Welcome to this week’s edition of the Pre-foreclosure Daily Grind! This edition will discuss a change at Real Time Resolution, a debt collection company that works 2nd mortgages for EMC and American Home Mortgage. We’ll also go over the importance of pre-screening buyers, ESPECIALLY when it comes to short sales.

But first, we will address the change coming to Real Time Resolution. They have recently changed their approval process. The negotiators working the files will now need to provide additional internal information regarding the loan. This enables the investor and Real Time management to clearly see what they’re losing, what they’re gaining, and whether or not it would make sense to accept the current offer. In previous instances, Real Time would primarily look at what they were getting and make a decision based on what percentage of the loan principal they were receiving. Now, management requires the negotiators closely evaluate the seller’s financial situation and base their decision from those findings. This is not anything we haven’t seen before when it comes to the majority of lenders out there. However, this IS something that is new with Real Time Resolution. Therefore, be prepared for the process with them to take a bit longer than previous deals, and be prepared to come up with at LEAST 10% of the loan principal in order to receive approval.

Our second tip for this week is something we’ve covered in the past. However, it is something that will always remain a crucial part of every short sale. That is, pre-screening your buyers. The reason we are discussing this topic in this issue is because we have had yet another property this week in which the lender has provided us with written approval that has covered over 2 months…and the buyer needs more time. Now, you might have listings in which some other extenuating circumstances come up, that precipitate taking a certain offer. For example, it may be the only offer that has come in over the last several months. Perhaps comps may require you to list a property higher than you’d like which limits the offers coming in, the condition of the property, etc, etc. With that said, know that you WILL face difficulties in the settlement process. Know that you may not even get enough time from the lender to close if you take on a buyer that will need to stretch quite a bit to be able to qualify and actually CLOSE on the property. A perfect example that we frequently experience in Connecticut is when an FHA or 203k buyer comes in wanting to purchase a home that needs a lot of work. If any of you have encountered this type of situation, you already know what you will face. A scenario in which worst case: the buyer won’t qualify at all, and best case: it will take a long time for them to close; perhaps more time than the lender is willing to spend.

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

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!

Welcome to this week’s edition of the Pre-foreclosure Daily Grind! In this edition we discuss a couple of changes in the industry and how best to prepare for them. We’ll cover a nice new change within Bank of America that many of you will love to hear, and will make our short sales proceed much more smoothly. We’ll also discuss an initial hurdle with M&T Bank and how to overcome it.

This morning we, and all other real estate professionals out there, were greeted with a nice email discussing a very welcome change to how Bank of America processes short sales in Equator. It was titled “Now You Can Substitute a New Buyer for One Who Walked Without Restart.” As can be extrapolated from that title, we now no longer have to start from scratch whenever we lose a buyer! This surely comes as great news for all of us who have, and frequently do, find ourselves in this exact predicament. With this new change, we will no longer have to wait and go through all the same tasks again, and upload all the same documents again.

The way that this works is pretty simple. Most importantly, do not notify the negotiator you have lost your buyer until you have a new one in place! The reason for this is because the addition of the new buyer to the process works more like a substitution. In other words, when one buyer walks, it will then be necessary to immediately swap the new one in. Therefore, once you have your new buyer’s contract in your hands, the next thing to do is notify your negotiator via email through Equator. They’ll respond in 2 days asking if a backup offer is in place. Then they will ask you to complete 4 tasks which involve providing listing date, a marketing description, and then a marketing plan. They will also ask you to change over the status of the file to “Marketing.” Finally, the last task will be to upload the new offer. And then you’ll be back in business!

In other news, we had a bit of an encounter with M&T Bank this week. Upon calling their customer service department, we were told that this particular department will not speak to a 3rd party unless the homeowner is there present with you, or on the same call via a conference call. So when I asked about where to send written authorization, they said they wouldn’t accept it…period. Way to ensure the short sale DOESN’T get done! I called back a few more times and asked to speak to the short sale department instead. At which time they transferred me to their Homeowner’s Assistance Department, which handles their short sales. Thus, when you have a mortgage with M&T, just seek to bypass their customer service department, and ask to speak to the Homeowner’s Assistance Department instead!

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

http://PreforeclosureDailyGrind.com On this week’s PFDG “Tip of the Week” we break down what type of liens short sale lenders are no longer willing to pay and how this change will make closing your transactions more and more difficult! Listen in because this will affect whether or not your transactions get closed and whether or not it will cost you more of your hard earned cash to get deals closed. We also go over, why you should wait until you are 100% sure a deal is dead BEFORE telling a banks loss mitigation specialist or  negotiator, how to push through a “common objection” that could crush your deal AFTER your short sale is accepted , the launch of our new and improved CRM (or Small Business Workspace) FinerSolution.com, and much more.

On this week’s PFDG “Tip of the Week” we uncover the latest government “Noose” that WILL put the majority of short sale and loan modification companies out of business! Listen in as we also cover, how the M.A.R.S. (mortgage assistance relief services) change may cause you possible legal ramifications if your disclosures are not “good enough”, how this ruling will greatly affect the economy, who this new change will truly benefit (and it’s not the consumer),  how the change WILL affect every single Real Estate Agent and Real Estate Investor that negotiates debt. An update on the launch of our new and improved CRM (or Small Business Workspace) FinerSolution.com, and much more.

On this week’s PFDG “Tip of the Week” we uncover some of the newest Servicing Companies that are breaking into the short sale scene and how they are trying to steal money right out of our seller’s pockets, who CitiMortgage is now outsourcing their short sales to, the new policy that IBM has in regards to BPO’s and Appraisals, a “slick” way to weed out BPO agents, an update on the launch of our new and improved CRM (or Small Business Workspace) FinerSolution.com, and much more. Take a 14 day test drive of the easiest, most comprehensive real estate management platform available! Visit www.PropTrackr.com for more info.

http://PreforeclosureDailyGrind.com On this week’s PFDG “Tip of the Week” we uncover the latest changes to Bank of America’s Equator system and how we now can get a hold of the company doing the property valuations and the BPO’s (this encompasses both Broker Price Opinions and Appraisals). Details you NEED to know and NEED to pay attention to on HSBC short sale approval letters. A real-time update from last week’s video on how we overcame a “Fraudulent” BPO/REO agents mischievous ways. PLUS an update on the launch of our new and improved CRM (or Small Business Workspace) FinerSolution.com, 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 PFDG “Tip of the Week” we uncover the hidden truth behind how BPO Agents are defrauding homeowners, lenders and the economy! Listen in as we not only go over how this could seriously affect you and your real estate business but also, how Chase and some of their investors are attempting to screw over homeowners, a couple of benefits to the HAFA Program and how Chase is trying to keep them from the homeowner. An update on the launch of our new and improved CRM (or Small Business Workspace) FinerSolution.com, 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 uncover the facts behind whether or not processing short sales for Real Estate Investors is a waste of time or a profit center you need to add to your business! Listen in as we also cover, what your starting short sale offer, as an investor, should be and what it should not be, what most lenders require in their short sale packages that maybe a surprise to real estate investors, what to add into your short sale package that could ensure a BPO Agent does not screw you out of your hard earned money 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 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.