Archive for August, 2008

Mark:

Thanks for your interest.  I would be very happy to fund the purchase.

You will need to have the transaction a lot further forward for us to help you much.  Get a local hard money lender to give you an approval letter for a specific value.  That is easy to obtain. 

I would like to help you more on this.  This week I will announce a web meeting about this type of funding and show a couple of sample transactions.  Hopefully you can participate.  Since money is involved, we expect people to present transactions already knowing exactly what and how to do it.  Otherwise things are not going to work out anyway.  If I were you, I would first try to double close without our funding.  Maybe you do not need us and can make more money.  Then, if you need us, you will have all the paperwork in order and we can act quickly.

Let me know when you have both sides of the transaction more advanced.  If you need to know more about double closes, consider my Short Sales A-Z Video Course.  This subject is covered in detail, with samples documents and everything.  Amazon.com has a discount offer for it at $150.  That is $100 less than at my web site.

I look forward to doing business with you.  Hopefully we can fund this transaction for you.

Oscar

At 12:53 PM 8/31/2008, you wrote:

Dear Oscar,

Thank you for the information.

The purpose of this email is to maybe get your help concerning funding on a
new construction that is headed for foreclosure. I am a Real Estate Agent &
Investor and have successfully negotiated four short sales for first time
home buyers in the past four months.

I will be meeting a lady tomorrow morning to discuss selling her home as a
short sale. Now that I have the extra knowledge on short sales I would like
to take control of this high end property with an option contract, in my
investment company name and negotiate the short sale then find an end buyer
to do a double close. This will be the first time I will attempt to
negotiate a short sale as a buyer and would like to know if you could fund
the deal and provide an approval letter for the offers that I will be
sending to the bank.

The details of the home are as follows:

(New Construction) Treyburn Country Club. Durham, NC 27712

4BR, 3.5BA

3268 Sqft on .47acres

Approximate Quicken Loan Balance: $412,000 (Conventional) One Mortgage

Market Value: $380,000 – $395,000

Quick Sale: 369,900

1st Short Sale Offer: $269,900

I am willing to share the profit for your help!

Please let me know something ASAP.

Best regards,

Mark

Subject: Double Escrow Alternative Funding

Friends:

Here is a great loan product available for double closings.  We
provide one day double close alternative funding for up to $3M.  Our
interest is three points.  We can deliver as quickly as within 72
hours.  We can also connect you with an expert national escrow firm
specialized in this transactions.

Here are the details:

One day only funding.
3 Points
Provide Aquisition and Resale Documents
Provide associated supporting documents (settlement letters, end
buyer funding approval, etc)
We need at least 72 Hours.  More time would be better
We can connect you with a specialized escrow company if needed.
This is not a coaching.  You need to know what you are doing.
Email me any ready to go deal you may have.

Andy:

Below are my answers in bold.

1. In your professional opinion, what is the best method for purchasing property if �cash out� is not an option?
2. In a cash out someone buys the property.  Options are something else.  In an option you have a right to buy a property within a time period and / or certain conditions.
3. Release of lien- How does this affect me (the investor)?  If the security interests in the property are released by the 2^nd mortgage company..is this something I should pay off for the customer, or just let them handle themselves?
4. The release of lien does not affect you.  You are not liable to the debt the homeowner still has with the creditor.  What you need to do is make sure that the homeowner knows and understands well the situation.
5. Profit & Loss Statement- For self-employed borrowers, should this be generated by their CPA/Accountant, or can this be self generated?
6. Better by a bookkeeper or accountant. 
7. �Subject To� Financing With or Without Escrow- If Title is deeded to me before paying off any creditors, what is the possibility of a �due on sale� clause being enforced?
8. That is covered in the chapter.  Case by case.  Not a high chance if the loan is kept current but there are risks. 
9. �Subject to financing� � How do I get the 1^st mortgage reinstated?  How do they rescind?  Is this from paying off all arrearages?
10. Case by case. That is covered in the chapter.  You reinstate.  The homeowner is insolvent, otherwise they would do it.  The creditor can still rescind.  Banks are good at taking money and then using the other clauses if they feel like it.  Do your own risk / benefit analysis.
11. If �due on sale� is enforced for some reason, how do I refinance since the original borrower is still on the original loan?
12. Case by case.  You need to be ready for refi or sale.  Most likely there will be time.
13. What happens with the above situation if I stop making payments on this reinstated loan�..does this affect me, or the original borrower since I just took over their payments?
14. It affects everybody.  I would not get involved in something where there are chances of me not making it.  Has to be a good deal and you understand it.  A marginal deal will hurt you and will create legal problems with the homeowner.  That is in the chapter.
15. If I short a 2^nd mortgage payoff �subject to� when do I pay the 2^nd mortgage company if it is handled outside of escrow?  I wouldn�t want to cut them a check and have them back out..as we all know creditors like getting paid. 
16. You almost answered the question yourself.  Risk / benefit.  If you have a good deal, then it is worth it.  If not….  For example you do not want to spend to much fixing the property if you think you may end up in a hurry because the creditor is about to call the loan.
17. Is it better to handle �subject to� transactions with escrow to ensure title?  What do you suggest?
18. Few escrow companies are into subject to.  There is no better or worse. Case by case.  Now there are limitations in Oregon and Washington about kitchen table closings.  A good portion of this has to do with the quality of your client and how desirable the deal is.  I prefer things as clean as possible.

Andy, obviously you are good at studying.  Short Sales A-Z gave you all the needed knowledge for short sales.  The rest you need to learn on the field.  Hopefully this answers help.

For being active in Washington State you will need to look at House Bill 2791.  Oregon has a similar piece of legislation.  You will need to be very selective and knowledgeable about this type of transactions.  They are worth doing if done right and with the right expectations.  Consider joining www.northwestreia.com.  I am a member.  There you will find plenty of people serious about this business.  There are plenty of agents, investors and mortagage brokers doing this well.  There are even more wanting to do it and not doing it well because they do not want to adapt or learn. 

Oscar

Andy:

Below are my answers in bold.

1. In your professional opinion, what is the best method for purchasing property if �cash out� is not an option?
2. In a cash out someone buys the property.  Options are something else.  In an option you have a right to buy a property within a time period and / or certain conditions.
3. Release of lien- How does this affect me (the investor)?  If the security interests in the property are released by the 2^nd mortgage company..is this something I should pay off for the customer, or just let them handle themselves?
4. The release of lien does not affect you.  You are not liable to the debt the homeowner still has with the creditor.  What you need to do is make sure that the homeowner knows and understands well the situation.
5. Profit & Loss Statement- For self-employed borrowers, should this be generated by their CPA/Accountant, or can this be self generated?
6. Better by a bookkeeper or accountant. 
7. �Subject To� Financing With or Without Escrow- If Title is deeded to me before paying off any creditors, what is the possibility of a �due on sale� clause being enforced?
8. That is covered in the chapter.  Case by case.  Not a high chance if the loan is kept current but there are risks. 
9. �Subject to financing� � How do I get the 1^st mortgage reinstated?  How do they rescind?  Is this from paying off all arrearages?
10. Case by case. That is covered in the chapter.  You reinstate.  The homeowner is insolvent, otherwise they would do it.  The creditor can still rescind.  Banks are good at taking money and then using the other clauses if they feel like it.  Do your own risk / benefit analysis.
11. If �due on sale� is enforced for some reason, how do I refinance since the original borrower is still on the original loan?
12. Case by case.  You need to be ready for refi or sale.  Most likely there will be time.
13. What happens with the above situation if I stop making payments on this reinstated loan�..does this affect me, or the original borrower since I just took over their payments?
14. It affects everybody.  I would not get involved in something where there are chances of me not making it.  Has to be a good deal and you understand it.  A marginal deal will hurt you and will create legal problems with the homeowner.  That is in the chapter.
15. If I short a 2^nd mortgage payoff �subject to� when do I pay the 2^nd mortgage company if it is handled outside of escrow?  I wouldn�t want to cut them a check and have them back out..as we all know creditors like getting paid. 
16. You almost answered the question yourself.  Risk / benefit.  If you have a good deal, then it is worth it.  If not….  For example you do not want to spend to much fixing the property if you think you may end up in a hurry because the creditor is about to call the loan.
17. Is it better to handle �subject to� transactions with escrow to ensure title?  What do you suggest?
18. Few escrow companies are into subject to.  There is no better or worse. Case by case.  Now there are limitations in Oregon and Washington about kitchen table closings.  A good portion of this has to do with the quality of your client and how desirable the deal is.  I prefer things as clean as possible.

Andy, obviously you are good at studying.  Short Sales A-Z gave you all the needed knowledge for short sales.  The rest you need to learn on the field.  Hopefully this answers help.

For being active in Washington State you will need to look at House Bill 2791.  Oregon has a similar piece of legislation.  You will need to be very selective and knowledgeable about this type of transactions.  They are worth doing if done right and with the right expectations.  Consider joining www.northwestreia.com.  I am a member.  There you will find plenty of people serious about this business.  There are plenty of agents, investors and mortagage brokers doing this well.  There are even more wanting to do it and not doing it well because they do not want to adapt or learn. 

Oscar

Norine:

Thanks for the info.  This looks like a viable transaction.

I am surprised that B of A is trying to foreclose while being in second position.  If the foreclose they will have to pay Chase or re-instate what is owed to Chase.  In this cases usually the second at the end does not foreclose and lets the first foreclose.  That way the homeowner is still liable to the promissory note on the second mortgage.  I would not be surprised if this happens.  Banks are savvy but often miss important details given the volume of defaults they have.  Most of this would happen at the last minute.  Chances are B of A will take a long time to start foreclosing despite all the noise they are making.  If they start prior to Chase,  then they will stall close to the trustee sale.  The reasons are evident.  If they foreclose the owner will not owe them anything.

I will show the intake to my partners.  We will reply to you tomorrow.

Thanks for considering me for your short sale needs.

Sincerely,

Oscar

Oscar:

 

Here goes:

 

A 4-Plex multi-unit  located in Stanislaus County

All 4 Units are rented $700 however one tenant will vacated end of Aug 2008O

Purchased in 5/2006 not sure what loan type with origination loan date of 5/2006

Foreclosing Creditor is B of A ….NOD not filed yet.

B of A have sent a notice to homeowner encouraging a loan work out.

 

 

Listing Info:  Off the Market as of today. It was listed for a brief couple week back in 6/08.

Representing Seller as a Selling Agent

Present "AS IS" CMA    $200k – $210k

Property Condition : Fair to Good (Alot of remodel done prior years )

 

 

Mortgage Info

!st  Chase Bank  $480k  payment est.   $3800   5mos behind in payments

2nd B of A         $150k  payment est.   $2000   5 mos behind in payments

        2nd is a result of refinancing.

Homeowner is in financial distress as Construction have slowed down dramatically.

They are just getting by to survive.  Using the rental income funds to help with their

living arrangements and daily survival so therefore they have not made any payments

to the bank since March 08.  No Bankruptcy or Divorce . Both very cooperative and

expectation is to avoid foreclosure. Do not own other real estate.

 

Please advise asap ….

 

Thank you. 

 

Norine

Robin:

I am glad you got the settlement letter.  The statement you are referring to is very common.  Actually, in the course, I present a similar statement sample. That refers to people engaged in fraud.  That is not you.  This is my opinion, not legal advice.

Oscar

At 09:37 AM 8/20/2008, you wrote:

Hi Oscar,
 
I have a question about this short sale I have been working on with Litton Loan since I talked with you last.  Remember, I am in Springfield, Missouri, and have been trying to close on this house that had the fire damage. 
 
Litton faxed me an approval letter for $12K.  We were ready to close last Friday, but just 30 minutes before scheduled close, Litton says they had released the loan to another servicer, Real Time Resolutions, Inc., in Dallas. (we had asked for two more days which Litton had agreed upon but somehow it went ahead and was sent to RTR anyway)
 
I talked with them and faxed them what they needed, and today I received email from them, agreeing to $12K    —- BUT THEY INCLUDE THIS STATEMENT: 
 
"Real Time Resolutions, Inc. reserves the right to pursue loan contract or tort claims associated with the origination or purchase of the above referenced loan or property or with the settlement, such as fraud, negligence, perjury, or any other claims.  "
 
Oscar, I promised the seller she would not have any judgments against her, and she has no money, anyway.  (she is even in bankruptcy, not released from than until 2009)   I feel I have a moral obligation to her now not to allow RTR to pursue legal judgment against her. 
 
What can I do?  I was planning to call RTR and just tell them the deal wont go through this way.   Do you think they will agree not to pursue it?
 
Please reply immediately if you can, as everyone is waiting to close on this.
 
Thank you!
 
Robin

Dear Friends,

As you may already know, through my web site www.RapidForeclosureData.com we offer pre-public record default data. 

This list is also known as the pre-nod, pre-preforeclosures, and 30-60-90-120 day lates. Presently we offer the best prices and most competive arrangements for this kind of info.

Our price per lead is $0.23.  We can do better for large volume purchases and subscriptions. Below is today’s count for several counties in Florida.

Florida Counties
Total 30-60-90-120 day lates  -  August 18th, 2008

CITRUS                         1158
 
HERNANDO                 2127
 
HILLSBOROUGH     13139
 
MANATEE                     3533
 
ORANGE                   14635
 
PASCO                        5270

PINELLAS                   8973
 
POlK                            6597
 
SARASOTA                4228
     
Total:                        59660

Wendy:

I am glad you are interested in double escrows.  This is how it works.

1. You create a transaction that needs to close the same day.  Hopefully you do it in double escrow. 
2. If that is not possible, we provide you double escrow alternative funding.
3. Our funding is for one day only.  No more than 24 hours.
4. This money is used to complete the aquisition part of the transaction.
5. Now that you are the owner you re-sale the transaction in your re-sale escrow.
6. If needed we can connect you with expert escrow services specialized in this type of operation.
7. We charge three points.

Let me know if you have any such transactions.  My phone number is 971-222-3734.  I look forward to doing business with you.

Sincerely,

Oscar

Myrna:

Thanks for continuing this conversation. 

If the lender instructs to not allow double escrow no escrow officer will do it.  That would be illegal.  In that case the buyer needs to bring cash.  That is the reason we are offering Double Escrow Alternative Funding.  It is called "alternative" because the buyer is not really doing a double escrow.  The buyer is paying for the property and re-selling it.  If there are escrow instructions not allowing this, then there is no deal.  That is rare.

Keep in touch.

Oscar

At 01:27 PM 8/15/2008, you wrote:

Thank you Oscar.  I am amazed how irresponsible title and escrow companies not complying with the lender’s instructions not allowing any double escrows. Integrity matters when you are doing your fiduciary responsibility to your clients including the lenders.  I can see how many people get rich by doing this and I am awed.
 
Myrna R.

On Fri, Aug 15, 2008 at 1:22 PM, Oscar Morante <oscar@bestshortsales.com> wrote:

Myna:

Thanks for your feedback.  In a short sale the discounting creditor needs to be paid as per the settlement agreement.  That is what they get paid.  What happens later is another subject.  There are plenty of title companies and independent escrow doing this in California and nation wide.  I keep the names confidential. 

I do appreciate your opinion and enjoy these email exchanges.

Sincerely,

Oscar

At 12:40 PM 8/15/2008, you wrote:

Profiting more and paying off the lender after a property is purchased is not allowed by any lender, therefore, it is illegal.  Please let me know whom you are dealing with in California, specially title companies that allow this type of transaction.  I would like to know.  Thank you.

 

Myrna R.

On Fri, Aug 15, 2008 at 12:37 PM, Oscar Morante <oscar@bestshortsales.com > wrote:

Myrna:

Thanks for your feed back.  We have closed a number of this transactions in California recently.  Please let me know where is it written that it is illegal to buy a property with money and re-sell it.  I will read the material.

Sincerely,

Oscar

At 12:32 PM 8/15/2008, you wrote:

Being an escrow officer for 27 years, I do shy away on double escrow transaction.  It is against the law to transact a business this type of business in the State of California. 

 

Myrna Reyes

 

On Fri, Aug 15, 2008 at 11:49 AM, Oscar Morante <oscar@bestshortsales.com > wrote:

Dear Friends:

I am glad so many of you are active in the Short

Sale Biz.  This business is booming.

Double Escrow Alternatives

One of the things I do is provide double escrow

alternative funding.  The rate is 3%.  Contact me

if you have a double escrow that requires

acquisition money funding.  Some title companies

get cold feet when they see this kind of re-sale

profits.  Our rate is 3 points and can fund

within as soon as 72 hours.  If you give me more

time better.  We also have the right escrow

contacts to close your transaction just about

anywhere nation wide.

Example:

We just funded a double escrow alternative in

which our client earned just short of $400K.  I

felt envious! The client brought a ready to go

deal.  At the last moment the title company got

scared of him making that much money and was

about to trash his deal.  We provided the money,

expert escrow attorney service and RAPID ACTION.

The result:  The client walked home with a huge

check.

Contact me if you need any such funding at

oscar@bestshortsales.com

Please provide the following:

1- Acquisition contract

2- Acquisition settlement statement

3- Re-Sale contract

4- Re-Sale settlement statement

Real estate transactions are perishable items.

Because of this we will reply you very soon and

let you know either way about what we can do for

you.

Within 10 days we will have a double escrow

alternative web meeting.  Email me at

oscar@bestshortsales.com if you would be

interested in attending.

I look forward to doing more business with you.

Sincerely,

Oscar

Bestshortsales.com

9220 SW Barbur Blvd

Suite 119 – Box 159

Portland, OR

97219

US

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–

With much aloha,

Myrna T.F. Reyes

San Diego Central, Inc.

www.SanDiegoCentralRE.com

myrnatfreyes@gmail.com

Member: BBB, SDAR, PSAR, CAE, NNA and FACCSD

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