What are you talking about? Pay it Forward with Real Estate and Get Paid? I would like to share how YOU can give back to people that you don't even know by "Paying it Forward with Real Estate". That means that you give your knowledge in real estate to others for a better future for not only that individual but their family.  As I was growing up, I always heard go to school, go to college and then get a good job. For what? So I can work for a living? Everyone has the American Dream of becoming financially free and being able to do what they want, when they want and how they want. That is why learning how to do real estate with "no money" really appeals to the public. I find so many people attend seminar after seminar wanting to learn how to do real estate. The fact is, they learn how to do real estate but they don't do it. Why you ask? Well let me tell you - it is FEAR or the JOB that gets in the way.

Let's talk about FEAR of the first deal. There are different types of personalities in this world and that is why some people will take what they learn and do it while others just sit and think about it over and over again. They are so afraid of doing something wrong that they don't do anything at all. Realistically once they get over the first deal; it is smooth sailing for some.

The JOB: This takes up so much time in everyone's life that when people get off work, they don't want to do anything else that would be considered another job. That is why they call it a job because everyone is "J"ust "O"ver "B"roke and for a lot of individuals if they stay in their job that is exactly where they will be for their entire life. You need to change your mind set that real estate is not just another job but a vehicle that you ride to reach financial freedom.

How YOU can pay it forward in real estate is start sharing your knowledge and wisdom of how you locally invest in real estate. I started investing in real estate in 1998 and attended every seminar I could. It was like going to college and getting my diploma. That is why I am a "Real Estate Junkie". What I found after attending seminars that I would come back to my local area and see the same people that went to the seminars. I would always ask them have they done a deal yet? The answer most of the time would be "NO". They started calling me on a regular basis asking me about how to invest in real estate locally. I would spend hours and hours on the telephone telling them everything that they needed to do locally. What I found though, was when I got off the telephone, I would have forgotten 1 or 2 things that they needed to know since I always would teach from beginning to the end of the deal. I helped a lot of individuals over the years with their deals making them thousands of dollars. I really felt "GREAT".

Did you know that Henry Ford was a very smart man? He was smart because he surrounded himself with a team of individuals who knew all the answers to all the questions that he didn't know. All he had to do was make a call to one of his team member's and instantly they would answer the question. Smart right? It was smart for him and it was smart for the team members. If you are new in real estate and you just need a helping hand, reach out and find that right person and see if you can join their team.

What type of real estate investing are you doing right now? Do you think that having an apprentice just like on Donald Trump's show would be something that you could do? He has his own apprentice program with people lining up to join. Apprentices have been around for thousands and thousands of years. You might even hear it called "Intern".

A friend of mine, Greg Mooers, taught me that everyone has a heart's true virtue and that once you find that heart's true virtue that you will excel in everything that you do. My heart's true virtue is that I am committed to empowerment, integrity and togetherness in people. With this in mind, building a team was simple. For individuals who always liked competition against others, might have a challenge with learning to share and be nice with each other. Helping people really make a difference not only in their world but their family's life. They need you!

What happened to me when I started sharing all of my information "Paying it Forward with Real Estate" was that my business started growing. I had individuals who wanted me to teach them how to invest in real estate AND split deals. It evolved into an Apprenticeship Business System where I had Apprentice Students that I would share my real estate knowledge with and they would pay me thousands of dollars for this service and split their deals with me and you can do this too with a system. I don't go looking for deals any more, I don't go looking for buyers, I just sit at my office and construct the deals and make money. It is a win - win situation. I felt even "GREATER" because not only was I teaching them locally what was working in real estate, I knew that I had helped them over come their fear. Now that they have learned how to do real estate and have done it, they too can pay it forward with real estate. What I am recommending to individuals who have the knowledge and the education is that you step up and help individuals locally get started in real estate by doing whatever type of real estate investing that you do. You will feel Great because you too will be Paying it Forward with Real Estate.

By: Kimberlee Frank

www.RealEstateJunkie.com

Riding the Waves of Foreclosure

 I have been a full time investor since 1998. My past experience was a legal secretary for 18 years working for Attorneys, Builder and Real Estate Broker.  We were working pay check to pay check.   I started investing in real estate in Michigan and then rode the foreclosure wave to Florida. A smart investor needs to shift with the tide to be successful.   I purchased real estate courses and attended as many educational boot camps as possible.    I am a licensed Real Estate Broker.  In 2000, I created the course "I'm a Real Estate Junkie" because people were contacting me after attending other boot camps and still did not know what to do or how to get started.  I found that other courses would give you just enough information to lead you to the next seminar.  My course taught you what you need to do from beginning to end, how to set yourself up as a corporation, why to use land trusts, book keeping, how to buy, fix, retail and hold property. You may have seen  a picture of my husband, Larry and I in Ron LeGrand book "How to Be a Quick Turn Real Estate Millionaire" page 101 as one of his successful students. 

 After working in the real estate investment field for 6 years buying, fixing, retailing and holding, I started to look at the foreclosure market.  As a savvy investor I saw our economy changing and noticed the bigger checks investors would receive from working the foreclosure market.  Since I didn't know how to buy properties in foreclosure, I decided that I needed to have a mentor.  I knew Jeff Kaller had a course and had hired a couple of ex-bank mitigators to help with his coaching program.  I attended his seminar and signed up for 1 year coaching. For 1 year I was able to pick the brain of Jeff Kaller and his ex-bank mitigators.  I soon found out that the ex-bank mitigators were asking the same questions that the Homeowner's bank mitigators would ask "what is the most you want to pay for the property".  I would always reply "as little as possible".   I realized that they still had a mindset of a bank mitigator and not an investor.  They eventually learned how to play both sides.  I learned a lot from Jeff Kaller and during that one year as I did from all the other real estate gurus. 

 I purchased 10,000 leads of individuals who were in pre-foreclosure.  I realized that my company with 4 employees needed help to work those leads.  I created an "Apprentice Program" in Michigan where local investors would have "hands on training in my office" not only for foreclosure but for all different ways of investing.   I was overwhelmed by the response.  I immediately had 18 students sign up and work the "Apprentice Program" with me and had a waiting list.  I created my own detailed Foreclosure System that worked for my students.   We worked on over 75 deals in one year profiting hundreds of thousands of dollars.  We decided to relocate due to the enormous loss of jobs and buyers moving out of Michigan.  Michigan is a great state to buy and hold property in.  I brought my system the "Apprentice Program" to Florida.  I partnered with Hunter Paschall who I met at Jeff Kaller's one year coaching program.  The "Apprentice Program" in Florida is full and has a waiting list.  We are presently working on 55 foreclosures and already profited hundreds of thousands of dollars since July of 2006.

 The key to being successful in the foreclosure market is to have the right system knowing what paperwork to fill out, understanding the paperwork and how to speak to Homeowners, BPO Agents and Mitigators.  I believe in team building.  Having the right team will make you successful a lot quicker than you doing it on your own.   Having a system to take you step by step through this process is vital to your foreclosure business.

  It is important in the real estate business especially the foreclosure business to make sure that the Homeowner understands everything that is going on.  You should have everything in writing.    Be honest with your Homeowner.  Don't promise that you will be able to get a short sale when it is up to the mortgage company whether or not they will take the a discount.  Just promise that you will work real hard. 

Motivated Sellers are the key to being successful in real estate.  If you don't have a motivated Seller, then you don't have a deal.  You can't make a Homeowner motivated.  Only time and circumstances will change the Homeowner into a motivate Seller.  It is so hard for the average person to believe that someone would sell their house for a low price.  The reason people have a hard time believing Homeowners would sell their house for such a low price is because they wouldn't do it.  Remember, just because someone is in foreclosure does not mean that they are motivated.  In fact, most people are not motivated and are in denial.  They believe that their white knight in shiny armor is going to ride in a save them from foreclosure.  Many individuals that are in foreclosure want to stay in their home but they can't afford too.  Most will stay in their home until the sheriff comes to throw them out.  Other Homeowners once they are served with court papers, just disappear not knowing what other options they have.  To be successful in real estate, you need to be a good listener and learn to ask all the right questions.  You need to educate the Homeowners on the options they have while in foreclosure.   After you have discussed all their options with them, you need to explain how you can help them solve their situation.

 Refinancing is one option.  It is important to have a mortgage broker on your team that you can refer Homeowners to see if can get refinanced.  This builds rapport with your Homeowner.  Most of the time once foreclosure is showing on their credit report, they are unable to get financed unless there they have a lot of equity in the home.  If they are unable to refinance their home, then the mortgage broker would refer the Homeowner back to you to buy their home.  Don't forget to follow up on a regular basis.  Homeowners' change their mind.  They sometimes decide that they want to sell their home and not refinance.  If you don't follow up, someone else could contact them and buy their home.

 Forbearance is another option.  A forbearance is where the mortgage company will work out a payment plan with the Seller to pay extra money every month towards the arrearage that is owed for their back payments.  The forbearance plan could be for 6 months or longer and could require a lump sum on their first payment.  Most of the time the mortgage companies would like to make this payment plan as short as possible.  Loan Modification is another option.  A Loan Modification is where the mortgage company will allow the arrearage owed on the loan to be added to the end of the loan.  I believe a lot more mortgage companies are heading this way because of the wave of foreclosures. 

 Dealing with the Mortgage Companies is not the easiest thing to do.  A lot of Homeowners get tired of talking with the representatives from the mortgage companies.  The key to dealing with mortgage companies is knowing that there are many departments:  customer service, workout department (used for forbearances), collection and loss mitigation (used for short sales).  Each department has their own duties and they do not know what is going on with the other departments.  Homeowners frequently become frustrated when talking to the mortgage companies.  They are transferred from one department to the next spending hours on the telephone talking to the wrong individuals.  That is why most Homeowners give up with working with the mortgage companies.

 Selling their house is another option.  Most Homeowners owe as much or more than what the property is worth.   Depending on the amount of equity n the home, you could purchase the property "Subject to" the underlying financing and bring the payments current.  This is another article in itself.  If you are unable to take the property "Subject to" then it's time to talk about a short sale.  Remember we are here to help the Homeowner save their home by refinancing, forbearance or loan modification and if that doesn't work, it is time for a short sale.  What is a short sale?  It is having the mortgage company take a discount for what is owed on the property. Below is an example of a deal that I recently concluded:

 After Repaired Value of Home (ARV) was $190,000.00 minus $10,000.00 in repairs.   Countrywide Mortgage was owed $150,000.00 for the first mortgage, a Private Individual was owed $17,000.00 for a second mortgage, and IRS had a $38,000.00 tax lien.  All three lien holders agreed to take a discount as follows:  Countrywide $115,000.00, Private Individual $1,000.00 and IRS $1,000.00 making the total payoff on the property $117,000.00.  The property was sold to another investor for $140,000.00 netting us $23,000.00

 This deal would have not worked unless all three lien holders agreed to take a discount.  Mortgage companies have guidelines they follow when accepting short sales.  Knowing what those guidelines are helps you to become successful in your short sale process.  Remember it's all education.

 Deficiency Judgment - If the mortgage company agrees to take less than what is owed, they could give the homeowner a deficiency judgment or a 1099.  Either way, the homeowner is going to get one or the other.  A deficiency judgment is for the difference in what is owed and what the mortgage company agreed to accept as payment.  I request that the mortgage company waive a deficiency judgment and accept the short sale as full pay and 99% of the time this is done.

 1099 - This is a form that the mortgage company could send to the Homeowner for the difference in what was owed and what the mortgage company agreed to accept as payment. The Homeowner reports this amount as income and would be taxed on that amount.  If the Homeowner's liabilities out way their assets, then their CPA can file a necessary form which could release them from paying any taxes.

 When you are able to short sale the mortgage and either buy it or resell it, the Homeowner is very grateful.  A short sale is always better than a foreclosure for the Homeowner.  Make sure that you get a testimonial letter from the Homeowner upon completion of the short sale.

 Re-selling the property after the short sale is where you have to be very creative.  There are thousands of homes on the market right now that you are competing with.  You have to make sure that you are able to provide the new Buyer with some creative ways in buying.  Example:  zero down, seller to pay closings costs, appliances, vehicle comes with purchase of home etc.  You must buy low and sometimes if you can't find any other way of being creative, you have to sell low. 

 Remember the golden rule, you make money when you buy the property and you realize the profit when you sell the property.  Now is the time to add Foreclosures to your investment tool box.  Happy House Hunting.

 Kimberlee Frank

www.RealEstateJunkie.com

Have you heard the doom and gloom on the television and in the newspaper about the market?  Or, maybe you heard the doom and gloom from individuals around you?  Well I am here to tell you that your market is still here, you just need to know what to do in your market.  I have been investing in real estate since 1998.  I started rehabbing and selling for cash.  That lasted about four years until 911 came and changed the market.  I then changed from retailing to holding property.  I rented and lease optioned houses, I still did some retailing but not as many.  I was very picky as to what houses I was going to buy and retail making sure that it had all the amenities so it would sell quicker.  The market changed again so I started buying and selling foreclosures by discounting the mortgages with the banks (short sales) and selling the property for less to make a profit in between.   The savvy investors know when it is time to change what they are doing in real estate and change with the market. 

 There are some markets that were so hot that no more did you place a sign out front of the property in the morning, by the afternoon you would have full price offer.  That was the good old days.  Then there are some markets that you place a sign out in front of the property and it takes days or months to sell and depending upon the price of the home, it could take a year.  Knowing "Who Moved My Market" and how you need to change will help you be successful in the real estate world.

 It is hard to stay up beat on the market unless you stay around positive people who are of like minds with the same goals in life.  We have a group that meets every month and we noticed that some individuals where being sucked up into listening to the "nay sayers".  It was starting to affect them personally and starting to infect our group like a virus.  We decided that our inner circle of C.A.S.H. Group needed to realize that Change is Good and that you just need to understand what to do.  We decided to read a book called "Who Moved My Cheese?" by Spencer Johnson in our meeting.  It took about 45 minutes and then afterwards we discussed what the book was about and how it related to us right now.  Having this discussion was so powerful.  It helped everyone see eye to eye.  I would like to share some things about the book and help you understand that "Change is Good".

 In the book there are 4 characters and maybe you can see yourself in one or all of these characters, one time or another:

Sniff- who sniffs out change early

Scurry - who scurries into action

Hem - who denies and resists change as he fears it will lead to something worse or

Haw - who learns to adapt in time when he sees changing leads to something better!

  Taking a hard look at yourself or people you are around will help you become a better real estate investor.  In fact, it will help you either makes millions understanding the different personalities and who you are.  

 Let's start off with Sniff.  Are you like Sniff, could you see the change in the market coming?  Were you ready to make the change in the way you invest in real estate?  As I mentioned above, I was buying, rehabbing and selling houses in the first four years of my real estate career.  I started noticing the change in the market right around 911.  My buyers were getting harder to qualify.  The mortgage company was tightening up on some of their guidelines. 

 So what did I do?  I turned into to Scurry.  I started taking my houses that I had for sale on the market which was 6 at the time and started lease optioning them.  The reason why I changed was because I couldn't find a qualified buyer and I was making mortgage payments on 6 houses.  I chose to lease option the houses rather than rent.  I already knew based on my experience that I received a different type of clientele if I lease optioned versus just a renter.  I also knew that I could ask for more money down as a non-refundable option fee versus a security deposit.  You can also get a little higher rent if you lease option.  However, note if there a lot of houses for the Renter to choose from you need to fill your house immediately, so you will want to keep your rent amount the same as if you are just renting the property.  This way, you will have a better selection picking the BEST out of the WORST.   Some of my houses had a higher monthly mortgage payment than what I could get for the rental amount so I computed the non-refundable option over a 12 month period and added it to the rental amount that I would receive to determine the total amount that I was receiving monthly for my property. 

 The market started changing again.  The Wave of Foreclosure was coming and I was riding the wave but not as big as I could have ridden it.  When foreclosures started flooding the market, I knew that I could make a lot of money if I learned how to do foreclosure (short sales).  I was working in the Michigan market at that time and working on 60 to 75 short sales.  We were very successful with the short sale process.  Then the market changed again in Michigan because of the shut downs of the automobile plants, companies moving out of state and the possible buyers having no income to qualify to buy my houses.  I could still sell short sale houses but I couldn't do it on the volume that I wanted. 

Well, I turned into Hem.  I did not want to leave my market.  I could have stayed in Michigan and closed on a house a month but that was not my vision.  My vision was to have a team of investors working together with a common goal.  The goal was to help Sellers, Banks, Buyers, Investors and ourselves.  I knew in my heart that if I relocated to some place warm, that the Wave of Foreclosures would be bigger and better.  I knew that the baby boomers didn't want to move to Michigan in my area where I lived when they retired.  I knew that if I was going to do volume, I needed to move.  Now remember this was a personal choice, I could have stayed in Michigan and purchased properties and kept them as rentals making a boat load of money.  However, my goal wasn't to purchase rentals it was to buy and sell houses for quick profits.  I already had plenty of rentals. 

 In April of 2006, we decided to leave Michigan and I turned into Haw.  I researched where I wanted to move and not only where I wanted to move but where baby boomers wanted to move.  In July of 2006, I had let my staff go except for a full time secretary that still runs my business today in Michigan.  We packed up, leased optioned our personal house and kept the rentals that we had.  We left Michigan and came to Sunny Florida.  Since coming here we now have control of over 22 million dollars worth of property with students and my partner, Hunter Paschall.  We are able to work the foreclosure market and help hundreds of sellers, banks, buyers, investors and ourselves. 

 Things are going great in this market.  But wait .... You say how can that be?  Who Moved My Market?  You see, the Floridians were use to having a hot market and putting a sign up in the morning and selling the house by the afternoon.  But, a Michigander was use to a slow market.  I knew how to be more creative to sell the properties.  This is what I saw and still see in the Florida market:

 There are still a lot of foreclosures heading our way.  Learning how to short sale will make you lots of money over the next 2 years.  If you are not interested in short saling, learning how to do subject to's (taking a property subject to the existing financing) is another way to profit in real estate.  There are going to  be a lot of individuals that will not be able to make their house payment because it is an adjustable mortgage payment, they can't sell the house fast enough to avoid foreclosure so now would be a great time to pick up some of the subject to's houses.  However, you need to pay attention to your exist strategy.  If the property has an adjustable rate mortgage and you plan on keeping it as a rental or lease option property, make sure that the amount of rent that you collect will cover the payment or you will have to pay the difference.  What is more common is that you will be able to pick up the subject to property and then resell it making a profit if it has enough equity versus holding the property for long term due to the adjustable rate mortgage.

 Purchasing properties to hold as either rentals or lease options is another great strategy.  Just remember if the monthly mortgage payment is higher than the average rent, you must be able to get a non-refundable option to make up the difference.  Investors who have houses vacant need to think creative to fill their houses.  I have let a renter move in for as little as $400.00 with rent being $600.00 per month in Michigan or in Florida I would say move in for as little as $1,000 with rent being $1,200.00.  I have made arrangements with the Tenant/Buyer pay a little more per month towards the security deposit to make of the difference, but again it depends on if you need to fill your house.  Don't hold out for the big check if you NEED to fill your house.  Remember, sometimes making up the difference on what your mortgage payment is versus what you are receiving on rent, might be the best way for you to weather the storm.

 Can you still Wholesale Property in this market?  The answer is YES, just give yourself 60 days to find your buyer versus 30 days.  Can you buy, rehab and sell property in this market?  The answer is YES, just figure in 3 extra months on selling the property. 

 So, I ask you which personal trait are you?  Are you Sniff, Scurry, Hem or Haw?  Ask yourself "Who Moved My Market" and what am I going to do about it?  Remember Change is Good.  Now is the time for you to make a boat load of money by helping the people in your own community.  The average homeowner does not know what options they have available and when you tell them how you can help, you will be rewarded and so will they.

In closing I just hope this Article helps you consider that you might need to change, as you see, I changed and you can too.  It may be you need to get some new training.  It's not what it is going to cost, you it's what it's going to make you.  A smart real estate investor needs to move when the market moves if you want to stay successful.  You can keep doing the same old thing and get the same old results, if that's working for you great.  If it's not that is called the circle of sameness, remember, Change is Good.

STOP listening to the "nay sayers".  You know what experience you have in real estate you just need to look within and make a decision, AM I GOING TO CHANGE?  Plug into a mentor and a group that will give you all the support you need to help you become successful and never let anyone change your dreams.  I wish you all the best in your real estate investing career and I will see you at the top.

                                                                                    Kimberlee Frank

                                                                                     www.RealEstateJunkie.com

The Real Estate Sky is Falling says Chicken Little.  Isn't that what everyone is saying?  Do you remember the story about Chicken Little?  Do you believe Chicken Little is right? I am here to say the Real Estate Sky isn't falling like you think.  However, you see it in the newspaper, you hear it on news, you hear it from buyers and investors.  I say really is the sky falling or do people really want you to think that?  I have watched our real estate economy change from good to great and then again from great to poor.  There is always a down and up cycle in real estate.  People will always need to have a place to live. Now is the best time to get involved in real estate.  Why has this happened, do you say?  Everyone should know the answer to all of these questions however, I will tell you why.  1. Adjustable Rate Mortgages; 2. Loss of Jobs;  3. Increase in Taxes; 4.  Insurance increases; 5. Investments purchased on speculation, just to name a few.

With all of these problems, individuals who had purchased properties whether to live in, rent or resell due to the changes in the economy has caused individuals with good credit to head into foreclosure.  I know some individuals who have tried hard to maintain properties and spent thousands of dollars only to have the house end with a foreclosure.  A short sale on someone's credit report is better than a foreclosure.

My name is Kimberlee Frank and the foreclosure market is one of the main reasons that I relocated from Michigan with my husband, Larry, daughter, Hollee, son, Taylor, Mother, and 3 cats.  It was the national lampoon road trip, if you know what I mean.  If you have ever driven in a car with kids, a mother and 3 cats for over 24 hours, then you know what I am talking about.  I kept hearing Mom "he is touching me" or Mom, "she is making faces at me".  Thank goodness we arrived in Orlando, Florida.  That was July of 2006. Crazy to move?  Right?  Or, was it?  My business partner, Hunter Paschall, and I teach investors how to help the Seller in foreclosure, negotiate debt, find a buyer and then the investor would get paid a nice check. Our company is C.A.S.H. Group, LLC.  We always say it has to be a win for the Seller, win for the Bank, win for the Buyer and last a win for the Investor.    We call our home study and seminar "Shortcuts to Short Sales".   You see, I worked for attorneys for 18 years and am a licensed Real Estate Broker and I could see that there was not enough help for individuals who are in foreclosure so I started teaching investors and realtors how they could help those people in foreclosure.

THE HOPE PROGRAM

One of the programs that help homeowners keep their home is the HOPE Program.  This program will help the homeowner by asking the mortgage company to either do a loan modification or a forbearance program.  What is a loan modification?  This is where the mortgage company is willing to take the payments that are in arrears and either add them to the end of the loan or forgive them completely.  Believe it or not, we have seen second mortgages being completely forgiven by the mortgage companies.  That was when the first mortgage company owned the second mortgage allowing them to make such a decision.  What is a forbearance program?  That is where the mortgage company will take the amount that is owed for the loan and stretch that amount over a 6 to 12 month period.  Usually this would require a down payment from the seller.  Their payments would go up monthly until the entire amount is paid back.

 WALL STREET'S $700 BILLION DOLLAR BAIL OUT

The latest bail out is for Wall Street.  Our Government wants the public to pay $700 billion dollars to help with the mortgage company's defaulted loan.  What this means is that every family will be contributing $8,000 towards this debt.  It is hard for the public just to survive our economy right now.  You see though, even when the government steps in to help some of the mortgage companies with their bad debts, there are going to be more and more loans going bad.  Adjustable rate mortgages were the majority of the loans that were given to homeowners. They usually mature between 2 and 5 years.  Therefore, there will be more and more individuals heading into foreclosure.  Why?  Because the values have decreased drastically and you can't sell the property for what it was purchased for or the Seller can't pay the difference at closing.  You can't rent the property for what the mortgage payment is because the rent in the area is lower than the monthly mortgage payment. 

CHAOS CREATES CASH

We have a saying at CASH Group, LLC.  CHAOS CREATES CASH.  What we mean by that is that the individual who can see past all the chaos and stays focused on helping individuals making it a win-win-win-win, they will create a boat load of CASH.  Helping a Seller through the foreclosure short sale process and saving their home from going to foreclosure without making them liable for the balance that is owed is very rewarding.  A lot of investors are running around and working on foreclosures but they are allowing the mortgage company to give the Seller a deficiency judgment.  What is a deficiency judgment?  That is where the mortgage company agreed to take a short sale for the amount that is owed on the property and the remaining that was discounted will still be owed by the Seller.  Example:  $100,000 loan.  Mortgage Company agrees to $80,000.00 short sale.  Deficiency Judgment is $20,000.  When doing a short sale, it is very important that you get the mortgage company to waive the deficiency judgment against the Seller.  In most cases, it doesn't do the Seller any justice if the mortgage company will not accept the short sale amount in full and only do a lien release allowing them to go after the Seller for the difference.  We have a 98% success rate of getting deficiency judgments waived.  Should a mortgage company request a deficiency judgment, it will be up to the Seller if they are in agreement.  There have been times when the mortgage company will ask for an unsecured promissory note that will be spread over 5 years with 0% interest for a portion of the difference that is owed.  All of these things can be negotiated with the mortgage company when working a short sale.

Should the mortgage company accept the short sale as full satisfaction of the loan, then they can send the seller a 1099.  The Seller would claim the amount on the 1099 as income.  The mortgage company has two options:  Option One:  Obtain a Deficiency Judgment against the homeowner or Option Two:  Send a 1099 so they can write off the difference.  A 1099 is a taxable event just as if the mortgage company gave the Seller the money (difference) between the short sale and the balance owed on the mortgage.  As in the example above, the Seller would receive a 1099 for the $20,000.  President Bush signed a law  H.R. 3648, The Mortgage Debt Relief Act of 2007,  which dramatically changed the lives of homeowners across the country who were facing foreclosure, considering a short sale, negotiating a loan workout, or have done any of these since January 1, 2007.  This law forgave up to $2,000,000 million dollars on primary residences for homeowners.  However, this law did not give the investors a break.  It did not apply to them.  However, there is a 982 form that the Seller could file with their CPA which states that if their liabilities out weigh their assets then it would not become a taxable event. 

We have seen an increase in sales on the Multiple Listing Services over the last 3 to 6 months indicating that people are still purchasing properties.  Individuals who thought that they couldn't buy a brand new big house are now purchasing properties.  We our working on over 200 short sales and our Loss Mitigators have seen the mortgage companies agreeing to more and more short sales. Our closings have increased by 20% this month alone.  The end of the quarter is coming for the mortgage companies and this is where they will be cleaning out their inventory to start 2009.  Mortgage Companies don't want houses they are in the practice of lending money. 

There has never been a better time to start investing in real estate. Whether you purchase your dream home, rental property or just buy and resell.  Understanding the foreclosure short sale process and making sure that your forms comply with states laws regarding foreclosures is really important.  I would recommend learning this process not only to help yourself but to help so many other sellers.  If you aren't doing foreclosure short sales, I ask you why? Afraid of the process, leverage experienced individuals who built teams to do your negotiations like our company does.  We call it the submit it and forget it process, while our loss mitigators negotiate the debt and market the property.  Just stop and think how many people do you know that are in foreclosure?  After answering that question, I again ask you why you aren't doing short sales?  

Kimberlee Frank -Author

2nd Wednesday of Every Month at the Hilton Inn in Altamonte Springs, Florida.  September 10th from 6:30 p.m. to 9:00 p.m.  Please join us.

I would like to formally invite you or your women partner to the our monthly meeting of It Is A Womans World.com. We are looking for individuals who need the support, understanding, knowledge and relationship of other women in business. Women this meeting is going to make you feel stronger and smarter able to conquer the world.

 The meeting is different than all the rest that you have ever attended. We are going to show you how to improve your health, mind, relationship and business.

Last month we did Vision/Dream Boards.  The Women also received a FREE manicure or massage.  All for just joining us at our monthly meeting.

We have limited seating. Go to www.ItIsAWomansWorld.com to sign up for the meeting.

The first meeting is FREE!!! If you can't attend, sign up for our monthly newsletter. You will love it.

This will make a difference in your life or your partner's life.

See ya there  - Kimberlee Frank

10 TIPS ON HOW TO BE A SUCCESSFUL REALTOR IN THIS MARKET

Foreclosures and Pre-foreclosures are flooding the market and they are changing the values of homes nationwide.  Times are changing and Realtors need to start Riding the Wave of the Foreclosure by changing.  We are seeing long time Realtors closing up shop because of the market.  Are you going to be one of those Realtors?  As a Licensed Real Estate Broker, my partner and I would like to share some of the tips that have made us so successful.

As a Realtor, it is very important to learn how to work a Foreclosure Short Sale. Many of the homeowner's can't even list their home because there is no equity in the home. Do you take the listing and let it sit on the market with the rest of the listings?   So, what do you do?  Turn the people away or do a short sale?  We say do a Short Sale for the Homeowner but do it the right way.

The listings that you presently have are sitting on the market because the values are decreasing and the Buyer is cherry picking.  Again, so what do you do? 

How would you like to receive 3% commission of a listing versus 6% commission of no deal?

Below are some tips that you should know if you are a Realtor that will assist you in the short sale process:

Tip #1 of Getting Foreclosure

 Short Sales Accepted

In order to get your short sale accepted, you must provide a detailed short sale package to the Mortgage Company. This is information that you must collect from the Seller at your first meeting otherwise you will be chasing them to get all this information.  If you are able to take a portable copy machine with you, we would recommend that you do so or just make sure that you take all their documents with you.  

Below is our Checklist from our Home Study Course that we send by email to the Seller prior to our meeting.  We make it clear that they need to have all this information prior to us coming out. 

CHECKLIST FOR SELLER

__________  COPY OF DRIVER'S LICENSE

__________  LAST 2 PAY STUBS

__________  LAST 2 YEARS TAX RETURNS OR W-2'S

__________  2 MONTHS OF MOST RECENT BANK STATEMENTS, BROKERAGE AND RETIREMENT STATEMENTS

__________  ANY MORTGAGE PAYMENT STATEMENT (On all mortgages)

__________  HANDWRITTEN HARDSHIP LETTER SIGNED BY SELLERS

__________  FINANCIAL STATEMENT SHOWING ALL ASSETS/LIABILITIES

__________  KEYS (2) TO HOUSE

NOTE:  Don't put off making your appointment with the Sellers because they do not have all the documentation, tell them that you will help them find the information and fill out the Financial Statement while you are there.  People will cancel because they procrastinate and they really need your help.

Tip #2 of Getting Foreclosure

Short Sales Accepted

Dealing with Banks and Mortgage Companies they all have a Company Policy that they must abide by in order to process files and/or speak with individuals about the file. 

It is very important that you have the Sellers sign an Authorization for Release of Information to allow you to discuss their file with the Mortgage Company.  You would then fax this document along with your letter to the Customer Service Department.   The Mortgage Company will not speak with you unless you have forwarded this Authorization to them.

Below is our Authorization for Release of Information from our Home Study Course that we fax to the Mortgage Company.

AUTHORIZATION TO RELEASE INFORMATION

Mortgage Company:______________________________

Loan / Account Number #: _________________________

Property Address: ________________________________

I/We hereby authorize you to release to _________________________________ or its agents and assigns any and all information that they may require for the transfer or payoff about my loan for the above referenced property. "Agents" shall include all associates of the above named company, real estate agents, attorneys and their assistants. You may reproduce this document to acquire reference from more than one source.

___________________                                  _______________________   

Borrower                                                         Social Security #        

__________________

Date

Printed Name: ___________________________________

_________________         _______________     ___________

Borrower                            Social Security #        Date

NOTE:  It takes 24 to 48 hours before the Bank/Mortgage Company has processed the Authorization to Release Information before you can callback and speak with the Loss Mitigation Department.

Tip #3 of Getting Foreclosure

Short Sales Accepted

Getting through to the Bank or Mortgage Company does take time and persistence.  They are working on a lot of files.  This Tip is very helpful for those of you who speak Spanish and/or have individuals that work with you who speak Spanish.  When you call into the Bank and/or Mortgage Company, you will have a choice to of either English or Spanish.  We recommend that you choose Spanish, this way you will get through a lot quicker than you would if you chose English.

NOTE:  Even if you don't speak Spanish, the person who answers the telephone speaks both English and Spanish and they will be able to assist you.  You just need to tell them that you pushed the wrong button and see if they can help you.

Tip #4 of Getting Foreclosure

Short Sales Accepted

When you send in your Authorization to Release Information at that time, you should be requesting a payoff of the mortgage.  The reason why you request a payoff letter from the Mortgage Company is because the second mortgage company will need to know the balance of the first mortgage so that they can work their COMPANY POLICY formula to accept the short sale, counter or deny the short sale.

Below is a letter from our Home Study Course that we send into the Bank and/or Mortgage Company:

CONSULTING GROUP, LLC.

(407)  772-2274

(407)  650-3119

To:  ASC - Customer Service

From:  Kimberlee Frank/Hunter Paschall

RE:  123 Main Street, Longwood, Florida  32750

        John Doe and Sally Doe

        Loan Number:  1234567

Customer Service:

Enclosed please find an Authorization regarding the above individual.  Please provide my office with a short sale package along with a payoff letter as of January 30, 2007.

Thanks and have a great day.

Kimberlee Frank/Hunter Paschall  - (407)  772-2274

NOTE:  Banks and Mortgage Companies have websites that will allow you to go on line and request the payoff letter and or obtain direct telephone numbers.  You should be making a list of all Mortgage Companies that you deal with and keep their telephone numbers on a spread sheet for future use. 

Tip #5 of Getting Foreclosure

Short Sales Accepted

When working on a short sale, it is very important that you do a market analysis on the home to determine what price you should list the house. It doesn't matter what is owed on the home.  It is normal that as a Realtor, you always want to get the highest and best price for the Seller.   Depending on where the Seller is in the Foreclosure process will determine if you can list the house for a higher value and slowly drop the price or if you need to list the house for a Quick Sale. A Quick Sale value means you need to sell it within 30 days.  In most cases, it is for less than what is owed on the home.  Therefore your list price would be lower than it would be if you were just listing the home for a normal sale and not a foreclosure. 

NOTE:  The fiduciary relationship to your Seller is to get the best price for them but it is also to do the best thing for the Seller.  In some cases, listing the property for a Quick Sale is the best thing.  Your commission will be lower but you will be able to sell the home.

Tip #6 of Getting Foreclosure

Short Sales Accepted

The main ingredient to get a short sale accepted is a Buyer.  What this means is that as soon as you get ANY offer you would submit the offer to the Bank so that you can start the short sale process by getting a BPO (Broker Price Opinion determining the value of the home) and/or Appraisal on value.

Did you know you can submit all the documentation into the Bank and they won't even look at the short sale package until you have a Buyer?

NOTE:  Your main goal as a Realtor is to get the BPO Agent or Appraiser to come out and get the value of the property so that the Bank can make a determination whether or not they will accept the short sale.

Tip #7 of Getting Foreclosure

Short Sales Accepted

Why does it take so long for the Bank and/or Mortgage Company to respond back to the offer after a BPO and/or Appraisal is ordered? 

When the Mortgage Company agrees to order a BPO and/or Appraisal, they contact a list of National Providers who conduct Appraisals and/or BPO Agents.  That National Provider will then contact an Appraiser or BPO Agent to go out to house.  Normally, they give the Appraiser/Agent a 24 to 48 hour turn around time to go out to the house and conduct the valuation of the home.  The Appraiser/Agent will then prepare the Valuation (ie. Appraisal or BPO Report) and send it back to the National Provider.  The National Provider will forward that Valuation Report to the Mortgage Company.  This period will take approximately 7 to 14 days.

NOTE:  Do not call the Loss Mitigator several times until after the 14 day period to determine the status of your offer.  Some Loss Mitigator's have Caller ID and they know when you are calling.  You do not want to make the Mitigator mad at you for calling all the time.

We train Realtors, Investors and Mortgage Brokers how to do short sales.   Stay tuned for the posting of the remaining 3 tips.

Thanks

Kimberlee Frank and Hunter Paschall

http://www.cashgroupllc.com/

email:  Kimberlee@cashgroupllc.com

10 TIPS ON HOW TO BE A SUCCESSFUL REALTOR IN THIS MARKET

Foreclosures and Pre-foreclosures are flooding the market and they are changing the values of homes nationwide.  Times are changing and Realtors need to start Riding the Wave of the Foreclosure by changing.  We are seeing long time Realtors closing up shop because of the market.  Are you going to be one of those Realtors?  As a Licensed Real Estate Broker, my partner and I would like to share some of the tips that have made us so successful.

As a Realtor, it is very important to learn how to work a Foreclosure Short Sale. Many of the homeowner's can't even list their home because there is no equity in the home. Do you take the listing and let it sit on the market with the rest of the listings?   So, what do you do?  Turn the people away or do a short sale?  We say do a Short Sale for the Homeowner but do it the right way.

The listings that you presently have are sitting on the market because the values are decreasing and the Buyer is cherry picking.  Again, so what do you do? 

How would you like to receive 3% commission of a listing versus 6% commission of no deal?

Below are some tips that you should know if you are a Realtor that will assist you in the short sale process:

Tip #1 of Getting Foreclosure

 Short Sales Accepted

In order to get your short sale accepted, you must provide a detailed short sale package to the Mortgage Company. This is information that you must collect from the Seller at your first meeting otherwise you will be chasing them to get all this information.  If you are able to take a portable copy machine with you, we would recommend that you do so or just make sure that you take all their documents with you.  

Below is our Checklist from our Home Study Course that we send by email to the Seller prior to our meeting.  We make it clear that they need to have all this information prior to us coming out. 

CHECKLIST FOR SELLER

__________  COPY OF DRIVER'S LICENSE

__________  LAST 2 PAY STUBS

__________  LAST 2 YEARS TAX RETURNS OR W-2'S

__________  2 MONTHS OF MOST RECENT BANK STATEMENTS, BROKERAGE AND RETIREMENT STATEMENTS

__________  ANY MORTGAGE PAYMENT STATEMENT (On all mortgages)

__________  HANDWRITTEN HARDSHIP LETTER SIGNED BY SELLERS

__________  FINANCIAL STATEMENT SHOWING ALL ASSETS/LIABILITIES

__________  KEYS (2) TO HOUSE

NOTE:  Don't put off making your appointment with the Sellers because they do not have all the documentation, tell them that you will help them find the information and fill out the Financial Statement while you are there.  People will cancel because they procrastinate and they really need your help.

Tip #2 of Getting Foreclosure

Short Sales Accepted

Dealing with Banks and Mortgage Companies they all have a Company Policy that they must abide by in order to process files and/or speak with individuals about the file. 

It is very important that you have the Sellers sign an Authorization for Release of Information to allow you to discuss their file with the Mortgage Company.  You would then fax this document along with your letter to the Customer Service Department.   The Mortgage Company will not speak with you unless you have forwarded this Authorization to them.

Below is our Authorization for Release of Information from our Home Study Course that we fax to the Mortgage Company.

AUTHORIZATION TO RELEASE INFORMATION

Mortgage Company:______________________________

Loan / Account Number #: _________________________

Property Address: ________________________________

I/We hereby authorize you to release to _________________________________ or its agents and assigns any and all information that they may require for the transfer or payoff about my loan for the above referenced property. "Agents" shall include all associates of the above named company, real estate agents, attorneys and their assistants. You may reproduce this document to acquire reference from more than one source.

___________________                                  _______________________   

Borrower                                                         Social Security #        

__________________

Date

Printed Name: ___________________________________

_________________         _______________     ___________

Borrower                            Social Security #        Date

NOTE:  It takes 24 to 48 hours before the Bank/Mortgage Company has processed the Authorization to Release Information before you can callback and speak with the Loss Mitigation Department.

Tip #3 of Getting Foreclosure

Short Sales Accepted

Getting through to the Bank or Mortgage Company does take time and persistence.  They are working on a lot of files.  This Tip is very helpful for those of you who speak Spanish and/or have individuals that work with you who speak Spanish.  When you call into the Bank and/or Mortgage Company, you will have a choice to of either English or Spanish.  We recommend that you choose Spanish, this way you will get through a lot quicker than you would if you chose English.

NOTE:  Even if you don't speak Spanish, the person who answers the telephone speaks both English and Spanish and they will be able to assist you.  You just need to tell them that you pushed the wrong button and see if they can help you.

Tip #4 of Getting Foreclosure

Short Sales Accepted

When you send in your Authorization to Release Information at that time, you should be requesting a payoff of the mortgage.  The reason why you request a payoff letter from the Mortgage Company is because the second mortgage company will need to know the balance of the first mortgage so that they can work their COMPANY POLICY formula to accept the short sale, counter or deny the short sale.

Below is a letter from our Home Study Course that we send into the Bank and/or Mortgage Company:

CONSULTING GROUP, LLC.

(407)  772-2274

(407)  650-3119

To:  ASC - Customer Service

From:  Kimberlee Frank/Hunter Paschall

RE:  123 Main Street, Longwood, Florida  32750

        John Doe and Sally Doe

        Loan Number:  1234567

Customer Service:

Enclosed please find an Authorization regarding the above individual.  Please provide my office with a short sale package along with a payoff letter as of January 30, 2007.

Thanks and have a great day.

Kimberlee Frank/Hunter Paschall  - (407)  772-2274

NOTE:  Banks and Mortgage Companies have websites that will allow you to go on line and request the payoff letter and or obtain direct telephone numbers.  You should be making a list of all Mortgage Companies that you deal with and keep their telephone numbers on a spread sheet for future use. 

Tip #5 of Getting Foreclosure

Short Sales Accepted

When working on a short sale, it is very important that you do a market analysis on the home to determine what price you should list the house. It doesn't matter what is owed on the home.  It is normal that as a Realtor, you always want to get the highest and best price for the Seller.   Depending on where the Seller is in the Foreclosure process will determine if you can list the house for a higher value and slowly drop the price or if you need to list the house for a Quick Sale. A Quick Sale value means you need to sell it within 30 days.  In most cases, it is for less than what is owed on the home.  Therefore your list price would be lower than it would be if you were just listing the home for a normal sale and not a foreclosure. 

NOTE:  The fiduciary relationship to your Seller is to get the best price for them but it is also to do the best thing for the Seller.  In some cases, listing the property for a Quick Sale is the best thing.  Your commission will be lower but you will be able to sell the home.

Tip #6 of Getting Foreclosure

Short Sales Accepted

The main ingredient to get a short sale accepted is a Buyer.  What this means is that as soon as you get ANY offer you would submit the offer to the Bank so that you can start the short sale process by getting a BPO (Broker Price Opinion determining the value of the home) and/or Appraisal on value.

Did you know you can submit all the documentation into the Bank and they won't even look at the short sale package until you have a Buyer?

NOTE:  Your main goal as a Realtor is to get the BPO Agent or Appraiser to come out and get the value of the property so that the Bank can make a determination whether or not they will accept the short sale.

Tip #7 of Getting Foreclosure

Short Sales Accepted

Why does it take so long for the Bank and/or Mortgage Company to respond back to the offer after a BPO and/or Appraisal is ordered? 

When the Mortgage Company agrees to order a BPO and/or Appraisal, they contact a list of National Providers who conduct Appraisals and/or BPO Agents.  That National Provider will then contact an Appraiser or BPO Agent to go out to house.  Normally, they give the Appraiser/Agent a 24 to 48 hour turn around time to go out to the house and conduct the valuation of the home.  The Appraiser/Agent will then prepare the Valuation (ie. Appraisal or BPO Report) and send it back to the National Provider.  The National Provider will forward that Valuation Report to the Mortgage Company.  This period will take approximately 7 to 14 days.

NOTE:  Do not call the Loss Mitigator several times until after the 14 day period to determine the status of your offer.  Some Loss Mitigator's have Caller ID and they know when you are calling.  You do not want to make the Mitigator mad at you for calling all the time.

We train Realtors, Investors and Mortgage Brokers how to do short sales.   Stay tuned for the posting of the remaining 3 tips.

Thanks

Kimberlee Frank and Hunter Paschall

http://www.cashgroupllc.com/

email:  Kimberlee@cashgroupllc.com

10 TIPS ON HOW TO BE A SUCCESSFUL REALTOR IN THIS MARKET

Foreclosures and Pre-foreclosures are flooding the market and they are changing the values of homes nationwide.  Times are changing and Realtors need to start Riding the Wave of the Foreclosure by changing.  We are seeing long time Realtors closing up shop because of the market.  Are you going to be one of those Realtors?  As a Licensed Real Estate Broker, my partner and I would like to share some of the tips that have made us so successful.

As a Realtor, it is very important to learn how to work a Foreclosure Short Sale. Many of the homeowner's can't even list their home because there is no equity in the home. Do you take the listing and let it sit on the market with the rest of the listings?   So, what do you do?  Turn the people away or do a short sale?  We say do a Short Sale for the Homeowner but do it the right way.

The listings that you presently have are sitting on the market because the values are decreasing and the Buyer is cherry picking.  Again, so what do you do? 

How would you like to receive 3% commission of a listing versus 6% commission of no deal?

Below are some tips that you should know if you are a Realtor that will assist you in the short sale process:

Tip #1 of Getting Foreclosure

 Short Sales Accepted

In order to get your short sale accepted, you must provide a detailed short sale package to the Mortgage Company. This is information that you must collect from the Seller at your first meeting otherwise you will be chasing them to get all this information.  If you are able to take a portable copy machine with you, we would recommend that you do so or just make sure that you take all their documents with you.  

Below is our Checklist from our Home Study Course that we send by email to the Seller prior to our meeting.  We make it clear that they need to have all this information prior to us coming out. 

CHECKLIST FOR SELLER

__________  COPY OF DRIVER'S LICENSE

__________  LAST 2 PAY STUBS

__________  LAST 2 YEARS TAX RETURNS OR W-2'S

__________  2 MONTHS OF MOST RECENT BANK STATEMENTS, BROKERAGE AND RETIREMENT STATEMENTS

__________  ANY MORTGAGE PAYMENT STATEMENT (On all mortgages)

__________  HANDWRITTEN HARDSHIP LETTER SIGNED BY SELLERS

__________  FINANCIAL STATEMENT SHOWING ALL ASSETS/LIABILITIES

__________  KEYS (2) TO HOUSE

NOTE:  Don't put off making your appointment with the Sellers because they do not have all the documentation, tell them that you will help them find the information and fill out the Financial Statement while you are there.  People will cancel because they procrastinate and they really need your help.

Tip #2 of Getting Foreclosure

Short Sales Accepted

Dealing with Banks and Mortgage Companies they all have a Company Policy that they must abide by in order to process files and/or speak with individuals about the file. 

It is very important that you have the Sellers sign an Authorization for Release of Information to allow you to discuss their file with the Mortgage Company.  You would then fax this document along with your letter to the Customer Service Department.   The Mortgage Company will not speak with you unless you have forwarded this Authorization to them.

Below is our Authorization for Release of Information from our Home Study Course that we fax to the Mortgage Company.

AUTHORIZATION TO RELEASE INFORMATION

Mortgage Company:______________________________

Loan / Account Number #: _________________________

Property Address: ________________________________

I/We hereby authorize you to release to _________________________________ or its agents and assigns any and all information that they may require for the transfer or payoff about my loan for the above referenced property. "Agents" shall include all associates of the above named company, real estate agents, attorneys and their assistants. You may reproduce this document to acquire reference from more than one source.

___________________                                  _______________________   

Borrower                                                         Social Security #        

__________________

Date

Printed Name: ___________________________________

_________________         _______________     ___________

Borrower                            Social Security #        Date

NOTE:  It takes 24 to 48 hours before the Bank/Mortgage Company has processed the Authorization to Release Information before you can callback and speak with the Loss Mitigation Department.

Tip #3 of Getting Foreclosure

Short Sales Accepted

Getting through to the Bank or Mortgage Company does take time and persistence.  They are working on a lot of files.  This Tip is very helpful for those of you who speak Spanish and/or have individuals that work with you who speak Spanish.  When you call into the Bank and/or Mortgage Company, you will have a choice to of either English or Spanish.  We recommend that you choose Spanish, this way you will get through a lot quicker than you would if you chose English.

NOTE:  Even if you don't speak Spanish, the person who answers the telephone speaks both English and Spanish and they will be able to assist you.  You just need to tell them that you pushed the wrong button and see if they can help you.

Tip #4 of Getting Foreclosure

Short Sales Accepted

When you send in your Authorization to Release Information at that time, you should be requesting a payoff of the mortgage.  The reason why you request a payoff letter from the Mortgage Company is because the second mortgage company will need to know the balance of the first mortgage so that they can work their COMPANY POLICY formula to accept the short sale, counter or deny the short sale.

Below is a letter from our Home Study Course that we send into the Bank and/or Mortgage Company:

CONSULTING GROUP, LLC.

(407)  772-2274

(407)  650-3119

To:  ASC - Customer Service

From:  Kimberlee Frank/Hunter Paschall

RE:  123 Main Street, Longwood, Florida  32750

        John Doe and Sally Doe

        Loan Number:  1234567

Customer Service:

Enclosed please find an Authorization regarding the above individual.  Please provide my office with a short sale package along with a payoff letter as of January 30, 2007.

Thanks and have a great day.

Kimberlee Frank/Hunter Paschall  - (407)  772-2274

NOTE:  Banks and Mortgage Companies have websites that will allow you to go on line and request the payoff letter and or obtain direct telephone numbers.  You should be making a list of all Mortgage Companies that you deal with and keep their telephone numbers on a spread sheet for future use. 

Tip #5 of Getting Foreclosure

Short Sales Accepted

When working on a short sale, it is very important that you do a market analysis on the home to determine what price you should list the house. It doesn't matter what is owed on the home.  It is normal that as a Realtor, you always want to get the highest and best price for the Seller.   Depending on where the Seller is in the Foreclosure process will determine if you can list the house for a higher value and slowly drop the price or if you need to list the house for a Quick Sale. A Quick Sale value means you need to sell it within 30 days.  In most cases, it is for less than what is owed on the home.  Therefore your list price would be lower than it would be if you were just listing the home for a normal sale and not a foreclosure. 

NOTE:  The fiduciary relationship to your Seller is to get the best price for them but it is also to do the best thing for the Seller.  In some cases, listing the property for a Quick Sale is the best thing.  Your commission will be lower but you will be able to sell the home.

Tip #6 of Getting Foreclosure

Short Sales Accepted

The main ingredient to get a short sale accepted is a Buyer.  What this means is that as soon as you get ANY offer you would submit the offer to the Bank so that you can start the short sale process by getting a BPO (Broker Price Opinion determining the value of the home) and/or Appraisal on value.

Did you know you can submit all the documentation into the Bank and they won't even look at the short sale package until you have a Buyer?

NOTE:  Your main goal as a Realtor is to get the BPO Agent or Appraiser to come out and get the value of the property so that the Bank can make a determination whether or not they will accept the short sale.

Tip #7 of Getting Foreclosure

Short Sales Accepted

Why does it take so long for the Bank and/or Mortgage Company to respond back to the offer after a BPO and/or Appraisal is ordered? 

When the Mortgage Company agrees to order a BPO and/or Appraisal, they contact a list of National Providers who conduct Appraisals and/or BPO Agents.  That National Provider will then contact an Appraiser or BPO Agent to go out to house.  Normally, they give the Appraiser/Agent a 24 to 48 hour turn around time to go out to the house and conduct the valuation of the home.  The Appraiser/Agent will then prepare the Valuation (ie. Appraisal or BPO Report) and send it back to the National Provider.  The National Provider will forward that Valuation Report to the Mortgage Company.  This period will take approximately 7 to 14 days.

NOTE:  Do not call the Loss Mitigator several times until after the 14 day period to determine the status of your offer.  Some Loss Mitigator's have Caller ID and they know when you are calling.  You do not want to make the Mitigator mad at you for calling all the time.

We train Realtors, Investors and Mortgage Brokers how to do short sales.   Stay tuned for the posting of the remaining 3 tips.

Thanks

Kimberlee Frank and Hunter Paschall

http://www.cashgroupllc.com/

email:  Kimberlee@cashgroupllc.com

10 TIPS ON HOW TO BE A SUCCESSFUL REALTOR IN THIS MARKET

Foreclosures and Pre-foreclosures are flooding the market and they are changing the values of homes nationwide.  Times are changing and Realtors need to start Riding the Wave of the Foreclosure by changing.  We are seeing long time Realtors closing up shop because of the market.  Are you going to be one of those Realtors?  As a Licensed Real Estate Broker, my partner and I would like to share some of the tips that have made us so successful.

As a Realtor, it is very important to learn how to work a Foreclosure Short Sale. Many of the homeowner's can't even list their home because there is no equity in the home. Do you take the listing and let it sit on the market with the rest of the listings?   So, what do you do?  Turn the people away or do a short sale?  We say do a Short Sale for the Homeowner but do it the right way.

The listings that you presently have are sitting on the market because the values are decreasing and the Buyer is cherry picking.  Again, so what do you do? 

How would you like to receive 3% commission of a listing versus 6% commission of no deal?

Below are some tips that you should know if you are a Realtor that will assist you in the short sale process:

Tip #1 of Getting Foreclosure

 Short Sales Accepted

In order to get your short sale accepted, you must provide a detailed short sale package to the Mortgage Company. This is information that you must collect from the Seller at your first meeting otherwise you will be chasing them to get all this information.  If you are able to take a portable copy machine with you, we would recommend that you do so or just make sure that you take all their documents with you.  

Below is our Checklist from our Home Study Course that we send by email to the Seller prior to our meeting.  We make it clear that they need to have all this information prior to us coming out. 

CHECKLIST FOR SELLER

__________  COPY OF DRIVER'S LICENSE

__________  LAST 2 PAY STUBS

__________  LAST 2 YEARS TAX RETURNS OR W-2'S

__________  2 MONTHS OF MOST RECENT BANK STATEMENTS, BROKERAGE AND RETIREMENT STATEMENTS

__________  ANY MORTGAGE PAYMENT STATEMENT (On all mortgages)

__________  HANDWRITTEN HARDSHIP LETTER SIGNED BY SELLERS

__________  FINANCIAL STATEMENT SHOWING ALL ASSETS/LIABILITIES

__________  KEYS (2) TO HOUSE

NOTE:  Don't put off making your appointment with the Sellers because they do not have all the documentation, tell them that you will help them find the information and fill out the Financial Statement while you are there.  People will cancel because they procrastinate and they really need your help.

Tip #2 of Getting Foreclosure

Short Sales Accepted

Dealing with Banks and Mortgage Companies they all have a Company Policy that they must abide by in order to process files and/or speak with individuals about the file. 

It is very important that you have the Sellers sign an Authorization for Release of Information to allow you to discuss their file with the Mortgage Company.  You would then fax this document along with your letter to the Customer Service Department.   The Mortgage Company will not speak with you unless you have forwarded this Authorization to them.

Below is our Authorization for Release of Information from our Home Study Course that we fax to the Mortgage Company.

AUTHORIZATION TO RELEASE INFORMATION

Mortgage Company:______________________________

Loan / Account Number #: _________________________

Property Address: ________________________________

I/We hereby authorize you to release to _________________________________ or its agents and assigns any and all information that they may require for the transfer or payoff about my loan for the above referenced property. "Agents" shall include all associates of the above named company, real estate agents, attorneys and their assistants. You may reproduce this document to acquire reference from more than one source.

___________________                                  _______________________   

Borrower                                                         Social Security #        

__________________

Date

Printed Name: ___________________________________

_________________         _______________     ___________

Borrower                            Social Security #        Date

NOTE:  It takes 24 to 48 hours before the Bank/Mortgage Company has processed the Authorization to Release Information before you can callback and speak with the Loss Mitigation Department.

Tip #3 of Getting Foreclosure

Short Sales Accepted

Getting through to the Bank or Mortgage Company does take time and persistence.  They are working on a lot of files.  This Tip is very helpful for those of you who speak Spanish and/or have individuals that work with you who speak Spanish.  When you call into the Bank and/or Mortgage Company, you will have a choice to of either English or Spanish.  We recommend that you choose Spanish, this way you will get through a lot quicker than you would if you chose English.

NOTE:  Even if you don't speak Spanish, the person who answers the telephone speaks both English and Spanish and they will be able to assist you.  You just need to tell them that you pushed the wrong button and see if they can help you.

Tip #4 of Getting Foreclosure

Short Sales Accepted

When you send in your Authorization to Release Information at that time, you should be requesting a payoff of the mortgage.  The reason why you request a payoff letter from the Mortgage Company is because the second mortgage company will need to know the balance of the first mortgage so that they can work their COMPANY POLICY formula to accept the short sale, counter or deny the short sale.

Below is a letter from our Home Study Course that we send into the Bank and/or Mortgage Company:

CONSULTING GROUP, LLC.

(407)  772-2274

(407)  650-3119

To:  ASC - Customer Service

From:  Kimberlee Frank/Hunter Paschall

RE:  123 Main Street, Longwood, Florida  32750

        John Doe and Sally Doe

        Loan Number:  1234567

Customer Service:

Enclosed please find an Authorization regarding the above individual.  Please provide my office with a short sale package along with a payoff letter as of January 30, 2007.

Thanks and have a great day.

Kimberlee Frank/Hunter Paschall  - (407)  772-2274

NOTE:  Banks and Mortgage Companies have websites that will allow you to go on line and request the payoff letter and or obtain direct telephone numbers.  You should be making a list of all Mortgage Companies that you deal with and keep their telephone numbers on a spread sheet for future use. 

Tip #5 of Getting Foreclosure

Short Sales Accepted

When working on a short sale, it is very important that you do a market analysis on the home to determine what price you should list the house. It doesn't matter what is owed on the home.  It is normal that as a Realtor, you always want to get the highest and best price for the Seller.   Depending on where the Seller is in the Foreclosure process will determine if you can list the house for a higher value and slowly drop the price or if you need to list the house for a Quick Sale. A Quick Sale value means you need to sell it within 30 days.  In most cases, it is for less than what is owed on the home.  Therefore your list price would be lower than it would be if you were just listing the home for a normal sale and not a foreclosure. 

NOTE:  The fiduciary relationship to your Seller is to get the best price for them but it is also to do the best thing for the Seller.  In some cases, listing the property for a Quick Sale is the best thing.  Your commission will be lower but you will be able to sell the home.

Tip #6 of Getting Foreclosure