Archive for August, 2009
We Just Don’t Process Short Sales – Part 2
Posted by: | CommentsWell....48 hours later we didn't have one offer we had multiple offers. We had helped the realtor price the property to get attention and the outcome was exactly what we had hoped for. Meanwhile the seller of the property was out of a job. She finally had a second interview lined up and the day before the interview, she broke her wrist and couldn't make it. She was able to reschedule the interview and land the job. Two weeks after she started working for the company....She broke both of her arms in an accident. This person was in the process of a short sale, trying to put her new life together & the next roiund of hurdles just pounded down on her.
The staff of Open To Close does not limit their skills to processing short sales....they go grocery shopping, prepare meals, help wash hair and.....make friends for life. This is one situation - but there are many. We realize that there is a story behind why these people have to sell their biggest investment in a short sale. We are here to get the job done smoothly and professionally...but also realizing that there is a real person behind the hardship letter, the bank authorization and "the deal".
We aren't a company that just get's the job done...we involve ourselves with the people we work with, whom we work for - we care... plus we get the job done. If you are looking for a group of people who care and give 110% with every person that we work for or with....Then call us at 512-417-6027 - Open To Close....
Find Out What a Bank REO Really Is
Posted by: | Comments
The term REO means “real estate owned” by the lender and indicates the house or income producing property has been repossessed by the lender and already completed the legal foreclosure process. In most cases, the lender is the bank, which is why you hear the term “bank owned properties” or “Bank REO’s”. When buying in the post foreclosure phase, the bank or the lender is the owner of the property by either through a pubic auction or an owner agreement during before foreclosure proceedings.
The lender will generally sell or list the property to recover the unpaid mortgage loan(s) and usually clear the title for any prospective buyer. However, the potential discount is usually less than a pre-foreclosure, property from an auction, or through a company that has a large pool of foreclosed properties.
The best way to buy bank-owned properties or REO’s is:
Find properties and look at them.
· To buy a bank-owned property that’s listed on the MLS, get in touch with the listing agent directly. Be aware that the bargain price will diminish if a listing agent is involved.
· You can also contact banks and lenders directly and ask for a REO list or bank-owned properties. Be ready to do some phone hopping to find the correct department or individual at the bank who manages foreclosed properties.
· Once you find a suitable property, drive by it so you know the condition and the surrounding neighborhood. Take a digital camera for photos and make detailed notes.
2) Assess the bargain. Use the following information:
Bank’s break-even amount – it typically includes the unpaid balance of the loan, any fees absorbed while in the foreclosure process and any supplemental liens the bank needed to repay to acquire the property. Estimated appraised value (use a local appraiser, look at county’s public records for comparable sales in your subject property’s neighborhood, and look at the local MLS active comparable listings, or consult with a competent realtor.)
Now, subtract all your costs as a buyer (the banks break-even amount, unpaid liens, repair costs, your new mortgage payment) from the estimated market value of the property, and make that your offer to the bank.
Your objective as a buyer or investor is to acquire the property below market value, less any necessary repairs. It is entirely manageable if your contact and execution with the bank is flawless. However, more often than not, buyers trying to secure shorts sale purchases or bank owned property find themselves overwhelmed with the bank’s unresponsiveness and end up giving up.
3.) To successfully get a better bargain and discount than doing it yourself, consider buying through a trusted and experienced company where you pay almost half of what the property is currently worth. Some companies who represent the banks which have closed hundreds of transactions involving bank owned properties:
Buy the property “as is.” Some homes are as low as $7,500. Some duplexes as low as $40,000 in move-in condition with renters in place. You will need to provide evidence that you have the liquid funds or financing arranged to close quickly. You should have 3 pre-approval letters from different institutions since some are discontinuing loan programs at the last stage. So, be prepared to pay “all cash” on low price deals that are sometimes 30 to 50 cents on the dollar. These companies work with banks and lenders that have a large pool of foreclosures. For the lender, these non-performing assets need to be unloaded to get their books in the black. This is truly their loss and your benefit. Close the deal. Once you’ve arrived at an agreement with the company, put the agreement in writing. Often they have an experienced real estate attorney who will draw up a purchase agreement and you should lose in four to six weeks or less. The time varies as they need to deliver clean and clear title to the new buyer free of liens, encumbrances with a warranty deed. In addition, some necessary repairs may need to be completed to satisfy the local city or building and safety codes. Your Funds will be held by Escrow or Title, which acts as a neutral third party, who can oversee the money transfer and property ownership.
Please remember, there is specific time period in which the banks or lenders need to sell their REO properties. The goal is always to get them off the books quick so the faster the better.
Create a video blog
Don’t you just love Top Producer? Exporting your contacts…
Posted by: | CommentsWe have agents that insist on it because it's the only thing they know. We use a CRM tool that actually WORKS with Outlook, and there is NO additional fee! Yea!
Anyway, she wanted to grab her contacts out of Top Producer, so I thought I'd share some love with the rest of you out there. Happy selling!
28.12. Top Producer 7i Instructions
Following are unofficial instructions for exporting contacts from Top Producer® 7i into your Relationship Manager Relationships database.
Note: If you are an assistant or are part of a team or partnership account and the Export Data action link is unavailable through your Top Producer program, the account owner has not granted you export permissions. Contact the account owner for export rights.
Part I - Export your contacts from Top Producer 7i:
1. From the Top Producer main menu, select Setup, then choose Data transfer/conversion.
2. Click Export data. The Export contacts page will then be displayed.
3. Option 1 - Export All Contacts - use this option to export all of your contact records.
Option 2 - Search for Contacts to Export - use this option to search for and select specific records
for export.
4. Click Next to proceed.
5. If you selected Export All Contacts in Step 3, skip to Step 9.
If you selected Search for Contacts to Export in Step 3, from the Search contacts for export page:
a) Choose either Quick Search or Advanced Search to specify the types of records you want
to export.
b) Click Display All from the control menu to retrieve all records.
c) The Contact Search Results for Export page is displayed with the results of your search.
6. Option 1 - Use the Select All link to select all records.
Option 2 - Hold down the [Ctrl] key on your keyboard and click on specific, individual records to
select them for export.
7. Click the Search Results Total button in the bottom right corner to display the number of records
selected. Verify that this is the correct number of records you want to export.
8. Click Next to proceed.
9. From the Export Contacts to a File page, select either:
Option 1 - Export All Columns - exports all TOP PRODUCER 7i database columns.
Option 2 - Export Selected Columns - allows you to select the columns and the order in which you
want to export. If using this option, be sure to choose all name, address, telephone
number, email address, business name/address, URL and birth date information.
Double-click to select the columns you want to export from the Columns Available for Export matrix (or select the respective columns and use the right arrow icon to advance) to move them into the Columns Selected for Export matrix. Columns will be exported in the order selected (no particular order is needed for import into the Relationship Manager system as long as column headings are included in the upload file). Use the Move up/Move down links to change the order of columns selected if you so desire.
Option 3 - If you chose Search for Contacts to Export (Option 2, Step 3), only contact name,
address and main contact number will be exported.
10. Click Start Export. A Save Exported File As dialogue box will be displayed.
11. In the Save In field, browse for a convenient location (i.e., your Desktop or a folder on your
computer) to save the export file. Remember the location to which you are saving the file
-- you will need to access it later in the process.
12. In the File Name field, create a logical name for the .csv export file.
13. Click Save. An Exporting Records to File dialog box will appear. The process may take a few
minutes.
14. When the Export Complete dialog box appears, click OK.
Part II: Import Contacts Into Relationship Manager Relationships Database:
- Login to your Relationship tools
- Select Relationships from the menu options on the left side of your screen
- Select Import Contacts from the bulleted dropdown menu
4. In the Step 1 section, from the Source of Contacts dropdown menu, select Excel File
or Top Producer 7i
5. In the Step 3 section, click the Browse button to browse for and open your .csv file
6. In Step 4, click the Import button to begin the import process
7. Map your columns appropriately by using the dropdown arrows for each field to match the
fields to import TO (System Fields) with the appropriate fields from your original data
(Imported Fields)
8. Click Proceed when you have finished mapping your data
9. CAREFULLY review the data displayed to ensure you have correctly mapped your fields
(i.e. the First Names are in the correct field, the Last Names are in the correct field, etc.). If
fields were mapped incorrectly, click the Change Column Mappings button at the bottom of
the page to re-map your columns without starting over. If data is not uniformly displaying
in the appropriate column, your database may need some personal attention BEFORE you
import it.
10. Optional: Select a designated group to associate your contacts with. You may also mass
subscribe your contacts to eNewsletters at this point.
11. If everything looks good, click the Accept Import button. Our system will look for duplicate
records within your data and will also compare it against records that may already exist in
your database. If duplicates are detected, each instance will be separately displayed and
you may choose to either
- Not import the new record,
- Overwrite the existing record (UPDATE it), or
- Add the new data as a completely separate (duplicate) record.
Note on Data Imports:
If you encounter difficulty importing your data, you can email your database in .XLS, .CSV, .DBF or .TXT format ONLY to help@propertysource.com and we will upload it for you if possible, or analyze it to identify possible issues preventing your data from being uploaded.
Short Sale – Qualification Requirements and Tips For a Successful Transaction
Posted by: | CommentsShort sale is a term used by mortgage lenders who agree to accept a discounted payoff on mortgage loans. A short sale agreement is sometimes offered to homeowners who have defaulted on their mortgage and facing foreclosure. This type of real estate transaction allows the borrower to sell their home for less than is owed on their note and walk away from the property without causing extensive damage to their credit history.
Not all lenders accept short sale offers and those that do generally have their own set of procedures. Typically, this option is only offered after all other options to save the home have been exhausted. Additionally, the borrower must meet certain eligibility requirements to qualify for a short sale. These include:
1) The borrower must be able to show proof through comparable home sales that their home is currently worth less than the unpaid balance.
2) The mortgage is in default or near default. In the past, homeowners had to be in default by three or more months to qualify for a short sale. Today, some lenders are allowing homeowners this option if the borrower is in distress and heading toward foreclosure.
3) The homeowner must prove they are in financial distress. This is accomplished by submitting a short sale hardship letter which explains why the homeowner can no longer make their mortgage payments. Hardships include life-changing events such as extended unemployment, chronic or emergency health problems, bankruptcy, death and divorce.
4) The homeowner has no assets they can draw from to maintain mortgage payments.
There are two types of short sale agreements — ‘deficiency judgment’ and ‘payment in full without pursuit of any deficiency judgment’. The first requires the homeowner to pay the difference between the short sale and original amount. For instance, if the mortgage note balance is $150,000 and the short sale price is $125,000, the seller would be responsible for paying the remaining $25,000 to the lender.
If the seller is unable to promptly pay the difference, a judgment is issued for the amount due. This judgment is reported to credit bureaus and will remain on the homeowner’s credit report for 7 to 10 years; even once it is paid in full. Additionally, the deficiency amount may be subject to income tax.
Payment in full without pursuit of deficiency judgment, also known as Deed in Lieu of Foreclosure, allows the homeowner to return the house to the lender and be clear of debt on the home. Whenever possible, homeowners facing foreclosure should negotiate with their lender to obtain this type of short sale agreement.
Experts recommend working with a professional Realtor or private investor who specializes in short sale transactions. An experienced agent can help expedite the transaction and protect the seller’s interests.
Although short sales do not allow homeowners to retain ownership of their home, they are an excellent option that can help individuals retain their integrity and avoid the agonizing heartache of foreclosure.
discounted bank notes for sale
Note Buying for Dummies
Posted by: | CommentsBasically, when someone has gone months without paying their mortgage, the note is considered "non-performing" by the bank. There is no money coming in. At this point, it is better for a myriad of reasons for the bank to sell this debt off at pennies on the dollar than to keep the liability on their books.
So, for instance, it's a 100k note, and the lender is Wells Fargo. The homeowner, Joe Seller, hasn't paid their mortgage in 3 months, and the bank is "losing" money. John the Bank, INC. goes to Wells and says she will buy the note for 60k. So, John the Bank, INC. buys the debt for 60k, and now Joe Seller is responsible for paying the agreed mortgage to John the Bank, INC. Now, at this point, John the Bank, INC. can decide to short sale the property, do a loan mod for Joe if he wants to stay in the house, or do a died in lieu of foreclosure where Joe gives John the Bank, INC. the property outright and hopefully gets a little cash from John the Bank, INC. for moving costs. But Joe Seller gets to walk away from the property. The day that John the Bank, INC. becomes the bank, anything that is negotiated between her and the seller does NOT get reported on CREDIT. This is happening with a private lender, and the homeowner can escape MORE negative effects that could hurt them if their bank was still a traditional lender like Wells Fargo.
That's just an overview.
Open to Close will SIMPLIFY your life by doing this for you! Call us for details! 512.417.6027