All Forum Posts by: Ron S.

Since the math doesn't add up, my suggestion is to move on to the next deal.

@ Judy...it isn't gonna happen unfortunatley, at least not legaly in California. On an owner occupied transaction, anyone that lends you money has to apply, "Ability to repay" rules and, since you stated, "...without having to wait until I make enough money to buy a house", you've alread put yourself out of the picture as you don't have the ability to pay. You don't make enough money, plain and simple so, no one is going to lend you money.

You are emotionally trying to make a claim to validate your objective where logically, it doesn't make sense. I would suggest renting unless you have access to funds to purchase a home of your dreams outright with cash.

@ Stephanie - That article is three years old and was as wrong then as it is today.

You're wasting your time trying to get directly to the bank.

"Smaller community banks" aren't desperately in need of removing bad loans off their books so, the incentive to sell before listed to a direct contact doesn't exist. Yes, you may be able to get ahold of a small bank's REO/Asset manager and get a deal but, what you are looking for is more of an exception than anything else and if you develop your business model to bypass the middleman, you're going to be more disapointed than not.

I think there are better opportunities out there, than a 3.59% return potential on investment.

My two cents:

1) Not sure your logic is sound here. Because a loan is in default, does not mean you are going to make a profit by getting the home for less than market value. The cash you may offer a homeowner might not equal the cash incentive they could get by doing a short sale with their bank/lender/servicer and, you still have to get approval from the bank/lender/servicer anyway to do any sale less than full payoff. That bank/lender/servicer WILL control any amount you may try to entice the seller with. Your selling point about them walking away with little damage to their credit is full of holes and not based on facts. They will suffer significant damage to their credit, as it is a short sale. Your analogy is like telling a diabetic, "Well, you could of lost an arm and a leg with your diabetes but, it looks like we're only gonna have to amputate a leg". You are offering them nothing they couldn't get (And would HAVE to get anyway) from their bank using MLS (Which they would HAVE to do).

2) Yes...looks quacks and smells like a standard short sale, and is. You can make it look like it's something else but, at the end of the day, it's a short sale.

3) Who knows what the lender will accept. I can say, they have the same, if not more info on the numbers than you do. In searching for homeowners with equity, where is the incentive you offer that they can't get going open market in their sales transaction?

Good luck...

Many banks/lenders/servicers will not let you be the agent on the deal and the buyer at the same time if you are expecting a commission. That's not to say that they can't, just that most won't. They also are not required to postpone or consider any short sale within 36 days of sale (Per CFPB). Outside of 36 days, a short sale MUST be considered (Reviewed). Doesn't mean they have to accept a short sale, just that they have to review and consider, and during that process must not continue with any foreclosure event (Dual Tracking prohibition against "Furthuring the foreclosure process"). Inside of 5 days, the owner has no rights other than to pay it off. I've postponed a sale the day of the sale before but, I had a full payoff with proof of funds. No lender worth anything would consider postponing without a full package (Executed contract, perfect transaction in every way and ready to close) .

@ Steve Vaughan - I'm guessing you didn't get what you wanted, either as an agent or as a possible homeowner, and that this temper tantrum you are spewing is the only way you can express yourself? Ignorance, lack of education and apathy? I'd look into the mirror before you start labelling people so wildly.

There is an actual reason and its not related to your conspiracy theories Steve. Lenders/Servicers/Banks do not speak with potential buyers directly because they want to maintain the arms length component in a possible transaction. Dealing directly with a prospective buyer gives the appearance that they are negotiating with an entity without openning the transaction up to the market. The regulators don't like it, examiners don't like it and neither do state and federal entities. By limiting communication to the represented parties (License agents), you mitigate the potential for fraud, maximize potential (Stress potential) recovery and keep everything above board.

They are not subject to protection of the PTFA of 09'. Previous owners and family members of owners are not covered. That's NOT to say there aren't state laws that may cover them but again PTFA wouldn't apply.

Cash for keys works better in this scenario always...

I wouldn't approach them until you have the proverbial deed in your hands...but that's just me.

Win?