Posts Tagged “Package”
Nov
28
2011
 
Maryland Real Estate Investing Short Sales - What And Why Is There A Short Sale PackagePosted by Usual in Short Sales, tags: Estate, Investing, Maryland, Package, Real, Sale, Sales, Short, there
Jun
11
2011
Pre-foreclosure Investing — Putting Together the Short Sale PackagePosted by Usual in Lender Approved Short Sales, tags: Investing, Package, Preforeclosure, putting, Sale, Short, TogetherPre-foreclosure Investing — Putting Together the Short Sale Package Why Submit Articles? 0 && $.browser.msie ) { Register Email Home Page > Business > Pre-foreclosure Investing — Putting Together the Short Sale Package Pre-foreclosure Investing — Putting Together the Short Sale Package Posted: Feb 29, 2008 |Comments: 0 ]]> When you work with the homeowner to put together short sale negotiations with the bank, you’ll also be assembling vital evidence in a short sale package. This package is very important in preforeclosure deals. It provides enough information to (hopefully) convince the bank to accept your short sale offer on the homeowner’s property.
Include everything you can in the short sale package that backs up your request for a short sale. Obviously, you’ll want to leave out extra evidence, (unless the bank specifically requests it), that may hurt your claim.
Common Items in a Short Sale Package:
Standard Purchase and Sales Agreement & Escrow Instruction
This is the standard sales contract between you and the homeowner, since you will actually be purchasing the property from the homeowner with the bank’s approval.
Authorization To Release Information
In order to get the bank to work with you, the homeowner need’s to sign this document stating that they authorize their lender, the bank, to share all vital information concerning their mortgage with you. If you don’t have this the bank won’t talk to you!
Letter Of Agreement and Addendum
This is the cover your butt document stating that you will work with the homeowner and the bank to stop the foreclosure, but you can’t guarantee that the bank will agree to stop the foreclosure during short sale negotiations with you. Warranty Deed To Trustee You’ll need to get a notary to authenticate this document. It basically shows who owns the property you are attempting to purchase. Agreement and Declaration Of Trust In order to keep your own name off of public records you’ll use this document to declare a land trust on the property, which you’ll have rights too. Letter That Trustee is Making Payments: This letter is used when you have an agreement with the homeowner that indicates you’ll be taking the property “subject to” and notifies the lender that payments will be coming from a trustee. Escrow Letter You’ll use this letter to tell the bank to apply funds in an escrow account to the loan balance when the loan is paid in full and the short sale deal is complete. Be aware there is no guarantee the bank will comply with the instructions for your real estate investment. They may send the escrow proceeds to the original borrower, which is the homeowner. So, you’ll need to make arrangements with the homeowner just in case this happens. Special Power of Attorney You’ll get this signed by the homeowner in front of a notary. It applies only to the property and lets you make decisions concerning the property if something happens to it before the short sale deal closes. Residential Real Estate Disclosure This is basically to protect everyone involved. You’ll sign it as the purchaser. It discloses any defects in the property and prevents anyone from claiming after the deal is completed that they weren’t aware of certain defects in the property. Hardship Letter This is a very important letter in pre-foreclosure investing. The hardship letter allows the homeowners to explain in detail all of the reasons they were unable to make payments on their mortgage and why they’ll be unable to completely pay off the mortgage. A good hardship letter can really help you seal the deal. Financial Statement This is basically the homeowner’s pay stubs, copies of their past income tax returns and other items that show the homeowners really are in financial hardship. The bank will absolutely want to see this proof of hardship before discounting a loan and taking a known loss. Suggested Extras to Seal the Deal! There are a few extra pieces of foreclosure information you can include in your short sale package to get the bank’s attention in this preforeclosure deal. Cover Letter The cover letter helps your short sale package stand out. It basically states who you are as an investor and that you are requesting a short sale. It also states why the bank should take the short sale. You can also summarize the major points of your package in this cover letter for the bank officer reading it. Proposed Closing Statement (HUD1) Eventually you’ll find that a bank requests the HUD1form. It shows all the fees and payments that will be made to the parties involved in the short sale. It helps them know their bottom line on the deal at a glance. Plus, it ensures the seller is not receiving any compensation. Opinion Of Value This can be a professional estimate or your own statement. You’ll back it up with a quick list of all the negative points of the property, its needed repairs and the lowest comparable sales in the area. Estimate Of Repairs If this property in pre-foreclosure needs repairs make sure you get estimates for all of them and include those estimates in your short sale package to back up your discounted price. Use the highest priced estimates you get. Notice Of Trustee’s Sale This is the notice that the homeowner receives telling them that their property is going to the foreclosure sale. By including this document in your short sale package you are letting the bank know that you are aware of the foreclosure process. It also helps put a timeframe on the deal and can light a fire under them, so to speak. Color Photos You’ll get extra points with the bank by sending them pictures of the damaged and neglected areas of the house. They provide photographic evidence of the low market value of the property and encourages the bank to accept your discounted offer.
The short sale package usually contains quite a lot of foreclosure information. In fact, it’s an involved process and essential part of debt negotiation with the bank. The bank will want ample evidence to back up your short sale request for their loss mitigation department as can be seen by the bulleted list. This package contains information that the bank requests from you and your own research on the property including; damage estimates and the homeowner’s hardship letter, all of which work to back up your request for a discounted sale price on the property. Retrieved from “http://www.articlesbase.com/business-articles/preforeclosure-investing-putting-together-the-short-sale-package-345711.html” (ArticlesBase SC #345711) Watch your traffic increase just by submitting articles with us, click here to get started. Colin Egbert - Colin Egbert is CEO & Co-Founder of http://www.realestateinvestor.com/, the online leader for real estate investing education and networking. Additionally, he established http://shortsaleinvesting.org/, the #1 provider of full-service debt negotiation services for successful short sale investors. ]]> Ask our experts your Business related questions here… 200 Characters left I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me Rate this Article vote(s) 0) { Article Tags: Latest Business Articles
short sale timing, buying a short sale, foreclosure timing. (03:58)
Short Sale Secrets Clip 2
Learn how to sell a home in a short sale in this video from experienced realtors and mortgage brokers. (02:54)
Learn what foreclose means and what you can do to get back on track -Learn about Short Sale? (00:42)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04) Investing in Foreclosures — Why Do Short Sales? Foreclosures are one of the biggest ways to cash in on real estate investing. But what about short sales? What are they and how can they help you? Colin Egbert discusses the ins and outs of short sales to cash in on your real estate short sale. By: Mortgage Foreclosure Investing Not Working? Go With Tax-Delinquent Property Instead If you’re hoping to get your start in real estate investing, one of the first places you probably looked was mortgage foreclosures. You probably contacted (or tried to, anyway) owners of properties who were about to lose their homes due to non-payment of their mortgage. If you were lucky enough… By: Finance> Pre Foreclosure Listings Houston Let’s countenance it, foreclosure information is public domain. That measures that real estate investors can right to use this information any time they feel like, nationwide, with a little determination. The trouble is, the foreclosure properties investors are actually searching for, are not that trouble-free to unearth or contrast to one another. That is where foreclosure listings in Houston Texas move toward to your help, serving you locate foreclosure investment opportunities tha… By: Business> Ohio Foreclosures and How They Work Ohio foreclosures basically have the same foreclosure rules just like most other states. If you plan to relocate or purchase an investment property in Ohio, then you may want to know the basic Ohio foreclosures regulations and proceedings. By: Finance> Before that the property is foreclosed, the bank provides the homeowner a grace period, and is called preforeclosure. When the owner is behind on payments or if they have always managed to pay their debt, the bank begins foreclosure, but because the owner still has the option to sell the property immediately before the auction closes By: Business> Healthcare Data Analysis Through Specialized Tools One of the major shifts in the surgical and healthcare sector of late has been the detailed exploration and analysis of Healthcare Data with the help of advanced tools. There has always been a growing concern of accountability in the sector with such sensitive surgical procedures being performed on a regular basis By: The Advantages of Professional Water Damage Restoration Almost every household across America has, at some point of time, required water damage restoration. Broomall itself has many residents who have faced this situation. However, the intensity of the problem differs. While some may have to deal with a broken faucet, others may have to encounter a flooded basement or even worse. The problem with water damage is that you cannot get rid of it by yourself. If you try, you might end up doing some permanent damage to your house in the process. … By: Why Should Water Cleanup Be Done By Experts Only? In addition to causing immediate cosmetic damages to the building and property, water damage also causes adverse structural problems to the building and health hazards to its residents. If moisture is left to retain onto the structures for more than 48 hours, it will lead to severe damages. Immediate water cleanup can prevent damages like swelling of the masonry structures and rusting of the metallic ones of the house. However, mildew formation is the most dangerous problem that most h… By: Electric Repair for Homes in Fishers Electrical systems and plumbing, though they are different, can be considered parallel to each other. They are parallel in the sense of their working mechanisms. Water makes its passage into your home through pipes and electricity through wires. To keep them working properly you need to maintain them from time to time and get it repaired when required. Whenever you see problems in the wiring of any electrical appliances, you need to have electric repair. Fishers, IN has got many well t… By: Electric Repair: Choosing the Best Damage to the electrical wiring of your house can occur at any point of time and you need to know who to call up to get it fixed. While this may seem like an easy task you need to be very careful while choosing an electrical contractor. When it comes to electric repair, Carmel residents only trust only a few contractors. This way they ensure that the service they receive is nothing short of the best. Many people try to take matters into their own hands and fix what they think is a sim… By: Short Sale Negotiation: Preforeclosure Phone Calls With the Homeowner A really nice article with short sale tips and how to do your best with your short sale negotiation, focusing especially on preforeclosure phone calls with the homeowner. By: Business> Investing in Foreclosures — Why Do Short Sales? Foreclosures are one of the biggest ways to cash in on real estate investing. But what about short sales? What are they and how can they help you? Colin Egbert discusses the ins and outs of short sales to cash in on your real estate short sale. By: Short Sale Negotiation – Tips For Pre-Foreclosure Investing A really nice article with short sale tips and how to do your best with your short sale negotiation. By: Add new Comment Your Name: * Your Email: Comment Body: *
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Author Navigation My Home Colin Egbert has 4 articles online Articles Categories Advertising Agriculture ]]> Need Help? Site Links Webmasters Business Info Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License. Colin Egbert is CEO & Co-Founder of http://www.realestateinvestor.com/, the online leader for real estate investing education and networking. Additionally, he established http://shortsaleinvesting.org/, the #1 provider of full-service debt negotiation services for successful short sale investors.
Jun
10
2011
Pre-foreclosure Investing: The Short Sale PackagePosted by Usual in Lender Approved Short Sales, tags: Investing, Package, Preforeclosure, Sale, ShortPre-foreclosure Investing: The Short Sale Package Why Submit Articles? 0 && $.browser.msie ) { Register Email Home Page > Finance > Real Estate > Pre-foreclosure Investing: The Short Sale Package Pre-foreclosure Investing: The Short Sale Package Posted: Apr 13, 2009 |Comments: 0 ]]>
You’ll be assembling vital evidence in a short sale package as part of your work with the homeowner to put together a short sale. In preforeclosure deals this package is very important. The short sale package provides enough information to convince the bank to accept your short sale offer on the homeowner’s property and get the homeowners out from the under the obligation.
In your request for a short sale you’ll want to include everything you can that backs up your request for a short sale. Obviously, leave out extra evidence that may hurt your claim, but don’t purposely hide the homeowner’s income or other necessary pieces of information. You really just want to show the homeowner’s life at its worst and the house at its worst.
What’s in a Short Sale Package?
Authorization to Release Information: The homeowner needs to sign this document stating that they authorize their lender, the bank, to share all vital information concerning their mortgage with you. The bank won’t talk to you if you don’t have this!
Letter of Agreement and Addendum: This document states that you will work with the homeowner and the bank to stop the foreclosure, but you can’t guarantee that the bank will agree to stop the foreclosure during short sale negotiations with you. Don’t ever forget this document and make sure you point this possibility out to the homeowners when working them.
Warranty Deed to Trustee: This basically shows who owns the property you are attempting to purchase. You’ll need to get a notary to authenticate this document.
Standard Purchase and Sales Agreement & Escrow Instruction: This is the standard sales contract between you and the homeowner, since you will actually be purchasing the property from the homeowner with the bank’s approval.
Agreement and Declaration if Trust: Keep your name off of public records with this document which declares a land trust on the property. Trusts are getting harder to use in many areas. Ask a local pro as to how they deal with the title.
Financial Statement: These are the homeowner’s pay stubs, copies of their past income tax returns and other items that show the homeowners really are in financial hardship.
Hardship Letter: This is important in pre-foreclosure investing. The hardship letter allows the homeowners to explain in detail all of the reasons they were unable to make payments on their mortgage and why they’ll be unable to completely pay off the mortgage. A good hardship letter can really help you seal the deal.
Special Power of Attorney: When working in pre-foreclosure investing you’ll get this signed by the homeowner in front of a notary. It applies only to the property and lets you make decisions concerning the property if something happens to it before the short sale deal closes.
Letter That Trustee is making Payments: This letter indicates you’ll be taking the property “subject to” and notifies the lender that payments will be coming from a trustee.
Escrow Letter: This letter tells the bank to apply funds in an escrow account to the loan balance when the loan is paid in full and the short sale deal is complete.
Be aware there is no guarantee the bank will comply with the instructions for your real estate investment. They may send the escrow proceeds to the original borrower, which is the homeowner.
Residential Real Estate Disclosure: This is protects everyone involved in this pre-foreclosure investing project. It discloses any defects in the property and prevents anyone from claiming that they weren’t aware of certain defects in the property after the deal is completed.
Extra Pre-foreclosure Investing Documents
In addition, are a few extra documents you can include in your short sale package to get the bank’s attention in this pre-foreclosure investing deal.
Cover Letter: Make your short sale package stand out with a cover letter. It basically states who you are as an investor and that you are requesting a short sale and why the bank should take the short sale.
Opinion of Value: This is a professional estimate or your own statement from experience in pre-foreclosure investing. You’ll back it up with a quick list of all the negative points of the property, its needed repairs and the lowest comparable sales in the area.
Color Photos: Send the bank pictures of the damaged and neglected areas of the house. They provide photographic evidence of the low market value of the property and encourages the bank to accept your discounted offer.
Estimate of Repairs: Get estimates for all of the repairs needed on the house and include those estimates in your short sale package to back up your discounted price.
Proposed Closing Statement (HUD1): Eventually you’ll find that a bank requests the HUD1 form, so it’s a good idea to include this document anyway. It shows all the fees and payments that will be made to the parties involved in the short sale.
Notice of Trustee’s Sale: The homeowner receives this notice when their property is going to the foreclosure sale. You are letting the bank know that you are aware of the pre-foreclosure investing process by including this document in your short sale package.
Pre-foreclosure investing is an involved process, but when you properly complete the short sale package you’ll be one step closer to this essential part of debt negotiation with the bank. The short sale package contains information that the bank requests from you and your own research on the property to back up your request for a discounted sale price on the property. Retrieved from “http://www.articlesbase.com/real-estate-articles/preforeclosure-investing-the-short-sale-package-862747.html” (ArticlesBase SC #862747) Watch your traffic increase just by submitting articles with us, click here to get started. Colin Egbert - Colin Egbert is an experienced Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business. ]]> Ask our experts your Real Estate related questions here… 200 Characters left I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me Rate this Article vote(s) 0) { Article Tags: Latest Real Estate Articles
short sale timing, buying a short sale, foreclosure timing. (03:58)
Learn how to sell a home in a short sale in this video from experienced realtors and mortgage brokers. (02:54)
Short Sale Secrets Clip 2
Learn what foreclose means and what you can do to get back on track -Learn about Short Sale? (00:42)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04) Preforeclosure Marketing Strategies and Methods to Find those Clients! Preforeclosure marketing is a cinch with the right tactics and good information, such as the lis pendens list. To start, there are three points to preforeclosure marketing that are absolutely crucial to know, realize and implement as a part of your business. Many people in preforeclosure marketing talk about marketing to the list. Now that you have the list, there are many marketing strategies you can use. By: Finance> Pre Foreclosure Profits, Laws and Opportunities Typically home owners in looking for refinance pre foreclosure options may also be able to work through banks or lenders if they have a significant amount of equity built up in the home. In cases where the homes have no equity or negative equity, options will be very limited. By: Law> Improved Landscapes: Tips in Choosing Northville MI Apartments An improved landscape design is just one of the important details that most people who are into buying houses like apartments are looking at. Good thing that most Northville MI apartments are improving their landscape to attract more guests and potential renters in their place. By: Finance> Why Getting Apartments in Aurora, Il is a Great Idea Aspen Place in Aurora, Illinois is a great place to start living in your own home. It is an community which despite being urban maintains the peace of suburban living. By: Finance> Life at Denver is nothing where you can discover. We all know that Denver is the biggest and most populated city in Denver. By: Finance> The 3C New Projects-Where Construction is Under a Nature Friendly Way The 3C new projects are developed in a nature friendly and energy saving way. Today, there are a number of dream projects where construction is in full swing. By: Finance> Miami Commercial Real Estate – Avoid Mistake During Investing Miami commercial real estate investing is accompanied by risks. While you can control these risks, these risks often make investors unable to reach success. By: Finance> Real Estate Investment – 5 Changes in the 2008 Market Things are rapidly changing in real estate investment and smart, resourceful, pre-foreclosure investors will have their best year in 2008. Those investors who continue doing the ‘same old, same old’ hoping for the results they got three years ago, will perish. By: Finance> Short Sale – Delaying the Sheriff Sale Putting together a short sale package is time-consuming enough, but if you want to try and delay the foreclosure sale to give yourself more time you’ll find that this aspect of short sale investing is difficult indeed. By: Finance> Preforeclosure Marketing Strategies and Methods to Find those Clients! Preforeclosure marketing is a cinch with the right tactics and good information, such as the lis pendens list. To start, there are three points to preforeclosure marketing that are absolutely crucial to know, realize and implement as a part of your business. Many people in preforeclosure marketing talk about marketing to the list. Now that you have the list, there are many marketing strategies you can use. By: Finance> Home Appraisal - Determining The Home’S Value For A Short Sale Package One of the most important aspects of the short sale business is determining the value of the property you have under contract. It’s impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. By: Finance> Add new Comment Your Name: * Your Email: Comment Body: *
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Author Navigation My Home Colin Egbert has 8 articles online Articles Categories Advertising Accounting ]]> Need Help? Site Links Webmasters Business Info Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License. Colin Egbert is an experienced Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.
Apr
20
2011
Short Sale Package how to do short salesPosted by Usual in Short Sales, tags: Package, Sale, Sales, Short
Aug
27
2010
Home Appraisal - Determining the Home’s Value for a Short Sale PackagePosted by Usual in Short Sales, tags: appraisal, Determining, Home, Homes, Package, Sale, Short, valueOne of the most important aspects of the short sale business is determining the value of the property you have under contract. It’s impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. Likewise, knowing the appraisal value of the property is just as important to the loss mitigator at the bank. The loss mitigator must establish an appraised value for the short sale property so he has a baseline price for negotiation. The appraised value of the property establishes the playing field on which we negotiate the short sale price of the property. Getting Property Comparisons The best way to determine the home appraisal value of a property is by using property comparisons (comps). Look at the properties in the same area of the short sale property. You can get these comps with a little effort. There are a few ways to find market value comparisons for your area: • Subscription programs (one is Haines, a subscription service on disc) It’s not recommended that you use the free market comparison services found on the Internet. These free services are worth about as much as you pay for them. If you have to spend some money getting comps, that’s a good thing. It means that someone is actually doing research behind the website or program. Finding Home Appraisal Value: An Example A busy real estate investor may outsource their home appraisal needs to another company or a certified FHA appraiser. When a deal comes in the real estate investor will email the FHA appraiser, the address and owner’s name. In about 24 to 48 hours the appraiser will send back a limited desktop appraisal with three comparison prices on other similar sold properties and the market value that the appraiser has determined for the property that the company is interested in. The appraisal may also include some additional information and a map. This appraisal gives an idea of the market value of the property in comparison with other distressed properties in the area. When looking for comps, don’t look for sales of well maintained properties, instead look for comparisons of other properties in foreclosure, REO properties, or corporate-owned properties. Be Prepared to Pay for it! Companies spend money getting their comps because they want good, accurate market value comparisons. When you are figuring the budget for your short sale business, remember to allocate some funds to pay a company or a certified FHA appraiser for that home appraisal. It’s well worth it to pay for a home appraisal so that you have accurate comps from third person parties or neutral parties outside of your short sale deal. You present their appraisals as objective evidence to convince the bank to accept your short sale offer. Factoring in Cost Estimates for Repairs The physical condition of the property is just as important as comps in a home appraisal. See if there are any repairs to be made on the short sale property. Make notes of what’s wrong, take photos, and get construction estimates for the cost of repairs. When you do your cost estimates remember that the bank will be making the repairs, not you. Get cost estimates from a general contractor the bank would typically hire. The best way to get cost estimates for your home appraisal is to hire a certified home inspector. You can look one up in the yellow pages. There’s also an organization called the National Association of Home Inspectors (NAHI). NAHI has high standards and finding a home inspector affiliated with this organization is a good way of making sure you get a thorough inspection. A typical home inspection can take two and a half to three hours. The inspector gets up on the roof, checks the crawlspace and goes over the home with a fine-toothed comb. On completion of the home inspection the inspector hands over a report that can be 20 pages with detailed information about the property defects. Home inspectors may also takes photos and provide detailed cost estimates. Paying a home inspector to get cost estimates is a great way to calculate the home appraisal value for your property. You’ll know exactly what’s wrong with that house because you’ve gone to a neutral third party expert. Getting the Cost Estimates: An Example Dan Shields is a typical home inspector. He’s a member of NAHI and does all of the home appraisal evaluations and repair estimates for many investors. Dan states that a home inspector will start an inspection from the outside of the property to get a look at the big picture. He’ll check the roofing, gutters, siding, and windows to make sure they’re properly installed and flashed. He will also check out porches, columns, etc. From there the home inspector enters the home for the interior survey, to document built-in amenities, appliances, and flooring. He will next go to the mechanical room and check the heating/cooling package and plumbing. Finally, the home inspector will check the attic and find the insulation factor for the short sale property, literally working from the ground up on the home inspection. A Broker’s Price Opinion Value When you complete your home appraisal and submit the short sale package to the bank you will be assigned to a specific loss mitigator who will want to determine their own estimate of property value. The loss mitigator orders the bank’s appraiser to go look at the property and get a broker’s price opinion (BPO) or market value. Sometimes it’s done by a realtor, sometimes an appraiser. It’s your job to be the contact person that the appraiser goes through to get into that property. It’s very important that you meet the appraiser at the property to convince him your home appraisal value is about the same as the BPO value. When you meet with the bank’s property appraiser let him know the property is in foreclosure and that you’ve been working with the seller to try to do a short sale with the bank. Get that point across immediately. You don’t want the meeting with the bank’s appraiser to be a confrontation. This is first impression time, so just be yourself and let your personality shine. Shake hands with the property appraiser. Get to know him for the five minutes before you start shoving your material on him. The whole BPO process will probably take less than 15 minutes. You have 15 minutes to let your personality shine so make it your best effort. During the BPO When you go out to these appraisals, take three things; a copy of the Real Estate Purchase Contract with your offer amount, your market value comparisons and a copy of your home inspector’s report Try to present the material in a conversational tone. Ask if he’d like a copy of the offer you have made on the property and so on. If it’s an appraiser, he will always want a copy. Realtors are a different story—you can never tell what they’re going to take. Just ask and see what he’ll take from you. An appraiser will always take the property inspection report because it’s a good, neutral indication of property damage. Let the appraiser know that your Purchase Contract has been at least preliminarily accepted by the bank and that’s why he is appraising the market value. You’d be surprised how often the bank’s appraiser doesn’t even realize the property is in foreclosure. You also want to share comps with the home appraiser. Most of the time, appraisers have pulled comps before they go out to the property, so you may be able to share comps to get an idea of the BPO. Make sure the appraiser knows about specific problems with the property such as; mold, termites, or foundational problems that are not readily apparent. This is something the appraiser won’t spot during his 15 minutes with the property. Once you get these three documents into the hands of the bank’s home appraiser chances are higher that the bank’s BPO comes in close to your home appraisal value. When you get a good home appraisal value and cost estimates on that short sale property. You’ll have armed yourself with the best tools in convincing the bank to accept your low short sale offer. Pick up more information about real estate shortsaling at Real Estate Investor.com. This is the place to go for the latest real estate news and advice. You’ll find a network of other real estate investors ready to help you out, along with free articles, blogs, contracts and documents for your use. Colin Egbert is an experienced
Jul
24
2010
Ken Wood of Win Win Short Sales - How to prepare a short sale package for the bankPosted by Usual in Short Sales, tags: BANK, Package, prepare, Sale, Sales, Short, Wood
Jul
12
2010
How to Assemble a Successful Short Sale PackagePosted by Usual in Lender Approved Short Sales, tags: Assemble, Package, Sale, Short, SuccessfulA successful short sale package begins with calling the lender who owns the loan or mortgage. Stipulations and requirements for these types of sales vary from bank to bank. The only way to know what is required of you is to make a phone call to the lending institution. Make sure you talk to the supervisor who is responsible for the final decision in the application process, not the “delinquent payment” department. It may take a few phone calls, but by talking to the person in charge you will be better informed about the entire sale process. A letter of authorization is usually required to begin the process. The letter stipulates that the lender can talk directly with your real estate or closing agent, lawyer, or title company without you being present. This letter should include the address of the property, reference to the loan number, your name, current date, and your agent’s and/or lawyer’s name and contact information. While this letter is not required by law, it will simplify the process for the lending institution, thus making it more likely that they will approve the sale. A typical short sale package includes a preliminary net sheet, a letter of hardship, proof of current income and assets, copies of the last three months of bank statements, a CMA (comparative market analysis), and, once the sale is finalized, a copy of the purchase agreement. A preliminary net sheet lists the expected sale price of the property minus the closing costs, realtor fees, unpaid loan balances, outstanding payments due, including late fees, and any accrued taxes that may be owed on the property. A realtor can usually prepare this sheet for you. A letter of hardship is a letter that describes why you have fallen behind on your payments and why the sale of the property will be less than the amount owed on the mortgage or loan. This letter should by as truthful and heartfelt as possible, and should be written by you. In it explain why you have fallen behind on your payments. This could include unexpected medical expenses, a death of a wage earner, or a lost job due to layoffs or cutbacks. Most financial institutions look down on excuses that relate to being fired from a job, unexpected legal fees due to lawsuits, or divorce settlements. Remember that banks do not like to receive partial payment on an outstanding loan. You have to convince them that you need the help. Proof of income and assets is a declaration of your current financial status. This should current income levels, backed up by back paycheck stubs and bank statements, any other properties or assets of value that you may own, any stocks or bonds you may own, or any number of other things that a bank may classify as collateral. Banks vary greatly on what they require to be included. Therefore, you will need to contact the lending institution to find out the details. Remember you want to be as honest and accurate as possible. Finally, a comparative market analysis will help prove that you cannot sell the property for the value of the loan. This analysis includes recent property values and impending market sales, and can be prepared by your realtor. Collect these documents and letters to create a successful short sale package. You Can Stuff $7,000 Into Your Bank Account In Just 7 Days Thanks To A Renegade Real Estate Investor Willing To Expose Secrets Of The Greedy Gurus. Visit http://www.misuniversity.com |
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