All Forum Posts by: Brett Sodders

If your pulling teeth comment was because if the lack of answers it's because this question has already been asked. If you just ring off questions without at least checking to see if they've been posed before you likely won't get the number of responses you are seeking. There's a search feature for the forums...I'd suggest using it when possible. I have never done a short sale, but to answer your question: Yes. Wait until the BPO is done because it is likely done by a broker that will absolutely see the listing and use that to determine their price. As soon as the BPO is complete you can list it.

Thanks for the quick response. The reason I posed the question is because I came across something on the web that suggested getting the POA personally was the best route because it gives you bargaining power with the lender because they have to work with you as if you were the seller and negotiate with you in good faith. I definitely like your strategy though. I could see requesting to be granted POA a deal breaker because it would scare people away. Allowing them to have a POA with someone they know and trust is definitely a plus.

I did some searches through the forums, but I really couldn't get a clear answer to my question. I see that some doing short sales get a POA and some jsut get the Auth. to Release. What's the difference? What's the advantage of getting Power Of Attorney compared to just a Auth to Release? How do you overcome homeowner fears fo signing such a document...because I know there has to be some hesitation on their part?

Ok so is the realtor making 3% as a buyer's agent on the A-B and then 3-6% on the B-C depending on if the end buyer is represented?

Hello,

I'm a little confused on how commissions work on an investor purchase of a short sale. Ok here's the scenario:

1. Homeowner contacts me to negotiate a short sale.
2. I submit a PSA for the home and negotiate the short sale.
3. I then list with an agent to find an end buyer.
4. The property is closed via double closing (Not simultaneous).

What amount of realtor commissions are required paid by the investor? I'm assuming 6% for the second B-C transaction, because lenders generally pay realtor commissions on the short sale.

Does anyone have a sample deal they have completed that would show what they were required to pay in commission?

Thanks for the help!

Hey guys...just getting started in Short Sales and have a few questions for the Vets.

1. Do you guys send out your marketing campaigns through Direct Mail services or on your own? What about getting a Bulk Mail permit from the postal service and doing your own mailings?

2. I've heard others refer to getting information about homeowners that are late on their payments, but not yet receiving a NOD. How is this possible? Through list brokers?

3. My plan is to send out letters to all NOS's in my area, possibly to homeowners with ARM's that are adjusting in the coming months that qualify for a SS rather than a Loan Mod, and as was mentioned above hitting up people that aren't making payments prior to a NOD.

Any other suggestions? What are some other ideas that others have used that have worked well?

Thanks for all your help!

So, Will and others, what's the consensus? Can short sales be done legally in CA without a RE license? I tried to digest all of the stipulations in the bill and it's pretty inconclusive. There are a few statements in it that seem to eliminate our ability to work them and then there are statements like this:

1. Purpose of the bill To prohibit the charging of advance
fees by persons offering to help a borrower negotiate a loan
modification or other form of mortgage loan forbearance or
forgiveness from the institution servicing that borrower's
residential mortgage loan, educate borrowers who are being
solicited to pay for loan modification services about
no-cost options available to them, prohibit lenders and
servicers from charging borrowers in connection with loan
modifications and other forms of mortgage loan forbearance
and forgiveness, and strengthen the California Finance
Lenders Law by prohibiting false, deceptive, and misleading
statements, representations, or omissions.

That pretty much says they are strictly targeting loan mod companies taking fees up front. Thoughts?

Sounds good to me. I'm in.

I am a little confused about having to use transactional funding. I hear some people say you don't have to and others say you do. Which is it? Are some investors just savvy enough to find title companies that will do the simultaneous close without transactional funding or are they just fortunate? This appears to be one of my biggest challenges getting started. There are REO's and Short Sales to be had by the droves where I live, but if I have to use transactional funding it will kill the profit potential. Suggestions??