So you want to be an REO agent do you? Unless your just slammed with business and don't need or want anymore, why would you not answer your telephone. Two days ago I spoke with an AM that had 6 properties needing to be assigned all of which were outside of my coverage area exept for one. So being the sharing person that I am, I called & called & called. 3 listings went to my Southern CA friends/agents with Code 3. 1 to an Agent in Beverly Hills , 1 to myself and the Other to a MEGA REO broker in Bakersfield. This REO broker pretty much assured me he will be retiring after this boom, of which is his 3rd and he's doing MAJOR volume. HE DIDN'T KNOW MY NUMBER FROM NEXT BUT CERTAINLY ANSWERED HIS PHONE AT 10AM IN T THE MORNING WHEN I CALLED. So why is it that a Broker Doing Mega business can answer his phone, and some of us wanting to get into the business don't answer or at least return a telephone call. I'm sure we all have caller Id & show missed calls on our cell phones. We'll I'm looking for a network of a few good agents in CA that I can count on to answer there telephones next time I am blessed with the opportunity to pass on a REO listing.I have been informed from my contacts that CA is gonna get slammed in the next 6-9 months and I'm sure these opportunites will be more common. So Answer your telephones, I know most of my AM's call me before they assign a listing to give me a heads up. I haven't missed a call from one yet, so I don't know what happens when they don't get you on the phone. I would like to think that after you prove yourself they will just assign it; however sometimes a conversation is worthy. Lots of times there in other States Like PA and don't know Sacramento is 4-5 hours away from Bakersfield.Here's my tip for the month: I spoke with the REO coordinator for Citi & have been informed they will be adding new agents in or near the 1st quarter of 2009. So you may want to get your packets in if you haven't already done so. (So why would they be adding more agents around this time, well the stars are linning up, just another source confirming the volume and outlook ahead.)
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Working with over 20 properties a month, doing cash for keys is sometimes a challenge getting a hold of the occupant. We've found the following process has helped us in managing our CFK offers.Upon getting a property, we first check MLS to see if there is an occupant's number is disclosed. We try calling the number on there immediately. If we reach a person, we give them our information and let them know there is a possibility for some help in moving costs. Usually they need to get back to us upon talking to a spouse, looking for an alternate location or talk to an attorney. We obtain any alternate phone numbers or occupants information at that time.If there is no number on the MLS, we next call PGE to find out if the utilities are on. PGE will give out the information without question. If it is on, it may mean the occupants are there but not positively. If it is off, it is more than likely they are gone but not 100%. We have had occupants stealing electricity from the neighboring home- AND growing marijuana in the house too!After checking the PGE, we will go to the property the same day usually within the couple hours of getting the listing and knock on the door. We look for signs of occupancy by knocking on the door first and if no answer check the mailboxes overflow, see if there are newspapers piled up, peek through the windows in the front, and look at the gas meter to see if there is any activity. Neighbors are always the best and nosiest so it's always a good way to ask them if they've seen anyone in or out of the house. If you feel it is safe, we go to the backyard, because many times the occupant does not pull the shades of their sliding glass door.If it's vacant great! If it's occupied, we have form letters that we leave at the door with our contact information. We also give our info to the neighbors to contact us if they notice the occupant is there and we can go at that time or the same time the next evening. We tend to try checking the property at diffent times of the day and week so that we may bump into them.The importance of doing CFKs? Many asset managers have a rating system for the number of CFKs completed so it's to your benefit to follow up with checking on occupancy and helps you get the property on the market more quickly!
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My fellow agents, Time has come for us to recognize the battle that has been waged on us. Battle, we didn’t ask for, Battle, we did nothing to deserve, yet it is here and the battle we must fight not only for us and our future but also for our clients.REOPROs that have been around for a while know what I speak of. A Few months ago, I started to see some articles from auctioneers in reo magazines (DSNEWS), active advertisements by more and more companies, blog posts, and active memberships on most platforms used by lenders to hire agents to sell assets. Today, I hear from my AM friend with major bank, telling me that direct approach like never before to the entire REO division of most major banks is under way. You wouldn't believe how many companies are jumping on this bandwagon. This ghost has come out of its dark corners and if we don’t prepare ourselves for it. I dare not say the words what I fear.In my experience and with some feed back from some AMs, auctions have very little effect. If these companies advertise thousands of listings they only sell hundreds that day and many are at the fire sale prices. At that time the bank gives in and accepts a price that was well below the reserve price. What’s' worse is that this listing was with an agent before. It was cancelled only 30 days after it was listed. Oh by the way, the agent in this case got this listing after nasty eviction, got the property in marketable condition with shelling out his own money, waiting to be reimbursed. This type of process hurts.I am deeply troubled to hear these auction companies bash brokers and say auctions are the way of the future. I am confident after what they charge (10%), and prices they sell asset for, they even come close to what we can get for the asset if proper marketing time would be given. I am anxious to hear from everybody reading this blog if auctioneers net more than we do. If we do then why more and more listings are being taken away from agents and some sold at the auctions at the fire sale prices. This is crazy.We the Professional REO Agents do more each and everyday from occupancy check to evictions to weekly reports to maintenance to negotiate sale for less than any entity on this earth. We protect that asset as it was ours. I now make a point to tell this to all my AM contacts. I believe it’s in their interest to know that we do more for less and get them the best deal possible.
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I have not blogged before and would like to start. I can't emphasize enough to treat your fellow colleagues with respect when it comes to informing them what is happening. I had a REO listing and received an offer. I immediately turned it in. I called the agent to inform him that I did submit it and was waiting for an answer. He appreciated that I took the time to let him know that I did submit it. There were a few glitches along the way, but I made sure I informed the agent every step of the way. He was so pleased with my contact and letting me know the particulars that after we finally closed he wrote me the nicest thank you with high complimentary comments. I treat others like I would like to be treated. I think it is awful to wait and not to let the others involved know where you are with it, what the hold up could be etc. This is how I always work, but for some agents this is hard, and they do not call you back and you are wasting time tracking them down to find out if it has been accepted. The buyers get angry and want to pull from the offer if they are taking to long to get a response. You should be working together it helps to get it closed and close smoothly. I hope this tip helps others.Donna
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Because so many people don’t blog, let me share reason with you as to why you should blog.
1. Exposure: Blogging gets you great exposure. In fact, a regular blog that provides great information will not only get you exposure but, sometimes it can get you notoriety. In other words, it allows readers to get a sense of who you are and how you work. Think of it as a one sided interview for your readers and therefore, use it to your advantage to toot your own horn and, show off your skills, knowledge and experience.
2. Collaboration: Blogging allows a writer to collaborate ideas with others who may have more insight on the topic than the writer. In short, it’s a great way to get answers or obtain knowledge. At the very least it allows for writers and readers to toss around ideas and workout solutions.
3. Become an Expert: Depending on just how you use your blog, it can be a great way to showcase your expertise in a particular area or field. Continued writing shows dedication to your craft or business and allows others to see you as an expert.
4. Relationship Building: It’s a great way to build relationships. People can come on, read your blog, ask questions and open the door to relationship building. It has been a great way for me to maintain my customer relationships and as well bring on new customers who have been refereed to my blog.
5. Media Relationships: One of the most intriguing reason to blog is the potential for Media Exposure and then the development of a relationship with a local media outlet. In fact, it isn’t uncommon to see some blogs on local media outlets or industry publications
So, all in all, bloggin can be a great way to start a business, maintain a business and propel a business to success so, if you’re not blogging, I have to ask why?
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Posted by Raul Novales on November 4, 2008 at 5:27pm
This is my first attemp at a blog so I hope this is usefull. I have been approved by a large Asset Management company and the same day my approval was emailed I received 2 BPO assignments. Lenders and Asset Management companies want and need Accuracy and Efficiency. When you receive a new Listing or BPO assignment they give you time lines to complete the work, but if you exceed the timelines you will be rewarded with more business. Remember that you are being graded by them on accuracy, also so be very careful about how you price your properties. Most companies are looking for a varience of 3 to 5% of list to sale price based on your BPO. A little background about me: I listed my first REO in 1985, in 1992 I was hired by FREDDIE MAC and FANNIE MAE. I was involved in hundreds of transactions with both GSE's. I left the business to pursue investing and have only recently returned. This business is very complicated and expensive to handle so for those of you that are interested be prepared and you will succeed.
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Posted by Danny Mahelka on November 4, 2008 at 12:00pm
Danny MahelkaColdwell Banker9000 Sunset Blvd., Suite 100Los Angeles, CA. 90069DIRECT: 310-887-0220FAX: 310-887-0291CELL: 213-359-4097dmahelka@earthlink.netwww.homesbydanny.comOBJECTIVE:To swiftly and efficiently administer eviction / re-location services for occupants and reclamation processes to secure property on the banks behalf.To aggressively and strategically market said property to ensure a quick, qualified sale in order to minimize bank expense and exposure.Note: My specialized R.E.O department maintains a separate phone number, email and fax than that of the general business.REOTRANS.com – Certified MemberRES.NET - MemberREO EXPERIENCE:Have completed BPO’s for the following• Wells Fargo • EMC Mortgage• Bank of America • Countrywide• Washington Mutual • Saxton Mortgage• Wachovia BankCurrent REO accounts in Office• Wells Fargo • Washington Mutual• Countrywide • EMC Mortgage• AM Trust • Saxton Mortgage• Wachovia BankArea Coverage:90003,90004,90005,90006,90007,90010,90011,90012,90015,90016,90017,90018,90019,9002090024,90025,90026,90027,90028,90029,90031,90034,90035,90036,90037,90038,90039,90044,90068,90043,90045,90046,90047,90048,90049,90056,90062,90064,90066,90067,9006890069,90071,90073,90077,90094,90095,90272,90291,90292,90402,90210,90211,90212, 90401,90402 90403,90404,90230,90232SPECIALTIES:• Cash for Keys• REO team includes 4 real estate licensed professionals• Staff has fluency in the following languages; English, Spanish, Hebrew, Farsi• BPO turnaround time 24-48 hours• Contractor bids within 72 hours• Same day re-keys & lockout team• Fast trash out and repairs• Management of all bids during process, inspection upon completion• Property Management• Daily occupancy checks• Site security when necessary• Coordination with eviction attorney• Coordination with utility companies• Re-location services for occupants• Utilities will be in our corporations name and in a separate bank account• Loss mitigation• Communication with the team via synchronized PDA phones, computers and e faxes• Semi-monthly reports submitted that includes Realtor showings, and expenses• Expertise in construction and design• Expert in Excel, Publisher, WordAwards• 2004 International Presidents Elite (Top 2% CB agents nationwide)• 2005 International Presidents Elite (Top 2% CB agents nationwide)• 2006 International Presidents Elite (Top 2% CB agents nationwide)• 2007 International Presidents Elite (Top 2% CB agents nationwide)• 2008 International Presidents Elite (Top 2% CB agents Nationwide)Employing BrokerageColdwell BankerNovember 1991-presentBroker DRE License # 00616212OFFICE STAFF:Danny Mahelka:Licensed Real Estate Broker, 17 years experience in the sale, purchase and management of residential and commercial properties. Extensive knowledge of REO’s, probates, trust sales, development, and rehabilitation. Duties include research and completion of BPO’s, all negotiating.Scott Anderson:Licensed Real Estate Agent, Completing all weekly/monthly reports, and marketing of properties. Responsible for overseeing maintenance and weekly inspection of all properties.Artesia Fair:Escrow coordinator and closer. Handles billing on utilities and vendors.Jessica LeDuff:Listing Coordinator, input of all listings, coordinating photography and all aspects of marketing and advertising.
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Posted by Camila Rifai on November 4, 2008 at 11:35am
Hi All,I just signed up with Titanium Solutions and was wondering if any of you have had any experience with them. I'm an experienced REO agent in my area, however this company appears to be a loss mitigation company, I thank you in advance for your imput.
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Posted by Pamala Spivey on November 4, 2008 at 6:46am
If you are looking for qualified REO Agents you should search for REO Co-Listing agents they have the experienceA-Z and you don't have to worry about picking a newbie. Our team has been working as a co-listing agent for a yearwe help newbie reo agents who were fortunate enough to get a oppurtunity to sale reo's but do not have a team or areo model/system we exchange our services to be a co-listing agent. www.ReoResourceTeam.comRead more…
Offers on REO’s should be Last, Final and Best!
I get more complaints from prospective buyers about their offers because they didn’t get the opportunity to counter. No matter how up front I can be about the offer process it seems to never get through that most times, banks aren’t going to counter, they are simply going to accepting the best offer and, that may not be yours.
What really hammers my patience is when I get a call from a buyer’s agent that goes something like this…..
Buyers Agent: Hi my name is Joe Super Realtor and I am calling to follow up on an offer we placed on 1313 Money Pitt Lane?
Me: Hi Joe, thanks for the call, give me just a sec to find the file (brief pause) ok, it says here the bank accepted another offer.
Buyers Agent: Um…we didn’t even get countered, shouldn’t we have received a counter?
Me: No Joe, as stated in the MLS, “all offer should be Final and Best” this particular bank isn’t going to counter.
Buyer Agents: Well, I didn’t see that so, how can I submit in my client’s counter?
Me: Joe, that isn’t how this works, the bank has moved on and the bidding process is over.
Buyers Agent: Can you explain this to my client, he is here with me now, I just don’t understand, how much was the other offer?
Me: I am not going to go into details about another person’s offer however, it really doesn’t matter at this time, your client lost the bid by not following the instructions as outlined in the MLS.
Buyers Agent: I don’t understand why the bank wouldn’t look at our offer when it’s more than what they accepted?
Me: Ok, this isn’t going anywhere, was there anything else I can help you with?
Buyers Agent: Can I speak with the bank, do you have a number I can reach them at?
Me: No, I don’t have a number you can reach them at.
Buyers Agent: How do you contact them, they have to have a number right?
Me: Let me be more specific, No, I don’t have a number that is published. I can’t provide you with their contact information.
Buyers Agent: Well, whatever…….this is awful and I can’t believe your bank would do this to my buyer. We are going to find another house and steer clear of these REO’s.
Me: Ok, well thanks for calling and have a great day!
BUYER AGENTS, FOLLOW THE MLS AND EDUCATE YOUR CLIENT. IF YOU DON’T KNOW THE PROCESS OR HAVE QUESTIONS, CALL ME BEFORE YOU PUT IN YOUR OFFER NOT AFTER!
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I just received 2 listings from them, after doing proof reading on the listing agreement. I see that they would like me to give back 1% as a referral fee. Has anyone worked with them ? Any feedback or advice wil help..thanks guys
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Posted by Art D Segna on October 21, 2008 at 11:52am
Can anyone give me some imput on working with a Real Estate Database or a Contact Management Program to manage my listings, sales and emails associated with them. I have been using ACT for RE without any kind of luck.Thank you in advance,Art
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I am not very good at this, but here it goes anyways. Went to the REOMAC conference in Hollywood last week. What a great experience. It was everything I expected and much more. Met lots of nice people and learned a lot from the pros. I am not a member and unfortunately they are not accepting new members at this time, but I would love to become one whenever is possible, its a great organization. I went with another agent friend who is also an REO agent. Since we are in Miami, we just drove there everyday, only about 45 minutes. They had an exhibition hall and we had the chance to personally meet reps from some of the companies that we deal with, from preservation companies to asset managers. The last day we had a brokers only session where we met with some of the most experienced and successful REO agents nationwide and they answered questions and gave advice. Also the last day we attended lender roundtables and were able to interact with them. There was a friendly atmosfere, the food was good, it was just a great experience overall, can't wait for the next one.
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Posted by chris leonard on October 15, 2008 at 6:43am
Hello everybody, question to all. I just registered with about thirty asset mgmt. companies how long does it usually take to get Bpo orders?
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Pasted from my blog at http://reoangels.wordpress.comREO is fast becoming a household acronym, almost achieving the same success of its predecessors TV and USA. REO stands for “Real Estate Owned”. Typically, this real estate that has been designated as an REO is owned by the lending institution that has just finished foreclosing on the property. For a property to earn the designation as an REO, the property has to be vacated by the tenants and owners which itself is a long and arduous process.Who are the REO Angels?The primary members of the REO Angels Team include Mary Gonzalez. Ivonne Valdez, and Guadalupe Silva. Yes, there are 3 Angels only. There are male members of the REO Angels team and weshould not call them angels, because after all that would be just plain rude.What do the REO Angels do?The REO Angels manage a large portfolio of properties that are owned by the lending institutions and asset management companies typically involved in the foreclosure process. The REO Angels aide the bank in securing, marketing and selling the aforementioned large portfolio of properties.Why should I care who they are?If you are a homeowner in distress, having trouble paying the mortgage, the Angels provide one-on-one consultations to help you through the foreclosure process. If you are a first time buyer of real estate or an investor looking for some great deals in real estate, the experience of the Angels will help you in your search for the perfect investment or the perfect place to call home. Of course, the “perfect” designation takes into account the suitability of the purchase according to your current financial situation.
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If you had the opportunity to spend 10 minutes with and Asset manger, what would you say? How would you act? What would you do? Well I have to tell you my story. While attending the 5- Star conference I actually met and AM in my REO A-Z course. She was sitting at the end of the isle that I had to access to get back to my seat during a break. Since it was still a break and she was in conversation with another attendee I stayed and listened to the conversation, introduced myself and was invited to join in the communication.Well, anyone that attended 5-Star could tell you that AMs or anyone with a Red Badge was GOLDEN. ( I said I was one while standing in a food line and you should have seen the heads turn, I could have went right to the front of the line had a played the role; who knows what else I may have been offered?) Agents were inviting them to private parties, handing out CD's, Brochures, Resumes, etc.That has never been my style nor will it ever be. I didn’t give her my resume, or some fancy flyer, cd etc. I simply gave her my business card and told her that if she ever wanted an opinion from a real estate agent prospective, that is not attached to the transaction, to give me a call or send me an email. I also asked her to explain to me how AM's think to help me better do my job. That same night I got an email from her informing me that she thought what I had proposed was a good idea and she was going to keep my card.We'll guess what, she did keep my card and it's paid off and will continue to pay off so long as I keep performing. (I did run into her again at the conference and ask her to breakfast which was provided for all attendees. During breakfast conversation was about family, friends, and the awards being presented at the breakfast.)One BPO provider told me I was number 70 on there list and needed to wait for openings before I could be assigned BPO's or listings. This didn't sit too well with my FRIEND and within a day I received an email to signup and had my first listing the next day. It pays to have AM's in your corner and as friends take care of them and they will take care of you!!So if you ever get an opportunity to meet or sit with an AM at one of the many more conventions to come, sometimes the indirect approach is much better. JUST MY 2 cents, then again what do I know?? Hope you have found this helpful.
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If you haven’t started moving your business plan towards working with Short Sales, what are you waiting on? If you don’t do it now, you may be missing out.
It has been my experience and I am of the opinion that Short Sales are going to become the wave of the future, if they aren’t already. In fact, I have seen many of my Asset Mangers becoming much more cooperative to them and in some cases, creating infrastructure to get them closed in 14 days or less.
To explain my point a bit further, look at the emerging success of companies like Titanium Inc and BSG3. Granted, Titanium’s reputation is far superior in my opinion however, both companies are successful none the less. These companies basic business structure is to reduce their client’s REO inventory by offering fast, accurate and complete Short Sales. They both go about the process a bit different however, it seems to work. The similarity is that the banks are sending their at risk clients to these 3rd parties as a Loss Mitigation tool. Titanium partners with local Realtors and has a low one time fee as well as receives a referral fee upon closing, Titanium’s focus is to keep the homeowner in the home and use the Short Sale option as a foreclosure avoidance tool of last resort. Where as BSG3 sells exclusive territories to Realtors for a monthly fee based on the number of leads you want to purchase and receives a referral fee upon closing. As a matter of disclosure, I have not signed up for BSG3’s service so I do not have a direct experience as a paying Realtor with them however, I have watched their on-line promotions video, had 2 phone call interviews with their sales agents and read numerous blogs about their services. The biggest reason I don’t sign up with them is due to some advice I heard Bill Cherry a successful Realtor in Dallas Texas and frequent Active Rainer once say something to the effect, “If the lead generation company isn’t confident in the quality of their leads to only ask for a fee upon closing, then why should you be confident in their leads to pay up front for them”. It just seemed to ring true to me. At the time this blog is posted, things may have changed with their fee structure so I leave it to you to learn more about either company if you are interested in them.
My point behind this blog is, Short Sales are coming and rather than complaining about how you don’t like them, you might want to consider learning more because, REO’s will always have their place in this industry however, I am of the opinion REO’s will soon be at their pinnacle. Another point about how REO’s seem to be tapping out is the lack of banks and lenders bringing on new Realtors. Once again, this market, from a Realtor’s point of view, seems to be very closed, not that it was ever really open but, more so now. Tapped out I say. Short Sales, just starting to get warm….soon will be very HOT! If you haven’t jumped on the Short Sale band wagon by now….this may be the last call!
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Okay, gang here's what's comming down the Pike!! When this program hits the streets short sales will truly be SHORT SALES.Anyway, myself and 4 of my agents were blessed with being selected and trained during the 5-Star Conference via Webinare, to be on the 4 front of this new program that will be comming to a city near you soon. When you see the words Home Telo's approved Short Sale , these properties will close in 30 days or less. Thats right lender approved short sales!! What a concept. Not all homes will qualify for the program and there will be a screening process. To some this up in a NUT shell this is how the program will work.A BPO is completed on the property within 72 hours of completing our BPO the lender will have had a 3 rd party apprasial or BPO conducted and sets a price at current market value they are willing to except for the home. The property will then be placed on the maket local MLS and www.bidselect.com where it can be bid on. Highest bidder assuming lenders price is met, will go into contract to close within 30 days.During the marketing time the home-owner has to maintain the home, remains in the home and is resposible for keeping it up for showing. The investors/lenders etc have finally figured it out!!!. It's cheaper for them in the long run to keep people in homes, maintaining them rather than them being vacant, and getting everything of value (A/C Units, Copper, Appliacnes, Light Fixtures etc) stolen.This should bring about some stability to the market and great opportunities for first time buyers that are overwhelmed when they step foot in some of the REO homes out there. They will have to be left for the investors to pick up at rock bottom prices,because they will be the only ones buying them when these short sales hit the market. This should be a WIN WIN for everyone.So Buyers Agents, When you see HOME TELO's you better act fast, because once this gets out , there will be 10-15 offers on each property, just like the turnkey REO's. That's my tip for the month...1 of 500 out of 135,000. If you were invited to the Round Up during the 5-Star Conference then you know what this means. For those of you that don't and would like to know shoot me an email if you can't figure it out..(Staci it was nice to see you at the Round Up!)
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Q: 1- What are the risks?
A: The risk when investing in Short Sales is no different than investing in any other section of the Real Estate Industry. The better question is how does one limit the amount of risk they take on when buying investment real estate? Buy low, sell high however, stay competitive and if necessary, cut your loss early and move on.
Q: Can I end up in the same boat as the sellers and lose all of my assets - i.e. condo, pension plan, bank account etc?
A: Sure you can. If you don't manage your investments wisely and end up over extending yourself, then you will most likely end up in the same boat as the seller's find themselves in now.
Q: - How do I actually get qualified to become a short sale investor?
A: No real universally accepted certification exist for becoming a Short Sale Investor however, I would strongly advice you first find someone who is doing it successfully and have a real heart to heart conversation with them. In a perfect world, I would suggest you "shadow" a Short Sale Investor for a couple deals then determine if it is something you really want to do.
Q: - If I need to qualify for a loan, what type of loan would I be looking at and where would be the best place to get one to enable me to do short sales?
A: If at all possible, don't get a loan when it comes to purchasing Short Sales. Truth is, too many stipulations are involved when getting a loan for investment purposes. Cash is always best when buying Short Sales. If, ultimately you do want to invest in Short Sales with money from a loan, you need to find a loan that acts as much like cash as possible. In other words, a HELOC (Home Equity Line of Credit) or something similar, anything with the least amount of rules, regulations, guidelines and stipulations the better. Basically the easier we can make it for the bank to sell the property without worrying that something from your lender is going to pop up last minute can kill the deal, the better.
Q: 4 - Would a down payment be necessary to qualify for a loan, if so, approximately what percentage would be needed?
A: This questions is best answered by a lending professional, of which I am not however, the answer to this question is most likely going to revolve around your credit score. FYI: with the continuing credit crisis the country is facing, even with a great credit score, you may be asked to put up some type of down payment...with investment properties, it could be at least 10% or more.
Q: 5 - To qualify for a loan, would the dollar amount of the loan (like most loans are) be calculated in conjunction with my annual salary and debt to ratio?
A: Most likely
Q: 6 - Apart from fix up costs on the property; can you give me some sort of break down as to what other outgoing costs I might occur as a short sales investor?
A: You need to make sure you get a Net Sheet or Estimated HUD-1 from your Realtor when you are prepared to sell. This is a estimated itemized break down of each and every fee you will pay to get out from under the home when you have a buyer. This is a great way to see in writing exactly what you will likely walk away with. Keep in mind, the HUD-1 involves all the Real Estate cost, not the cost you will have to fix up the property...that will be up to you to keep track of.
Q: 7 - If I wanted to sell a short sale property after any needed fix ups have been completed, what are the best ways to sell the property (flip it)?
A: Flipping is what you are going to be doing, no question about it, unless, you plan on holding onto the property for rental purposes. By the way, you will want to be prepared to do just that and that is, rent the property. In areas where we see prices dropping monthly....you could find yourself with a debt on the property greater than what you could make from the sale so, the only real choice you have is to rent it out and try to cover the cost of your mortgage, if you get one. This is just another reason to buy a Short Sale in cash if you can.
Q: 8 - Once you get a home via a short sale and it is still occupied (with the view that the seller will leave very soon), what's to stop the seller from doing major damage to the home once everyone has signed on the dotted line - hence making it too late to go back and the seller knows it? What can be done to make sure damage does not happen in anyway?
A: DO NOT DO THIS TYPE OF TRANSACTION!!! DO NOT DO THIS TYPE OF TRANSACTION!! IF THE HOME DOESN'T COME TO YOU ALREADY VACATED.....MOVE ON! Avoid buying a short sale with a resident in the property......or at the very least, write in your purchase agreement that the property is to be vacant on or before closing.
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