Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Smart program. Is it really a nars program?
June 15, 2011 at 6:46 pm #6788
I have received information about the short sale smart program. I do not see any other comments about this program which leads me to ask
- Is this really a nars program?
- Are any of you submitting deals to this program?
- Is the program working?
It does not use a nars pactrust. Plus the homeowner has to pay $2000 plus appraisal fee before their house is even sent to the lender for submission. Surely a simple trust can be set up for around $400-$500?
The compensation for me seems to be low at 0.0025% of the property’s market value when the house is sold by the lender. If the short sale does not go through the investor(?) pockets the $2,000, I get nothing and the home owner is out of luck.
Do I understand this program correctly?
GaryJune 16, 2011 at 12:23 am #33811
Bryan Way is our (NARSCor) Short Sale guy and does not use either a PAC or EHTrust to do Short Sales.
I do know of a few guys using what they call Land Trusts to do Short Sales but, if they are not using a NARS PAC/EHTrust, then it IS NOT a NARS program, product or service.June 16, 2011 at 3:50 pm #33812
I have followed the program since it’s inception. It is not a NARS program. They are using us to find the properties and essentially give the NARS members involved a “birddog” fee, which is split with NARS and us depending on whether you are a ruby or emerald member.
On last Thursdays call, they stated they had about 50 property submitted in the first 4 weeks, with 5 approved and now ready to close.
I will know personally in the next few weeks as to how well it is working, but all indications are it is working real well.
The $1,995 fee pays for the trust they use, not ours, and is non-refundable. Plus they have to get the appraisal done. The owner also need 3 advance rent payments at the end to be able to stay in the home. The owner rents the property for up to three years and can buy it back at any time in those three years.
Yes, the pay to us is quite small. I have other reasons, which for now will remain silent, to do this. No sense in talking about untested ideas right now.
If you properly qualify the home owner, the odds of failure are very small. The discount the non-profit company gets is not as deep as we ask for in our standard short sale program, so, the success rate should be better. Plus it is part of the new HAFA rules which should give it some extra clout.
Whomever told you about a short sale smart program is either not under contract with the parent company or violated the contract. For us, we are not allowed to use certain words and the program is known as either Short Sale Stay program or Stay in Your Home Short Sale program.
I hope this helps a bit.June 16, 2011 at 6:16 pm #33813
Thanks Stu for the follow up and clarification.
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