
When it comes to loan mods, it is critical to know which lenders are most cooperative. Below is the list of most cooperative lenders for loan mods. This lenders are also more helpful with short sales.
If you are in the Portland Metro Area contact me at info@nwlossmit.com or 971-222-3734. I can help you with your loan modification and short sale needs.
MOST COOPERATIVE LENDERS: · Bank of America/Country Wide* · CHASE/WAMU/EMC · Aurora · Wells Fargo · SLS** · GMAC/Home Comings · Wachovia · Litton · National City Mortgage · Saxon Mortgage Services · Select Portfolio Services
*Will not modify loans on investments regardless if they are occupied.
Fantastic Bargain : By far best priced property in the area
Contact Oscar Morante, Realtor 971-222-3734 for access.
Beautiful home. Kitchen Whirlpool appliances & oak cabinets. Gas fireplace in family room, formal dining, 9' ceiling on main, Master suite w/jet tub & w/in closet. Beautiful landscaping, spinkler system. Conveniently located min. to Home Depot, Costco, I-205, I-5
By far the best priced property in the neighborhood as well as one of the best ones. RMLS # 9067449
This pictures are from 2006 when the property was vacant, just prior to purchase. The property is presently occupied but very well maintened.
Call Oscar at 971-222-3734 for access.
This is a short sale. This will take little patience, but it will be worth your while. We are experienced short sale agents. See info at www.OscarPDX.com.
Time: 9:00am to 1:00pm (Check in starts at 8:15am)
Location: Phoenix Inn, 9575 SW Locust St, Tigard, OR 97223
Objective: Explain exactly how to settle credit card debt by your self for cents on the dollar
Presenter: Oscar Morante - Author, Realtor and debt settlement expert
Panel: Bankruptcy attorney
Real estate attorney
Credit repair specialist
Are you or anyone you know overwhelmed by unmanageable debt?
Attend this event! You will learn exactly how to solve this situation.
Full content event
Ask the experts
Seminar Description: In this event you will learn exactly how to settle credit card debt for pennies on the dollar. This is not rocket science, but if you want to do it, you need to learn. Why re-invent the wheel. You only have one shot at this. If you do it right, it will be a good result. If you do it wrong, you will lose your money and remain in debt. This event will be presented by Oscar Morante, a do it your self debt settlement expert. In addition to the main presentation, there will be a 30 minutes questions and answer session with an expert panel. The panel will have a bankruptcy attorney, a real estate attorney and a credit repair specialist. If you or a loved one is crippled by unmanageable debt, you must attend.
Seminar Outline
08:15am Start check in
09:00am Introduction
09:10am Understanding the debt situation Why there is so much debt
Hi, this is Oscar. I have been in Portland for already 16 years. This is a great place to live. Do you want to move here? Right now is a good moment. I know PDX like the palm of my hand. I moved to Portland in 1994. I officially came for two weeks. One thing led to another, and here I am, established and happy. Most likely I will be hear many more years.
My first job in Portland was in downtown. At that time, if you were cheap, and not wanting to pay for parking, you parked in the dirt and gravel streets of what now is the Pearl. At that time, if you parked there, you should not be a women walking by your self at night to your car, mind if the car was broken into or see plenty of homeless. What a change! Now the Pearl is the an entirely different world. Now, as an agent, I am dedicated to saving homeowners from foreclosure, and getting buyers the best possible deal.
To me, the best place in The Pearl, by far is the 24 Hour Fitness. Below is the map to it. I have been going to this club since I moved to Portland, in 1994. If you are into fitness, making friends and then socializing, this gym is hard to beat. I have been to 24 Hour Fitness facilities literally all up and down the I-5 corridor, from Bellingham to San Diego. The Pearl is my favorite.
Although a little overpriced for my taste, I enjoy the Pearl better than ever. However, the Pearl is great. I myself am looking for the right deal. If you are interested in a property, and have a little bit of patience, you can get a great deal. Right now we are experiencing a surge of bank owned and short sale properties. This area is not as affected as others, but the prices have definetly come down. So this is the situation: With the right strategy you can get a really nice Pearl property at a great price.
Call me at 971-222-3734 or email me at info@arecllc.com. This is how it works. I will help you get qualified for the best possible loan. Then, methodically, through a unique strategy I have developed, I will locate the right property at a great price. I am an expert in short sales and bank owned. You don't have to re-invent the wheel.
Right now the inventory of distressed properties in the Portland area is huge. If you want to get a good deal, right now is a good moment. The reason is simple: Great Prices and Fantastic Interest Rates. If you area in Portland or Vancouver, looking for a great deal call me at 971-222-3734. I can definetely help you. You can also reach me at info@arecllc.com. My web site is www.OscarPDX.com
Getting Great Deals in Short Sales and Bank Owned (REO) Properties
A Good Deal is a Good Deal: Just because a property is in a short sale or is a bank owned foreclosure, it does not mean the property is a good deal. A good deal is a good deal. Generally speaking, a good deal is a property significatly discounted. So much so, that even if there is depreciation, it is still a good deal.
What Constitutes a Good Deal: A good deal always has to do with the property been acquired at a discount. However, there more to it. Below is what I consider the main matters that make a property a good deal.
Property obtained at a great discount in comparison to the neighborhood.
Property obtained with great financing.
Property with both of the above.
Great, unique property obtained at a good price and good financing. For example a great property in a fantastic neighborhood and location, at a pretty good price, and with pretty good financing.
How to Get a Great Deal: There are several ingredients to getting a great deal. I can guide you for this.
Work with a great professional,
Be ready to close
Make lots of offers
See the numbers prior to seeing the house
How I Can Help You:I will help you select a range of properties that fit your needs and budget. Based on that we will do plenty of offers at what will be a great price. After your offer is accepted, I will quide you for the quickest possible closing. Experience matters. Are you interested in a great property at a fantastic price? Call me at 971-222-3734
Oscar Morante, Realtor and Short Sale expert interacts with all individuals seeking more knowledge in this fascinating field.
The more you learn, the more you earn. Short sales is where most of the business is at. Sure it is a bit more work, but if you are good opportiny is abundant.
Learn everything about short sales.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
