short sales

Buying a short sale Home: It is beyond obvious to understand that the powers known as Wells Fargo, Chase Bank, and Bank of America have very powerful lobbyists. With that said; it’s also understandable to comprehend that Wells Fargo, Chase Bank, and Bank of America do not want ANYONE to understand that there is an equity gap between the NET return they gain by doing a short sale instead of letting the property go to sale and becoming an reo. There is a base return short sale vs. foreclosure that is approximately 20%. That means the banks make a higher net return of almost 20% MORE than if they let the property become a reo. Obviously it then becomes in the best interest of Wells Fargo, Chase Bank, and Bank of America to ATTEMPT to find solutions that get them the highest net return. It is the number one reason why investors want to get involved in buying short sales, yet an offer that is submitted by investor or 3rd party is met with ‘rejection’ by Wells Fargo, Chase Bank, and Bank of America. With a proper education that is not influenced by Wells Fargo, Chase Bank, and Bank of America it is an obvious solution to understanding the lowest possible number the bank will take and it is certainly a number that Wells Fargo, Chase Bank, and Bank of America do not want you to know about.

short sales

Selling a short sale Home: If we understand and fundamentally grasp that Wells Fargo, Chase Bank, and Bank of America really want the highest net return and do not want YET ANOTHER foreclosure for two reasons: a. they make less money and b. there is a possibility they may not be able to sell the reo (see reo properties). Then Wells Fargo, Chase Bank, and Bank of America must work on getting the highest possible return. To do so the basic lobbying effort and financial influence is based on education. That education is based on FEAR and DISCLOSURE. Both of these items work in favor of Wells Fargo, Chase Bank, and Bank of America in their collection efforts of getting MORE MONEY. Disclosure is the buzz word and it’s often coupled with the words fraud. To date there are less than 10 actual “documented case law” of non-disclosure to banks in regards to fraud. The common point of view is that there are MANY pending cases and I agree, there are MANY investigated and pending cases AND they will continue to grow, HOWEVER, I just researched the number of documented and pending jaywalking cases and it does not seem to stem the tide… so why people do not work on short sales or sell their short sale home based on POSSIBLE or IMPOSSIBLE fraud is hard to understand, obviously there is a legal process and that means disclosure and not disclosure at the sake of harm to a homeowner. The key is education and one that is NOT influenced by Wells Fargo, Chase Bank, and Bank of America.

short sales

Marketing for a short sale listing: Understanding the basic psychological mindset of homeowners is crucial for not only homeowners to understand but for real estate agents to understand. For some reason people want to keep their home and are willing to go to any length to try and keep their home. ONE out of every FOUR homes is underwater and millions and millions of homeowners are in ‘default’ (31 days delinquent or more). From the very start a homeowner wants to work on saving their home and because of the lack of identity of real estate agents and the manipulation of Wells Fargo, Chase Bank, and Bank of America people believe that Wells Fargo, Chase Bank, and Bank of America want to help homeowners with a loan modification (see loan modification). The bottom line is education of the homeowner and helping them to understand all of the options, the length of the market and that liquidating the debt is what is really best for them. To do so it is important to become an educator on the subject of all things ‘default’ and be able to explain and educate a homeowner on their options and NOT focus on getting the listing. Listings for real estate agents will occur naturally if the agent focuses less on selling and more on education.
Loan Modifications: To say that loan modifications are a scam is an understatement. If loan modifications were even remotely successful Wells Fargo, Chase Bank, and Bank of America would press release weekly how great modified homeowners were actually doing. Because a homeowner places so much trust into Wells Fargo, Chase Bank, and Bank of America the BANKS take obvious advantage of that trust. It is very simple and the numbers could have dramatically changed since the last time the numbers were released: 90% of ‘trial loan modifications’ wind up back in default. 60% of ANY and ALL other loan modifications wind up back in default. The truth, through education, is that Wells Fargo, Chase Bank, and Bank of America would like to ‘document’ their undocumented loans, get some payment and amortize or ‘spread out’ their toxic debts (homeowners loans).
REO, Foreclosures and buying and selling: It is this simple, REOs are disappearing from the market and are not a viable part of the discussion for agents and buyers. The sellers Wells Fargo, Chase Bank, and Bank of America are simply holding the REO listings back based on stabilizing the market and at the direction of the ‘money sources’. It was announced quietly two years ago, it was confirmed at MULTIPLE REO conventions and now it is here. Just ask people who do REO listings on any scale, the numbers have dropped. From a buying perspective Wells Fargo, Chase Bank, and Bank of America will want FULL MARKET VALUE and buyers tend to over pay for these “AS-IS” bank assets. Once again because of the PRO-education process of Wells Fargo, Chase Bank, and Bank of America buyers and investors are fearful of chasing after the equity on a short sale and over-pay on a REO.

 

Lee Honish

Lee.honish@yahoo.com

858-663-2537

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short sales

short sales

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