All Forum Posts by: Mike Welch

I'm currently seeking to acquire a SFR through a short sale where Chase is the lender. The property is currently occupied by the owner and they've been pre-approved for the HAFA program.

Has anyone been involved in a Chase HAFA short sale?

Two questions:

1) List Price: Does Chase generally advise the LA on listing price, reductions based on DOM, etc? The LA claims price has done a BPO, but has not advised her of the appraised value.

2) Time Frame: My offer is accepted and signed by the seller. Offer along with HUD-1 has been sent to Chase. How long does Chase take to respond to these requests?

3) Current Owner Wants to Rent: The current owner has been in the property since 1994 and would like to stay on as a renter after the transaction closes. Does Chase prohibit this situation like BoA, or is this permissible?

I know many on this board are hesitant to work with HAFA due to the 90-day flip restriction. My goal is a long term hold, 20-30 years, so the 90 day restriction is not a deterrent.

These are principally the questions I have, but I'm also curious of any experiences other investors have on HAFA short sales. Did it go well and quickly, were there complications, etc.

Thank you in advance.

The seller is working through a listing agent, and I have a local agent who helped me put the offers together.

I have a direct relationship with the seller who is looking to avoid having a bankruptcy on her credit file. If I proposed bringing in a negotiator, and offered to pay whatever fees were associated, I believe she'd align. That said, if she would lose financially in any way, she would not align.

What does one look for in a good short sales negotiator? For example, am I buying their contacts and ability to streamline and negotiate better terms?

What is appropriate compensation for SS negotiators?

I'm a new real estate investor who has made an offer on two Indiana properties listed as short sale by the owner who is behind. The bank in question is IndyMac Mortgage (now under One West).

I've made somewhat low ball offers on the two properties that are side-by-side rental properties nicely rehabbed interiors, but needs exterior work (new roof on one). The comps in the area differ vastly. For example, one block away is a historic neighborhood where the mayor lives. Yet, on the other side of the street are boarded up foreclosures.

My offers are for cash and I've provided a letter establishing proof of funds.

I have some questions for the BP community:

1) Short Sale Procedure with IndyMac: Now that my offers are in, they're considering the short sale application. How do things proceed on short sale offers? What should I expect?

2) IndyMac FDIC Deal: I've read much of the deal struck with the FDIC. Are the economics better for them to foreclose as opposed to accepting a short sale?

3) Negotiator: Should I seek the services of a short sales negotiator to help streamline the transaction and get better results?

Thank you in advance,

Mike W.

I'm currently 38, have a stable profession in the Bay Area, and am looking to diversify my holdings by acquiring a number of rental properties.

I'm looking to invest around $30K initially and am planning to hold any properties I acquire for the long term (between 20 to 30 years). I'm not looking for a quick payback, but I would like to preserve my capital.

I'm seeking to find distressed properties that are either bank owned, or in a short sales situation. I would like to withhold a bit to fix up the properties and to retain a reserve to pay for repairs, unforeseen expenses, etc.

As I live in Northern California, I cannot afford property in my primary market. I have ties to Arizona where I lived for 10 years, and Indiana, where I have friends and family. I'm okay with being remote from the properties if I can find a good management team.

I currently have a bid in on two short sales owned by IndyMac, and have read with great interest their arrangement with the FDIC. The two properties have been remarkably rehabbed, are near historic areas, and have generated above market rental income. Owner is selling as she as been sick and fell behind.

What advice would you offer to a new investor, looking to slowly and steadily build up a portfolio of rentals? Again, I'm only interested in dealing in cash. I do not want to finance anything. Where should I look for bargains? What should I look out for?

Thank you in advance!