Anyone who can help please reply to the following question. I recently wrote an offer  as a buyers agent. . When i first met this buyer he had a pre approval from  a country wide lender in Dalla Texas we are in Eugene Or about 2000 miles away. After speaking with this lender on the phone a felt it was best for my client to use a local agent I trusted. My client met with the agent and loved her. As she is one of my go to finance people she was able to pass a little savings onto him and also lower his rate. I found him the perfect house in his price range listed at $149900.

The listing description noted that a 24" flat screen TV was to be given with seller approved financing. The refrigerator was noted in the MLS as included.  Ther was no mention of a specific lender in the MLS notes just that the TV was to be given with seller approved financing. I thought this meant he was to approve my buyers mortgage broker before accepting the offer by interviewing or other research. I totally agree with this! I assumed once he spoke with my lender and we had full bank approval we could move forward. Boy was I wrong. However I think they crossed into blatant mortgage steering. This is a complete violation of the respa  fair trade act of the early 80's. If anyone can pleas read further and help me decipher if this is indeed a violation. Also tell me when the respa act was implimented and what the statute number of this type of steering violation is.

I wrote an offer of $145000 with seller paying $5k in closingt costs. VA financing with my buyers lender. I listed all contact info for sellers approval of the financing on the sale  agreement also included the pre approval letter. We  gave 4 response days for plenty nof time for the seller to review financing. I also list the TV and refrigerator on the personal property section of the sale Oregon sale agreement.

The seller countered with this exact addendum 36 hrs after our offer had expired. This upset my buyer as he discoverd they where hoding an open house on the day they where supposed to respond. However this is not the problem or a legal concern. They sent me a counter to our offer via email.

Here is exactly how the counter offer was written.

Sellers 1st counter:

Sales price to be $152500

 25" flatscreen TV to be included in sale.

Buyer to get financing (from a different finance company than I had listed for approval).

Seller to pay $5000 in closing costs.

I was fine with the price and closing costs as was my buyer. However he did not want to use thier financing. Further more the counter offer wording is illegal. You cannot make the buyers change finance companys as a contingencie to a sale. My buyer was very upset at the prospect of having to change finance company's. I aasured him he did not have to use the  company in the sellers counter, and called the listing agent and asked if my buyer could use his own lender and seller keep his TV to try to avoid the steering situation altogether. He said indeed my buyer using this financing company was  very important  to the seller and he did not think he budge on the subject. I said "my buyer has to use the seller as a licenced morgage broker paying him a commission to purchase his house" He said yes thats what his seller insists but he will not actually be doing the loan. I said "he must be getting a referral or it would not matter as long as he was comfotable with the lender my buyer chooses". He did not answer. I then said "Thats totally illegal you know"! He told me he would call me back after speaking with his principal broker about it.

 At first the listing broker agreed that this was illegal and apologized after speaking with his principal broker. I said I was willing to forget the whole thing I just wanted my buyer to get the house and use a lender he trusted.  He then called me back after meeting with his seller 2 hrs later the same day. He stated on the phone that the counter offer wording was indeed legal because of the TV offered for seller approved finance was an incentive to use his finance company. I stated the wording did not reflect just an insentive as they where not connected in any way on the counter but two seperate contingencies to the sale. 

I discontinued the argument and told the listing broker my buyer would not take the TV as he did not know anything about this company or it's fees and rates. I also told the listing  broker my buyer had  a fiduciary relationship with his lender and it would be unethical to interfere with that. however we would be more than happy to give him time to interview the lender and open escrow only after initial approval  is satisfactory to to seller.

I then rejected sellers 1st counter and countered as such thinking once again the seller wanting to be the lender was off the table. 

Buyers 1st counter:

Sale price to be $150000

Seller to contribute $5k to closing

Buyers finance to remain the same as listed on the sale contract. and added buyers Lenders phone # name etc.

 24" TV not to be included in sale.

The seller then rejected my buyers 1st counter and counted and countered with this wor for word.

Sellers 2nd counter:

Sale price to be $154000.

seller to pay $5k in buyers closing costs.

TV not to be included in sale.

Buyer to use his own financing

Buyer to be pre approved by (The lender  the seller   works for ) within 48 hrs of mutual agreement.

I immediatly called the listing agent and said your seller is actually going to raise the price of his last counter if my buyer does not use him as a lender. He said yes. He then told me I should consider having my consulting my buyer to use  the sellers finance company to get the lower price, and end the negotiation. I said I will over look giving up the TV even though you never specified buyers where to use the sellers own finance company in the MLS listing. I can accept that is an incentive for such. Your seller can also raise the price at will while negotiating at any point before mutual agreement. Where  I Belive they are breaking the law is changing previous offers of price, and threataning not to sell (though mostly verbal the sellers 1st counter is arguablly written fact of this) unless they use the sellers finance company> Worse yet wanting my buyer to agree in a binding sale agreement with $1500 of his money in earnist without any kind of good faith.

Am I right? Is this blatant mortgage steering? If my buyer agrees to use thier financing to get the better price so he can qualify is his $1500 in earnist money going to be in jepordy if he diagrees with fees,  rate, or personallity of  the seller and refuses to use him after the good faith estimate? What would you do? My buyer still really wants this house he cant qualify for $154000. He also is not willing to use the seller or anyone associated with him for financing.

 It's never gong to happen! I know a lady who spent $2000 on a course in Portland Or. She had great credit so now she now owns three houses she can not sell and is going to file bankruptcy.  Most can't come up with the kind of real money it takes so they just waste the $2000 and allot of time trying. I have met about 30 of these people as well. I feel bad for them, but they rarely listen to knowledgeable Brokers and investors.

There is a way to make money in Real Estate and I will give it to you for free! 

1. Find a small home that needs a little or allot of work depending on you capabilities. Utilize a Real estate broker who is knowledgeable in investment properties, Short sales, Foreclosures, Etc. Fix it up just enough to rent for no less than 2 years. Rent until the market is at or near the top of a cycle. Remove renters Fix up to retail standards, stage and profit big.

I have made more money than I ever thought I  would have with this simple process, but is it that simple! Kind of but you really need a good Broker or Realtor who has experience in these types of listing as negotiating with the banks is an art form that actually takes knowledge and practice. Some brokers have personal relationships with the people in charge of the distressed homes they are called asset managers. As a regular buyer you will never even get them on the phone! It's hard enough for most Realtors. I started investing this way before I became a Broker and had an excellent Realtor who helped me move up in the tax brackets and lifestyle. I ended up Marrying her and becoming a Broker myself continuing the process together.

This is the time to buy!!!! It's like a 1/2 price sale out there. History proves the market will indeed rebound and those bargain hunters out there right now are going profit in record amounts when it happens! I am going to once again be one of them!

For more information or a list of distressed homes in Lane county Oregon go to www.teamthayer.com or call Justin Thayer @ 541-543-7287

You will have to request a Foreclosure list but it's free! I also have tons of info for investors on the site!

I found this artical and had to comment! This is important information to all of the bargain hunters out there!

Justin

Online Foreclosure Sites Come With a Price
Buyers interested in foreclosures need a real estate professional''''s help navigating the online listings unless they are willing to pay a substantial monthly fee to use heavily advertised sites like ForeclosureStore and ForeclosureToGo.

Sites that are free, like Zillow.com and Trulia.com, just display filings culled from other sites, so users ultimately end up at the pay sites.

Users of the pay sites can often see a partial address and description, but if they want the whole enchilada, then they must cough up monthly fees that range from about $40 to $80.

RealtyTrac advertises free access, but often the addresses and other details are incomplete.

Source: The Associated Press, Alex Veiga (12/22/2008)

I also have found these sites are too flawed to be accurate. All  most of them do is put out information from the county's notice of default lists. The homeowners on these lists often do not want  to sell but are tying to save their home in which they often do! Imagine the surprise when a new investor as they get greeted with a shot gun after presenting an  offer  at the homeowners front door for what he owes on his first loan. This really happened in Lane county. These sites show the amount of the first lien and displays it as if it is a selling price! They do  not show the second mortgage or any other liens that need cleared to obtain the property if indeed the home owner wants too sell. This get people excited enough to whip out their credit card to pay the $20 fee. to be a member of the site for a month. I have yet to see anyone in serious trouble with their mortgage and only have one loan on it with tons of equity! If that where the case they would just sell the house.

  Fortunately for people in Lane county Or I will provide a true list of distressed property to anyone whop wants this information for free. I search for these homes and put out a list about once per week.  I include Foreclosed, Homeowners trying to secure a short sale, and estate sales in one list. You can email me @ info@teamthayer.com , call my cell @ 541-543-7287 or, go to my web site www.teamthayer.com     

Seller Paid Taxes on short sales explained.

Prior to December 2007, if a homeowner lost his house due to a bank foreclosure, and the bank forgave any difference between the price it was sold for and what was owed, the homeowner would owe additional income tax on that portion. Yes, it's hard to believe, but true.

Let's say the homeowner owed $300,000 on the mortgage, but the foreclosure sale only brought in $200,000. Then the bank forgave the $100,000 shortfall. The homeowner would have been liable for the income tax on the $100,000 debt forgiveness from the bank.

The IRS considered this money effectively paid to the homeowner, and it would be taxable in their top bracket.

Now, because of the unique stresses in the housing industry lately and on our whole economy, in December 2007, Congress stepped in to provide temporary relief in the form of forgiving this debt, but only for the 2007, 2008 and 2009 tax years. After that, the old rule applies again.

To be eligible for this tax relief, the mortgage must be for your principal residence. It does not apply to vacation, investment or other properties. And no more than $2 million of forgiven debt can be excluded from taxable income.

Home Equity Loans

Another very important detail in this temporary tax break is if part of the forgiven debt was a home equity loan and used for purposes other than to build, buy or substantially improve the property, that portion is still taxable. In other words, home equity loans used for vacations aren't included.

Short Sales

Now, what happens in a short sale? In brief, this can occur when a borrower is behind on the mortgage payments and the lender agrees he can sell his house for less than what is owed on the mortgage. But all proceeds must be turned over to the bank.

The portion of the mortgage the bank forgives, plus any commission expenses or other selling costs, are taxable income if this debt is canceled. Yes, even the commission and selling expenses count.

A homeowner can now receive a $250,000 (single) and $500,000 (married) capital gain exclusion on the sale of their primary residence.

While $7,500 capital gains tax is surely a lot less than the $100,000 canceled by the lender, the homeowner may not think of this or be aware it could happen down the road, perhaps just prior to retirement. And capital gains taxes are always subject to change.

Mortgage Insurance Affected

It is important to also note this act extended mortgage insurance as an itemized deduction all the way through 2010. Yes, there's a restriction. The mortgage contract has to be entered into between December 31, 2006 and January 1, 2011.

For more information on short sales or for a list of short sales in Lane county Oregon call go to www.teamthayer.com or call 541-543-7287

Results of 2008 Q3 Homeowner Confidence Survey

There's no doubt we've been deluged with depressing economic and housing news over the past few months. Every day is a new headline, every channel has a new pundit and the recession debate has shifted from "if" to "how long."
Given this, when fielding our Q3 Homeowner Confidence Survey earlier this month, we expected the results to be markedly different than last quarter, when 62% of homeowners thought their home's value had increased or stayed the same (despite 77% of homes losing value). The Q3 Survey, fielded October 7-9, 2008 (the worst week in stock market history, by the way), asked homeowners their perception of their home's value over the past year, and what they think will happen to their home's value in the coming months.The results are kind of baffling. While the perception gap did narrow, still half of U.S. homeowners do not think their home's value has declined over the past year. Specifically:

* 32% think their home's value increased in the past 12 months

* 17% think their home's value held steady

* 51% think their home's value declined In reality

three-quarters (74%) of U.S. homes lost value in the past 12 months, according to Zillow's Q3 data.The following chart breaks down responses by region, and you can see that homeowners in different areas of the country hold a more (or less) realistic view. In the West, where the most homes are losing value (85% of homes in the West declined over the past year), homeowners are more realistic - with 65% of homeowners saying the value of their own homes has declined. In the Northeast, the perception gap is widest.
Meanwhile, optimism continues into the future for a good chunk of homeowners: * 21% believe their home's value will increase in the coming 6 months * 40% believe their home's value will stay the same * 40% believe their home's value will decrease.




Is this optimism (or denial) necessarily a bad thing? Maybe not, if you plan to stay in your home for the next several years and aren't making financial decisions today based on presumed equity. It's sort of like the way I'm avoiding looking at my 401k statements - doesn't affect me today, so why get depressed. But for sellers, an unrealistic view of your home's value today can only hurt - you, when your home sits on the market for months, and the local market at large, with a continued and growing glut of inventory that's just not selling.

For more information visit  www.teamthayer.com

Part of the government's original $700 billion plan to purchase troubled mortgages and take them off banks' books is being shelved - primarily because of the long-time involvement to implement it effectively. Instead, the money will be used to quickly strengthen the capital position of financial institutions and support securitization for consumer financing. The goal is to get capital to lenders (banks, mortgage companies, other financial institutions) so that they can start issuing loans to consumers and companies. In one sense the plan is working; the LIBOR rates - the key rate measurement of liquidity flow in the financial system -- have begun to thaw after being essentially frozen. But in a greater respect the plan is not yet working: residential mortgage rates stubbornly carry a high spread above Treasury rates, commercial mortgage loans are non-existent and the banks are not still lending to small businesses.

The good news on the real estate front is that mortgages backed by Fannie Mae and Freddie Mac (now under the governance of the Federal Housing Finance Agency) have received stronger support. Treasury Secretary Henry Paulson recently said the following regarding the mortgage-backed securities of Fannie and Freddie: "The U.S. government honors its commitments and investors can bank on it." Let's all hope he's right on both counts. Still, there has been investor confusion about what "effective" vs. "explicit" guarantee of Fannie and Freddie debts actually means. That confusion has pushed up mortgage rates.

The Financial Crisis

Yes, we are in the midst of one of the worst financial crises in a generation. The confusion in the markets has also affected consumers -- some consumers mistakenly believe mortgage loans are not available. However, massive government efforts are being made to ensure mortgages flow to qualified consumers. There are loans out there.

Perhaps also a bit confusing for consumers, against this turmoil of financial and credit concerns: housing affordability has been improving consistently over the last few months. Affordability is as high as it's been since 2003. The latest NAR Housing Affordability Index stood at 135.2 for September - up from August's revised reading of 123.3 and a third consecutive monthly increase. That means that a family earning the median family income has 135 percent of the income necessary to qualify for a conventional loan covering 80 percent of a median-priced existing single-family home.

A Few Bright Spots

That improved affordability has led to improved home sales. In September, existing-home sales rose more than five percent from the level in August. In Arizona, California and Nevada, sales rose 20 percent or more between the second and third quarters of 2008. In fact, 19 states experienced increased or no change in sales during that time.

Those home sales are helping to work off housing inventory. Shrinking inventory is another sign that the real estate market is stabilizing. Inventory of new homes has been falling since posting
a peak supply of 570,000 new homes in August 2006. As of September 2008, new-home inventory had fallen to 394,000. The inventory of existing homes has also declined - from an 11.2 month supply in April to a 9.9 month supply in September.

More Must Be Done - NAR's Role

While these signs are encouraging, more must be done, particularly given our economic contraction forecast of about two percent in the fourth quarter of this year, and a jobless rate that could easily surpass 7 percent in 2009. NAR research indicates that an interest-rate deduction of just 1 percentage point could result in as many as 840,000 additional home sales. That could further reduce the inventory of homes by as much as 20 percent.

To encourage more buyers into the housing market, NAR has proposed that the government buy-down mortgage interest rates to ensure fixed low rates for home buyers. NAR also presented a four-point plan to Congress last month recommending, in part, that the repayment feature be removed from the first-time home buyer tax credit, that the tax credit be extended to all buyers, and that higher FHA and conventional loan limits be made permanent - up to $729,000 in high-cost areas - to give buyers in these areas access to safer, more affordable mortgages. A meaningful shrinking of inventory can only occur with new set of buyers entering the market. Only then will home prices, Wall Street and the economy begin to turn toward a sustainable recovery.

Realtors® are Essential to Housing Recovery

While NAR will continue to press for additional housing stimulus, the housing recovery - and the subsequent economic recovery - also depends on restoring consumer confidence. REALTORS® are an essential part of that. Buying a home has been a path to long-term wealth accumulation for a vast number of homeowners. REALTORS® have the knowledge, experience and expertise to help their clients make informed, smart decisions in these difficult times.

For more market information visit www.teamthayer.com

Here is the latest way people are trying to profit from others misfortune.

The following was actually sent to me about a house I have listed. I removed the actual persons name and website. They obviously did not realize they where contacting a Real Estate Broker so I investigated further to find out what they are really trying to do!

(Peace and Abundance of Blessings to your and you family, I am running the numbers, in preparation to make you an offer on your property. I think your property would fit nicely into my Perfect Tenant Program. The benefits that you get are PRICE, CONVENIENCE, AND SECURITY. We offer to buy your house at today's full market value and take care of the rest. When we lease option a house, we guarantee in writing that all maintenance and repairs will be paid by us while we are selling your house to a tenant/buyer. We only deal with high quality people who are looking to buy, not just rent a house. When you sell your home to us, we handle all the marketing of the house. This includes paying for advertising, screening potential tenant/buyers, and showing the house. We want the process of selling your home to go as smoothly as possible, with no more headaches for you caused by buyers who tell you that they want a house, but end up not being able to qualify for financing. You are also relieved of having to pay double mortgage payments in the event that you have to move before you are able to get a buyer for your home. We simplify the process of selling you home by handling all the details that waste much of your time and money. We make your monthly payments while a tenant/buyer is qualifying for a loan. All your expenses related to the house are taken care of. Try getting a realtor to do that while listing your home! Another advantage is that our objective is to put only high quality tenant/buyers in the house since we make our profit by selling for higher than we buy. Since we guarantee all maintenance on the house, it is in our best interest to ensure that our tenant/buyer will take care of the home and eventually secure financing to cash you, the seller and us out. This means that we put our tenant/buyer through an intensive pre-screening process before they are even permitted to look at the house. We don't work for commissions, so you keep your equity. And, because our profits are made by selling for slightly higher then what we buy for, we have a vested interest in the house and in making sure it gets sold. Please visit my website XXX yyyy for more info. Please let me when you are ready to move forward, 

  
 I found out these are the people who bought those get rich with no money down buying Real Estate programs from late night infomercials. Here is exactly how it works:

They buy your house from you on a land sale contract with a return clause at the end (This means you are financing them. They  make you payments but pay you little to no actual money up front. However legally they own the property). Then they find a renter and sign them up on a rent to own contract. They rent it for a period of time usually 6mo - 3 years hoping the tenant gets their credit in good enough shape to buy the home  for more money than you sold it to them for at the end of the contract. Remember they paid you nothing just took over your payments! Well they did not really take your payments over they pay you your payment amount that they get from the renter they found and put on the rent to own contract. They or you never pay your bank off so you are still responsible for your house payment! The worst part is the people they put on the rent to own rarely become credit worthy enough to buy a home in one to three years. The reason most people  go with rent to own in the first place is bad credit. If that renter cant get conventional financing or cash in the amount of time of their rent to own contract they will charge you for their services by selling you back your own home for more than they bought it. This will be confusingly spelled out in the return clause of the land sale contract.     This is how to buy property with no money out of your own pocket. What a scam! It's totally legal to!

Rent your house yourself or call a Realtor before getting caught up in the loosing end of these get rich quick schemers. There are better ways to get help even if you are in trouble and over you head!

   If you need to sell your house and live in lane county call me @ 541- 543-7287 or go to www.teamthayer.com    
 

As Foreclosures Rise, More Sellers and Lenders Consider Short-Selling The headline news recently was that the number of mortgages entering the foreclosure process rose to a record level. Of the nearly 44 million mortgages, about 0.58 percent - that's 254,590 - or one out of every 172 loans, are now officially in foreclosure. Foreclosure occurs when borrowers have not made two or more payments and lenders respond by filing a legal notice and commencing a legal proceeding to take possession of the home. The record number of foreclosures does not appear to be evenly spread around the country. According to the Mortgage Bankers Association, the rate of mortgages in foreclosure would have fallen if not for big jumps in foreclosures in local markets of California, Florida, Nevada and Arizona, where investors who bought on speculation that values would rise are walking away from property that is now worth less than they owe. Also, in regions of Ohio, Michigan and Indiana, areas marked by large job losses in manufacturing are seeing big increases in foreclosures. A Foreclosure Alternative The prospect of foreclosure is difficult for a homeowner, but there is another option. A little-known alternative, once more commonly used in the real estate downturn of the early '90s, is the "short sale," which works like this: A homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, or both. Facing a situation in which the home value has fallen and cannot be sold for the amount of the mortgage owed, the homeowner works out a deal with the lender to sell the home for whatever the market will bear. If the amount of the sale is for less than the amount owed on the mortgage, the lender gets the proceeds and discharges the remaining debt. The homeowner will have to leave the house as soon as it is sold. Alternatively, with a foreclosure, homeowners who can no longer make payments are served with a notice of foreclosure, which essentially informs them to either bring the loan current or face the home being taken over and sold at a public auction, after which the homeowner will face eviction proceedings. While this process is going on, the homeowner can live in the house rent-free for up to a year, depending on that state's foreclosure and eviction laws. But this fact alone does not mean the foreclosure is better; in fact, it may be worse. Lose the House, but Not Your Credit According to sources in the mortgage industry, people who agree to a short sale with the lender do far less damage to their credit rating than those who go through foreclosure. While in both cases, short sale and foreclosure, the delinquent mortgage will negatively affect their credit rating, at least short sellers avoid having a "debt discharged due to foreclosure" on their credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to three years to qualify for a mortgage at a reasonable rate. Short sales show up on a credit report as a "pre-foreclosure in redemption" status and can result in a credit score reduction of 100 points or less. After the sale, the mortgage may show up as "discharged." People who successfully complete a short sale may also qualify for a mortgage at a reasonable interest rate in as little as 18 months. So, if buying a home is a future goal, then a short sale is the better option for many. Homeowners cannot simply decide that they want to unload a home with a short sale; the lender must agree to it. The key to getting a lender to go along is to demonstrate two things: that you have no other financial resources to pay the mortgage, and that the sale price the buyer is willing to pay is the fair price the market will bear. If a lender believes it can get more for the house by taking possession of it and selling it themselves, then they will not go along with a short sale. To begin the process of a short sale, you first need to call the lender and speak directly with the person in the loan workout or short sale department. At GMAC ResCap, a large residential mortgage lender, there is a "foreclosure prevention department" with people trained to work with homeowners in exactly this situation. Their motivation is summed up by Steve Nelson at that company: "We pretty much know what our loss is going to be if we foreclose. If a short-seller results in a payoff that's better than that number, we're talking all day long with people who want to put a short sale together." Some lenders report a three- to four-times rise in the number of short sales over the past year. People who want to go this route should contact a local real estate firm and ask to work with a real estate agent who has actual experience with short sales. These specially trained agents will know the process and deliver the documentation that the lender requires to authorize the short sale. The agent can also find a buyer that is qualified to complete the transaction. If all goes as planned, the lender will receive all of the proceeds, typically not enough to pay off the loan. The remaining balance of the loan is discharged. But a homeowner agreeing to a short sale should also get legal advice to protect his or herself from future claims of the lender. In some states, only purchase mortgages are fully discharged. For all other types of debt (equity loans, refinancing, etc), the homeowner can be held personally liable for repayment in the future. For this reason, a lawyer's advice will include getting the lender to agree to fully discharge all mortgage debt involved in the short sale. Buying a Short Sale Home Buyers who can find a short-sale can get a good deal. The advantages of buying a property through a short sale include buying at a discounted price and buying a house where the sellers are still motivated to sell the home and may take care of it until it is sold. Some buyers think they can get a better deal by waiting to buy a house when it goes into foreclosure, but buying a house through foreclosure is risky business and not for first-time buyers or inexperienced real estate investors. You should get advice from an experienced professional. Hire a lawyer to help you with the eviction process if the home is occupied. Sometimes, tenants who are sued for eviction can retaliate. When sellers realize they will lose their home to foreclosure, they often stop caring for it. Many states require buyers to make certain disclosures to the owners, and failure to do so on the proper forms and in the required timeframes can result in fines, lawsuits, and even cancellation of the sale and loss of your money. It's typically advised to work with a realtor with experience in short sales, because they can help you research the market to find the properties where foreclosure notices have been filed as well as how much is owed by the lender. Typically, this can be done at the county registrar of deeds. They can also approach these homeowners for you to let them know that they are aware that the foreclosure notice has been filed and that, if the owner is interested, there is a buyer who could work with them to complete a short sale. Even if you find a home where the owner is willing to work out a short sale, don't assume the lender will go along with it. Once the seller agrees to your offer, your agent will need to send it to the lender for approval, and you will not have a deal until the lender OKs it. Expect a lender to negotiate a higher price; they will want to know they are getting paid the most they can get for the house. Since the lender is paying the realtor's commission, it will likely ask your agent to lower his commission, or you to pay some of it. Typically, the lender will not bear the cost of items that are typically paid for by sellers, such as inspections, and the lender will agree only to sell the property if the buyer agrees to buy it in "as is" condition. This makes it all the more important for a buyer of a property through a short sale to make an offer contingent upon approving a through home inspection.

To find short sales for sale or get help with a house you cannot afford call 541-543-7287 or visit  www.teamthayer.com

There are a few ways to find great deals on foreclosed homes and short sales. The most popular but the least effective is cold calling off a  default list. You can get this list from your local Title and Escrow company however these are rarely folks who are interested in selling but  usually people who are trying to save their homes. They  are usually highly offended by the uneducated offers from Real Estate novices who's experience consists of a video course they bought at 2 am from a Saturday night infomercial. I have seen company's actually selling these lists for anywhere from $10-$100. DO NOT BUY A DEFAULT LIST. You can get this info from your local Real Estate broker or title company for free. One thing most people do not realize is the default amount on the list  IS NOT WHAT YOU CAN BUY THE HOUSE FOR! It is the amount of the first position lien. There are often several other liens that must be dealt with before a title can be cleared. The other popular but worthless way to find deals in drive around looking for run down houses people might sell for a good price. You might as well drive around and try and find money people drop by accident.WHAT A WORTHLESS WASTE OF TIME!!!! The very best way to find an amazing deal on a foreclosed property or short sale is to contact a Real Estate broker who specializes in distressed properties. These pros know where they are and  how to negotiate SUCCESSFULLY with the banks. YOU WILL NOT SAVE MONEY  DOING IT ON YOUR OWN.This is called stepping over dollars to pick up pennies! Don't do it! I have watched several investors spend months or even years trying to get  banks or anyone to listen to them and look at their ridicules offers with less earnest money than they spent on the get rich flipping houses  books they just bought.  The market is to good right now to waste time. Use the following criteria to find a Broker who can help you take advantage of this home buying investors dream market we are in.  

   1. Find a broker who is currently being hired by the banks to do BPO's (broker price opinions) , and have REO (bank owned) property for sale as well as work as a buyers agent specializing in REOs, short sales, etc. They will be able to give you the first shot on their bank owned listings as well as having connections with the old boys clubs that often have the bank owned markets cornered.

  2. A investment buyers agent  should be an expert in short sale negotiation with at least 10 successful short sales under their belt. I am on a personal level with as many bank asset managers and employees as possible. I make sure they know me and like me. This allows me to really navigate the bank and pull favors to the advantage of my clients.

  3. Willingness to show you allot of properties is key. I take my clients to see 15-20 houses minimum. You cant know you have the best deal unless you see what the competition is about.     4. Information speed is key. My buyers see the new important listings as soon as they come on the market. this gives them an incredible advantage. 

     5. Tie the deals up fast!  Even in this buyers market the best deals often are sold with a bidding war. I tie up my buyers possible purchase before this has a chance to happen.  

 For Lane county Oregon go to www.teamthayer.com If you are outside of Oregon I can still help so log on to my site or call me @ 541-543-7287

Short sale! This is where the bank forgives a portion on the loan in for a lump sum payment from the sale of a house. Over the last 6 months I have seen the short sale get easier as banks and REO company's are getting loaded down with the amount of  defaults.  I have been able to get rid of all other types of other liens along with the home loan including lawyer fee's. It seems everyone is understanding the problem and moving faster to cut their losses. I have been able to get banks to take as little as 10% on what is owed to them. I have given a brief outline of my process in the steps below.

1. Order and fill out the banks short sale packet right away. Do not wait until you have an offer.

2. Contact the banks asset manager for that home right away and let them know you are going to get them as much money as possible but due to the market it will probably be short. If their is a first and second contact them both. You usually just need to negotiate with the second if their are two liens but if the house value is worth under the first as well this is OK. You will need to negotiate with them both equally.

 3. Advertise your situation. Add the wording pre-forclosure and /or short sale to  all of your advertising including directionals and yard signs. This will spark more interest and more chances at higher offers.

4.  Price the property at what is owed for 1 week then lower the price every 2 weeks until you are in a range you know will get offers or you get an offer. You will be able to use the MLS history as proof you tried to market the property at higher prices.

5.  The closer you are to the sheriff sale date the more aggressive you should drop the price. I usually drop $10-$20k every two weeks until an offer comes in, and it always does.

6 All of the seller financials should be already turned in however the  REO company or bank  will want new bank statements and pay stubs if it has been 3 months so turn them in before they have to ask. Turn in the following with your offer.

A. Your own CMA

B. A letter in your own words explaining the current area market condition.

C. The listing history from the MLS proving you tried to get more out of the property.

D. Current bank statements and pay stubs go three months back to cover you bases.

E. A letter from the seller detailing the severity of their current financial crisis.

F. You own photos and description of the property including any problems that prevented any sales at a higher price. ( Do not try and beat up the property but explain any showings or past offers that may have been retracted by poor conditions or needed repairs) The key here is to let the asset manager know that you are trying to get as much money as possible for the property. 

7. Remove the lockbox to prevent any other Realtor from doing a BPO without you input. When the REO company sends out the Realtor to do the BPO meet them at the property and provide your own comps. to them to make sure your values match up .   

 8.  Now you just have to work it out with the asset manager. If you have done the previous steps correctly you should be able to get the asset manager to guide you to a deal that works for everyone. The offers have to close to actual value if you expect to close. They can still be a great deal for the seller but  need to be realistic. Reject ridicules offers right away and turn them in to the asset manager. It's going to be up to you to figure out what is aggressive vs ridicules but can make all the difference in how the asset manager works with you. 

If you need Short sale  help in Lane county Oregon or just have questions please call Justin Thayer @ 541-543-7287

For additional information on short sales go to www.teamthayer.com