short sales - Posted by mark craven

Posted by mortgageinsider on January 14, 2004 at 01:16:57:


Great idea…your mortgage background is ideal for short sales…you speak “mortgage” and you’ll need that dealing with the loss mitigation rep.

One hint…you said you work with hard money lenders? Do you mean private party lenders or institutional B credit and othe niche portfolio lenders? If you mean the second, your in luck. These guys made a lot of dumb loans over the last 5 years and they are swamped with loans in collection department that with a little persuation can be had. And unlike the post above…I have found foreclosure is not the key…Persuasion is. Now they will have to be behind 3 payments or so, but that’s a ways away from foreclosure. Also I hate waiting to talk with someone after the NOD has been filed…it draws are the equity hunters out…you know the mailer kings and that muddys the water, plus alot of these properties have literally 0 equity and they run. Hard to get a contract signed when you can’t find them. So, B lenders ARE willing to move a loan from collection to loss mitigation and then off the books when you buy it…especially when you show them the ugly pictures you took, the current owner hardship letter showing the hopeless situation you found, not to mention the crappy comps just down the block…gosh I just sold myself…where do I sign up…
don’t walk run into short sales…get all the info you can and then start…your mtg connections will help you…and the next closing you attend won’t be to pick up a lousy $3500, it will be a lifechanging $35,000! Good luck.

short sales - Posted by mark craven

Posted by mark craven on January 13, 2004 at 11:51:01:

I’m a part-time mortgage broker working les piendings, getting the homeowners refi. with hard equity lenders providing they have enough equity. I just read the article on this site about using loss mitigation on short sales. My question is, will this short sale technique work even though the forecloure process has already started? The majority of my les piendings have no equity and this short sale technique seems ideal. Maybe I can get out of the refi business and into the investment business!

Re: short sales - Posted by Russ Sims

Posted by Russ Sims on January 13, 2004 at 14:22:07:

Pretty much a sort sale will only work if a home is in foreclosure. Prior to that the lender lives in a dream world, thinking that they will still get their money from the homeowner…Once the foreclosure starts and legal fees, late fees are tacked on, a lender knows there’s little chance of the homeowner coming through so they are motivated to consider a short sale.