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Lesson 1 Short Sales

Lesson 1 Short Sales

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Published by Rafael Mendez

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Published by: Rafael Mendez on Feb 04, 2010
Copyright:Attribution Non-commercial


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Here we go guys. I am going to try to do my best to update this every other day orso with new information. Anytime you don’t see it being updated more than 4 daysplease shoot me an e-mailRafael@admonex.comand remind me!Some lessons are longer than others. The important thing to remember is gettingthe understanding of how the processes is going to work, then take the immenseaction to apply to your business. Today I’m giving you guys a lesson of how to determine a good or bad short salecandidate.Let’s dive in!
Lesson 1: How can I tell if I have a good or bad short sale contender?
Not all short sale contenders are created equal. You can waste a lot of time onsellers that care less whether or not you can help them. You want to stay away fromthese people as much as you can. If they not realize you’re trying to help them it’snot worth it, move on to better things. There will be so many others out there justwaiting for your help. They are in need of dedicated knowledge to help settle theirhome. Most people don’t handle their own properties for two reasons.1. They do not have time.2. They don’t have the education to do it themselves.Most of the time they are close to or already encompassed in a foreclosure so thetime is ticking away. They need to work quickly before the property is sold at thenext court auction. This is where you come in!When distressed homeowners work with you they get the peace of mind thatsomeone, YOU, is taking care of them. You are the one that is trying to help themsell their house and avoid a finished foreclosure. A completed foreclosure createsfuture tribulations for the homeowner. It can save the homeowners 2-3 years of re-establishing their credit scores. The foreclosure compared to a short sale appearingas a “paid as agreed” instead of the straight foreclosure allows them to keep theircredit. If you have ever had credit problems you know 2-3 YEARS is a LONG time!Not only are you saving their credit but you are allowing them more them to find aplace to move because you will be postponing the auction sale for review of approval.Is this helping? Does it make better sense?
Why can’t the homeowner just list the property with a Realtor?
 There are many reasons but the 2 that effect homeowners the most are:1.Many Realtors are not qualified to successfully carrying out a short sale.
2.Realtors get paid a commission, and short sale homes have ZERO equity. That means that the Realtor has to get a lender to pay their commissions. This is risky so, they usually try to avoid homeowners without adequateequity to pay their commissions.
How can I tell if I should pursue a deal?
It is important that you not waste your time with unwilling or unmotivatedhomeowners/sellers. They must be prepared to leave the house in order for you toperform the short sale strategy. You must keep in mind that you can’t helpeveryone. You can only help those that will be inclined to comply with yourrequests. You are not in fault for the homeowner’s hardship. If the short sale doesn’tget accepted, the homeowner
is in no worse off than they were before youentered their lives!
 The homeowner must have a legitimate destitution concern. The lender will NOTagree to a short sale if they believe the homeowner is simply avoiding making thepayments because they don’t like the house anymore, marital disputes, or wantsome other cop-out excuse. Don’t waste your time trying to assist homeowners thatare not good short sale candidates. It’s your time, it’s valuable. You are robbing theother people that are in desperate need of your help if you try to “help” those whodon’t truly need it. Willing homeowners with legitimate destitutions NEED a solution.Be the solution, Be a WISE supporter, not a BULLIBLE fool!Here is a list for what I consider ADEQUATE AND INADEQUATE short sale candidates.Adequate properties
A continuing poverty that is preventing payments being made.
A COMPLETELY willing proprietor who will work with you, not against you.
Already behind on mortgage payments.
Lis Pendens or Notice of Default (NOD) has been filed.
Lender has already started the foreclosure process.
No equity and property is over-leveraged (having owed more on it than it isworth)
Property needs repairs
More than one mortgage is owed
One or multiple judgments or Liens owed
Property is listed for Sheriff sale with MORE than 10 days left to auction saledateInadequate properties
Not in compliance to requests for documents, showing their property, signinga listing agreement etc.

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