Hey Everyone,
We just wanted to give you a couple updates and some training tips. I
know a lot of you have been asking us when the loan modification program
will get launched, well you asked and here it is!
If your primary focus is short sales then what a better way to compliment
that business than with loan mods. Seriously, get this, for every loan mod
you can get paid from $800-$1,000! 10 a month gets you $10,000…wow!
We did a webinar Tuesday night which goes over a lot of the details so if
you haven’t had a chance to check it out, do it now!
http://www.TurnKeyLoanModBiz.net
At the end of the video we share with you the website to get started.
Now couldn’t be a better time to get involved in loan mods. If you
are looking for an plan of action for this let us know. We will show
you can automate this and bring in $10k/month or more! The second thing
we wanted to share with you concerns the Notice of Option contract and
getting them recorded. With Stricter end lender criteria we receive this
message from Rebecca from our title company. She is talking about
recording the notice of option.
“It is always in the best interest. It is what gives constructive notice
of public record that you do have the ability to purchase and market the
property. It also gives you a limited claim on the home. If you can do
them from here on out it will make things a little more solid.”
So we recommend starting to record the notice of option contract.
There is nothing worse than getting all the way to closing and
the end buyers lender won’t approve the loan because YOU can’t
claim interest on the home. Here is a question we get asked from time to
time, so we wanted to take the time to get this out in the open to everyone.
How do we overcome the Realtor’s objections, fiduciary responsibility,
listing agreement?
A: First of all you are re-listing the property with the realtor that is
bringing you the deal. You can legally do this by using the LPOA
(limited power of attorney).
The LPOA states that you can list the property as the agent for the
distressed home owner with a realtor/broker and have the property
placed on the MLS.
When you are doing this you having the LPOA are directing the
realtor to drop the original listing that they have with the distressed
home owner.
This alone is more than enough to cover the realtor, because they are
no longer under contract with the distressed homeowner. Mute point now.
What happens here? This now makes you the client to the realtor, and
the distressed home owner is now no longer under legal and binding
contract with the realtor.
Okay coach I get that part, but what if the realtor comes back and says
that they are the ones that introduced the distressed home owner to us?
Please get this part because realtors sometimes miss this. The contract
and agreement between the distressed home owner and you is deemed
a private contact or a private sales agreement.
This means it is not under the realtor and is not due an owning the
realtor any commissions. This being a private contract means we do
not have to use the state realtors board approved sales and purchase
agreement.
This is a good thing as our Option for Purchase and Sale Agreement
has been looked over and approved by title underwriters with the
disclosure on line item 6-F that you intend to re-sell the property to
a third party for a profit etc…
If you run into a anal retarded realtor that just does not get the LPOA
and that our contractual dealings with the distressed home owner are
“private” in nature and are independent of the realtor/broker, you certainly
can use the realtors sales agreement but you will need to modify that
sales agreement and have typed in the line item 6-F from the Option
agreement. Do not hand write this in!
When I do this I also have the Option signed as well because this is the
big deal with title underwriters and our attorneys from the title company
require this and will sign off on getting the deal insured and closed.
When the realtor gets the Oprah moment and realizes that you/we now
become their client and the distressed homeowner is no longer their client
they usually no longer bring up any objections to the fiduciary responsibility.
Now there is one more item that a realtor may bring up and that is this question.
What if you get a discount from the lender taking the short and then mark
up the property and sell it for a profit?
Gee whiz…that’s what this is all about. Is it wrong not to settle for a
higher price from the bank at the same sales price that we can sell it
to an end buyer. Heck no! No profits here and no need for us to be in
business if we can’t make a profit.
The over all sales of the distressed property will 99% of the time fall
under the category and be in compliance with the Foreclosure Forgiveness
Act of 2002 signed into law by President Bush on December 20, 2007.
With this in mind it doesn’t really matter what kinds of discounts we can
get on the property and where we wind up selling it. The home owner is
going to be in the clear here.
But this is my disclaimer…do not take my word for this here, please check
with a real estate attorney such as the one I use from Flagship Title, Bobby
MacKinnon PA. This is the same information that Bobby and I have had
many discussions about.
We are making money on the margins above board and perfectly legal.
How can we do this? We do this legally because we fully disclose to
the distressed home owner and all lenders involved on the front end of
the deal what we intend to do. Come on people, bank loss mitigators
have known for years what our business model is all about. They know
we intend to flip the property for a profit and play the margins to make
money.
Who really cares? We are the glue that makes these deals happen and
if we are successful, can keep the property from going to the foreclosure
auction. If the foreclosure auction happens, everybody loses. We have
had to adjust our business model and put into writing exactly what we do.
It is not the banks that have objected, it is the title underwriters wanting to
cover their A$$.
Hope you guys have a great weekend and keep rockin….
Posted by mr3days 
