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 dig into the best ways to get a hold of your loss mitigation negotiator when he or she is not calling you back on your short sale transaction (which happens all too often)! Listen in as we not only cover how to get a hold of an unresponsive negotiator, but when to go over their heads and demand to speak to their supervisor, and when you should NEVER try and go behind their backs.  We’ll also cover Wells Fargo’s new short sale platform and how it differs from Bank of America’s, how Wells Fargo and B of A are handling their HAFA short sales, and also an update on our new and improved CRM (or Small Business Workspace) FinerSolution.com, and much more.

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On this week’s PFDG “Tip of the Week” we dig into which Foreclosing Lenders are pissing off sellers due to their multiple requests for updated documents. Listen in as we not only cover which lenders are causing undue stress on your short sale transactions, but how to make sure your sellers stay with you for the entire deal, how to work with “lazy” and uncooperative sellers, how to prevent any misunderstanding of the process. We take a look at the interesting update on Chase’s short sale approval letter and how it seems like they DON’T want to be paid. An update to our new “one stop” Small Business Workspace FinerSolution.com… Email Marketing, Social Media Marketing, Contact Management, Website & E-mail Hosting and the growing app market.

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

http://PreforeclosureDailyGrind.com On this week’s PFDG “Tip of the Week” we expose the fact that Astoria Federal Savings is a huge reason why our economy is stuck in the dumps and will be for a long time! Listen in as we uncover how they are hurting homeowners chances of getting short sales accepted, how they are taking money out of real estate agents and loss mitigation specialists pockets, how Bank of America is now processing their FHA and VA short sales, what department/company is now handling HAFA short sales for Bank of America, why it is a “MUST” to follow up and make sure that every document of your short sale package was received by today’s overwhelmed and incompetent lenders, also an update on 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.

On this week’s PFDG “Tip of the Week” we break down the latest changes on how fast short sale transactions are taking, from the inception of your short sale package all the way to the short sale acceptance letter, from some of the biggest lenders and investors that are still around today! Listen in as we tell you not only how long the short sale process is now taking, but also how bank audits are effecting what is needed in our short sale packages. We’ll also cover why informing buyers, sellers, real estate agents, and attorneys that these changes will affect our closing times is crucial, and is a “DEAL SAVER,” and also an update on 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 newest guideline put into effect by Freddie Mac, which will crush the way short sale negotiators are paid! Listen in as we not only break down this hot topic but also how many First Franklin loans Bank of America purchased and where they went, how to overcome a “dumbass” BofA customer service rep that gives you the wrong information , 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 PFDG “Tip of the Week” we uncover the latest and greatest change within the HAFA program and how this new change can help our short sale transactions get closed quicker and easier and allow our clients to get out from underneath their huge burden of debt! Listen in as we not only cover this important topic , but also how two of the top foreclosing lenders are reviewing their 2nd mortgage loans and whether or not they will issue a settlement, a promissory note or both, how mortgage insurance is now playing a role in your short sale negotiations and what to do when you are up against a stubborn MI company, where your short sale documents actually go when you fax them into the lender and where you should send them so they always show up on file, 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.