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Right under my Nose

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  • #5449
    Avatar of homesavers
    NULL
    Member

    My neighbor across street has just lost his house to foreclosure. REO listing went up today. This is how this story begins:
    I spoke with the owner some time back when he began to have trouble. He moved out and his Mother moved in. I spoke with her as well. I told her the same thing I told the son. I can offer a solution so he may not have to go into foreclosure but instead we can work on a short sale. Property was way over encumbered by about 120K. Instead he did nothing and the Mother did nothing. Indy Mac took it back and is now listed for 149K.
    What went wrong? This happens way too much to ignore. It is a “lead a horse to water but you can’t make him drink” thing. Still should I have been more aggressive? I am finding quite a few sellers that are “unassociated with the end result” and just don’t care and let their house go back to the bank. This should not be so with us in the game.

    #28483
    Avatar of jerry carey
    jerry carey
    Member

    HomeSavers said:

    I am finding quite a few sellers that are “unassociated with the end result” and just don’t care and let their house go back to the bank.

    These default owners are in 100% denial that there home will foreclose and they they can be forcibly evicted by the Sherriff’s Department :!:

    For the ones that aren’t in denial … if you really think about it … what benefit do these seller gain by not Foreclosing? In reality, they MAY be able to qualify for a new Real Estate loan in 2 years instead of 5 years! Big deal! What they gain by not doing a “short sale” and going through foreclosure and then the eviction process is an additional for 4-6 months of “free rent” by not paying the mortgage payments! To them … this is thousands of dollars!

    What we can now do and do so more confidently … per the Sat. 02/07/09 Telementoring session … is do a loan modification! This puts a whole different spin on the benefits and consequences of Foreclosure! If we can successfully do a loan modification … lowering the principal balance and lowering monthly payments … we can place an RB into the home and STOP the FORECLOSURE :!: The only bad credit hit is delinquent mtg. payments on their credit history, which as Scott said “can easily be rectified with a years worth of timely debt payments!”.

    So, now, we should be actively going after over-encumbered properties, especially with a second mtg. that can be paid-off for 10-20 cents on the dollar! This opens up a whole new market place for us in California and Florida especially, where so many properties fall into this category :!:

    Jerry Carey

    PS: That’s why I went to the S.D. seminar last weekend and why I’m actively getting back into the NARS program now!

    #28484
    Avatar of corkhorner
    corkhorner
    Participant

    RIGHT oN, Jerry.
    Great meeting you.

    c h

    #28485
    Avatar of homesavers
    NULL
    Member

    @Jerry Carey wrote:

    HomeSavers said:

    I am finding quite a few sellers that are “unassociated with the end result” and just don’t care and let their house go back to the bank.

    … If we can successfully do a loan modification … lowering the principal balance and lowering monthly payments … we can place an RB into the home and STOP the FORECLOSURE :!

    Sounds good. Now all we need to do is find homeowner’s that are in trouble and would agree to a loan modification and not stay in their house. We have to overcome a lot “crooked inertia” meaning there are a lot of broke ex-loan officers doing loan mods because they cannot make a buck and they do not know what they are doing.

    So we have to convice these paraniod, shell shocked homeowner’s that are about get kicked out of their houses because someone gave them free money.

    My point is: There is a hell of a lot of emotions to deal with. You had better be a damn good counselor. I know all of this from experience. I had a lady crying her eyes out when I met her with a mobile notary to sign over the deed.

    It is another arrow in our quiver and that is good. I like helping people anyway I can.

    #28486
    Avatar of salaguilar
    salaguilar
    Member

    Speaking from personal experience in the foreclosure process. It has to do with what you know & when you know it Most people that are going through this only know the negative associated with foreclosure. Many are emotionally attached. If you think about it for one minute were on top of the world next minute the world is falling on top of us.

    I was open to a positive solution that one that most investor present you the one they win I lose. Nothing wrong with because thats all they know.
    Again was open minded looking a solution to keep or stay in our home. As time went by I realized I had to some thing after I was an RE Agent and we know everything right? No more income rate adjusting higher looked at every possible answer that I knew about and nothing.

    In part free housing is why we did not move but even I wanted could not no money. You get to a point of no return and stay as long as you can. The system allows this so take what can.

    I said I was open mined if someone from Nars would comne to me and offer me a chance to keep an interest in my house and could have bought another one we could have been Rich & Wealthy by Nnw.

    But see most people are not open minded. I told part of my story not as an excuse for foreclosure but hopefully insight on how they are thinking. We need to find a way to reach people who are looking for an Unusual But Sound Solution In these Unusual Times.

    #28487
    Avatar of jerry carey
    jerry carey
    Member

    HomeSavers and Sal:

    Did either of you listen to the Sat. 02/07/09 Telementoring session?

    Loan modification was the topic and the call was informative, but really only whet my appetite for more information that is coming soon. Scott said there will be postings here on this discussion board and Webinars will be given on the subject :!:

    One thing that was mentioned is that it “MAY” be possible to leave the seller/borrower in the property! Not necessarily the best solution for Narsians, but a possibility! Waiting for more info. on this topic.

    Jerry Carey

    #28488
    Avatar of corkhorner
    corkhorner
    Participant

    Jerry—you like referral fees, yes? :wink:

    c h

    #28489
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Link to new Loan Modification thread: http://www.landtrust.net/board/viewtopic.php?t=7505

    #28490
    Avatar of socalgal
    socalgal
    Participant

    If we can successfully do a loan modification … lowering the principal balance and lowering monthly payments … we can place an RB into the home and STOP the FORECLOSURE

    NARSian: Ms. Distressed Homeowner, I successfully negotiated a loan modification from your current 10.5% to 6%. Now you can move out and a Resident Beneficiary can move in!

    Distressed Homeowner: Six percent! Wow. I can afford the payment much better now. I do believe I’ll stay. Thank you very much.

    #28491
    Avatar of mtnwizard49
    mtnwizard49
    Member

    - Edited by Moderator

    #28492
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @SoCalGal wrote:

    NARSian: Ms. Distressed Homeowner, I successfully negotiated a loan modification from your current 10.5% to 6%. Now you can move out and a Resident Beneficiary can move in!

    Distressed Homeowner: Six percent! Wow. I can afford the payment much better now. I do believe I’ll stay. Thank you very much.

    So what, let them stay. NARS Members wiill make money (at least 700.00) just foor the referral. Then just go fiind another property/seller.

    Next!

    #28493
    Avatar of homesavers
    NULL
    Member

    700 Bucks. This is not a focus point. Just another solution. By the way, I will get to the “Next!” way before I get them a loan modification.

    #28494
    Avatar of corkhorner
    corkhorner
    Participant

    Scott, —Amen. Amen.

    I’m lovin’ it.

    An idea: IF there are millions of mortgages underwater, and ‘we’ provide solutions including ‘fixing’ the mortgage and we only receive $700+, and the client stays in the house…..Just Maybe there is an opportunity disguised there to build an ongoing relationship for those who act rationally. An interesting aspect of human interactions is that most people will remember those who created solutions.

    c h

    #28495
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    700 Bucks. This is not a focus point. Just another solution. By the way, I will get to the “Next!” way before I get them a loan modification.

    Its not meant to be a “focus point”. Its meant to be an option and a way to solve an owners problem and a way for us to do more transactions.

    I suspect that, as SoCalGal said, some, maybe even most, will now want to stay in their homes. That’s Great! You’ll at least get paid for doing nothing but making an offer, having them complete a short pre-qualification application and collecting a few documents. The Attorneys and Negotiators do everything else and you look like the guy who saved their house.

    Now when they go to work or church and hear of one of their friends or associates in trouble, who do you think they’re going to refer them to?

    This is an opportunity to pick up a few bucks while looking for the right opportunity to come along. I know a few investors that are taking several loan mod applications per month and having over 90% of those close. Hell, I don’t know about you but I could use another $5000 to $10,000 per month for doing nothing more than referring owners in trouble to a website with my own name on it and backed by attorneys.

    #28496
    Avatar of areyes
    areyes
    Member

    This is great Scott!

    I sent an email out to Dave and I am patiently waiting for the loan mod application.

    This will definitely make it a lot easier to send out NEO’s subject to a loan modification now that we have a legitimate resource that wasn’t readily available a few years ago.

    I’ve dealt with a couple of sellers before when I was sending out NEO’s subject to a loan modification, and majority didn’t even have $2500 to pay for it. I still had them sign the NEO and marketed the property, but the terms were so terrible that my NEO’s just expired. They either ended up in a short sale listing with an agent or it went to REO.

    What would you do with those homeowners that cannot pay for the loan modification? What if someone else paid the $2500 with the intent to do the long term EHT and the homeowner decided to stay put and screw the person who paid for loan modification?

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