Still need to know if there are financial resources which can finance a another. I am in this situation.

Thank You

will be on your webnair.

Should be interesting to see what the banks and government are going to do with the shadow inventory. How long can they keep artificially stimulating the market to keep prices high?

The banks are letting homeowners stay in their homes without paying, in many cases, just to avoid an empty house, and accompanying vandalism and wasting of the asset. Not to mention the enormous REO inventory the banks have. There are great opportunities here and I hope to discuss them soon.

warmly

–Richard

Good information. Another guru says that the banks are now financing short sales and other investment strategies. Is that true? I'll be on the webinar.

I have a VA loan available up to $417,000 in Austin,TX. I put a duplex in Austin into my daughter's name.–VA requires I buy the house as primary residence. My wife and I are still on the note to the mtg bank. My wife and I have approx $60,000 in Credit card debt. I wish to retire the credit card debt.TheTravis county tax acessor's office shows value $290,000 USD. If VA appraisal matches the Travis County appraisal, I'll be able to get a lower interest rate(4.75%) and clear my credit card debt. My high interest(6.75%) loan has a due on sale clause. I should have tried a short sale to reduce the 233,000 before transfering title to my daughter. Any protocol to get mtg. holder to lower principal to $200,000 before I buy duplex from daughter?–Good info on video.

Hi Chauncey. Let me first urge you to make a credit card SETTLEMENT rather than just pay them off. The banks are screwing us today, right and left, especially those of us who are savers and investors and who are not irresponsible. So it is important to use every legal and ethical tool you can and this means you can get rid of that debt often for dimes on the dollar.

Second, you can get a Brokers Price Opinion yourself on the duplex and see about the best comps to use. This is what I would do BEFORE I got into it with the bank or the VA.

warmly

–Richard

OK .. now can I keep my own house.. at a cheaper principle.. was thinking i can set up an entity with a principle that is 'at arms length' and purchase my own house via that entity at short

Great tips - was especially interested in short saling my own home and buying another short sale - is tricky but doable. Also, love the backdrop (mural?) behind you - serene!

Richard, I tried as, an investor, to partner with a company to do a short sale where they negotiated etc and the deal fell apart due to the sellers non-cooperation in the process. Do you see this often? Also, I was told by the company that 8 out of 10 short sale deals dont get completed for some reason or another. What have you seen with your experiences and techniques as a completion ratio?

My team gets probably 85% of short sales APPROVED but we are VERY diligent and employ ALL the ethical and legal tricks.

I have seen short sales fall apart due to seller non-cooperation, yes. But I don't work with sellers unless they give me their full financial info, hardship letter, have a true hardship, provide bank statements and tax returns and the whole nine yards. I get this EARLY in the process, as soon as we have an offer ready to sign, along with privacy notifications and authorization letter(s). I tell them early on that this is how my process works. This way I don't get into a situation at all, where the seller isn't cooperating, except sometimes of course sellers just disappear or fade away. There are always exceptions.

warmly

–Richard

Richard, Hi. Am most appreciative of what you are doing/offering: Banks would suck blood from the bone if they could. Q: Is there a method to intentionally become a non-performing note, as an individual, and get timely info. as to whom the lender has sold that note? E.G. Selene. One could then resume with the new lender on terms reflecting appropriately revised principal & interest , remaining in the house throughout the process. Q2: Do your hedge fund chaps look at profitable business other than, but including real estate, outside the US? Regards, Peter Russell Tel: 904 233 9655.

Hi Russell, the hedge funds really focus on US based right now, to answer your second question.

As to the first question, this is difficult to find out due to the lender purposefully clouding the issue. But I will strive to find out if there is a way that works most of the time.

warmly

–Richard

My question is the doability of the loan mod if you are currently unemployed, separated and high credit card debit. I do want to keep my house so looking for options.

Loan mods can easily fail for lack of sufficient income. And debt service can count against you as well. I would suggest getting rid of a lot of that debt, which is pretty easy actually, and working on the loan mod in a way as to show sufficient income. I hope I can address this somewhat better soon. Thank you

warmly

–Richard

Richard, Thank you for all your great info! I'm currently having my realtor friend help me with a short sale, and definitely feel this is my best option. I have unfortunately only 30 days or less to complete the sale or its slated for foreclosure. The home's value is far less than what I paid, and now being offered at 123k, far less than the 206 I paid 3 years ago. Any advice on getting it sold quickly?

Wow, do I ever have advice on that! My 9 Day House Sale can get it done NEXT WEEKEND. I hope I can talk about that in some more depth soon, maybe the next day or two via my email newsletter. Once you have an offer that usually, almost always, stops the foreclosure process, so long as you provide a complete short sale package to the lender (with tax returns, authorization letters, financial statement, latest bank statements, hardship letter…)

warmly

–Richard

Thanks Richard. I'm interested in working with national realtors/listing agents finding good short sales with a decent margin, making 65% - 70% LTV cash offers & reselling within 10-14 days of lender approval @ 80% but realtors seem very skeptical about this and ask if it's legal. Short sales are going on in every state so I find it interesting to get this response. Is it just a matter of finding the 'right' agents (who invest themselves) who are not intimidated by relisiting and contacting buyers & other realtors to sell quickly? I appreciate your response.

Richard,

Thanks for putting your best foot forward. I'm on your hedge fund team and will hook up with the MRF after your seminar. Keep up the no BS approach!

Hi Richard,

I have gone thru alot the last few years. I built two houses, they were started in middle of 2004 and completed in middle of 2007, just when the whole R.E. market crashed. We tried selling houses and auctioning one off, but no sales.
I have recently deeded one house back to Lender in lieu of foreclosure an second house did foreclose beginning of August. These homes were on the water and large estate-type homes. I had to file bankruptcy last year, May 2009, and was discharged in Sept. I also own two townhouses, one of which has a contract on it as a short sale. I was told I would have to wait two years from bankruptcy discharge before I could buy again. Now, with the foreclosure just last month, am I going to have to wait another 2 to 4 years?

R. Pierce

Richard,

Very good information for such a short amount of time spent in the videos. Thank you for sharing your knowledge with the rest of us.

Hey Richard,

Thanks for all the tips you have been sending out in your emails! I do REO investing and its always good to see other formulas at work.

Sincerely,
Ryan

Thank you for the informative videos. I've just started looking into investing in real estates. There are so many choices and webinars. Every time I listen to one of those I thought they are great tips. I've bought so many courses already and still not sure what to do or may be I'm not doing enough. I really don't want to spend more money unless I can see some profit. I'll consider looking into your course again after I can at least make my first investment with one of the courses I've already own. What good is to have so much knowledge and do "nothing", right?

Richard,
Great content. I have been doing short sales for 4 yrs now and made it a business. Is it a joy when we are able to get the homeowner out of foreclosure and allow them to move on with their life. Keep the information flowing.

I wanted to purchase another home approx 50 miles from my current home. Advice from WAMU Loan Officer: take HELOC on my then primary Res. in CALIFORNIA. as the Primary/Only loan on that prop. And to then use the proceeds of the HELOC refi as down payment to purchase another home on an Owner occ.

Hoped to sell the first home (HELOC) before the mkt changed…Not so!! Is there a chance to buy down the HELOC on the first home and save my home, as my 2nd home is in the Short Sale Process? They were NINA (no income, no asset) and Negative Am on the 2nd. home. Both are way underwater, now I am on Social Security and my income has changed dramatically.–no way to qualify for Loan Mod.

We tried to link to your Webinar about HELOCs last eve, but it was with Attorney X. How do we get info about your HELOC webinar/program?

Thank you for your insight…

Bud

I would love to learn how to sell my house at a shortsale and buy another one at the same time.
That seems like a hard thing to time though.
Thanks,
Jim

Dear Richard, It is clear from the letters read on these videos that people are desparate for help and that the help available varies widely in integrity and knowledge. What is your opinion about the option contract as vehicle to acquire control of the property in order to negotiate a short sale?

I like option contracts. They can be very effective. But they also can cause issues with the appraisal by the ultimate buyer because the full purchase price that the ultimate buyer is paying is the option assignment amount plus your original purchase price, so the total purchase amount doesn't support the full appraised amount in many cases. Appraisers want to see a cleaner deal. There are ways around this, but it does present issues when using options. I use them though. Just have to not be too greedy

warmly

–Richard

It is very rare that someone can buy another house before they short sell thiers. To qualify for a loan they have to be able to make both house payments (new and old house) and still be under 50% debt to income ratio with all other expenses. If you are making that much, it is hard to get the short sale approved. Best case is if you have a hardship that prevents you from staying in the old house like you need a one story for medical purposes or you are moving to another area for job purposes. But it is rare that someone can qualify for all that.

Good points. I added some info to the original post to address this.

warmly

–Richard

I enjoyed this video. I'm looking forward to the webinar.

I made offers on short sale listings but lenders are asking for verifiable proof of funds not just the proof of fund letter. Do you have sources where I can get these? Thank you.

We tried to link to your Webinar about HELOCs last eve, but it was with Attorney X. How do we get info about your HELOC webinar/program?

We are currently in the process of selling our house short sale and have already bought a home that was a short sale. It can be done, but it has been no easy task. It was difficult for us to get a loan with money down, great credit, good job that my husband had had for yrs. The simple fact that we had another house made it very difficult alond with all the new laws that have been put into place. We had a pitbull mortgage guy working with us that pushed and worked a lot of hours on,but in the end it was worth it and we have a great new home. Make sure you are working with people that work hard and are persistant. Our real estate agent is very familiar with short sales. I did a lot of research on short sales and I was afraid to ruin our credit, but everything I have read and our agent had reassured us it will get hit, but it will also bounce back. So my advice to anyone doing this is to purchase a car if possible so you won't run into trouble and need a loan you may have to wait to get. We are not in the clear yet and are waiting to hear from our bank to short sale, but our agent is making progress. They haven't denied it, they are reviewing it. Good luck to those who are having to short sale. Its a long process, but can be worth it.

Thanks Heather for sharing your experience. Congratulations! I am sure your sale will go through. Just persevere.

warmly

–Richard

Hi Richard,

I have been receiving your emails, newsletter and have watched your videos. Do you have a team that can help me in selling my house via short sale? I would appreciate if you can provide their contact info. My house is located in NJ.

Thanks.

Thanks for your information - it is great! This is the first time I've had the pleasure of listening to one of your videos. Looking forward to hearing more from you and hopefully, we can do some deals together very soon. I've been involved in RE investing for the last couple of years and had only done a few deals, but this year I really want to pick up the pace. I've done short sales, foreclosures, REOs and retail. What are your requirements for partnering with investors? Please advise. Thank you, Wanda Meekins

Great, Wanda! I partner only in my area at the moment and for my students. I'm in the Northern Virginia area.

warmly

–Richard

I read your e-mail and watched vedios too.I am doing REO's,But not short sale because it takes long time.Do you have some idea to make short sale faster? Many people are trying to sell there sysyem to make money,But there is nothing in their system except flop ideas.If you have something let me know and i will be in contact with you. Thanks, Gurcharan singh

Sometimes short sales take months but sometimes they can be done in 45 days. A key is to AVOID a few lenders right now if you can. If you are stuck with those lenders, nothing to do but persevere. But if you are investing or flipping, you can avoid certain lenders like the plague and have generally pretty smooth transactions.

warmly

–Richard

Almost lost my house due to predatory lending (by my former employer) early last year. Did a short sale on that property. Am attempting to purchase a property in order to relocate. Have been told by one financial institution that I would not qualify for another mortgage until the short sale was at least 2 years old. The banker mentioned that she thought that was via Freddie and Fannie. Not sure how accurate this info is, but thought I'd share.

This is great information. But we just lost our house at the end of July. It's more painful since we moved across the street to a duplex. Just watching the prospective buyers look at the house(for sale), saddens my daughters. I could probably refer some of this information to other people that could be in this situation. Look forward to webinar next week.

Thank You,
Tony Narvaez

Richard, I am so grateful for all the wisdom you are sharing with us regular folks who need to be guided back to the light of hope that has been stolen from our sights. Thank God there are real answers to this endless mess of debts we have been suckered into! I am learning all I can from you and will be applying these nuggets of knowledge to my situation in much higher expectations of success than thought possible. I really appreciate all your helpful insights. Keep up the good work.

please have someone to get with me on understanding the shortsale deal i have the two homes that i am ready to sale please contact me asap 636-699-6973 or e-mail thank you r.h.

Good info. Sad to hear so many others in situations similar to mine.

I need to sell my tri-plex within 2 weeks (or find new insurance) but there are no comps (zero sales in 2+ years). It was foreclosed on but the lawyers filed the wrong note (it was for my personal residence, which they are also working on) so the Judge vacated the foreclosure. But since it is with OneWest (formerly IndyMac) and they will make more money foreclosing on people than ever helping anyone, they are already back on it.

Meanwhile, my personal home is also in limbo but no paperwork yet. The last payments on both properties was 2 years ago. Medical bills (2 surgeries within 6 months with no insurance - and we didn't qualify for state insurance because we owned more than 2 cars… seriously ! ) followed by the collapse of my "other" business (the one that I was taking a paycheck from) did us in. My wife finally found a good job one year ago, but at the time neither bank wanted help until I got a job.

Last year, I thought that was absolutely dumb on their part. With what the markets have done in the past year, I'm find myself fortunate that they were so stupid.

I've only had two job interviews in the past 2 1/2+ years. I guess since I've been out of the job market for 18 years, I'm no longer "qualified" to do the jobs I used to do…

I would love to get out from under both properties (but nothing is moving here). I would STILL love to buy / own / rent, especially at today's prices (in other areas of the country, as where I live currently almost everything is way over priced still !) but with one foreclosure (I couldn't sell my old house, either) and two more coming sometime, nobody will loan me a dime.

I'm not looking for sympathy. Life happens. I would like to find a way to take these lemons and make some lemonade, though.

All this talk about Short Sales is great information, but what about information concerning someone who is not in a financial situation and just wants out? I have ried to short sale and am not qualified to do so because I make too much money with no burden to speak of. Is there any method or top you could lend for someone in my situation?

Richard,

I know you suggest working out credit settlements with the banks in regards to credit cards but I wondered should I try and keep one card for emergencies, rental car, etc.? I also have a revolving credit line that was closed that I've been paying but I presume I could work out a settlement with it as well, correct?

My wife and I have card balances totaling approx 25k and 3 of the different banks have lowered interest rates to 6.5, 9.5 and 14% for approx one year.
Didn't know if I should stop paying to work out a settlement or not?

Lastly, if we did keep one card and continue paying them off do you think they're making as if your credit line will still be available or are they just trying to get fully paid and then close our accounts? Thanks and hope you find the time to answer all my questions! Regards…

Thanks so much for your comments on Condo's. I was thinking of purchasing or Rent to Own a Condo in Columbia, Md and nearby early next year. I wanted to not be responsible for the outside maintenance and thought a condo would have been a good idea. After reading your information today, I am rethinking that. However I still have the outside maintenance problem since I will need help to do this. Do you have any suggestions.

Yes, you should think VERY seriously before buying a condo today. A lot of condo owners are unable to pay their homeowner association dues, and this compounds the problem. Associations are in disarray and are often unreasonable. They sometimes won't let a short sale go through and as a result, they end up with another non-paying foreclosure situation when they could have negotiated.

I am very wary of condos right now. I see too many advantages with single family residences.

I once had a condo and went to close and there was a huge assessment out of nowhere that popped up. I had to pay it in order to close and it was completely unreasonable, arbitrary and unfair. They had never put it in the demand and came up with it just before settlement. I had no choice. I do buy condos to flip but I am very careful.

warmly

–Richard

Good information, I am fixing to short sale my house and I will be looking for another. I do not work right now so I will probably be taking my retirement money to fund my next house.

Hi Rich,

I live in Chester County PA still a great market. Trying to get a comp to get rid of my 2nd in a Bkpty process still trtying to get value of 160 with prob with bathroom and windows. Rea are still trying to value my unit at 200 k when my insurance co, will only give a policy for $171 k REPLACEMENT value

Insane

Thanks for the great info and advise

Joe in SE PA

Richard, excellent comments. I am a Realtor in Sarasota, Fl. specializing in short sales. You are totally correct about condos. Those are the sort of hidden monthly fees that can increase greatly as more owners default. The paying owners will have to pick up the tab.
On short sales there is sometimes insurance and I don't mean PMI.
Investors sometimes place insurance on loan portfolios they buy. I would love to find out how that works in short sales if the offer comes in lower than the x amount the lender wants.
I have a case where the bank told me they need x amount and already turned down 2 offers at fair market value. I have done a courtesy BPO twice for them but the lender is stuck on a certain number. I am guessing there is a tipping point that has nothing to do with the market value where foreclosure is getting them more. There must be an insurance payoff that gets triggered upon foreclosure . The loan servicer is not giving me a straight answer to my question. Perhaps you could address this on Tuesday night?
Thanks, looking forward to Tuesday night.

Ok, so I do short sales in Denver and know people who do them in most other areas of the country. If you need a referral to a short sale investor, either leave a comment on my blog — website is above, or contact me on my aol address, christymellott@aol.com.

To the person who wants to make lemonade… why not find an owner financed house and/or do a lease with the option to purchase? This will give you time to repair your credit. While you can't get a loan today, you will be able to get one in a couple of years if you keep your credit act clean…

And, stop the bleeding! If there are no sales in your area, and you already have a foreclosure on your records, do a deed in leiu of foreclosure. Get the bank to pay you — cash for keys — and get them to agree to waive any deficiencies as part of your negotiations with them to do cash for keys. Take the weight of that off your shoulders.

While you are doing that, go find yourself a house in an area where you want to live — Craiglist has a ton of lease/options just about everywhere — and get moving. Unless, of course, your wife's job precludes you moving. In which case, find something in your area … though it's hard to beat free.

And with your triplex, why aren't you collecting rent? Usually there are a plethora of section 8 renters… maybe you could find some and work out a way with the bank to keep the property once it is rented up and cash-flowing.

I am a Realtor and have helped more than 100 clients short sell their homes in the past 2 years. ALthough there is a lack of consistency in handling the transactions on the part of the sellers' lenders, they have become somewhat easier. Your tips make them even easier also. I especially like the one about turning in the BPO with the contract. Many of my clients rented for a very short time and were able to buy a home again, as nice as the ones they sold and for MUCH less money and lower fixed interest rates. I am dissapointed that anyone would give up and let their home go to foreclosure when it is not necessary and has such lingering bad effects on their quality of life. Keep up the good work!

Thanks Nancy, I love your wisdom here. Congratulations on helping 100 people make their lives a LOT better. And I'm so glad to hear you've had the experience of having clients do a short sale and then buy something else. I for one am a very happy renter, but I know a lot of folks want to buy a home and it isn't their fault they had to do a short sale. I had to do one on one of my own houses and it never stopped me from buying something else or having a great life. But the word has to get out that this is possible and you are getting the word out. Thank you!

warmly

–Richard

Richard,

After getting buried ten feet underground after a divorce, losing almost everything[still wondering how that happened], I see I'm not the only one in trouble, who have lost, lost … tremendous amounts.

Of all the videos I've watched of yours, the commercial birddog seems to be most interesting, although I'm not saying no on any way to make money. So if you pick my name out of a hat,that little one hour training[I'm guessing it's about filling out commercial pro forma forms]is the one I would pick. Hope you don't think it's bad form to ask for what you want - ask and you shall receive - well maybe if the stars are right, the sun is in position, and you don't pull a bunny out of that hat.

Love your info,

Best regards,

William Wright

Very good stuff! Another tip that I use to get short sales done is to call and check status EVERYDAY in the morning when the bank/loss mitigation workers are in good moods. If you do this you get to know who is answering the phones and things start to move a little quicker.

What sound advice, thank you. This is really important.

warmly

–Richard

Hi Richard, You are not addressing tax and legal ramifications in your "advice" to potential short sellers. Be careful!! Short sales for other than documented financial distress situations can take on a whole different set of liabilities with respect to taxable income and deficiency judgment. Regards, Jake

You are so right. And this varies with different states. And with one loan or two on a given property. And whether it is a principal residence or an investment property. Great point.

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–Richard

I can tell you "get it" Richard. I respect your advice. How long do you think we have until the economy really tanks? And What would you suggest as the best recession proof way to make a living? I am thinking the judgement biz you talked about sounds really good and easy… BUt It really sounds TO good to be true- is it? Just a regular joe looking to pay the bills and do a little prepping, Im not a bill gates and frankly sometime all the real estate just gets to complex. Take care.

The judgment business like everything that is worthwhile takes work. I think it is a good business. I would be doing it if I wasn't already immersed in other things. I think it's tremendous or I wouldn't promote it. I think it is really simple compared to real estate and has a lot of benefits due to its simplicity. I know of people making excellent livings at it.

We all have to beware of what I call the "Shiny Object Syndrome" where we are attracted to the Next Greatest Thing because we see it as attractive and amazing. When we get there, we find it has warts and takes work and has a lot of wrinkles to it, and then we lose interest for the next Shiny Object that comes around! Because the Next Business is one we don't know a lot about, it's easy to see only the good and the dream and not see the work part and the slogging through the mud and the details that are in ANY business.

warmly

–Richard

I was intrigued by the concept of selling Short and buying short at the same time. One thing struck me however. Can one really expect the bank to approve the short sale if you have no late payments? My banker (in Texas) was stuck with a home in Illinois and his lender (WF) insisted he pay late before it would approve the short sale. The property had been on the market for over 2 years.

It is so sad to see what is happening to really good people all around the country… Richard, the wealth of information and the sharing is extraordinary so far and I hope to learn more so that I can not only help people extricate themselves out of dire situations but get in while the investing is still good too! p.s. I would love to turn some of these people into investors so that they understand the power of passive income!!! LOVE IT! DONE RIGHT = FREEDOM

Richard, this is my first opportunity to thank you for all the very practical advice. I didn't discover until today, however, that you are also from Virginia. I was wondering, do you partner with anyone in Southern Virginia–Hampton Roads? I'm really curious because, like Mary, I want to turn the knowledge I've gathered into a real estate deal. Thanks again!

Hi Richard, Thanks for all the great information! I'm interested to learn more about how to negotiate settlement on credit card debts of around $50,000. Seems like you know what to do. Can you please refer me to any info or courses you offer regarding this situation. Also interested if you would consult on this? Thank you in advance for your time and support. In appreciation, Robin Burgos

Good for you, Robin. Best thing to get this resolved. I have a law firm that I work with that settles debts the way I would settle them. And I teach you to do it yourself if you are so inclined. It isn't difficult.

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–Richard

Hi Richard
Thanks for the great information. I am in a Short Sale, and the bank has had 3 offers they have turned away so far. I have a 4th offer, and the bank wants to redo the BPO again. If I do the BPO to turn in to them, how much will I have to pay a realtor to do the BPO, and wouldn't it be better if I just paid the $300 to get the house appraised professionally this time, to get this short sale to be "approved"?
Carol

Hi Richard thanks for the great info tips. Question is my wife's credit report has over $100k on credit cards and its caused her scores to drop to the high 600's, her unsecured debt balance are at 90%. We need to get these cards paid down so her scores will go back up– I do not want to pay the $100k , how do I settle for - X cents on the dollar and will the card company's put negative info on her credit report. thanks John

I'll cover what I would do in this case on a webinar I'll do on Tuesday. I think this is a great example of what we can do if we know what we are doing

John, do you have retirement funds like a IRA or 401K? If so many times the lump sums needed to settle for dimes on the dollar can come from those funds and not out of pocket. And your wife will be out of debt completely.

warmly

–Richard

yes.

Richard,
I am in a quagmire and would like some advice. My business model is based on using credit cards to buy supplies to reposition real estate(apartments). After repositioning, I would refinance, pay off the credit cards and use left over equity to purchase another property. I have done this succesfully for many years.
Like most business, my credit lines were recently maxed out when creditors closed off available credits. That triggered "proportion of balance to credit limits too high" on my credit report. My FICO dropped to a 671 Mid score. Besides credit, I show little income on my 1040 as a self employed entrepeneur. Could I refinance under your hedge fund programs with these two limitations? The apartment is worth $799K and has a loan balance of $408K. I need to pay off approxiamtely $40K in Credit Card debt.

in your most recent video on how to remove charge-offs,etc…you stated to write the credit bur.'s the cert. ltr stating that this wasn't you and challenge it that way…but it is your late payment or foreclosure, so how can you write a ltr in good conscience stating it isn't?

Excellent info. I there a way to get rid of past due income taxes? Or if you had a property that went to tax sale? Even if the creditors get removed from your credit report how do you prevent them from filing suit to collect? Keep up the good info!

There are shocking things you can do regarding tax collection, at least as far as stopping the IRS is concerned. You an make your status "currently non collectible" even if you have a pretty high income, and the IRS not only can't collect, they often have to give back what they have taken! 

As for private creditors…

There is no way to prevent creditors from suing, however. The trick is to discourage them.

Debt collectors reach the debtor on the phone and hear "you can't get blood from a stone" (or sometimes it's "from a turnip"). True. And for that reason, no lender wants to sue someone who is uncollectible. Why should they spend their money and time pursuing a law suit that has no chance or bringing in any money?

So the question becomes, "how do you discourage a law suit so creditors do not sue?" and that is a topic that I can try to cover (and have covered). There are several ways to do it. One is to act like a flake, drop out of site, return mail as undeliverable, disconnect your phone number. Generally disappear. Although someone who is determined can uncover where you are, the creditor isn't going to be that determined. Another way is the opposite. It is to keep in touch, to make sure the creditor knows your situation each and every month. To consult a bankruptcy lawyer, and tell the creditor you have done so and that you are considering your options and that you don't have any money.

Both approaches work, actually. Anything half way between the two is what most people do and that does NOT work. Half-baked doesn't work here at all and will often result in a law suit.

warmly

–Richard

Great Information. Please keep sending.
Regards
Cindy

Does settling for a lesser amount on unsecured consumer debt (credit cards, personal loans, etc.) create a tax liability? I have been told from lenders that they are required to send a 1099 for the difference of amount owing and settled amount. Comments?

Even if a 1099 is sent, for cancellation of debt income, that doesn't mean you will owe money. There are various exceptions or factors that determine whether you owe tax. Insolvency is on condition that removes tax liability, that is, if you are insolvent at the time the debt was cancelled, to the extent of the amount of the debt. This is OFTEN the case, so you would have no tax liability. Important to get a knowledgeable CPA to help you through the calculations but often this 1099 is a "toothless tiger."

warmly

–Richard

when you do short sale can you ask the seller to sign the purchase option contract,what happen if the seller don't honor the contract and break the contract ,what is the difference when owner break the contract . Can I still carry on to negotiate with the lender to submit the offer to the bank to get approval for the shortsale. When the short sale approve do the seller receive any gain or benefit from the lender or notification. Thank

You need to have the owner's cooperation and permission to pursue a short sale. Until and unless you have that, or the lender takes the property through foreclosure and becomes the seller, you can't negotiate a short sale.

Sometimes a seller just disappears during the negotiation. They stop communicating. They stop cooperating. And this will eventually kill the deal also.

warmly

–Richard

Hello Richard,

In regards to loanmods, are you familiar with any resources for the unemployed to settle their debt with their second lienholder? I have a second for 200K with Chase that would consider settling the debt for about $50k maybe a little more but they won't do a principle reduction. If I could settle, there would actually be equity in my home.
I have researched the new HUD initiative and cannot find where to apply. Are there any other resources?

Great information! I am excited for the webinar, so many people I know are in this predicament,including myself. I hope this helps!

I would like more information on the following: You mention in your video about credit repair techniques. How do you remove a BK? There is no creditor to call to remove this..is there?

Secondly, what information do you have regarding lenders letting homeowners stay in there homes to avoid the cost associated with an empty house? Can you elaborate.

Thirdly, when are your webinars (days and times) I am on Central time.

Thanks

Hi Richard

You mentioned that your company does short sales. How do I get in contact with your company to complete this process?

Need Help!

Also, like another one of the comments, I have 100K of debt, no retirement no job (that pays anything) and would like to know how I can settle this debt…or is settlement the option to take. (not legal advice..just your opinion)