I am curious to know if it is possible for investor buyers to bypass the normal short sale process and directly negotiate with banks to purchase a short sale property. I currently have a seller client who, prior to listing with me, had been contacted by an investor about a year ago who wanted to purchase her home. She did not pursue that option then; but now that we are in an agency relationship, she decided to reach out to this investor who, upon learning that the house was listed, promptly asked her how long the listing agreement was for, as he was not going to go through an agent and that his lawyers could get the short sale approved. Is this normal, and will any bank allow for a short sale without the house being listed? It sounds to me that the only way that can happen is if the investor is a licensed agent themselves...which means that, in effect, this investor is soliciting my listing under false pretenses...

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No need to get upset because we are asking questions.  Many of us here have been in this distressed arena for too many years to think about and occasionally we get these types of programs presented to us and many of us have given it a shot only to see poor results.  
As far as note buying, banks sell notes everyday to investors without the sellers permission which is why I asked why dont you just approach the bank and buy their distressed notes in bulk and go in and renegotiate with the homeowner

How many is 100%?  10 homeowners? 100 homeowners?  1000 homeowners?

I am not angry or mad. I love the questions coming my way. keep firing away. The figure is well over 300. 

Kevin, How long does it take to do this?  When a homeowner calls me they could be days from a foreclosure, we get it stopped, get a buyer and get it sold.  They don't want to wait for 3-4 months WONDERING if their note is going to get bought.  The second question would be, What's in it for me if the homeowner wants to keep their home? 

Most of my homeowners are in NO POSITION to keep their homes, no job, or job loss, medical, divorce .. you name it.  Let's say one of those homeowners wants to keep their home? Then what?

I'm not against the idea of what you are doing.  I actually like it in theory because if you buy the note, it's an automatic deficiency waiver, but again, how are the agents, title co's, negotiators, and anyone who works on these files paid by you if the homeowner keeps the home?

Thank you smitty for your inquiry. To clear everything up. The normal time frame to purchase the note is from (6) months to (1) year. You mentioned that when a homeowner calls you, they are days away from foreclosure, you get the foreclosure stopped, and then you find a buyer.

When we stop a sheriff's sale we keep the same person in the same home should they choose to stay. Here is how it works once the sheriff's sale is stopped, the homeowner is allowed to stay in their home for 4 months to allow  them to figure out exactly what they want to do.

During that 4 month period, the homeowner would be required to pay a series of 4 service fee payments and then at the end of the 4 months; and if they choose to do so, the homeowner would be rolled into our stay in program and subsequently to wind up with a new mortgage to be reduced by up to 50%.

You asked what's in it for you, and who will pay you? if you are a licensed real estate agent this system can make you a lot of money just helping people. if someone wants to keep their home initially if you are direct to the client you would get paid $500.00 per approved paperwork package ( The LOI & Closing documents) and you would receive 2% on the back end once the note purchase is complete. There is another part to the overall compensation package if you choose to bring in other real estate agents or other professionals.

If the homeowner want to just walk away and give up the property, you would get paid for this as well, and here is how it works. If your client walks away, you would be required to find either a rent to own; or a regular lessee. in either case you would collect the first month's rent & security.

Out of that you would receive the first month's rent at market rate, and 5% on the backend after the note purchase is complete. If the renter does not want to purchase the property after their lease option or lease period expires, the property would be given back to you to re-list and sell; for a 3rd commission on the same property.

Finally, when we stop a sheriff's sale, initially we are paid $160.00 & then $150.00 per month for 4 months. When the homeowner is rolled over into our stay in program if you were direct to the client you would get $500.00 + 2% All of the above compensation is paid by corporate. I hope your questions were answered.        

        

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How is the service fee payment calculated and when is it paid?

The payments would be due monthly, until the note purchase is complete. Remember our goal is to keep people in there homes; and if that is not possible they could walk away free and clear without destroying their credit.
How much are the monthly payments?

James you are almost correct ,if you want to do deal like this then the invester should be a licensed investor themselves otherwise the chances of fraud will be maximum if you do vice versa.

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