Has anyone else noticed that almost every bank/servicer now has a clause in their short sale approval letter restricting the resale for 30, 60, or even 90 days?
How are all of you handling this when it comes up when you had planned on an A>B, B>C closing?
I have found an alternate way to get the deal closed and still be paid without violating the language of the approval letter and was just wondering what everyone else has been doing!
Replies
Minx,
From my experience you need a strong conventional buyer. I had a deal in south jersey which I provided a discount to the buyer and they paid cash to release the lien. They were putting down $80k and had a good amount of cash.
Hey Nick,
For conventional buyer transactions when you mention that you close with the end buyer as a buying partner, how are you setting that up? What kind of a partnership or agreement are you doing? And are they paying you cash to be removed from the title? Most conventional buyers do not have alot of cash laying around.
the lien release i'm referring to is releasing your option upon closing during an A->C transaction.
interesting strategy with the LLC's. maybe i'll give it a whirl on the next property.
Clever strategies...
"If its a house where I know I will be selling it to a cash buyer, I always go under contract on the deal under the street name LLC. That way when I get approvals and my cash buyer wants to close I do a change in members on the LLC and get paid."
-how are you protecting yourself in this transaction? perhaps using the end buyers funds and then switching members i imagine?
"As for conventional mortgage buyer transactions, I close with the end buyer as a buying partner and get paid to be removed from title."
-this sounds like a lien release correct? i've done a couple of these with strong buyers.
Haha.....yeah man, things certainly have changed! Bottom line is we're still getting them done!
I've heard of selling the LLC but not changing members.....nice idea man! So do you form a new LLC for each property you go under contract on? Also, how do the banks feel when they get a contract on a short sale with a buyer named "123 Main St LLC" aka the property address? They've never questioned that?
For your conventional mortgage buyers, do their mortgage companies ever have a problem with that strategy?
I have been getting paid from the end buyer in the form of a release. They then contract in my place (A>C) and we get the approval issued in their names! I'm actually putting something out real soon that will teach that concept and am partnering with Jeff Watson for it.
Gotta be creative these days......