All Forum Posts by: Ed Forrester

I just got one today. A 2 page addendum required during Equator process before approval. In addition, to the 30 day language, has language that buyer and seller agree that transaction will not involve flipping....and worded to supersede original contract. Also, has addendum for agents where there is language about doing all possible to "maximize selling price of property"

Anyone else seen this nightmare? Thoughts? Seems contrary to the rumor, BofA is not becoming more investor friendly for purchase of short sales.

As long as you realize that not every short sale will be a home run...and sometimes it is better to find a way to get a single or double and make some profit off it...then there is no reason you shouldnt be blowing away that 50% number. We have found that it is harder in last 6 months to get the home run deals (lenders asking for more, second lien holders not just settling for a few thousand...SPO language limiting flips..lending environment) but that lenders are also just as willing to postpone foreclosures. So if you cant get the price point that would allow you to buy, hold for the penatly time, resale at profit, ensure you build a process for capturing the other profits streams (ie, marketing for buyers, assignments fees, etc)

I use a technique similar to that only in certain situations....when I am reselling to cash buyer where my short sale lender has a "30 day" rule in effect. I have "123 Main Street, LLC" as my AB buyer, then sell the interests to C buyer. If you dont have the 30 day rule binding you, then for a C cash buyer you can just go concurrent with your AB closing.

I put language in my lease that property will be inspected at the 6 month anniversary of lease signing...and that we have option of inspecting every 3 months and in that case we would provide them a 72 hour notice. We always do the 6 month inspections...rarely do the 3 month inspection. But we feel that the possibility of that works to keep properties cleaner throughout lease term.

We also schedule an initial inspection as soon as we have word of a moveout.

Systemize as much as you can so that you can delegate the work to an assistant.

Spend the next 2 weeks keeping a very detailed almost minute by minute accounting of your day. After, look at it and you will be surprised at how much of those activities can be outsourced.

I have done assignment of notes just 6 times in all my years of doing short sales (5 second liens, 1 first mortgage). They have all been with the smaller (now mostly extinct) lenders such as EMC, SLS, and SPS.

I would love to be able to find a way to at least present these to the larger lenders (BA, Chase) on a note by note basis but no luck for me in those venues.

Chase specifically would be great. I have had a lot of short sales either killed or delayed immensely when a Chase 2nd went to recovery/assignments and they start asking for 30% of loan balance.

Running into a glitch in California. Buyer was using CALSTRS loan (teacher union) which to my understanding is a conventional loan that underwrites to Fannie Mae guidelines.

This is AB to BC transaction. When we reviewed the details with lender doing loan (Bank of America), we were told that there would be no issue with no title seasoning. And that we could get up to pre-funding conditions before we would have to close. Which would have been fine.

Now of course....days before closing...lender is stating that they actually need us on title before the BC purchase agreements are signed.

Scrambling now...hoping to make it work with this buyer and not have to go to backup buyer.

Questions for the forum:
1. Does Fannie Mae require B seller on title before BC purchase contracts?
2. Anyone familiar with CALSTRS? Done a successful AB/BC?

Thanks for the help.

These seem to be the most hard core negotiators...and many have taken a "Pay us a lot or we will let it go to foreclosure" approach. I am assuming that based on the price they are paying for these notes, they only need to have a small percentage agree to the high percentage in order to make their business model profitable. Any creative deals? Anyone had any luck going in a different door with the collection company and just purchasing the note? Particularly trying to deal with SRA on a couple of written off Chase seconds. Thanks.

Thanks, we saw this thread. Will doesnt do extended funding anymore. Have searched threads and contacted names of all who said they would do it...nothing tangible yet :cry:

Yes Marilyn, we have an approved buyer in escrow, earnest money in, to buy at $292K. But we have 30 day hold issue.