im looking into buying homes and sell foreclosure under 10.000 and im trying to find an agent to work with me. connie shahzad_connie@yahoo.com thank you

Hi Connie, you never know. I have thousands of readers who see this. I will keep your comment up for a few days.

warmly

–Richard

I am working in a short sale that is already approved by the first(Wachovia) but we have been waiting for the second (countrywide) to approve it. Countrywide ordered another BPO in this case a full appraisal and the value came to be so much higher than the offer and because of that they don't want to accept the short sale. The BPO order by Wachovia is much lower. We are talking of a difference of $150K between the 2 appraisals. What should I do to? we already paid another appraisal but I don't know if countrywide is going to considere it or just want to go by the one they ordered. Please advise

This is so common. Valuation is one of the biggest objections to short sales. The lender believes the short sale purchaser is paying too little. There are still things you can do. You don't need another appraisal but you do need a good BPO that you can argue. There are some techniques of doing a good BPO and resubmitting to the negotiator and I'll address your question on Tuesday if I can't get to it in a video tomorrow.

warmly

–Richard

what if the HELOC is BOA and they will release the lein in a short sale, but ask for a charge off with a collectable deficiency? I researched, a charge off lowers a credit score up to 200 points. This does not seem like a good end result to an already stressful situation, not behind on payments just trying to make ends meet and would like to buy a more affordable house. How can you get out of a HELOC without a collectable deciciency attached thats 180k?

You can get out of a chargeoff situation by doing a settlement. The settlement can be for a note for only a small percentage of the original HELOC. Remember, bankruptcy can take care of this type of deficiency judgment. So that gives you the ability to negotiate more evenly with the lender because if you filed they risk getting little or nothing. So they will often deal. We will be talking about how to get a note for a small amount at at token interest rate, or no interest rate. You can do it. And contrary to popular belief, chances are you won't have tax liability either.

The basic formula is to settle for a dime or two on the dollar, either with Bank of America or a collection agency who purchases the note from them. In exchange for settling they agree to retract derogs already on your credit. Then you write the credit bureaus with a copy of the settlement agreement and request they change the chargeoff to a "paid settled for less than the amount owed" status. This quite often works and then you have a lower FICO score but not a hugely lowered one.

Also, you can buy another house even if you have some issues with your FICO score temporarily.

warmly

–Richard

Richard, My wife and I want to get involved with short sales. She is a Realtor and I am her assistant and former Realtor. The biggest problem is that lenders usually take several months just to approve and accept offers. Most buyers can't wait that long, and Realtors can't waif for months to get paid. Also, at least one state won't allow any more BPO's. Any comments? Ben

GMAC Home Mortgage has now revamped their short sale application pkg to include a 4506-T tax form to be filled out and signed by the home owner, any feed back ? Some homeowners seem to be reluctant to cooperate, i guess they are the ones who got stated loans. Any feed back on how to convince the homeowner to proceed, is it safe territory for them to sign this form as a requirement to be approved for the short? Any feed back would be appreciated, Thanks!

Great presentation. Thank you for sharing this.I think I'll give it a try and I'll let you know if it worked.

Thanks!