I've done a few pre-foreclosure properties via short sale in the past representing the buyer and seller.
I've talked to a few people in the past about this, but I’m having a hard time finding some way to get Default notices prior to the newspaper (Which is always pretty bad). I know there's a few websites that do the whole pay-for-listings thing and the like. Are these services the best/only way to get information like this?
Also, what about loss mitigation? I know it's not talked about too much, but met someone who was doing quite well, i know there's alot of companies that offer "Training" But i was curious to know if it was just like the BPO certification companies, a few hundred dollars to have a title and nothing else. One of the agents in my office is with Titanium Solutions, and she's had one LM order since paying the fee, and got one listing since then (She represented the buyer on a property that was headed to foreclosure, the owner didn't know how to sell it even though he had a FSBO sign in the yard). I just signed up with Titanium about a week ago they have already sent me 4 loss mitigation cases. I am not sure if I like it or not yet. It's very time consuming and hard to get a hold of the homeowners. They want you to contact them after 5pm or on weekends (in person)which is hard for me with a 14 month old. I think I am going to change my service area to just the city I live and work in. It's not like BPOs where you can do a 30 mile radius, it takes to much time. Anyways, I figured I would try it out for a few months and see how it goes. I really like the concept of the company and I am hoping that if I get a listing that does go to foreclosure it will give me a better chance at getting the listing from the bank. If anyone else has any experience with them I would love to hear about it. Bankruptcy is a very complex subject. Most attorneys never mention the fact that only a few percent out of all cases file end up completing there repayment plans. The rest default and get dismissed and the house forecloses anyways.
Let me give you this example scenario A:
Homeowner mortgage payment 1,500 a month.
They file bankruptcy to stop the foreclosure they have 7,000 in arrearages with late payments, penalties, and interest. There 3 year repayment plan with the trustee fees and attorney fees is 300 a month.
How in the he&* are they now going to pay 1,500 and 300 when they couldn't even pay 1,500 for months?
You don't pay the trustee the bankruptcy payment they file a motion to dismiss, if you don't pay your regular mortgage each month the lender petitions the court for a relief of the automatic stay.
Either way if they don't pay both there screwed. Good luck on getting a short sale approved while in bankruptcy. The trustee usually won't let them sell for a loss because the trustee is trying to get the most money for the creditors.
This is a killer especially if I am an investor buying the property. The seller has agreed to sell to me for 140k when the house is worth 190k but then before it closes the seller filed for bankruptcy, guess what the trustee disallows the sale saying the price of the contract is too low and they can get more doing a bankruptcy sale to satisfy the creditors.
Most people that file bankruptcy ARE not motivated to do anything. They are actually relieved that all collection activity
including foreclosure has stopped and now is not the time to contact them. When there case is getting dismissed is when to contact them. I get them before the lender refills the foreclosure process and get a 1 to 2 month jump on everyone else.
No I won't post the process for that on this board.
As soon as there case is dismissed or the automatic stay is lifted for the lender you can pursue the short sale and no longer need court approval.
All I do is pre-foreclosures and I also tell people about bankruptcy. Attorneys want money at all costs.
Pre-foreclosure properties via short sale