Welcome to this week’s edition of the Pre-foreclosure Daily Grind! In this edition we discuss a couple of great tips with you! First, we’ll cover a deal we’ve been working on recently, and how we’ve hit a roadblock regarding getting a foreclosure postponed. We will cover what you NEED to tell your clients with regards to how postponing foreclosures works. Second, we’ll talk about the basis on which 2nd mortgages often make the absurd requests they do which helps us all understand such situations.

Many of us have likely experienced a scenario in which we get about 80% of the way through the short sale process, only to have the lender foreclose and take the property right out from under us. This can be very frustrating! We ourselves have had THREE like this in the last 2 weeks alone. So, for those of you who have faced this also, here are a couple of things to keep in mind. First, if you’re working on a property in which the loan is over 12 months delinquent, it becomes less and less likely that the lender and investor (remember, this is the entity that owns the mortgage note) will agree to postpone the short sale. Therefore, as more time goes on, expect that you’ll need a higher offer or larger cash contribution from the sellers in order to get these postponements through. Also make sure to prep the sellers accordingly. Next, keep in mind that when you ARE working on a loan that is over a year delinquent, that the investor will want more money out of the deal to make it worth their while. Additionally, the situation will demand that ALL parties approve in writing BEFORE the foreclosure date in order to postpone the foreclosure.

For example: if it will take 10 business days for all parties to approve the offer, and you’ve only got 7 business days until the foreclosure, then it’s likely you’ll be hearing from the negotiator that they have to close the file out. We all know that it will be headed for REO land. In a situation like this, the only way they may CONSIDER to speed up this approval process is if they get more money out of the deal. Perhaps such money can come from the seller or maybe from the buyer. Thus, make sure to prep all parties accordingly for this, so that they know what to expect. As we all know, expectations are a HUGE part of our business, and are the difference between closing deals and not closing them! In our case it was a Freddie Mac backed loan, in which we had a full price offer in hand. Since there wasn’t enough time to approve it BEFORE the foreclosure, Freddie decided to foreclose anyway. Way to help the economy recover huh?!

This week we also had the privilege of dealing with yet another stubborn and completely unrealistic 2nd mortgage, USAA. This was setting up to be a nice, easy, 2- mortgage short sale, in which the 1st was set to be paid off in full. Despite paying off the 1st in its entirety, there was still a little over $24k left over for the 2nd mortgage! We went into it feeling very optimistic that the 2nd would take the $24k. Even if they wanted a prom note from the sellers, AT LEAST they would be perfectly ok with that sum at close. That way they could go ahead and approve the short sale, and get a nice chunk of their debt right away. However, that was not the case. USAA, for some reason, countered back and wanted…$58,000…dollars…at…closing! For me, there are never enough things I can say about a situation like this, and we’ve all been there, and laughed, maybe cried…and so I won’t waste any words on venting about it. But…what I will do is try to help all of you understand WHY some 2nd mortgages respond in this fashion.

There are 2 things to understand here. First, they are recourse loans, and so they know that even if the 1st mortgage forecloses and they get nothing in that sale, that they can still pursue the sellers legally to recover money. Second, the money they’ll get at close is really the only money they are fully guaranteed to get. The reason for this is because many homeowners simply file bankruptcy after the short sale is done or just simply DON’T pay whatever sum they’ve agreed to with the lender. Therefore, in many instances the 2nd mortgage gets what they get at closing. They lose a lot of their control in the situation because they have released their lien and secure position on title. Make sure to keep this in mind when dealing with them. As for the best way to counter this, just try to get as much money as you can, from each place you can, and present it as your counter offer to them. In most cases, their high counters are really a way for them to say, “We just want to make sure we’re pursuing all avenues to recover as much money as possible.”

Enjoy this week’s Pre-Foreclosure Daily Grind tip of the week, and have a great and profitable week!

On this week’s PFDG “Tip of the Week” we uncover whether or not Fannie Mae will approve your short sale transaction if their loss is greater than $125K. Why some Real Estate Brokers are doing everything they can to screw you out of your short sale negotiation fees. The inside workings of how Flagstar Bank processes their short sales. Whether or not it is possible to escalate a file, with Flagstar Bank, if there is no Foreclosure Sale Date set. Plus an update on the launch of our new and improved CRM (or Small Business Workspace) FinerSolution.com. Take a 14 day test drive of the easiest, most comprehensive real estate management platform available! Visit www.PropTrackr.com for more info.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into how to weed out unmotivated agents and sellers so you don’t waste your precious time. Listen in as we tackle this extremely important topic and also how we beat Bank of America and Freddie Mac at their own game. Why not quitting on your short sale client should be a “MUST” in your real estate business, plus who CitiMortgage is using as one of their collection companies and more on this week’s Preforeclosure Daily Grind Tip of the Week. Take a 14 day test drive of the easiest, most comprehensive real estate management platform available! Visit www.PropTrackr.com for more info.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we tackle what to do when you are negotiating a short sale and you get stuck with an over demanding loss mitigator. We cover how to figure out if the demanding requests for more short sale documents are coming from the actual lender (Chase), the lenders investor, the Mortgage Insurance Company or just an inexperienced negotiator; The different levels a short sale travels in order to get an acceptance. Plus the latest way Bank of America and their Equator system are jamming up your short sales when you are at the closing stages, and more.

Take a 14 day test drive of the easiest, most comprehensive real estate management platform available!  Visit PropTrackr.com for more info.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we tackle the latest way that Litton Loan Servicing is handling their loan modifications. We cover how they deal with sellers, agents and third party loss mitigation companies when they are servicing the 1st mortgage. We also go over what they are doing when they are servicing a 2nd loan and what debt collection company they are working with. Chase’s new practice regarding sellers that miss one payment and what foreclosure “status” they put them in and what you need to do to get them out, and more.

Take a 14 day test drive of the easiest, most comprehensive real estate management platform available!  Visit PropTrackr.com for more info.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into the facts behind doing a short sale on an FHA insured loan. We cover the positives, negatives and give you “hidden” tips and tricks when discounting these properties. Listen in as we also cover the how to “escalate” an FHA insured file so you can speak directly to HUD’s national office, one of the only remaining lenders that still require our sellers to go through HUD counseling. We also touch on the maximum amount of money that FHA will give attorneys and title companies, whether or not an FHA insured property needs to be listed in order to qualify for a short sale, whether or not the homeowner needs to be in default to start an FHA short sale. The “truth” behind whether or not a “VACANT” FHA insured property can be filed for a short sale. We also cover if Bank of America negotiates FHA insured properties on their Equator System and more.

Take a 14 day test drive of the easiest, most comprehensive real estate management platform available!  Visit www.PropTrackr.com for more info.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into what many of today’s buyers’ lenders are requiring on your short sale acceptance letters, in order to finance a short sale purchase transaction. Listen in to see what McCue Mortgage is requiring from Bank of America and CitiMortgage. We also cover what line to put a 2nd lien holders payment on a HUD-1 settlement statement to satisfy a 1st mortgage, why you can’t change a Bank of America short sale approval letter, why CitiMortgage no longer accepts extra payments of the HUD-1 settlement statement and more.

Take a 14 day test drive of the easiest, most comprehensive real estate management platform available!  Visit www.PropTrackr.com for more info.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into the latest and greatest challenge when dealing with a Servicer (Lender) who goes against their Investor (the entity who owns the money) and their written guidelines and how to overcome it. We also cover the latest updates to our Real Estate Management Tool that will save you a lot of money, a deal in which we’ve had to go over a lenders head and straight to the investor due to another bait-n-switch, why and how to get two negotiators to work together when they’re both within the same lender and on the same property, a recent “challenging” SunTrust deal that we finally got closed after a year and much more.

On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into what is going on with SunTrust Mortgage and how long they are actually taking to close short sales these days. We go over a recent deal we have with them and some tips and tricks on how to get a short sale deal closed when you have two mortgages with the same lender. Listen in as we cover this and how often SunTrust Mortgage will order a new BPO, what Fannie Mae will allow 2nd mortgage holders when they are in first position, whether or not SunTrust will give a “Settlement in Full” or a “Release of Lien” only on their short sale approval letters and more. Visit www.PreforeclosureDailyGrind.com for more real estate videos from North Shore Enterprises.

This week’s Preforeclosure “Tip of the Week” from PreforeclosureDailyGrind.com’s Bob Lachance and Chris “the Drummer“ Bowes is about how long a Fannie Mae insured short sale “typically” takes from start to finish. In this video we go over a recent deal that we closed with One West Bank that is filled with hidden tips and tricks. Listen in as we cover what to look for when you are accessing a property, the pitfalls of not knowing if your property is a “historical home”, making sure you are correct on your property repair sheet and much more.  Visit www.PreForeclosureDailyGrind.com and www.ShortSaleDailyNews.com for more short sale videos and articles. Please leave your comments and questions so we can address them on future videos!