All Forum Posts by: Larry Moore

Similar wording is what caught my attention, Steve. The listings I referred to made a point of stating that a cash buyer must also provide a pre-qual letter from the preferred letter. Yes, it makes no sense, and yes, I doubt the bank would walk away from an acceptable cash offer with no pre-qual, but how many other issues have arisen when dealing with lenders on short sales and foreclosures that make no sense?

Generally, I stay away from anything smaller than a 3/1, unless it is in a highly desirable area and priced for first time home buyers. Does the house have a garage? I wouldn't touch it with only two bedrooms and no garage in my area. Talk to a realtor who can give you time on market stats for smaller homes in that neighborhood.

Thanks for the responses. I guess they can accept my cash with no financing contingency offer w/o a pre-qual, or not.

I have been looking at some REO listings, and I have run across a few that state that pre-qualification is required with preferred lender, even for cash buyers. Are they serious, or is this typically waived? Not sure what the point would be, unless they are collecting application fees, which obviously would be a negative for cash buyers. Anyone know what gives?

Something to consider, try making money without spending your $10K first, other than perhaps marketing expenses, but keep them low, and once you have made money and can replicate your system, figure out how to use the $10K to supercharge your business. The problem with having money is that sometimes it is easier to spend it than to be creative.

During my last year in the Marine Corp, when I was transferred to Camp Pendleton I didn't bother buying a TV for my apartment. Instead, I started reading classic literature, Dickens, Tolstoy, Twain, Salinger, etc, etc. It became a habit I continued for a few years after. Looked forward to my evening reading. A lot more than I can say about my current TV watching. I really should get rid of my televisions, but I am sure that there would be a revolt in the household.

IMO, the most important, first question you need to ask is "what are you trying to accomplish?" If they are still in the trying to save their home phase, they are not ready to work with you yet. You can discuss their options with them, but they still need to come to the realization that they have no other options. You then need to find out if it is important to them that the bank not foreclose on their home (more and more, some people don't care) as well as trying to salvage their credit. If they just want to avoid foreclosure and move on with their lives, you can then educate them on how a short sale will help them do just that. Then find out if that is what they want to do.

I concur with Justin. Wish them good luck: "I hope I never hear back from you because you were able to work something out with the bank. If not, feel free to call me back". They will thank you and part with a positive impression. The main thing is that they need to get the possibility of a loan mod out of their system before you work with them.

I have to agree with Scott. Trying to influence an appraisal is much more difficult, if not impossible, than a BPO. Don't forget, an appraiser does this for a living, a realtor does it as a sideline (although for some, it has become a big part of their income). Appraisers also are paid a lot more for their analysis than an agent receives for a BPO, so they are willing to do a thorough job. As a consequence, IMO, they seem to have a more professional demeanor that relays they are in charge, they know what they are doing, and they don't need your help. Even if they are friendly and take your comps, they probably won't use them as their primary source, if at all. That has been my experience, and one reason why I pass on a short sale if it is an FHA loan.

Although I have only used an option contract a few times, my answer is nothing. If you are doing your job properly, they will sign basically anything you tell them to (obviously within reason). If they are objecting to signing the option contract, you haven't gained their trust.