SHORT SALES ARE BETTER THAN REOS

It is a simple fact that short sales realize more money for a lending institution than can be realized by the sale of the property after foreclosure. When a lender sells a property after foreclosure the property is described as a REO. Lenders have been slow to dedicate sufficient resources to staff short sale departments and thus response times are woefully slow. John McGeough and Anthony Lamacchia, founders of McGeough Lamacchia Realty Inc. traveled to Washington, D.C., last week to educate policy makers on the benefits of short sales. 

McGeough Lamacchia Realty is a full-service real estate firm in Waltham, Massachusetts, specializing in short sales. The company’s two principals conducted meetings with officials at Capitol Hill, the FDIC, the U.S. Treasury, and the National Association of Realtors.

Their testimony demonstrated the  increase in revenue experienced by banks who approve short sales as compared to REO proceeds.  According to the analysis, if one-third of the 94,428 lender-owned properties in the sample area — or 31,161 properties — sold as short sales, lenders could gain an additional $1,547,305,687 in revenue.

“Considering all of the political attention in our country over the debt and the budget, promoting short sales should be a high priority for all of our lawmakers in Washington,” said Lamacchia.

Clearly, the lenders should focus more of their effort on short sales in order to reduce the inventory of defaulting properties and resurrect the stalled real estate market.

WE LIVE IN DIFFICULT TIMES

I thought I would pause for a moment from the everyday ordinary occupation of making money through real estate and take notice of the difficult predicaments all around us. One of the principal reasons that the real estate market is in such a state of disarray is our own behavior. Everyday we read about the immoral conduct of our captains of industry, political leaders and ordinary citizens. It forces me to stop and think about the big picture.

I am a child come of age during the Vietnam War. I had a draft number, marched against Washington and the military industrial complex. Listened to the Beatles. Went to Syracuse University; followed the Dead. Got married. Had three children. Divorced. Got married again and had two more.  Lawyer in my middle years, donating to George Bush. Obsessed with success and money.  Than tragedy struck. My wife had a brain injury, one of my sons is autistic. I have been forced to really look at my priorities and what is important.

So here we are in the midst of one of the greatest economic dislocations of all times. Opportunities are everywhere. Our economy is resetting and with it many of the old ideas and institutions are either no longer relevant or dysfunctional. Many are suffering.

It is time for each one of us to elevate ourselves and change the world. In order for America and the world to lift itself up out of this monetary nightmare, we must all adopt a better set of ethics and values. Lying must be the exception, and the truth must be the rule of law. I believe many of our problems come from our loss of personal morality. Our leaders feel they can say anything to get elected. Do as they please once in power. That is not a democratic problem, or a republican problem, it is a societal problem. Our captains of industry believe that making money is all that is important, and do not care what happens to their fellow man.

Against the backdrop of the chart I published above is the salaries and benefits being drawn by corporate leaders even of institutions that  are failing or performing poorly. Or receiving Government assistance.

It is time for each one of us to adopt a better set of ethics. Each of us must act with integrity and honesty. We must care about our fellow man, and the future of our country, and the world. I am by no means a bleeding heart socialist, liberal. In fact I am a conservative, religious fundamentalist. The Bible,Torah, as well as almost every other holy scripture demands that we act ethically, morally and care for our fellow man.

I can make money by buying and negotiating short sale properties; Arranging private equity loans; Funding for commercial ventures, while at the same time, acting justly, and compassionately. Do I want to acquire more and more capital? You bet I do. But not at the expense of my fellow man, or my country or the world. Together we can pull ourselves out of this mess. Divided, and unwilling to contribute to the goodwill of our society, we are doomed to the dust bin of history!

 That's the way I see it. A hippie from the sixties, a conservative in the eighties, and a fundamentalist in the twenty first century.

SHORT SALE STRATEGIES FOR INVESTORS AND OWNERS

As we rapidly approach the middle of the year lenders are still maintaining huge inventories of pre-foreclosure properties.  Many investors, real estate professionals and analysts wonder when will this inventory be reduced? We submit short sales for investors, and agents,  to major lenders on a daily basis. Despite the record inventory and the shadow inventory, short sales are still being parsed out.

In order to obtain a short sale approval you must run a gauntlet of lender red tape and hurdles. The system is still woefully inefficient, lacks uniformity and herculean  requires diligence and perseverance to obtain an approval. Whether you are trying to navigate Bank of America's Equator or any other lenders system the lack of coordination, uniformity and coherency is obvious.

I do not recommend that a agent or investor negotiate his or her own short sale. Short sale negotiation is an art form. A well negotiated short sale will result in the investor or owner achieving a substantial discount from the
projected fair market value of the property. Selling or buying a property is a completely different animal from obtaining a short sale approval.   Here is a article with links that illustrates the complexity of obtaining a short sale approval. If you need competent, efficient short sale support call me at 267-205-6101.

Pennsylvania/Philadelphia Short Sales

Some people think that short sales are a virus. Especially real estate agents. In the greater Philadelphia area and in Pennsylvania there are many short sale opportunities for the savvy investor or bird dog. In Philadelphia you can find short sales opportunities by checking the Philadelphia and surrounding counties civil docket filings. When you find a house that has a foreclosure filing, you can locate it on Zillow or some other real estate website and determine its estimated value. If the mortgages exceed the value, and they usually due, you have a short sale candidate.

After you find a candidate you can call me to discuss its viability for resale at a profit. The viability of a property to resell for a profit depends on its location,condition, and the lender who holds the mortgage.Some lenders are more realistic about the value of their collateral than others. If the property is a good target we will make an offer to purchase the property and protect a handsome fee, for your participation in the transaction.
If you want to buy your own properties we will negotiate the short sale for you.

All it takes to prosper in the Philadelphia real estate market is, energy, tenacity and a network of real estate investors. If you have an interest in learning the short sale business call me at 267-205-6101.Win your own financial independence.

SHORT SALE BASICS

MSN money published a informative article about short sales. While it is a very basic outline, I include it here as a resource for the inquisitive who want to begin learning about the short sale process. It looks at a short sale from the perspective of  the lender, buyer and owner. It describes the process as win, win, win, a description that  not only Charlie Sheen could love. http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/UseAShortSaleToEscapeForeclosure.aspx

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SHORT SALES ARE AN ART FORM

When you surf the net today you run into all sorts of short sale Svengalis. They ply their trade with video tapes, webinars, auto e-mailers. Where did they all come from? After all when the real estate market was rising there were no short sales. So essentially, it is a two to four year old market place. In many instances these experts are Realtors, mortgage brokers and unemployed white collar workers from various industries. The one thing they have in common is they are self proclaimed experts.

A short sale specialist should have banking loss mitigation experience, legal experience, and most importantly negotiating experience. Unfortunately, this is for the most part in short supply. It is not simply a matter of submitting your documents to the lender, after all you can do that yourself. It is about understanding the
metrics of loss mitigation, and having the tools to analyse the transaction, and present it to the lender in a coherent and professional manner. Your short sale specialist should have access to the latest real estate valuation and management software. The should be versed in the net REO value that the bank is projecting on the property.

Do not just choose by who has the sexiest web site, or the catchiest name, choose an experienced negotiator with the necessary tools and training to get your short sales approved in the most timely and economical manner.

TSUNAMI MORTGAGE MELTDOWN

The Japanese earthquake and tsunami are certain to have a lasting impact on the Japanese real estate market. But the reality is that the United States is facing a tsunami of its own, in the form of  the commercial and residential mortgage meltdown which is gathering steam everyday. This meltdown has created one of the greatest opportunities in real estate investing in the last hundred years.

In all  of the Untied States, and much of Europe, opportunities exist to purchase distressed real estate  at a fraction of their ultimate value. A savvy investor can orchestrate profits by seeking out valuable properties that are distressed, and then re marketing them for a significant profit. I am sure we are all weary of the late night TV gurus trumpeting how to get rich in real estate with no money down. But this is truly a moment in time, and an opportunity to do just that.

Anytime money is flowing, opportunities abound. At the moment the greatest transfer of real estate equity in history is occurring. Homeowners have seen their equity virtually wiped out. Where did it go, and when will it return? An experienced real estate investor can purchase these homes from the owner, with the their lenders approval for a fraction of their current worth, and resell them at a tidy profit. If you want to learn how you can find these properties and make a profit. Call me at 267-205-6101.

FIND SHORT SALES - MAKE MONEY

On March 3, 2011 I posted some examples of short sales that we negotiated for our investors. But do not let the terms investor fool you. Our investors invest their time and energy, not necessarily money in their deals. Are you good at following simple directions. Can you help homeowners fill out forms? Does making 40 percent of a short swing profit from a short sale interest you?

Our business model lets allows our partners to find potential short sale properties. Properties that are in pre-foreclosure or foreclosure status, and then watch us do the work You can get involved as little or as much as you want.  It is a epic opportunity for a energetic, independent, profit minded individual. We will even help you with your marketing strategy and plan. Give me a call and start filling your pipeline today, 267-205-6101

INVESTOR PARADISE/ JOIN OUR TEAM

The current major problem in the real estate market is the large percentage of houses that are worth less than their sum of  their mortgages. This creates marketplace gridlock and makes it difficult to sell the properties. The difficulty arises because of the unknown short payoff amount the lender will accept. This deters Realtors from listing the properties, and buyers from making offers on them. The solution is the growing number of Investors who are driving the real estate market by utilizing transactional funding to obtain short sale approvals, and then marketing, wholesaling or selling the property at a premium to a third party.

Lets examine two deals that we obtained approvals for this week:

The first home is located in the South and has a market value of $125,000.00 the mortgage balance was $135,000.00 The home was in need of some repairs. In two weeks we obtained an approval for our customer to buy the home for $25,000.00 the mortgage payoff is $16,500.00. The customer will make standard improvements and have the ability to retail the property at $100,000.00 with a gross profit of around $50,000.00 the investor can also just sell the property with the estimate as is and make a spread of around $25,000.00. That is a great example of how private enterprise can solve the current residential real estate grid lock.

The second example is a home in the Northeast. The home is worth approximately $275,000.00 it needs little improvement. The mortgage payoff is $350,000.00. We negotiated a purchase at $199,000.00 with a payoff of $167,000.00. The investor will realize a short swing profit of  approximately $35,000.00.


These transactions and profits were made with no money down! Their has never been a better time to be in real estate investing. Money is flowing and you must get to the spot you can take advantage of it. Join our team and we will help you make spectacular profits. Call: 267-205-6101 or log on at www.shortsalesclose.com and leave an e-mail.

Is it too late to Short Sale after my Home is listed for Foreclosure or Sheriff Sale?

      Many homeowners are under the misconception that they can not short sale their property after a judgment in mortgage foreclosure is entered, or a trustee has been appointed. Until the gavel has fallen, it is not too late to try to mitigate your losses from your mortgage default. If you are considering a short sale than contact a Realtor who is familiar with the process, and do not try to short sell your own property. The process is complicated, and in order to get a short sale approved , you need more than just a willing buyer, you need a experienced negotiator who is familiar with your banks procedures, and can work with your Realtor to establish a reasonable  purchase price for the property. If you would like more information feel free to e-mail your questions to me at: sg.primefinancialgroup@gmail.com.

Why Short Sale?

Many Americans have been bogged down in an endless attempt to modify their delinquent mortgage. For many of these homeowners, a modification is beyond reach. What other alternatives do they have? Three alternatives exist for the homeowner who will face the loss of their residence.

First a bankruptcy can be filed in order to discharge any deficiency judgment in States that permit them. Second, a homeowner can attempt to short sale their property. In many cases the short sale will resolve the deficiency and reduce the effect of the potential foreclosure on their credit score. Finally, a homeowner can just walk away from the property, creating maximum exposure and damage to their credit report.

It is difficult to get a short sale approved by your lender which has spawned an industry of people specializing in selling, buying, and negotiating with lenders for short sale approvals.

If you have more questions feel free to e-mail me at sg.primefinancialgroup@gmail.com