Short Sales you know the phrase, do you know the Science!
How to become the go to guy in your Real Estate Group
“Successful Short Sale
Foreclosures in the US are at an all-time high. People are saving less and less, and most people do not have much equity in their home. Short selling real estate is the best way to create equity in these homes where the seller is extremely motivated to sell. The best part is that banks are highly motivated to work with you because they do not want to take another home into their inventory.
Graham Treakle is a former banker. Having a former banker's insider perspective, on short selling real estate, will skyrocket your business to success by giving you the confidence and knowledge to communicate more effectively with the banks. This will literally make you thousands more on your very next deal. Don't you agree that having a banker on your investment team will help you make thousands? Do you think that adding thousands dollars on each deal would make your life better?
His students are constantly creating large equity spreads and putting thousands of dollars on their pockets every day. This could be you…but you have to take action!! Successfully negotiating short sales is not a difficult process, if you have the right training!! Athletes who have the best training around perform better than their competition, right? In order to benefit, you need to take action and attend the Successful Short Sales seminar on Saturday January 7th.
Here is what one of Graham's students have to say about his system:
..As an Ex- Banker turned Short Sale Expert, Graham knows Exactly how banks operate because he was the one at the bank making the decisions. Graham has condensed his knowledge into an easy, complete & highly effective system , endorsed by the best foreclosure investors in the country. This is quantifiable data NOT just conjecture. Believe me, I have spent countless dollars on so-called guru’s “systems” BUT I hadn’t learned anything like what Graham teaches!
About Graham
Graham bought his first foreclosed property three months after graduating from college. “I learned in college that about 90% of millionaires start in the real estate business, and I have followed that model ever since. On my very first investment property I bought and sold it in less than 15 days, and made over $12,000.”
After investing in real estate for additional income for several years, Graham decided to use his banking experience to master the real estate foreclosure market. “By knowing what numbers the bank is using to determine whether or not to accept a short sale request allows me to make offers that I know will get accepted.”
We were working on several deals at one month and we got another lead on a foreclosure. I was too busy to work on another short sale. I asked my wife Donna to handle the deal. She knew very little about how to negotiate with the bank, and I told her to just follow the steps on the checklist and that everything would be fine. Well needless to say, she negotiated a great short sale on her very first try. She negotiated a home appraised at $123,000 with a $97,000 loan balance down to $68,000, and the home needed less than $10,000 in repairs.
“If I can negotiate a short sale with one child on my hip, a child pulling at each leg, and nursing a newborn, then anyone can do it. Short sales are actually pretty simple. You just have to let the bank know that you are an investor who knows their numbers, put together a professional offer, and be kind to the negotiator. It can’t get easier than that.” -Donna Treakle
Capitalizing on a Preforeclosure Short Sale
As mortgage loan default rates rise around the country, investors have a greater potential to capitalize on preforeclosure short sales.
A short sale may be the best alternative for a borrower who simply lacks enough income to make their mortgage payment. With this tactic, the borrower tries to get the lender to take less than what is owed on the entire loan balance. As an investor, you can help facilitate the short sale and benefit by buying the house at the lower payoff amount.
In addition to saving money, short sales can help investors gain instant equity. Granted, not every short sale is a good deal for investors. Banks generally will have an appraisal done and set what they feel is realistic value for the property. However, investors with the right “ugly” photos and repair estimates to support a low-ball offer can walk away with a real bargain.
Short Sales also Good for Borrowers and Lenders
Short sales are also a win-win for borrowers and lenders. They can help borrowers avoid a foreclosure or bankruptcy, which generally cause more damage to credit scores. Short sales also result in less shame and fewer legal issues for homeowners. However, the amount that the bank expunges during the short sale can be treated as taxable income, according to the Internal Revenue Service.
For lenders, short sales represent an effective form of damage control. They enable banks to cut their losses instead of incurring the legal and other costs of a foreclosure, according to the Mortgage Bankers Association. With a foreclosure, the lender would have to cover attorney fees, interests, taxes, insurance, and repairs and maintenance until the home is sold.
How a Short Sale Works
So how does a short sale work? The process is a fairly straightforward one that involves the borrower submitting a “hardship” package to the lender’s loss mitigation or default department. The objective for the borrower is to show that he or she is unable to repay the entire existing loan. Hardships that lenders consider to be legitimate include an illness or injury, the loss of a job, death of a spouse or catastrophic events. The financial strain caused by an elevated adjustable rate mortgage payment can also be overwhelming to borrowers. Essentially, the borrower, you and/or a real estate agent will need to convince the lender it is in his best interest to accept less than the balance owed on the loan.
When making their decision, lenders will consider the borrower’s hardship appeal, along with the as-value, potential repair cost and as-repaired value of the property involved. Banks will also take into account the number of underperforming loans in their portfolio, their overall financial condition and the condition of the third-party investor who owns the loan.
Ultimately, most lenders will approve a short sale only as a last resort. Actually, the final authorization for the sale must come from the investor who owns the loan. And it can take 30 days or longer for an investor like Fannie Mae or Freddie Mac to approve a short payoff sale. However, for investors with the fortitude and patience, short sales can be well worth the wait.
Graham Treakle is a former banker with unique insight about investing in real estate foreclosures. To learn more about Graham, his successful techniques or the advantages of investing in foreclosures.
Award winning Short Sale Program
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