More Short Sales

YouTube - This guy has some real information on flipping houses.

He says that if your just wholesaling houses, then your going to get about 1 out of 30 deals that people call on your bandit signs.

So you need about 100 to 150 calls per month to make 3 to 5 deals a month, which is enough to live on. If your doing lease options and other deals, then you can do more deal per month. You probably will need to put up 150 to 300 signs each month to get the 3 to 5 deals a month.

junkers101.com - this is his website, and he has his other websites redirecting there now... The-Flip-Man.com

YouTube - this is William Bronchick's channel, he has a couple videos with a little information in them about flipping houses.


gotforeclosure.com - this site has some good information on it.

reitips.com - good phone conversation sometime in September 2010 about a seminar, but also has some good information about short sells.

- to get BPO call BPO agent and pay them for another BPO on same house.

- 2nd option, 20 questions, ask 18 questions like... can you verify the loan number? can you verify the address? can you verify they are 4 months behind?
you already know the answers but you just want them to say yes, then ask "what is the current value?" if they answer because they are used to saying yes to you, then you ask was that an interior or exterior BPO?

- submit first offer, the bank will reject it, then tell them you want them to do an interior BPO not use the exterior BPO that they have.

- find out what BPO is and learn what % the bank will take.

California Short Sale Video

authorstream.com - this is a video about doing short sales in California, and all the documents you will need.

nopsites.com - They also reference this site, not sure what the connection is, but the video may be shown there also.

They have a Short Sale Management website that says it takes no money out of your pocket.

Gave them my email, and watched the sales video.

Presentation Transcript

Slide 1:
California Paperwork

Disclaimer :
Disclaimer We are not attorneys. This is not legal advice. MLS rules vary – rules not laws. State laws vary…..and they change. Do your due diligence in your state. New Outlook Properties - California Paperwork

CA is different :
CA is different Notice of Default (NOD) = different paperwork SD County = different paperwork with Recording the Memo of Contract. CA state laws regarding loan modification, ‘foreclosure consultant’, and negotiating short sales. New Outlook Properties - California Paperwork

Documents Needed in CA :
Documents Needed in CA Purchase Agreement - Standard State Form CA Short Sale Addendum – Standard State Form Investor Short Sale Addendum Affidavit of Understanding Memorandum of Contract Authorization to Release Additional Documents for Broker/Agents – Commission Agreements, Single Party Compensation Agreement, Etc. New Outlook Properties - California Paperwork

Option Contract :
Option Contract Preferred Method to Purchase a Short Sale for Investor: An “option” contract based system, but some lenders reject “option contracts.” Use a less obvious form of option contract. A short sale addendum with the important “Investor terms” of the options contract. Option contracts are not “illegal.” Many title companies have chosen not to insure option contract-based short sales “flips” for underwriting reasons, not legality. Old School Title still works in all 50 states. New Outlook Properties - California Paperwork

Use Addendum :
Use Addendum Instead of the standard option contract we use the California Association of Realtors (“CAR”) Forms: 1. “Residential Purchase Agreement” (RPA) 2. "Notice of Default Purchase Agreement" (NODPA). Use the standard CAR Purchase Agreements with Addendum. This will make the RPA and NODPA an “option contract”. Investors use the NODPA in most cases. New Outlook Properties - California Paperwork

NODPA :
NODPA When do you use forms based on the "Notice of Default Purchase Agreement" (NODPA)? The property is 1-4 units (including SFR) One unit is owner-occupied (Primary Residence) There is an outstanding Notice of Default (Recorded) The buyer (you) is an investor who will not occupy the property. *** ALL Four Conditions MUST be met to use NODPA *** New Outlook Properties - California Paperwork

RPA :
RPA Q: When do you use the “Residential Purchase Agreement” (“RPA”)? A: Whenever any one of the four conditions for a NODPA is not met. The property is 1-4 units (including SFR) One unit is owner-occupied (Primary Residence) There is an outstanding Notice of Default (Recorded) The buyer (you) is an investor who will not occupy the property. ***** MUST MEET ALL 4 TO USE THE NODPA ***** New Outlook Properties - California Paperwork

NOD Filed After RPA Signed :
NOD Filed After RPA Signed Q: What happens if investor/buyer initially used an RPA and a NOD is filed after the RPA is signed? A: Two Options: 1. Sign a NODPA & NODPA “Investor Addendum”. 2. Sign the “Affirmation of RPA” contract. Adds the cancellation rights & five day hold while re-affirming the terms of the RPA. New Outlook Properties - California Paperwork

CA Short Sale Addendum :
CA Short Sale Addendum Your Local Agent Will Provide “CAR Form SSA” New Outlook Properties - California Paperwork

Investor’s Addendum :
Investor’s Addendum Importance of the Investor Short Sale Addendum in CA: Helps with Realtors and Lenders who sometimes object to the use of options contracts. It supersedes the “retail” Short Sale Addendum (CAR Form SSA) The short sale addendum adds “investor option terms” and marketing/resale rights that are not included in CAR Form SSA. New Outlook Properties - California Paperwork

Important Terms of Addendum :
Important Terms of Addendum Helps the Seller understand the short sale transaction Disclosures to the lender this is an “Investor Purchase” Investor is purchasing for resale AND is receiving all future offers. (These future offers go to investor and not lender) Adds the disclosures that may be needed if the C lender requires review of the agreement to evaluate the spread. Postpones the inspection & approval timelines until all lien holder negotiations are completed (protects B until deal is firm) New Outlook Properties - California Paperwork

Future Offers? :
Future Offers? Q: Why do future offers go to investor and not the lender? Signed Contract to Purchase already in place with seller. Sending more offers to lender can interfere with contact. Addendum give you resale rights to accept/reject offers. New Outlook Properties - California Paperwork

3 Part Contract :
3 Part Contract Purchase Agreement (RPA) or (NODPA) CA Short Sale Addendum (Form SSA) Investor Short Sale Addendum (RPA) or (NODPA) New Outlook Properties - California Paperwork

Authorization Form :
Authorization Form Some States have legal restrictions on “powers of attorney.” CA is one of them. Do not want “authorization to release” to be “power of attorney” in CA. Our form covers it. Some banks “require” their own authorization form. Provide BOTH so you have the terms you need and the terms the lender want. New Outlook Properties - California Paperwork

Notarized Documents :
Notarized Documents Affidavit of Understanding Provides disclosure to seller. Protects investors & agents. 2. Memorandum of Contract Several important features with this documents including giving notice that the investor has the ability to market & sell before actually closing on the first transaction (Short Sale). ** Give to Seller In Advance So They Can Review ** And Notarize After Cancellation Period

Affidavit of Understanding :
Affidavit of Understanding Be sure to have ALL blanks completed. Get ALL initials. If not in default, have seller line-out paragraph 1 of form and put “N/A.” If in default, be sure seller enters the efforts to save the property in paragraph 1. If they have not attempted a loan modification, then their reason should be stated, or they should try to before, or concurrently with, a short sale. MUST be notarized to be effective as an “Affidavit.” A principal or employee of “B” cannot be the notary.

Memorandum of Contract :
Memorandum of Contract Provides “constructive notice” to anyone interested in the property and actual notice to anyone conducting title research. Clarifies Investors right to market and resell the Property. This may be important to your local MLS. It clarifies the property status for the “end buyer’s” appraiser, title insurer, proposed lender and eventual purchaser of the loan. Affirms to the world that the Seller understands the transaction. Protects Investors deal from an end buyer going directly to the seller. Protects investors deal from predators who make offers directly to bank. New Outlook Properties - California Paperwork

Use the California Memo of Contract :
Use the California Memo of Contract A California Memorandum of Contract should be used when using the NODPA/RPA & Short Sale Addendum. Some counties in CA (San Diego County) don’t accept a “Memorandum” for recording. They want a “contract” recorded. Best to get Memorandum signed and notarized AFTER expiration of the 5 day cooling off period. Also Notarized - (Combine with Affidavit of Understanding for one notary visit.) Be sure to record it in a timely manner (not weeks or months) New Outlook Properties - California Paperwork

Checklist Update :
Checklist Update Purchase Agreement – RPA or NODPA Short Sale Addendum – CAR Form SSA Investor Short Sale Addendum – RPA or NODPA Authorization to Release – Ours and possibly the lender’s form. Affidavit of Understanding – Notarized. Protects all parties. Memorandum of Contract – Notarized. Additional disclosures & terms. 5 Day Cancellation Period in CA. Notarize the Affidavit with the Notice/Memo of Contract AFTER the 5 day cancellation period. New Outlook Properties - California Paperwork

To Lender? :
To Lender? The “Contract Package” for Short Sale lender consists of: Purchase Agreement – RPA or NODPA CA Short Sale Addendum - CAR Form SSA Investor Short Sale Addendum – RPA or NODPA Authorization to Release Affidavit of Understanding does not go to lender. For Investor and Seller’s file. Most title companies want to see these disclosures. Memo of Contract does not got to the lender. Investor & Seller File. Not part of the short sale lender package. Could be helpful for C‟s lender’s appraiser. New Outlook Properties - California Paperwork

Additional Docs – Broker/Realtor :
Additional Docs – Broker/Realtor A series of contracts designed to clearly define: Who the Broker/Agent represents (Buyer) Fiduciary responsibility of Broker/Agent (Buyer) How the Broker/Agent will be compensated New Outlook Properties - California Paperwork

Additional Docs – Broker/Realtor :
Additional Docs – Broker/Realtor Declaration and Proof of Real Estate License (CAR Form DPL) Commission Agreement (Form CA) Single Party Compensation Agreement (Form SP) Short Sale Listing Addendum (SSL) Seller Non-Agency Agreement (SNA) Agency Disclosure (AD) New Outlook Properties - California Paperwork

Buyers Agent & Form DPL :
Buyers Agent & Form DPL If the investor is working through a buyer’s real estate agent, the agent has to show they are a licensed agent. CAR “Declaration and Proof of Real Estate License” (Form DPL) to comply with Civ. Code. Section 1695.17. Form “DPL” (proof of license) is for Investor and Sellers files. Title company may want this to prove compliance. Always use “Form DPL” with NODPA. New Outlook Properties - California Paperwork

Form DPL :
Form DPL CAR Form DPL - “Declaration & Proof of Real Estate License” New Outlook Properties - California Paperwork

Listed and Unlisted Property :
Listed and Unlisted Property Strongly advise working on unlisted properties Generating unlisted short sale leads is crucial in 2010 Service at www.NOPsites.com will help generate leads Why Unlisted Leads ???? Avoid the problems and difficulty of listing agents Unlisted properties allow more control for investor Your agents work as a “Buyer’s Agent” on A to B and the same agent can list on the B to C. New Outlook Properties - California Paperwork

Commission on Unlisted Property :
Commission on Unlisted Property Using a buyer’s agent for an unlisted property? How do you protect the agent’s commission? CAR Single Party Compensation Agreement (CAR Form SP) CAR Seller’s Non-Agency Agreement (Form SNA) Agency Disclosure (Form AD) New Outlook Properties - California Paperwork

Buyer’s Agent – Unlisted Property :
Buyer’s Agent – Unlisted Property Protect the agent’s commission: Agent has the seller sign CAR Single Party Compensation Agreement (CAR Form SP) New Outlook Properties - California Paperwork

Form SP – Check Box 2.B.3 :
Form SP – Check Box 2.B.3 Box 2.B.3: “Broker will act as agent for Buyer exclusively…” New Outlook Properties - California Paperwork

Example: Unlisted Property – Buyer’s Agent :
Example: Unlisted Property – Buyer’s Agent Single Party Compensation Agreement (check box 2.B.3.) Commission Agreement (Form CA) Short Sale Listing Addendum (SSL) Seller Non-Agency Agreement (SNA) (check top box on line 5) Agency Disclosure (AD) New Outlook Properties - California Paperwork

Commission Agreement (Form CA) :
Commission Agreement (Form CA) New Outlook Properties - California Paperwork

Commission Agreement (Form CA) :
Commission Agreement (Form CA) New Outlook Properties - California Paperwork In Line 4 of “Form CA” add: “This Commission Agreement is supplemented by a Single Party Compensation Agreement”

Short Sale Listing Addendum :
Short Sale Listing Addendum One Page Document Disclosures about tax, credit consequences, etc New Outlook Properties - California Paperwork

Seller Non-Agency Agreement (SNA) :
Seller Non-Agency Agreement (SNA) New Outlook Properties - California Paperwork CAR Form SNA - LINE 5: Check Top Box

Agency Disclosure :
Agency Disclosure 2 Page Document – Defines Agency Relationship to Seller or Buyer Provides notice to seller that Broker/Agent represents the Buyer New Outlook Properties - California Paperwork

Checklist :
Checklist If the Seller chooses investor offer and no listing agent, then the package might look like this California example: Use Commission Agreement (Form CA) Plus Single Party Compensation Agreement (check box 2.B.3.) Plus Short Sale Listing Addendum (SSL) Plus Seller Non-Agency Agreement (SNA) (check top box on line 5) Plus Agency Disclosure (AD) New Outlook Properties - California Paperwork

Original Listing Agent? :
Original Listing Agent? If there is a Seller’s listing agent you should bring in a different agent to represent the buyer on the short sale and the resale. Original Listing Agent wants to list for Investor on 2nd transaction? Better for listing agent to avoid the potential conflict of interest. Better to avoid & bring in a different agent to list on the B to C New Outlook Properties - California Paperwork

Seller’s Listing Agent :
Seller’s Listing Agent Dual agency is no longer recommended for a distressed homeowner’s listing broker. The listing broker should represent the distressed homeowner only – no one else in an A-B-C deal. This is all about protecting the broker’s license & liability, which shows you care about them, their license, and their business. New Outlook Properties - California Paperwork

What About Civil Code Section 1695? :
What About Civil Code Section 1695? This law regulates “equity purchasers.” Gives (generally) 5 day right of rescission. Even though no equity, it still applies if: NOD “outstanding;” owner-occupied, primary residence of 1-4 units; and investor buyer. If these conditions are met, then using NODPA with NODPA Addendum, plus the DPL solves Section 1695 requirements. New Outlook Properties - California Paperwork

Best Practices Review :
Best Practices Review NODPA, CA Short Sale Addendum, NODPA Investor’s Short Sale Addendum, plus the DPL. NODPA – Notice of Default Purchase Agreement – California Association of Realtors (“CAR” Form NODPA) CA Short Sale Addendum – “CAR Form SSA” Investor Addendum – NODPA version includes important investor terms. DPL - Declaration and Proof of Real Estate License - California Association of Realtors (“CAR” Form) New Outlook Properties - California Paperwork

Best Practices Review :
Best Practices Review Memorandum of Contract for NODPA Get it notarized after expiration of Cancellation Period (5 Days) Important investor terms including help with re-listing the property for the 2nd transaction Also has an explicit "Request for Notice" under the Civil Code so you will receive notice of trustee's sale and don't have to rely on online sources or the homeowner. New Outlook Properties - California Paperwork

Best Practices Review :
Best Practices Review Lender Package The “Contract Package” for Short Sale lender consists of: Purchase Agreement – RPA or NODPA CA Short Sale Addendum - CAR Form SSA Investor Short Sale Addendum – RPA or NODPA Authorization to Release – Possibly 2 (lender form) New Outlook Properties - California Paperwork

Best Practices :
Best Practices Review it all again Get all documents and read them Understand the Docs Know the Realtor’s language New Outlook Properties - California Paperwork

Short Sale - Real Estate

I just realized that you can short sell a house or you can short sell a stock. I guess I am going to use "short sale" for real estate transactions, and "shorting stock" for any short selling in the stock market.

YouTube is a great place to get information that is hard to come by any place else. For some reason people who won't really tell you what they are doing will get on YouTube and really spill their guts. Short selling is one of those topics that people don't really discuss to much, at least people who really know what they are doing.

But I ran across Bob Lachance on YouTube and this guy really does give you a lot of information with his videos. Currently he has 105 videos, but it looks like he tries to do a new video every week. Some of the older videos from last year have some outdated information, but they also still have some information that can help you.

In the videos they talk about their Preforeclosure Daily Grind website. This website also has some good information, when you first go there it has a popup that asks you to sign up for their 52 week eCourse. I signed up and have received the first 3 emails, and what they do is outline the information that is in their Short Sale Flagship System. This is referred to as their office in a box. It is broken down into different parts,

System #1 - is Short Sale Marketing System - it is $650.00 This is a manual on CDs (looks like about 5 of them)

System #2 - Short Sale Acquisitions System - also has 5 CDs pictured, also $650.00

System #3 - Short Sale Blueprint System
System #4 - Short Sale Liquidation / Settlement System

looks like there are 4 of them, each $650 for a total of $2600.00

Then all the way to the bottom of the page it looks like you get a discount for buying all 4 at the same time $1997.00

I don't have a lot of extra money now, so I probably won't be buying this for a while, but my guess is that if you don't know about short sales but want to set up an office this would be a great source for information. Just based on all the other information I have seen from these guys.

In the emails they also talk about Customer Relationship Management and they have another website for that, it is $99 per month.

The emails come from Bob Lachance's partner Patric Precourt and he has a couple of channels on YouTube, This is his old YouTube channel from 2009, with 4 videos, and he has a new YouTube channel. It looks like Patrick updates his videos about once a week also, this account currently has 77 videos.

They also had a website called www.ManageMyShortSale.com but they came up with a new website called PropTrackr.com and the old site just redirects to the new site.

PropTrackr give you a 14 day free trial which is nice, and today they have prices from $129 to $199 a month, but they have a limited time offer for $99 per month after that. Not sure if that means they are going to jack the price up on you after you sign up or not?

They also have a coaching site called Real Estate Business Mentors it sends you to simplecheckout to pay $499.00 per month.

Bob Lachance also has a Twitter account, but it looks like he has not updated it for a couple of months.

www.boblachance.com - this looks like an old blog that stopped getting updated in April 2009.

These guys really like creating websites...

AskBobLachance.com - this is a squeeze page where your offered a free ebook for your email address.

When you fill out your email and name it takes to you a page where you can submit a question, and download an ebook titled "21 Untold ways to profit in the pre-foreclosure business".

This pdf gives you an outline of how the short sale business works, and it also goes into a little detail that I have not seen anywhere else before. One thing I have been looking for is that if the person in default want to keep their house they charge "around a mortgage payment" if they are successful in negotiating a repayment plan for them. The bank is probably looking for 30% to 50% down plus the remainder of the back payments spread over 6 to 12 months.

I need to check to see if this is legal in California or not?

It looks like this was written a while back, and it looks like the state where they are operating is a lot more lax, on loaning money and dealing with loans, than California is.

The part about how do deal with a potential seller is actually pretty good and gives you a list of things to go over with them, it's probably worth downloading just for that.

On page 10 of the e-book it says that if you refer to the e-book when buying the flagship system you can get a 15% discount.

Not sure I am going to buy the flagship system, but who knows what the future holds.

found another site:

www.fridaycoffeebreak.com - this looks like Patrick Precourt's blog where he lists all his YouTube videos.

YouTube - Patrick's old channel.

YouTube video by Patrick, this is a good one about how to talk to the lender on a short sale before it is listed.

He says, have the agent call the bank and ask them were to start...
I am an agent, your debt is $300k the house will not sell for more than $180k, where do you want to start?
I am not going to spend much money advertising this house, I will list it in the MLS, then call back each week to drop the price.


Short Sale Daily news -

Found Bob Lachance on Facebook.

Patrick Precourt on facebook

www.fortunebuildersmastery.com - this site was talked about on one of their videos, not sure how they are connected. About foreclosures.

Patrick recommends backtobackclosingsmadeeasy Jason Medley - they use the guy for funding deals.

It looks like Jason also has a YouTube channel.

shortsalebootcamp2010.com - another website. - that site now redirects to nsehomes.com which stands for north shore homes. This page also has a special offer, Special Offer!

Get the Short Sale Flagship System for FREE when you order before March 20th!
Bootcamp Registration
+ Your Free Guest
+ Short Sale Flagship System (learn more)
Only $1997!

you can use pacer to access bankruptcy records, find people who are being discharged and own a house.

outsourcemyloanmod.com - another site by these guys.

stopforeclosurect.com - this is a site on a sign in their office I noticed on one of their first videos.

shortsale123.com - this is a site that they were using in 2009, but they let it go and someone is parking a foreclosure page there now.