The Secret to Getting Your Short Sale and REO Flips Funded in 2009

Posted by webmaster on May 19, 2012 in Short Sale Arizona - Phoenix - Queen Creek | 0 comments

Back in the good old days – as recently as 2007 or so – investors used to be able to buy and re-sell property the same day without ever having to bring funds to the closing table. This was accomplished through a couple of different methods, such as the simultaneous closing or use of a land trust.

There is still a wonderful method called an assignment of contract which can be used to accomplish the same thing. However, there are situations where an assignment is not acceptable. For instance, any time a bank is involved, be it a short sale or a bank-owned property, the bank is not going to approve the HUD-1 with an assignment fee on there.

Let me back up a moment and explain why the simultaneous closing and land trust are no longer viable methods in many cases. Keep in mind that this will vary tremendously based on the accepted practices of the state in which you invest. Many banks and title companies used to accept these methods without blinking an eye, so to speak. But, the crash of the real estate market has brought with it increased scrutiny from federal and state regulators. Therefore, many title companies will no longer perform simultaneous closings or closings using a land trust.

The major obstacle to simultaneous closings or use of a land trust is the situation where the investor is re-selling to a buyer that is getting conventional financing (FHA financing is not an option on a quick turn deal because FHA will require 90 days of title seasoning). If you want to do a simultaneous closing or use a land trust, you’ll be required to disclose everything to all parties involved. That’s usually not a problem as far as your end buyer is concerned, but the foreclosing lender or lender for the end buyer may have an issue. More importantly, in a simultaneous closing, if you fund your purchase with the end buyer’s funds without disclosing that to all parties, you could be committing mortgage fraud.

Again, the situation will vary state-to-state, but sufficed to say, many investors are having issues trying to flip properties through a simultaneous closing or land trust. In order to solve this problem, a new type of lender has emerged: the transactional lender.

A transactional lender is one who lends funds for a very specific purpose – to allow the investor to purchase the property so that it may then be re-sold quickly. Transactional lenders differ from hard money lenders in that they will not lend money for months or years to allow fix-up of the property. They are only lending for typically 1 day so that the investor can buy and then re-sell the property. The transactional lender will be paid off on the re-sale.

Transactional lenders will typically be less expensive than hard money lenders. You can expect to pay somewhere around 2 pts. (or 2% of purchase price), plus possibly an administrative fee of around $500.

Finding these lenders is as simple as typing “transactional funding/lending” into your favorite search engine. Lenders love to do these types of loans because they are paid quickly, and when they’re lending on dozens of deals per month, their profits add up fast.

The best part about using a transactional lender is they will not require you to use any of your own money! Unlike a traditional hard money lender, since they are only lending money for 1 day, they do not feel the need for the investor to contribute a down payment.

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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

Should I Get Authorized Recommendation For My Short Sale?

Posted by webmaster on May 18, 2012 in Uncategorized | 0 comments

Hi, my name is Kevin Kauffman and I’m with Group 46:10, Paradise Valley’s primary short sale team. You most likely found this blog as a result of you are looking across the internet for short sale info and one thing that’s in all probability going through your mind is do you have to get legal advice. I have to inform you it is not a bad idea. I really assume that legal advice is a very good idea for someone in your situation. The truth is, we advise all of our clients to go ahead and obtain authorized recommendation as a result of I feel that is the best route if you have any lingering questions at throughout the process and what to anticipate from a legal standpoint and what your liabilities are.

We can explain all the pieces really well. We can share with you our expertise of having closed well over 600 short sales in the last couple of years. We are able to explain all that to you, however on the end of the day, chances are you’ll not feel comfy with your grasp and you might wish to speak to an attorney. We’ve got actually partnered with one of many top local law firms right here within the Paradise Valley area to supply free recommendation for free of charge to you when it comes to doing a short sale if you happen to list with us.

Once more, I’m Kevin Kauffman with Group 46:10, Paradise Valley’s primary short sale team and we’re right here to help. If you would like more information on that, give us a call 602-492-4610, or you can also fill out a form on our website. Not only can we talk to you about our experience with short sales, however we are able to get you in front of one of many city’s top attorneys to talk to you about your scenario and it doesn’t even cost you a penny. This is without doubt one of the benefits to working with Group 46:10. Give us a call today and we look forward to talking to you soon.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

How Long May It Take To Short Sale My Phoenix Area Residence

Posted by webmaster on May 17, 2012 in Uncategorized | 0 comments

Hello everyone my name is Kevin Kaufmann and I’m the co-founder of the nations leading short sale crew, Group 4610. My business partner Fred Weaver and I use our blog to help educate Paradise Valley homeowners on their choices for avoiding foreclosures on their underwater mortgage. When you can no longer afford your mortgage, or if a short sale makes probably the most business sense, stop by my web site or contact me directly to discuss all of our Paradise Valley real estate options.

At the moment I wanted to speak with you about how long it might take to finish a short sale on your property in Paradise Valley. This can be a question I hear from owners very often and thankfully there’s a fairly straightforward answer to understanding the short sale timeline. A year ago I’d have advised you anywhere from seven to eight months but present day our group is closing short sales in 4 to five months on average. Because of the short sale market heating up in Paradise Valley and our short sale process continuing to improve we have been in a position to make great strides in getting fast approvals. This complete process begins by collecting all the paperwork you will want in an effort to submit a short sale file to your lender. As soon as we have your paperwork our crew will start marketing your property over a one to two week span. As soon as we find a buyer we can have your file negotiated in just over 45 days.

Once your property completes a twenty one day close of escrow period we are only taking a look at three and half months from beginning to end. So if you’re considering a short sale please contact our team to get your file approved quickly. Thank you so much and have an important day.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

Do You Have A HELOC and are Considering Short Selling Your Residence?

Posted by webmaster on May 16, 2012 in Uncategorized | 0 comments

Hello, my name is Kevin Kauffman, the co-owner of Group 46:10, one of Paradise Valley’s primary short sale teams. I’m right here today simply answering more of your questions. We get a variety of emails, phone calls and persons are coming to us for advice on short sales. We have closed so many of them. Actually we’ve closed over 600 within the last couple of years and with an over ninety% success rate. Which means 9 out of 10 of our shoppers have successfully averted foreclosure.

One of the questions that comes up often is about what to do when you have a home equity line of credit or HELOC and is it potential to do a short sale? Well the simple answer is sure, you can do a short sale. The not so simple answer is that this, most times you could possibly nonetheless end up owing the financial institution whether or not you do a short sale or not. This may be news that you simply didn’t need to hear, however sadly when you undergo a foreclosure, you’ve got to cash out the home equity line of credit meaning you got this line of credit after you got the home. Any time after you purchased the house and also you obtain money on it, then completely you possibly can be responsible for the deficiency amount.

We’re experts at getting that deficiency amount negotiated down and in some cases our clients are able to walk away owing nothing. Some walk away paying as little as 5-10% of that balance. We’re able to do this as a result of by way of the short sale process, we get the opposite lender to assist pay for that home equity line of credit by way of the sale of the home.

So believe it or not, unlike your first mortgage, the home equity line of credit is a lien against you personally. You might be personally liable for it; it isn’t simply towards the property. So after we promote the property, we are capable of take a few of those funds, apply it towards that balance and assist scale back your liability.

Again, I am Kevin Kauffman with Group 46:10, considered one of Paradise Valley’s leading short sale teams and we’re right here to help. If you’d like more information on short sales or the short sale process, give us a call. We’re specialists in home equity lines of credit and short sales and we will help you out. You’ll be able to reach us at 602-492-4610. Thanks so much, have an awesome day and we look ahead to talking with you soon.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.