Comments on: Terms, the New Money for REO and Short Sales http://blog.franklyrealty.com/2009/04/terms-vs-price.html Tue, 02 Mar 2010 02:11:05 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: MM http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-4150 MM Mon, 05 Oct 2009 16:21:24 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-4150 Frank, this post is so good I just emailed you to see if I can re-post it on my blog (with full credit given to you of course). My wife who is also a Realtor has a buyer that has the required funds to close with all cash, but they don’t want to “spend all their money”. So they want to put $200k down on a $350k house and get a mortgage for the difference. Both Lorraine (wifey) and a great direct lender that we highly recommond to all buyers have strongly suggested to close with cash and do a simple cash out refi. How come people don’t get that in essence it is the same thing as putting a huge chunk down and then having to go through all the financing contingencies? These buyers are otherwise smart people. What gives??? Frank, this post is so good I just emailed you to see if I can re-post it on my blog (with full credit given to you of course). My wife who is also a Realtor has a buyer that has the required funds to close with all cash, but they don’t want to “spend all their money”. So they want to put $200k down on a $350k house and get a mortgage for the difference. Both Lorraine (wifey) and a great direct lender that we highly recommond to all buyers have strongly suggested to close with cash and do a simple cash out refi. How come people don’t get that in essence it is the same thing as putting a huge chunk down and then having to go through all the financing contingencies? These buyers are otherwise smart people. What gives???

]]> By: Lyn Sims http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-4048 Lyn Sims Wed, 02 Sep 2009 17:47:34 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-4048 We have no contingency addendums now from the banks, where are you selling? You can have a HI but no repairs, no nothing. Mortgage contingency is just a date with a penalty. Buyer has to agree to everything on the riders or take a hike - how can they not have 'THEIR' terms with their addendums? We have no contingency addendums now from the banks, where are you selling? You can have a HI but no repairs, no nothing. Mortgage contingency is just a date with a penalty. Buyer has to agree to everything on the riders or take a hike – how can they not have ‘THEIR’ terms with their addendums?

]]> By: Steven Angelil http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-4047 Steven Angelil Wed, 02 Sep 2009 14:32:45 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-4047 Frank, this post is so good I just emailed you to see if I can re-post it on my blog (with full credit given to you of course). My wife who is also a Realtor has a buyer that has the required funds to close with all cash, but they don't want to "spend all their money". So they want to put $200k down on a $350k house and get a mortgage for the difference. Both Lorraine (wifey) and a great direct lender that we highly recommond to all buyers have strongly suggested to close with cash and do a simple cash out refi. How come people don't get that in essence it is the same thing as putting a huge chunk down and then having to go through all the financing contingencies? These buyers are otherwise smart people. What gives??? Frank, this post is so good I just emailed you to see if I can re-post it on my blog (with full credit given to you of course). My wife who is also a Realtor has a buyer that has the required funds to close with all cash, but they don’t want to “spend all their money”. So they want to put $200k down on a $350k house and get a mortgage for the difference. Both Lorraine (wifey) and a great direct lender that we highly recommond to all buyers have strongly suggested to close with cash and do a simple cash out refi. How come people don’t get that in essence it is the same thing as putting a huge chunk down and then having to go through all the financing contingencies? These buyers are otherwise smart people. What gives???

]]> By: K.R. http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3495 K.R. Wed, 03 Jun 2009 19:33:50 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3495 I just wanted to drop in and say that I wish I'd read this posting before wasting time and energy holding out on an REO property. The LA said that they'd consider traditional financing but preferred cash or rehab loans. When we submitted the offer, the LA didn't even send it to the bank and said that they would only consider rehab loans or cash offers. Since we submitted our offer, they've lowered the price about $6,0000 less than what we offered to pay. I can't believe it, but you're right. They don't want the hassle of FHA loans or standard bank loans. I feel like having an FHA loan makes me a pariah to LA's. They don't want to deal with us at all. I just wanted to drop in and say that I wish I’d read this posting before wasting time and energy holding out on an REO property. The LA said that they’d consider traditional financing but preferred cash or rehab loans. When we submitted the offer, the LA didn’t even send it to the bank and said that they would only consider rehab loans or cash offers. Since we submitted our offer, they’ve lowered the price about $6,0000 less than what we offered to pay. I can’t believe it, but you’re right. They don’t want the hassle of FHA loans or standard bank loans. I feel like having an FHA loan makes me a pariah to LA’s. They don’t want to deal with us at all.

]]> By: FranklyRealty.com http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3459 FranklyRealty.com Mon, 01 Jun 2009 19:42:18 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3459 Brilliant question. You can... KINDA, but you have to be VERY careful. The Virginia NVAR contracts let the buyer change the terms at anytime as long as their is no delay or cost to the seller. And you have to be able to buy with all cash if you put all cash (ie you can't say all cash and have $5k in the bank and just change the terms before closing). But you have to watch out for the bank addendum. The addendum will override the main contract and oftentimes it will say that you can NOT change your terms on how you buy. So then you would have to buy with all cash and they do a cash out refi days later. Yes banks care if you close with all cash or not. Brilliant question. You can… KINDA, but you have to be VERY careful. The Virginia NVAR contracts let the buyer change the terms at anytime as long as their is no delay or cost to the seller. And you have to be able to buy with all cash if you put all cash (ie you can’t say all cash and have $5k in the bank and just change the terms before closing).
But you have to watch out for the bank addendum. The addendum will override the main contract and oftentimes it will say that you can NOT change your terms on how you buy. So then you would have to buy with all cash and they do a cash out refi days later.

Yes banks care if you close with all cash or not.

]]> By: Frank L http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3458 Frank L Mon, 01 Jun 2009 19:31:27 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3458 I am looking to buy a rental property and I have enough cash in the bank for a property. However, I do not spent all the money on one property. I plan to use it for down payment for 3-4 properties. Now this is my question: May I present a contract as all cash offer and get a loan before closing and end up finance the purchase? Is there any problem with this approach? Thanks. I am looking to buy a rental property and I have enough cash in the bank for a property. However, I do not spent all the money on one property. I plan to use it for down payment for 3-4 properties. Now this is my question:

May I present a contract as all cash offer and get a loan before closing and end up finance the purchase?

Is there any problem with this approach?

Thanks.

]]> By: FRANK LL0SA Va Broker- BLOG.FranklyRealty.com http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3334 FRANK LL0SA Va Broker- BLOG.FranklyRealty.com Mon, 11 May 2009 21:33:00 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3334 Jay T,<br />Yeah, don't be silly... go get a buyer's agent that has dealt with short sales. Short sales are hard enough, and then you are going to try to cut out half of the process? <br /><br />To answer your question, you can pay a title company a couple hundred bucks to run a title search and find out exactly all the outstanding loans an individual has.<br /><br />Frank<br />Broker Jay T,
Yeah, don’t be silly… go get a buyer’s agent that has dealt with short sales. Short sales are hard enough, and then you are going to try to cut out half of the process?

To answer your question, you can pay a title company a couple hundred bucks to run a title search and find out exactly all the outstanding loans an individual has.

Frank
Broker

]]> By: Jay T. http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3333 Jay T. Mon, 11 May 2009 21:05:00 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3333 I'm currently a renter and have been told by the property owner that they are going to have to short sell the house to avoid foreclosure.<br /><br />I'd consider buying the house, but I don't have any faith in the listing agent's (who is the aunt of the owner and is actually a former owner of the house herself) abilities to manage the deal.<br /><br />I asked a few of the "10 questions" - and her answers weren't too good.<br /><br /><br />Is there any way for me to find answers to some of the questions without asking the agent?<br /><br />For instance - does the mortgage has PMI?<br /><br />It doesn't matter to me if they want to mismanage the process and drag it out. It could help gain me some time while I look at other options. I’m currently a renter and have been told by the property owner that they are going to have to short sell the house to avoid foreclosure.

I’d consider buying the house, but I don’t have any faith in the listing agent’s (who is the aunt of the owner and is actually a former owner of the house herself) abilities to manage the deal.

I asked a few of the “10 questions” – and her answers weren’t too good.

Is there any way for me to find answers to some of the questions without asking the agent?

For instance – does the mortgage has PMI?

It doesn’t matter to me if they want to mismanage the process and drag it out. It could help gain me some time while I look at other options.

]]> By: leebaybrook http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3330 leebaybrook Mon, 20 Apr 2009 19:43:00 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3330 It makes sense that sellers would take less money for more upfront certainty of the sale closing. Cash offers have great appeal because they remove the chance of a deal falling apart due to financing.<br /><br />Regarding short sales, the waiting time is not very palatable for many buyers. Even gung ho buyers with "staying power" in the beginning become less and less interested in staying on board as the weeks flip by, especially as more (sometimes better) REO inventory comes on the market.<br /><br />I don't like escalation contracts, either. They assume that the other terms of the contract are unimportant or irrelevant. I think escalations were created because many listing agents receiving multiple offers during the boom failed to give all the buyers a chance at a "highest and best." Sellers would just pick one offer and get it over with, leaving all the other buyers hanging. Some would have raised their offers, but never got the opportunity.<br /><br />Best,<br />Lee<br /><br />p.s. Did you mean "wolves in sheeps' clothing"? =) It makes sense that sellers would take less money for more upfront certainty of the sale closing. Cash offers have great appeal because they remove the chance of a deal falling apart due to financing.

Regarding short sales, the waiting time is not very palatable for many buyers. Even gung ho buyers with “staying power” in the beginning become less and less interested in staying on board as the weeks flip by, especially as more (sometimes better) REO inventory comes on the market.

I don’t like escalation contracts, either. They assume that the other terms of the contract are unimportant or irrelevant. I think escalations were created because many listing agents receiving multiple offers during the boom failed to give all the buyers a chance at a “highest and best.” Sellers would just pick one offer and get it over with, leaving all the other buyers hanging. Some would have raised their offers, but never got the opportunity.

Best,
Lee

p.s. Did you mean “wolves in sheeps’ clothing”? =)

]]> By: FRANK LL0SA Va Broker- BLOG.FranklyRealty.com http://blog.franklyrealty.com/2009/04/terms-vs-price.html/comment-page-1#comment-3329 FRANK LL0SA Va Broker- BLOG.FranklyRealty.com Mon, 20 Apr 2009 18:55:00 +0000 http://franktempblog.wordpress.com/2009/04/17/terms-the-new-money-for-reo-and-short-sales/#comment-3329 If what you say is true, yes you need to call the FBI, that would be fraud. <br /><br />But more likely, they might have a system with the banks where the banks don't want to be flooded with every offer. <br /><br />So it depends.<br /><br />But thanks for your comment.<br /><br />Frank If what you say is true, yes you need to call the FBI, that would be fraud.

But more likely, they might have a system with the banks where the banks don’t want to be flooded with every offer.

So it depends.

But thanks for your comment.

Frank

]]>