Posted by Joe Kaiser on June 11, 2003 at 24:21:21:
Be careful with the “fee” thing. You’re now a foreclosure
consultant and that often carries some negative elements with it.
You’re already on your way as a foreclosure investor . . . stay the
course.
Joe Kaiser
Will Country Wide Short Sale? - Posted by Kristy-AZ
Posted by Kristy-AZ on June 10, 2003 at 23:28:54:
OK, here’s the situation. Owners in pre-foreclosure, sale isn’t till Sept.
I would like to help these people be able to stay in the house by talking to Country Wide and asking them to do a Loan Modification. I would get a fee from the owners if this is accomplished. If not…
Then I was going to Approach Country Wide to see if they would consider a Short Sale. The loan is also an FHA.
Any suggestions on either scenario??
Kristy-AZ
Dicotomy… C.W, FHA & Short sale - Posted by JT-IN
Posted by JT-IN on June 11, 2003 at 07:37:20:
Kristy:
You may have better luck looking for that needle that you recently lost, near that haystack…
No harm in mentioning the words: “Short Sale” to C.W., but as soon as you do, then get on with a more realistic solution. In other words, the odds are almost nil that they will consider the SS, IMHO. You are dealing with a “tuffy” due to CW and FHA. Now if the deal can still work w/o the SS, then proceed onward.
As Joe K. says, forget the fee thing, unless you are well versed with AZ state law on mediation limitations. If the mechanics of the deal can work, how I would approach this is to set the deal up as a “subject to” purchase, using a Land Trust for privacy of the transfer, then give them a L/O to buy back the property at a number high enough (profit) to cover your exposure here. Of course, this puts us back into the discussion of whether or not to ever leave an owner in a house following transfer, etc. That will vary from deal to deal, and only you can make the call as to whether that fits here. The variables are the tolerances and traits of the seller and how likely you will be to have problems with them later…
If there is not enough juice in a deal like this, then I would pass on it all together, which may be the thing to do, since you are talking SS and FHA… Sounds like there may not be any equity to salvage. Avoid becoming emotional with the seller, in an attempt to help them, even though it is difficult to do at times. You must always seperate the business side of each deal, so as to not jeopardize your own security by “s t r e c h i n g” to help someone because they are nice, but the raw circumstances dictate that they don’t have a prayer of making the mechanics of the deal happen. Of course, I know that you will, but the conservative side of me just has to mention that caveat… for your benefit.
Just the way that I view things…
JT-IN