Posted by Bill H on November 19, 2006 at 11:06:49:
Well, since you did not answer the questions and choose to try and spin things with typical realtor “talk arounds and see line #438’s” I guess the conversation is ended.
Gave a nice day.
B
MARKETING DURING SHORT SALE - Posted by gary
Posted by gary on November 16, 2006 at 20:18:17:
just a quick question, Do any of you market a home you are currently negotiating a short-sale on? If so, What price are you using for your marketing? FMV?
Example, Say I find a pre-foreclosure, the homeowner owes about 295K and the home is worth about 300k, it appears to be a good short-sale candidate (based on my other imaginary criteria), I get the deed on the home, and begin my negotiations with the bank to discount the note, at this point I would like to go ahead and market the home for sale, but have no idea what price to put on it. I know there are people out there doing this very successfully, but I have no idea how to go about it. In this scenario if I got the discount payoff approved for say 235K I would want to market the home to sell as quickly as possible, so I’d probably price it at 275-280K? What’s the trick if the negotiation isn’t finished yet?
Re: MARKETING DURING SHORT SALE - Posted by Bill H
Posted by Bill H on November 17, 2006 at 22:28:45:
Gary:
I think you are missing a very important item in short sales…namely if you get the deed…YOU own the property. It is no longer a short sale. YOu have bought subject-2 the existing debts.
There must be a compelling reason for the bank to reduce the price. Simply because you want to short sale is not a compelling reason and if you have already transferred title why would the bank even want to negotitate with you? Especially if as you say the house is worth 300K and you got it for 295K.
Short sales involve a 1099 for the mortgage relief and if you short sell to yourself…(If that were possible) YOU will be the beneficiary of the mortgage relief and owe the IRS taxes on the amount of mortgage relief. In your example…you would owe taxes on 65K.
I realize you are looking for a way to make a profit in this business but I think you need more education on short sales, title transfer, etc? before you jump into the water with both feet.
Good Luck,
Bill H
Re: MARKETING DURING SHORT SALE - Posted by christine.mendenhall
Posted by christine.mendenhall on November 16, 2006 at 21:45:23:
This is what works for me, others may have another take on the issue. I market all my homes with a discloser stating ?All offers are contingent on the banks approval.? When I get phone calls regarding the property, I tell the buyer, it is a pre-foreclosure and the bank is willing to take less than what the homeowner owes because A. They have over mortgaged the property and B. The obvious decline in the real estate market. This allows me to leave the figures open sum what. As, I have not been able to get confirmation from the bank and am only estimating what my potential profit will be at the time. If, I am not able to get the # I want from the bank, I am not stuck with a contract from the new buyer at any specified price. You can tell the buyer it will take 45 days to negotiate, leaving you plenty of time to get the deal done and be clear as to what your numbers are.
Most buyers will usually ask if I know what the bank is willing to take, at which time, I throw out the number that I am willing to let it go for.
Below is an example of a possible ad.
Banks loss = your gain, lender is willing to take less than what is owed in order to get a quick sale. This home is priced under FMV and wont last long. Call xxx-xxx-xxxx.
All offers contingent on banks approval
Hope that helps
C
Re: MARKETING DURING SHORT SALE - Posted by G
Posted by G on November 17, 2006 at 23:36:00:
I’m confused. If a short sale involves a 1099 for mortgage relief, why would the person getting the deed have to pay IRS? The loan does not transfer with the deed. The loan would still remain in the name of the person who got the loan in the first place. Only the borrower would have to pay for relief since that part of THEIR loan would be affected. From what I understand, the person buying the property “Subject To” is not personally liable for the loan, which is why they can attempt to get a discount in the first place.
“Mortgage” does not equal “Loan” from what I’ve been told. Mortgage is only the collateral instrument for the loan. “Deed” does not equal “Loan assumption” either.
Perhaps I just read something out of syntax, but what you wrote about the mortgage relief being borne by the buyer didn’t follow what the banking industry recognizes as fact.
Re: MARKETING DURING SHORT SALE - Posted by Christine’s Fool
Posted by Christine’s Fool on September 05, 2007 at 13:31:59:
Yea, that’s real good Christine. And you know what? You’re really good at it too. A word of advice: trusting people don’t like to be made out to look like idiots at your hands. It sounds like all your about is greed and lies. Is the name of your business for real also is that “open somewhat” too??? (Turning Point Financial Breakthroughs)
What comes around goes around…good luck to you and you’re “career” in the future. Good people of Missouri and Illinois beware: There’s a devil loose on the market and her name is “Christine Mendenhall”.
Re: MARKETING DURING SHORT SALE - Posted by annie
Posted by annie on November 19, 2006 at 11:34:44:
Thanks, Christine, for your input. I have read many of your postings and find them extremely helpful.
I am an investor working short sales and love your wording on bank loss equals your gain! Simple and to the point!
Annie
pretty good… - Posted by lukeNC
Posted by lukeNC on November 17, 2006 at 16:25:28:
thats a nice tactic there… 
Think I’ll try that…
learn something new everyday here…
Re: pretty good… - Posted by christine mendenhall
Posted by christine mendenhall on November 17, 2006 at 17:10:28:
Chris-possible at your service :o) Glad I could bring a new idea your way. That’s why I love this place as well.
C
Re: pretty good… - Posted by Bill H
Posted by Bill H on November 17, 2006 at 22:48:04:
Seems to me to be a bit of a dichotomy here…you posted …I am a Broker/Investor, and although I don’t resent your comment, I do think choosing to be both, is a personal choice; and if you lack integrity, you lack integrity period.
…This business of marketing something you do not own, have no contract for, have no control over, telling you client it is only worth XXX and trying to get them into a short sale with you so you can profit from their situation…is that INTEGRITY?
Are you serving the client’s best interest or yours?
What would you say if you got caught and had to explain it to the real estate commission or board of realtors?
Just wondering
Bill H
Re: pretty good… - Posted by christine.mendehall
Posted by christine.mendehall on November 18, 2006 at 24:45:00:
My point was, being a realtor does not equal a lack of integrity. But since you want to question mine, here you go.
I don’t engage in dual agency, there for, that buyer is not my client. My clients are clear about what I’m doing, they know I’m discounting their note with the lender, they know I’m reselling it for a profit, and they have given me the right to market it. No where, in my marketing, do you see me claiming that I own that property, or that I have it under contract or that I have control of it. My disclosures are very clear. The bank knows I’m listing it and I’m buying it and I will absolutely be reselling it. They know I am an Investor first.
Do you work short sales? If you did, you?d know that the banks break down their regions. I deal with the same guy every time I call Chase Manhattan, or any other bank for that matter. Want to know why? Because, I live in their region!! If I were doing something shady, it would not have taken them 8 years to bust me. I think, after the first 50 some odd deals, they might have caught on. And if they didn?t, you can be sure those BPO agents would have by now. Some of them see my face every week.
As far as what would I say to the real estate board?
My board is clear about what I do. In fact, I get referrals from realtors to help them and/or their clients out. I have been invited to speak at several of the offices in my area regarding foreclosures; and, I will be speaking at the spring conference here next April. As long as I’m disclosing to all parties that are my direct clients, I?m not sure what the problem is. I guess you disclose, in all your real estate transactions, exactly what you?re making? Or, for some reason, you just think I should?
Where’s the lack of integrity? I’m not clear? The fact that I market a house and double close it? I guess, I must have invented that. And I must be the only person doing it too.
C
Re: pretty good… - Posted by Bill H
Posted by Bill H on November 18, 2006 at 14:50:53:
If you are doing it under a listing agreement…yes…I do have problems with it. Your fiduciary responsibility is to the client and not to yourself.
Do all of your deals have specific written instructions to all parties that you are in fact a licensed real estate broker?
Do they also inform them that as a licensee you are held to higher standards?
Do you inform them that you, as a real estate licensee, have superior knowledge and training over the average person?
All of these are part of INTEGRITY.
YES, I disclose just about EVERYTHING. I have nothing to hide and deal straight up and forthright with everyone.
B
Re: pretty good… - Posted by christine mendenhall
Posted by christine mendenhall on November 19, 2006 at 01:14:48:
Well Bill, I can see by your post that, you?re not really interested in the answers to your questions as much as you committed to being righteous, about the ones you?re asking.
However, since I really have nothing to hide, I?ll answer anyway.
Q. Do all of your deals have specific written instructions to all parties that you are in fact a licensed real estate broker?
A. I use board contracts, therefore, it?s clear I?m a broker, there?s this little line on page 4 where the broker has to sign accepting the agreement, and since that?s me, you?ll find my signature there.
Then, there are these other little pieces of paper, pretty important to state laws, called ?agency disclosures.? Where in, my role as a Broker, is laid out, it?s really clear.
Then there?s the matter of all the disclosures they have to sign that also have my signature on them…
Oh, and of course the sales contract where on line 438 I have to acknowledge my ?agent interest? in the deal.
Then of course, there?s the closing where my name is on the HUD statement that gets sent back to the bank and, go figure, the seller signs that too.
Then there?s my office, my office phone that, of course, have the name of my company and my business cards and my car signs and the sign I place in the yard and the MLS and on and on and on.
So, I?d say, it?s pretty obvious. I?m going to go with YES.
Q. Do they (I?m sure you meant you, I just cut and paste) also inform them that as a licensee you are held to higher standards?
A. As if I weren?t an agent, I would be held to lower standards? What kind of question is that? I hold myself to pretty high standards. I don?t need a license to tell me to do it.
Q. Do you inform them that you, as a real estate licensee, have superior knowledge and training over the average person?
A. Bill, now that?s, a really dumb question? Anybody who talks to me for longer than five minutes knows I have superior knowledge and training to that of the average person. And considering the fact that there?s nothing ?short? about a short sale, I?m going to go with? YES again.
And just to clear up this last little thing, I think you have it, that I come in and tell the seller that I?m going to help them sell their house and then when that doesn?t happen I sweep it away from them… That?s just not how it goes, they are clear I?m going to purchase it, and they are clear from the start. From the first phone call before I ever even put them in my Palm for an appointment, they know what my intentions are. And, in the past, whenever, I have come across a seller who says ?Hey, I really want to sell this and make whatever monies I can.? I refer them to another agent. Not because I don?t want to help them, but more importantly, because it wouldn?t serve them. I don?t specialize in selling residential pieces to ?Bob and Sally? I?m an investor and I specialize in pre-foreclosures.
I did, find it rather funny though, that your last line states.
?I disclose almost EVERYTING" The key word there, being ALMOST and most certainly, not, everything. Odd, how you tried to hide it with your caps lock on. Fortunately for me, I?m trained to see those little, Um, what did you call them… Oh yeah, dichotomies.
Now, if we could please be done with this, that would be great, if you feel the need to keep the conversation going, fine, just do it private emails, this nonsense, of adding no value, doesn?t serve the boards. It?s just you picking a fight. That?s all, plain and simple.
C