Archive for September, 2008

Guido:

Thanks for considering me for your funding.

This is the way to go about it.

1- Disclose to the  end buyer that there is a double close.  If they don’t like it the transaction does not continue with this particular person.
2- The preliminary title report will show the present owner.
3- The purchase contract will show the investor’s name.
4- That will not be a problem because you have disclosed prior to the fact.
5- The double escrow transaction will additionally disclose all the conditions of the transaction to the end buyer and the original seller.
6- The end buyer’s underwriter will have to approve the transaction.
7- The whole funding and recording will take place within 24 hours.  Otherwise it is not a double escrow. 

What we do is provide funds so that, if needed, you don’t do a "dry" double escrow.  Basically in a dry double escrow the funds from the end buyer entirely fund the acquisition.  In a "wet" double escrow the buyer provides funds for the acquisition.  We loan you the funds when you need to do a "wet" double escrow.

 If you have cash end buyers there should be not problem at all as long as you are disclosing to them the conditions of the transaction.  Not disclosing does not only create a problem but it is illegal.  If you don’t want the end buyer to know anything about the acquisition, you will have to buy the property with conventional hard money and re-sell it.  We do not provide this type of funding.

In California there are title companies and escrow officers that will do this for you. Take a look at www.SDCIA.com. Most likely you can find such people in that organization.  If you give us enough time, we may line you up with a escrow service, which does transactions nationally.  For this you need to bring us a deal that is ready to go.

Guido, hopefully this helps.  Maybe we can first help you with your cash end buyer deals.  Then we can do the other deals. 

Oscar

At 03:22 PM 9/29/2008, you wrote:

Hello again, thanks for taking the time and talking to me on the phone the other day, you asked me to write you with more details for the qustions i had, so here they go; if my end buyer is obtaining a loan based on the property i am doing the double escrow, how can he be ready to close if the lender asks for the prelim as part of their package on the early stages of the transaction?, once this is done he can get the loan approved and be ready for funding, but if the prelim is showing liens and other sellers different than what the purchase contract and the escrow inst. we are providing to them, wouldn’t that be some sort of delay on the final closing?.
 
I’m mentioning this because it takes a couple of days once the property gets recorded to obtain a new and clear prelim, but if we wait for that, the loan can not be ready, because all of that is prior to docs, please explain how is that handled.
 
If my end buyer is all cash, the prelim is the only waiting period, i can see that happening faster, not in one day, but 2 at least, unless the title co. has a way to speed things up.
Also in Southern California the recording is done the day after the funding, not in the same day.
 
I’ll be waiting for your response, we have some deals we can do here, just want to be sure how the time frame is handled, thanks again…
 

Dear Friends,

Do you want to increase your profit opportunities?
You are invited to our upcoming FREE Double Escrow Alternative Funding webinar.  If you are into short sales and other types of opportunistic transactions this is something you should know about. 

This is how it works:  Either as an investor or agent, you organize a double escrow. We fund the acquisition part of the transaction.  If needed, and there is time, we can set you up with the right title company. 

Double escrows are among the most accrobatic transactions. These thrilling deals are highly associated with Short Sales, but they work with all kinds of flips.

Attend this web meeting.  It will be well worth your time. We will present the details of our funding program and there will be Q & A. 

Here are the pre-public record default counts for Collin, Dallas, Rockwall and Tarrant counties.  Let me know if you are interested in the list.  We do $0.23 per lead.  Better deals for subscription and large volume sales.

Oscar

30 day late
Collin          2549
Dallas          11460
Rockwall        399
Tarrant         7768
Total           22176

60 day late
Collin          915
Dallas          4137
Rockwall        144
Tarrant         2744
Total           7940

90 day late
Collin          477
Dallas          2039
Rockwall        73
Tarrant         1310
Total           3899

120 day late
Collin          1327
Dallas          5709
Rockwall        177
Tarrant         3874
Total           11087

Friends:

This is our program for double escrow alternative funding. 

We loan you funds for 1 day so you can close a double escrow if the title company or attorney does not want to use the end buyer’s funds.  We charge 3 points plus $500.  If there are other expenses we will inform you up front.  All is payable at closing.  So you do not have to bring any money.  Contact me at oscar@bestshortsales.com.  Look also at www.1-daymoney.com.  I look forward to doing business  with you.

Oscar Morante

www.bestshortsales.com

oscar@bestshortsales.com

Oscar:

Thank you.  I got it.

Tony:

Thanks for you interest.  This is what we do.  If you have a double close in which the title company does not want you to use the buyer’s money to pay you acquisition, we lend you to acquire the property.  Our only requirement is that you have an end buyer which is ready to close.  We do not fund the end buyer.  You will find out that you can’t do this type of transactions with FHA loans or any low down payment marginal buyer. Let me know if you have any other questions.

Sincerely,

Oscar

Oscar,
 
Thanks for the prompt reply.  I especially like your time frame, our transactions will have a complete package for you to work with.  I did not see anything on your site about the End Buyer FICO and what is the approximate rate would be.  I do realize that each deal or transaction is different, however, a ball park rate or FICO will do.
 
Tony

Friends:

Here is today’s count for the Southern Florida counties area, which include Miami, Fort Lauderdale and the Keys.  This data comes directly from the credit bureaus and is current as of today September 11th, 2008.

Let me know if you need a count for your area.

We provide the 30, 60, 90 and 120 day late default list for all of the country.  Our prices are the most competitive for this type of data.

Price Per Lead: $0.23

Better Price:  Subscribe or order large lead volume.

Contact me at info@rapidforeclosuredata.com

Oscar Morante

www.rapidforeclosuredata.com

www.bestshortsales.com

Helen:

Thanks for considering me for your short sale needs. 

Is your property listed with a real estate agent?  The agent is the one that is supposed to know this.  That is why they are getting a commission.

This subject is a not simple but I will try to answer in a paragraph.  This is not legal advice.  Just personal opinion.

A sale in which secured creditors are paid less than what they are owed is called a "short payoff".  There are two solutions to a short payoff.  A true "short sale" and a "release of lien." 

In the release of lien the bank lets you sell for less than what they are owed but you still need to pay the difference.  There is no loss to them.  Since they are not forgiving you debt you have no tax consequences. However, you can no longer discount the interest on the loan from your taxes because the remaining debt is no longer a real estate loan.

In a true short sales the bank lets you sell the property for less than what they are owed and forgives you the balance.  In this case the creditor sends you a 1099C.  Basically you have earned income by debt forgiveness.  So you will need to pay taxes on the amount you are forgiven.  To deal with this work with a real estate savvy CPA.  Generally, if the property is your primary residence and you are insolvent you can get away with having to pay those taxes.  Look at IRS form 982.  The president passed a law about this as well.  That law is mostly a PR move because what it say has existed for a very long time. 

Often creditors do a combinations short sale – release of lien.  Basically they forgive part of the debt and you need to pay the rest.  That may be what you are facing.  If you don’t have the $10K ask them to get you into a payment plan.  They may want more money but it will get you out of the situation.  If you get foreclosed by the first mortgage holder, the second mortgage the creditor will most likely not be paid off at the trustee sale.  You will not be forgiven the debt if you are foreclosed because the HELOC is not purchase money.  You got that money after you bought the property.  Most likely they will chase you for the money through collectors. Not good.  Because of this, most of the time you are better off with a short sale than with a foreclosure. 

Helen, hopefully this helps.  Please consider this just a plain opinion.  Not legal advice.  I will post this in Active Rain without names.

Oscar

At 10:28 AM 9/4/2008, you wrote:

You’ve received a contact message from your Contact Form on the ActiveRain network.

Message details: From: Helen xxxSubject:  Short sale in CA

Hi,I have seen your messages on the forum. I am currently trying to get my banks to approve my short sale via real estate agent.My second lender (heloc) said they still want $10,000 cash from me even if the sale goes through.I need help and guidance with tax consequences, options etc.Do you have anyone in San Francisco, CA area to assist me?Thanks