Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Double Close a short sale
April 29, 2007 at 8:15 pm #3257
I am new to this forum and not too familiar with the NARS system (I am attending their next workshop on May 18th). What I want to know is whether it is possible to double close a short sale. I am in CA and have been told that this is possible by using a land trust, however, I have contacted many escrow companies and found several that will handle double closes but not if a short sale is involved. Does anyone know how to get around this issue or can anyone recomend an escrow company in So Cal that handles this.
Any help would be appreciated. Thanks.April 29, 2007 at 10:44 pm #20348
Yes it is possible and one of few tricks up my sleeve that I don’t usually share with others. I am in the process of writting another EBook on Exactly how to do what you are asking about. And, with no problems with Title or Escrow Companies.
It involves the use of a NARS EHTrust, an agreement with the Lender, an End Buyer and a Purchase Offer. It will allow you to negotiate a Short Sale with the Bank and then sell the property to an end user without using any of your own money or credit.
The EBook should be out in the Fall.April 30, 2007 at 1:39 am #20349
Thanks for your prompt response. I can appreciate your position in this matter, however, I need to learn how to do this now. I am receiving aout 30-45 calls per month from people that are in foreclosure, with no or negative equity and I would like to help them. As of right now my only option has been to have a buddy of mine, who is a real estate agent, take them over and list them and give me a protion of his commissions.
If we can work something out I would be glad to do so. I just need something to happen A.S.A.P. I can’t wait. You can contact me directly at (866) 689-9981 or email@example.com. Thanks again.April 30, 2007 at 3:14 am #20350
Whats wrong with just proposing a regular Short Sale? Find an End Buyer and use Hard Money to purchase the propery and then flip it to the End Buyer.
This “method” I’m working on is not going to be ready to use for a few months. It will require that you use a Lender Authorized and Appointed Vendor.
What is happening is that lenders are tired of every Tom, Dick and Ethel Investor calling up and thinking they can negotiate a Short Sale. Sometimes there are seven to ten Investors all trying to negotiate the same property all at the same time.
Lenders are forming a Privately Funded Organization just like the Credit Card Companies did with Consumer Credit. If you or your Seller wants to do a Short Sale, you must go throuhg and use this Organization. You will express your desire to purchase the property, the Organizaiton will put the package all together as well as determine the financial status of the one being foreclosed on.
This Org will be the only ones allowed to talk with the Lenders directly. That way each property has only one person that is talking to the Loss Mitigation Dept and not a dozen other Attorneys, Realtors, Investors etc.
The Org will take all offers and submit the highest one to the Lender. The Lenders will also now require that the house be listed by an Agent to attract more offers.
Short Sales aren’t going to be what they used to.April 30, 2007 at 3:54 am #20351
I don’t know if I like that. More to jump through and deal with. I haven’t done a short sale but that seems like it will only make more to deal with. I can understand why Lenders would want it but is that best for the investor? Time shall tell.April 30, 2007 at 6:14 am #20352
There is nothing wrong with that strategy except for the fact that there arn’t any hard money lenders that will lend any more than 75% ltv and the biggest discount on a short sale I’ve herd of is about 82% of market value. If you know of any hard money lenders that lend higher than that 75% ltv I would appreciate the referral.
That new model that mortgage companies are coming up with is oing to make short sales an even bigger headache. Hope that it isn’t implemented any time soon.April 30, 2007 at 5:54 pm #20353
You are all 100% correct with your assumptions about the new proposal. However, you’re forgetting one very important thing, The NARS EHTrust.
This new proposal will allow you to close with a trust in place. The Lenders will allow a Seller to vest the Property’s Title with a Valid Trustee while you or the “Organization” negotiates the SS price. All you have to do is find an End Buyer and sell the property to them through the Trust. As a Beneficiary of the Trust you are paid your interest when the sale takes place. This requires none of your own credit or money.
I can’t tell you any more but I will in a few months.April 30, 2007 at 7:37 pm #20354
Where did you hear that? News to me.
SoCalProps… Most of what I do is short sales and it has been REALLY good to me (particularly this year). Many of my transactions are simultaneous closings or “double escrows” if you will. Yes there are escrow and title companies that will do short sales simltaneous closings, it just is a matter of finding the right one.
Usually check with the smaller escrow companies and I would tell them the following:
“I am looking to do a simultaneous closing.
In other words, I want to buy it in my land trust and then I want to quickly sell it to my buyer.
Do not expect me to bring the money in. I expect you to take my buyer???s funds, subtract out the money for the seller and cut me a check for the difference.
This is what I used to ask when we were looking for a more efficient escrow/title.April 30, 2007 at 8:14 pm #20355
umm… sorry, that was me? Still can’t figure out where my other screen name went…April 30, 2007 at 10:01 pm #20356
Where did you hear that? News to me.
I’ve already said too much. But as you may remember, I’ve been in the Financial Counseling Business for over 20 years and a former HUD Foreclosure Counselor.
This is something that the industry is considering just the Credit Card Companies did when they formed Consumer Credit Counseling Service over 40 years ago. It is stricly a proposal and they are inviting current and former HUD Counselor to a meeting for input.
If it is accepted then an Organization will be formed, just like CCCS, to handle only Foreclosures, Modifications, Forebearances and Short Sales for all the Lenders. All Realtors, Attorneys, Investors etc. will have to go through this “filtering” Organization.
The Organization will prepare the entire Financial Statement that can and will be used for all the above, including Short Sales. It is the same thing as the Short Sale Package is now. The Organization will be charged with “checking out” the validitiy of the financials before sending the package to the Loss Mitigation Dept for review and approval for whatever program is sought.
I have been asked to give a presentation on the proposed infrastructure of such an organization and who or what will own and operate it, including the associated fees, costs, overhead etc.
This “meeting” was supposed to happen in two weeks but may now be pushed back a few months. It seems that not enough former counselors were interested enough to pay their own way to a conferrence, even if it is in Florida.May 1, 2007 at 12:24 am #20357
Hum, very interesting.
May actually be a better thing to widle out all those yahoos who don’t have a clue with what they are doing.
I wonder how this would tie in with a company I have that strictly does negotiations for Realtors and Investors. It acts as a liaison for all parties involved.
You are just a pluthera of information aren’t you?May 1, 2007 at 12:24 am #20358
umm…. “me again”May 1, 2007 at 3:03 am #20359
I wonder how this would tie in with a company I have that strictly does negotiations for Realtors and Investors. It acts as a liaison for all parties involved. You are just a pluthera of information aren’t you?
From what I understand the proposal is to only accept offers or negotiations through this licensed organization. I too have been a Loss Mitigation Counselor with HUD and Privately and this would eliminate both, or put them all under a standard umbrella. A Professional Association of Loss Mitigators, if you will, under the direction of the Organization.
You are just a pluthera of information aren’t you?
Just a nice way of say I’m full of it. lolMay 1, 2007 at 12:58 pm #20360
That sounds great! Can’t wait for it to come out.
In the meantime http://www.easyhud.com and the Tewis’ can explain to those who want to use a LT to get around title seasoning issues now.
I also found Jared Severe’s SS course very good on this matter.May 1, 2007 at 3:30 pm #20361
Yes, I’m very familiar with all of these folks. They all have some good information and systems if Short Sales are your thing. I am also very familiar with the “Tewis” family and their method of Short Sales with Trusts. I do have issues with how they draft their documents but they are very knowledgable and successful people.
I have been using the NARS Trusts for exactly the same method for years. It does require willing Title Companies, but that hasn’t been too much of an issue lately. You really need to have your ducks in a row to do this or you can get yourself into some really hot water.
That’s what the new EBook will be all about, is how, as NARSonians, we can take advantage of this system and method of “Flipping” Short Sale Properties without having to ever use our own money or credit.
I’ll be talking more to Pete and Bill about it later this week, I hope.
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