With foreclosures at epidemic levels right now, there’s more opportunity than ever. Problem is, most investors use the same old tired, worn out tools to attract the unfortunate home owners facing that circumstance. As a result, more properties are hitting the auction block than necessary, and investors are missing out on thousands of excellent opportunities.
I can do something to help, and I’m going to give it away for free so that you can use it too.
But before I tell you what it is, I’d like to get your input on the topic. I’ve been involved in a lot of foreclosure deals, but I want the benefit of your experience also, so here’s the favor I am asking of you:
In the comments area below Please tell me the most common questions and concerns you’ve experienced from people facing foreclosure. The questions/concerns can address any topic, including the foreclosure process itself, questions about contracts, questions/concerns about where the home owner will go, etc.
If you want to include your answers to the questions/concerns, please do that also.
Important: As more people tell us about the questions/concerns they have encountered, you’ll probably be tempted not to tell us about the questions/concerns you’ve encountered because you may see that someone else has already listed a similar or identical question/concern. Please, please: Go ahead and tell us what you have encountered, even if someone else has already mentioned it. This will bolster the significance of the question/concern at issue.
My friend, if you will assist me with this, I will provide a free resource you can use to get more foreclosure deals more easily, and you’ll have it by the end of this month. But for that to happen, I need for you to tell me about the questions/concerns you’ve faced in dealing with foreclosure victims. Thanks so much!
(Note - please feel free to enter as many separate questions/concerns as you can think of. There’s no need to limit this to one or two issues. Thank you!)
Thank you so much for being a loyal FreeRealEstateTraining.com reader. I truly appreciate you!
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54 Comments So Far»
When taking propety sub 2, they want to know who will be making their payments.
I have had a lot of foreclosure victims ask me if they could stay in their home as a renter after they sell it to me.
I’ve also had to help some of them with finding a different place to live.
I have people asked me if I can help them find a place to live when they move out.
I’ve had people asked me if they can get anything out of the transaction like money or such.
Bryan,
Some of the most asked quistions I get are:
What do I get out of this?
Why should I sell you my house?
What happens to me after I sell you my house?
What about all the equity?
Can you assits with a short sale? If so how much can you pay me?
How quick can we close?
Ron K
How are we supposed to work with these folks with the new Maryland laws?
Can I stay in my home during the short sale process?
Do I have to pay my back taxes when doing a short sale?
Will I get any money from the sale of my home if it is a short sale? I want to short sale my house and sell it to my brother, is that ok? I want to short sale my house and have the buyer pay me money outside of close, can I do that?
When doing a short sale do I sign over the deed to you?
How long does a short sale take? (My personal favorite- “nothing short about it sir…”).
Do you have any references (better have a brag book set up and ready to go).
How long have you been in business?
What is your success rate?
If my house goes to sheriff sale, do I have to leave that same day?
What’s the difference between a loan modification and a forbearance?
Can’t I just do this myself? (sure…you could also pull your own teeth, change your own oil, build your own pool and churn your own butter.)
I want to file for bankruptcy and get the short sale started, is this possible?
Do you know where I could find a place to rent once my house is sold (have a prepared list of places, especially in your local area. A lot of town home communities are especially open to people who have been in trouble but can afford the rent - there are 3 nice communities locally here in York County, PA who have a number of our clients living there now for example.)
The most common questions I have heard are:
Is there a way for me to keep my home?
How long before I have to move out?
People who pick up my flyer, their biggest question I find is “where do I go for help”, as they are not informed or are misinformed.
Biggest concern I hear is
- If you’re taking over my loan “subject to”, how do I know that you’re going to keep making the payments? What happens to me if we go through this and you stop sending the mortgage check to the lender?
How do you get to motivated sellers before other investors do? And how do you get them to trust you enough to sign a contract with them? Thanks for the help….
Rudy - the answers to your question are really a totally different topic. However, the resource I’m providing by the end of this month will be of great assistance to you. Watch for the release of it in the next couple of weeks. — Bryan Ellis
The main questions are:
Do I have to move out as soon as we do a Subject To?
Will I get any of the equity on the property?
Will you be making the payments on the loan? What if you do
not make the payments?
Can you help me find a place to move to?
Is there a way I can stay in my house?
What are my options?
What is a forebarance agreement?
How much money can I get?
Can I rent my house back?
If its a short sale, how much money can I get?
Can I keep my house?
Where am I going to go?
How much am I going to get out of the deal? (same question on short sales)
Why will you not pay me what the house down the street just sold for? (at full retail, in good shape)
Can you guarantee me you can stop the foreclosure?
What affect will selling you my house have on my credit since I am being foreclosed on?
When will I be able to buy another house?
I cannot sell to you because my uncle (name the relative, friend or business partner) is going to come through with the money to catch me up.
I cannot sell to you because this is all going to get worked out somehow and I will not lose my house to the bank.
How long before they come kick me out?
How long is the foreclosure process?
I came across a home owner that has several liens on their property.
One of them is a 30K credit card lien, the other is a DUI-telephone poll damage assessed by the local electric company/county. Their concern is that would they be responsible for the second one since it was placed by the county? If they were to lose the property thru foreclosure, would both of those lien be wiped out by the fc process?
what happens to the liens on the house? Will you be paying these off? Will they still come after me for these?
I don’t have money to live anywhere right now, what am Isupposed to do?
What is this debt forgiveness act I heard about? Do I qualify?
How can I trust you?
The other common questions I got with home owners facing foreclosure would be the deficiency judgement balance on their loan regardless of if they do a short sale or lose the property thru the foreclosure process? I am being contradicted by what I read and what was told by the bank’s loss litigators. Please provide verification on them, thanks so much.
Bryan-
Sorry. I’m just starting out, so I think most foreclosure victims want to know if they can save their homes, state they’ve already taken care of the problem, or want to know if they can walk away with some money from the home sale. Even those who know the credit ramifications of foreclosure don’t think about deficiency judgements when tempted to just walk away from the house.
Why should I sell you my house?
Can you sell me my house back to me through a lease option?
Why don’t I get any money out of this deal?
How do I know you wont screw me?
Will any liens be paid off?
Do I get any money?
Does this go on my credit?
Will there be a judgment against me?
Will you be making my payments?
Can I just file for bankruptcy and avoid foreclosure?
Can I stay in the house?
How much money will I be geeting?
Questions;
How will the new Maryland PHFA law help me?
Do I need to decide whether or not to sell my home?
The most common thing I hear from the homeowner is that they have been contacted by 20-30 investors when the foreclosure was filed and they have been told conflicting information about their rights. How do I know you are telling me the truth? Once they are confused, they then do nothing.
What will happen to my credit? For how long?
Must I leave everything in the house or can I take some stuff with me when the bank forecloses?
The bank’s lawyers offered me a repayment plan to catch up on missed payments, but I can’t afford it plus the normal payments. Can you help me convince the lawyers to just let me start making normal payments? (This was in the redemption period after the foreclosure auction.)
I get a dozen letters and postcards everyday from people saying the same things like you are saying. Why should I choose you over anyone else?
I am upside-down on my mortgage. How can you relieve my debt before the foreclosure auction date and still make a profit?
Can you loan me some money to help me solve my problem?
My best friend’s cousin’s psychic recommended a really nice realtor to list my house. Why should I sell my house to you when I can list my house with a really nice realtor who says I can get top price?
I don’t care what your comparable sales analysis says. I know what I want for my house. Why won’t you pay me what I think it’s worth so I can pay off my mortgage?
I tried listing my house with a realtor, but I just couldn’t stand all the showings. Will you just agree to pay off my (upside-down) mortgage now so I can get past this problem?
Your analysis says my house is worth $200K and I owe $180K. You look like you could easily qualify for a new loan. Why won’t you just pay me $20K now and get a new mortgage loan to buy my house?
Your analysis says my house is worth $200K and I owe $180K plus five missed payments. Why won’t you loan me $20K now so I can catch up my payments? I’ll give you a 3rd mortgage for security!
If I sell my house to you, why won’t you let me lease back my house with an option to buy it at a fair profit to you?
The only reason I won’t move out is because I can’t move out. I don’t have the money. Will you prepay my moving costs, first & last month’s rent and security deposit as part of the purchase contract?
I did a cash-out refi on my house and bought a villa in Italy. I rented my house to my daughter, but she hasn’t made any payments for six months. I am leaving for Italy tomorrow and not coming back. Will you buy my (upside-down) house today for all cash? (No joke, this really happened. He essentially over-sold his house to the bank and skipped the country.)
How can you help me avoid a deficiency judgment or income tax for debt cancellation on a short sale?
I need some money to move and get a fresh start elsewhere. You say that you can convince the bank to accept a short sale. Why won’t you agree in writing to pay me some of your profit on the short sale?
I am a single mom with 2 small kids. I have 2 defaulted loans on my house, 80% and 20%. How can you help me get rid of this house and buy a smaller more affordable house and you still make a fair profit?
Can I save my home?
How long does it take?
What are the tax consequences?
What impact does the short have on my credit report?
Can I do a lease option to buy back from you…(that would be a No!
I need X amount of dollars! (Some homeowners can be greedy. I had one guy who was 300K upside down ask for 25K back) LOL
Once the homeowners realize that keeping their home is not an option, they move forward with short sale.
Some of the questions I’ve gotten have been:
1) I put down a big chunk of money on this home when I purhcased it and want some that money back. With “ALL” the money you are going to make when you short sell it - how much am I going to get?
2) Why do I need to give you all my financials (bank statements, W2’s, Tax returns)? If you are buying the home - why do you need all this paperwork?
3) I need you to give me at least two months notice before the closing…that way I have time to find a new place to move into.
Warmly,
Ricardo
Yes! to all of the above.
I have been asked how am I going to make any money on the deal? I tell them in general terms.
Then can’t I just do that? No!
Then why can’t I just do my own short sale? Why can’t my dad, brother, husband, etc… just do that?
Why should I sign over my house to you before we do the short sale?
Chris
My personal perpective as someone who has been in the situation of these homeowners is this:
1. How can I trust that you will do what you say? - i.e. make payments on a subject to, etc.
2. Why should I pick you instead of someone else offering help?
3. I get conflicting information from different people. How can I tell you are telling me the truth when so many people say different things - including attorneys?
4. How can I convince the bank to do a modification at a decreased payment or a promissory note at the end of the loan for the arrearages (some wouldn’t know about this option at all) so that I can stay in my home?
5. This is a temporary hardship but it may not resolve soon enough for the foreclosure timeline. Even if I recover to having enough income, my credit is terrible now. Are there any options to refinance or people you know who will refinance me in my current situation so that I can stay in my home?
5. Can you purchase the property and rent back to me so I can purchase it again in the future?
6. My credit is shot so where am I going to find someone who will rent to me when I move out?
Looks to us that about 95% of the people that call us, want to refinance. Our customers are 3 to 4 payments behind, so I’ts hard to find a lender that will refinance, with a low score
Hey Bryan,
Thanks for giving all this info. for Free. Most of us R.E. Agents have so much info. We are overwhelmed.
Some of the questions I have come accross
1. Who will pay your commission and closing costs.
2. I owe 500K If you sell it for 300K Do I still Owe 200K????
3. Should I pay My Property Taxes?
4. HOA Dues!! Do I have to pay them???
5. Can the bank still come after me for any money owed after foreclosure??
Again, Thank you
1.) Can I get money from a short sale?
No money from the house sale or it should go to Lender getting shorted. Some money might be possible through personal property sale with a bill of sale. NOTE: Some gurus say this is pushing lender fraud. As always in legal issues that come up the one with the best attorney will likely win, the actual law is merely a distraction.
2.) If it sells at aution when will the Sheriff show up to kick me out?
As I understand it is usually in about 7 days where I am located. YMMV
I,ve already talked to lender and everything is worked out!!!
I do primarily short sales and get all the usual questions….
Will you sell or rent back to me?
Will I get any money?
How long can I stay after you buy my house?
Will I be responsible for the difference between what I owe and the short sale offer?
How long does a short sale take?
Can you help me work out an agreement with the mort. co so I can keep my house?
How much experience have you had with this?
What is your success rate?
Can you guarantee I will not be foreclosed on?
Steve C
I have had several ask ‘Why wont the bank work with me. I was paying ontime until the arm got so high I couldnt keep up’.
The biggest concern is whether the bank will still come after them for a deficiency and how can I guarantee them that it won’t happen.
I haven’t found the answer for that.
jorge
If I let you take over my payments , how would you guarantee that you make my payments taxes an insurance on time?
1. If I cannot save my home, could I rent it back?
2. Will the bank come after me for a deficiency judgement?
All of the above! Another one I get asked is “Will I still owe my property taxes and HOAs, or will you make up the back payments? If the house forecloses, can the HOA still come after me or will the bank need to pay off the back payments?”
Will I receive a 1099 for the amount of debt forgivness, and will I have to pay taxes on that amount?
Money back on a Short Sale, no way, why would the bank take less than they are owed and then allow the home owner to get any money back.
Subject To deals can be set up thru an escrow account with a statement sent to former owner showing payments as made.
Are you able to stop the foreclosure? - I can not “stop” the foreclosure. What I can do is attempt to have the lender paid an amount they find acceptable to satisfy their lien and other fees that may have been incurred through this process.
“How long will this process take?”
“Is there any money that has to come out of my pocket?”
“How will this affect my credit specifically?” Will it be on there for years if I do the foreclosure? What if you save me from foreclosure .. how am I affected?
Thanks Brian!
Mark
how can you do this with $3000 in late payments plus interest and penalties. can we lease property back. can we stay in home after foreclosure.
How long have you been doing this?
Will this help save my credit?
Can I get any money out of this to help me move?
Had a client ask me almost everyday, what is going on? Was doing a short sale and laid out the process for them, and still got questions everyday.
When do I need to leave and where can I go?
How long is this process going to take?
Did they agree to the short sale?
Will the bank make me pay back the difference?
How will selling to your company effect our credit?
Can your company help us find a new place?
Can your company help use improve our credit for the future?
The question I get asked the most is can I keep my home. How do I stop the foreclosure? How long can I stay after the auction?
What do I get from the short sale?
Can you find us a place to live?
Is this going to cost anything?
Thanks,Brian
So many have already given up and won’t open up,but when they do:
Will you or the bank pay my back taxes? When you buy my house can you resell it to my parents? Can you let me rent the home from you until school is out?
It seems that even though someone is in the situation that they no doubt going to have their house foreclosed with no possible way to avoid it, when approached with a real-life workable solution of a defininte investor who is willing to purchase their property, they are emotionally frozen to move on this option because they can’t deal with the reality of “losing their home” oeriod. How do you help them?
Many upside down homeowners here in California make one simple calculation when attempting to sell their defaulted property - “Let’s see, I owe $650,000 so I’ll let you have it for $670,000!”
Why would the bank discount the loan(s)?
Can I stay in my house?
How do you get paid? If can’t pay bank how can I pay your fee(s)?
I owe more than house is worth? Are your sure bank will negotiate to modify loan?
What else can I do to stop the foreclosure?
How long can I stay in my house after the foreclosure?
What about my equity?
1. How long can i stay? be ready to move soon- do you have a place
2. How long does the short sale take? depends on your cooperation and the bank
3 What do you do that helps me? salvage some credit , but piece of mind and a new start
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