Wholesaler · Delmar, NY · Member since 2016 · 83 posts · 9 votes
Good Morning,
Has anyone found any ways to buy a property when it is on a foreclosure track or pre-foreclosure but before the bank has finished the process without having to go through a full short sale? I have found that the short sale process is typically a discouraging grind for homeowners who have walked away and want to move on with their life but would be willing to sign an authorization with us to allow us to negotiate on their behalf.
Also does anyone have any experience negotiating with the bank if the owner is in or threatening bankruptcy and does that help?
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
10y
Threatening a BK is not a negotiation tool with the mortgage servicer in my opinion. If a borrower is in BK then the bank likely will require a BK discharge / dismissal or a motion to sell prior to or while in the short sale review to continue moving forward. Let me know if you have any questions about anything short sale related, please feel free to reach out to me.
@Brian Degener, is there a specific name for the authorization letter the homeowners would need to sign to allow you to speak with their lender?
I'd like to search around on Google, but am not familiar with what this letter is called... Thank you!
There is no such thing as a letter authorizing you to speak to the lender. While in theory a 3rd party authorization will authorize you to speak on the loan in place of the borrower, good luck with that. The lender isn't going to share anything with you. If your objective is to get information to make a purchase, you'll need an agent for that and the agent will get 3rd party authorization AFTER the borrower has the property listed on the open market and AFTER the agent presents a full package purchase offer to the borrower which THEN gets submitted to the bank for review. No, it doesn't happen any other way and anyone telling you it does is blowing smoke in your ear.
Wholesaler · Delmar, NY · Member since 2016 · 83 posts · 9 votes
10y
My experience in the past month is that we have been able to get 3rd party Auths and call the lender directly but only to the extent it allows us to still submit a short sale package.......this is my personal experience.
Buffalo, NY · Member since 2015 · 252 posts · 109 votes
10y
@Ron S. --- I was under the assumption from what I've read here on BP that it was possible to put together something like @Brian Degener and @Brett Goldsmith were referring to. I was just looking to gather some knowledge on what the form might be called if I ever need to call someone's lender on their behalf and figure out what the payout on their loan might be or if I wanted to put together a short sale package and send the contract to their lender. I don't mind doing the legwork!
@Ron S. --- I was under the assumption from what I've read here on BP that it was possible to put together something like @Brian Degener and @Brett Goldsmith were referring to. I was just looking to gather some knowledge on what the form might be called if I ever need to call someone's lender on their behalf and figure out what the payout on their loan might be or if I wanted to put together a short sale package and send the contract to their lender. I don't mind doing the legwork!
The buyer is never going to work directly with the lender. The agent for the buyer may, with 3rd party authorization, to the extent that they submit a short sale package. Typically, the buyer's agent isn't going to be working with the lender/servicer. The buyer's agent will work with the sellers (Borrowers...AKA Bank) agent. The seller's agent is the only one that talks with the lender.