Pre foreclosure advise from investor to home owner

Hi All,
Today I have to meet with 3 different home owners on offering my service and advice for Short Sale. Any advise on how to keep the conversation? what to say and not to say? what jind of documents I need from them.
Thanks for your advice!!!

Edited: 06/26/2010 at 10:27AM

James Harkness

Real Estate Lender · Philadelphia, Pennsylvania

229 posts
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Icon_minipost Nov 10 '09, 03:54 AM

For a short sale my bank requires a written hardship letter explaining the financial hardship and asking for assistance. We also require the 2 most current years of tax returns, 3 most current months bank statements for all bank accounts, business and personal. We also require a profit and loss statement for the current year if the customer owns a business, and a rent roll if there is more than one unit. Additionally, we require a personal financial statement where the customer shows what they are bringing in each month versus where their money goes, down to gas for auto and groceries.

Hope this helps.

Edited: 06/26/2010 at 10:27AM

Dee Xixi

Real Estate Investor · waltham, Massachusetts

183 posts
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Icon_minipost Nov 10 '09, 04:07 AM

Do i need to make the owner signa paper so that can prevent them contact an agent or another investor

Edited: 06/26/2010 at 10:27AM

Christopher W.

Residential Real Estate Agent · Orange County, California

290 posts
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Icon_minipost Nov 10 '09, 04:19 AM

Originally posted by Dee Xixi

Do i need to make the owner signa paper so that can prevent them contact an agent or another investor

I wouldn't do that. If they want to work with someone else, let them. Make sure they know that you are there for them and then give them a call soon after to check up on them. If you force them to only work with you and they really don't want to, they will find a way to stop the deal. And that will only cost you more time and money.

Edited: 06/26/2010 at 10:27AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
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Icon_minipost Nov 10 '09, 04:27 AM

You do need to have them sign the proper disclosures as well as an authorization to release information.
From there, you will need to have them agther all the items necessary in a short sale packet.

You should check with your state laws on foreclosure assistance. Doing so without a license in some states is against the law. I do not know your state laws, so an attorney on your time is essential.

Edited: 06/26/2010 at 10:27AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com

Dee Xixi

Real Estate Investor · waltham, Massachusetts

183 posts
984 Influence
3 Awards

Icon_minipost Nov 10 '09, 04:35 AM

Hi Will,
Do you know where I can check to know if I need a license to perform a short sale. I live in the state of Massachusett. For the disclosure form, is it something I can buy online or how can I get one.
Thanks

Edited: 06/26/2010 at 10:27AM

Jason Wheeler

Private Money Lender · Pleasant Hill, California

414 posts
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Icon_minipost Nov 10 '09, 07:55 AM

I've found the most effective way to control the conversation in an non threatening way is to ask questions and fact find. Figure out where the sellers pain is and come to a solution that solves that pain.

Edited: 06/26/2010 at 10:28AM

Shaun Steckler

Foreclosure Specialist · Lafayette, Louisiana

68 posts
553 Influence
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Icon_minipost Nov 10 '09, 08:27 AM

Find out what the seller wants and give it to them. Most just want out of the situation with the house.

If you can help them get a fresh start, you will be rewarded.

Focus on helping them first and good things will follow.

As far as paperwork goes, always have an authorization to release information form with you for them to sign.

From there you can order the short sale package from the bank. Hope this helps.

Edited: 06/26/2010 at 10:28AM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
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Icon_minipost Nov 10 '09, 06:08 PM

I kind of do things a little different.

When we have a potential property owner call our office we talk to them about the situation and what they are looking to get out of the deal. From there we tell them all about ourselves and what we look to accomplish from each transaction. We then spend time answering questions about what/ when/ why/ who about short sales. If the property owner is interested we set an appointment to review the property. Once we overlook the property and it falls into our business plan, we also have performed research at the office, we give the property owner a list of the required paperwork. We explain a little about each item and why the Lender will want to review each item. We then leave our business card and tell the property owner to call our office when all the paperwork has been compiled. Once/ If they ever call, we go collect the paperwork, fill out the contract, fill out the addenda to contract, answer any questions, and then start the process.

This is how we do it in a nutshell.

Edited: 06/26/2010 at 10:28AM

Dee Xixi

Real Estate Investor · waltham, Massachusetts

183 posts
984 Influence
3 Awards

Icon_minipost Nov 11 '09, 01:07 AM

Thanks for all the great threads. I messed up two potential short sale leads. I think i talked too much which might lead them to try loan modification or list the properties with an agent.
I guess I am still in the learning process.
Another related question?
if someone is a non english speaker, should I ask a friend to translate for the person or how to handle the situation?

Thanks

Edited: 06/26/2010 at 10:28AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
23 Awards

Icon_minipost Nov 11 '09, 07:25 AM

Originally posted by Dee Xixi

Hi Will,
Do you know where I can check to know if I need a license to perform a short sale. I live in the state of Massachusett. For the disclosure form, is it something I can buy online or how can I get one.
Thanks

Check with your attorney in that state is my advice.

From there you can order the short sale package from the bank.

The bank will tell you a list of items you will need from the homeowner, but they do not provide it to you. You as a short sale expert/investor should know what forms are needed and required to start the process. Many lenders do require that the financial worksheet be their own, but not in all cases.

James (crosswind) laid it out right in my opinion. Don't waste time on unmotivated leads. His method allows him to dislcose to homeowner (verbally at first) and "feel them out" before spending any physical time completing DD (due diligence) or going to the property.

Edited: 06/26/2010 at 10:28AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com