For a direct link to this post and video please click here.

 Countless short sale transactions fall apart at the 11th hour because of title defects that are not discovered and dealt with in a timely manner.

Here is an example of a common challenge (more common than you think) uncovered when performing a title search:

An invalid or inappropriate lien on  the property due to error in legal description on a mortgage that should encumber a different parcel.

When dealing with short sales it is absolutely CRITICAL to have a title search performed early on, ideally immediately after the listing is taken, which is why the company I recommend – GSS Title http://www.gss-title.com – orders title searches immediately, and not once a contract (or worse) lender approvfal is obtained.

As always, thanks for tuning in…

To Your Success!

Thomas Heimann
“Mr. Short Sales”

For a direct link to this post and video please click here.

The Home Affordable Foreclosure Altneratives Program, or HAFAP is in my opinion not all its cracked up to be.

A lot of hype and ‘promises’ but this new U.S. Treasure “rule” which really is more of a voluntary proposal, may just go the way of the last Obama “Housing Rescue Plan”, and we know how well that worked….

Be sure to check back often for updated real estate and short sale related commentary.

To Your Success!

Thomas Heimann
“Mr. Short Sales”

For a direct link to this post and video please click here.

Last night we had a fabulous training webinar, with fantastic feedback from the attendees.

This video is just under an hour long but well worth watching if you are a real estate agent and looking to gain an edge with respect to short sales. You will learn the 5 Keys to Success with short sales, and how to ensure that your short sales will get approved. Also learn, why right now short sale listings are the best listings to take – if you know what you are doing.

The content of this video represents a tiny preview of the Short Sale Money Machine(TM) training program that I will release later this month.

If you would like to receive an invite to a free preview of this program, along with an invitation for a free trial membership to our Short Sale Money Machine coaching program then please submit your information using the short form at the bottom of this post.

Make 2010 your best year ever in real estate!

To Your Success!

Thomas Heimann
“Mr. Short Sales”

Follow me on Twitter and/or Facebook:
http://www.twitter.com/thomasheimann
http://www.facebook.com/mrshortsales

To link to this post and video directly, please click here.

Hi and welcome to a new year… full of exciting opportunities and potential!

I consider 2010 to be the “Year of Short Sales” and my video will explain to you why I feel this way.

I have spent the last 1 1/2 months on finalizing what will be without a doubt the most extensive, no-nonsense short sale training program for realtors available anywhere. For a free preview of this program please submit your information in the form below. Please verify your email address as the information will be sent to that address. You will receive a confirmation message within a minute or two, so please check your junk folder as well.

To Your Success!

Thomas Heimann
“Mr. Short Sales”

Follow me on Twitter and/or Facebook:
http://www.twitter.com/mrshortsales
http://www.facebook.com/mrshortsales

Properly pricing and structuring short sale listings is both art and science.

Today I am talking about a winning strategy for pricing short sales, and how to deal with offers on your short sale listings in a manner that will drastically increase your chances of getting your short sale approved.

For a direct link to this article please click here.

To Your Success!

Thomas Heimann
“Mr. Short Sales”

Follow me on Twitter and/or Facebook:
http://www.twitter.com/mrshortsales
http://www.facebook.com/mrshortsales

When working with home buyers in short sale transactions a completely different mind set is required as opposed to working with sellers.

In addition, there is a big difference between working with buyers who want to buy the property as their new home and who naturally are emotionally attached to this property, and working with investors who really are primarily focussed on the numbers and have very little if any emotional attachment to the property.

The ‘home’ buyer want to buy THAT home, whereas the investor wants to buy a property and really cold care less if the deal on THAT property falls apart if his/her terms are not met. Subsequently a completely different mindset and strategy is required.

A word of caution: I am playing devi’s advocat here, particulaly with respect to the investor side of the story; you will find that my advise here is completely contrary to the advise I had for working with home sellers in a short sale.

Enjoy, and feel free to leave your comments, I’d love to hear your thoughts and feedback.

If you are reading this thread in a text-only format (without the video embedded) then click on this link to access the full post including the video:

To Your Success!

Thomas Heimann
“Mr. Shortsales”

Follow me on Twitter and/or Facebook:
http://www.twitter.com/mrshortsales
http://www.facebook.com/mrshortsales

Today I want to talk about what is the best type of contract to use for the Seller in a short sale transaction, and you might have guessed it, … it’s not the same as for the Buyer. (Which contract is the best to use from the Buyer’s perspective will be covered in my next episode.)

Plus as a bonus, a few other important things to consider when representing the Seller in a short sale transaction (on the video).

When looking at the short sale from the seller’s perspective the key consideration has to be that ‘once the lender approves the sale, the buyer is still there and compelled to perform’.

Unfortunately the vast majority of short sale transactions today are done using an As Is Contract. In my video today I explain why it is critical to avoid As Is Contracts as the Seller. I am also going to touch on three additional factors to consider (and ensure they are addressed) to protect the Seller’s interest in the transaction.

If you are reading this thread in a text-only format (without the video embedded) then click on this link to access the full post including the video: http://bit.ly/3zpVFS 

To Your Success!

Thomas Heimann
“Mr. Shortsales”

Follow me on Twitter and/or Facebook:
http://www.twitter.com/mrshortsales
http://www.facebook.com/mrshortsales

You may have received some of the promotional e-mails yourself in recent weeks, with promises of quick short sale riches. Investors promising quick cash offers to homeowners in trouble are now also going directly after real estate agents with promises of quick short sale riches.

The scheme promoted is nothing but a new variant of the old fraudulent flip. During the real estate boom, investors would use intermediaries or straw men to flip homes to at inflated values and then pocketing the difference of the new loan and the original purchase price. The lenders ended up holding the bag and authorities have begun prosecuting these fraudulent transactions with realtors, mortgage brokers and investors going to jail. One thing all these transactions had in common was cooperation between the parties (investor/realtor/mortgage brokers and closing agents).

Today we see a new variant emerging: the short sale flip. Here is how it works:

In default home owner is presented with a low ball short sale offer on their property. The investor often uses realtors as ‘bird dogs’ to help them find deals in exchange for promises of full double sided (since the realtor would be representing both buyer and seller) commissions and quick cash offers. The investor offers to manage and ‘negotiate’ the short sale with the lender and will try to influence the appraisal by meeting with the broker performing the ‘broker price opinion’ or BPO.

In the meantime, the investor will re-list the property with another real estate agent in an attempt to find an actual retail buyer for the property that will pay actual short sale market value. If the investor can get the short sale approved AND locate a (preferably cash) buyer for more than his purchase price then the property will be flipped in a simultaneous closing, and the investor walks away with a ‘cool $20K to $30K’ per transaction.

The problem: The lender is being defrauded and the realtor cooperating with the investor is in on the conspiracy. For the first time now the Department of Justice  has brought charges in a case that maybe the first in many to prosecute this new type of loan fraud.

To download a copy of the actual court action, click here: US DOJ Short Sale Fraud Case

Participation in these cleverly structured schemes may  be a criminal offense and real estate agents are cautioned to participate in them, regardless of how ‘amazing’ they seem.

Equally troubling though, these schemes are also extremely risky to the home seller. In order to bring these transactions to successful conclusion, all the ’stars have to be perfectly aligned’, namely, the lender must agree to the far below market value original offer (which is to a large degree contingent on the investor being able to ’sell’ the broker performing the BPO), a new buyer must be found in time at the actual market value, and that new buyer must be a cash buyer since no lender will finance a transaction where the actual seller (being the investor) to the new buyer is not the actual owner of records; lenders routinely require a 24 months chain of title.  This can of course be circumvented if the original owner is willing to execute documents creating a new sales contract for  the end retail buyer, which of course represents an entirely new level of fraud.

Bottom line is that only one in 30 deals will work (according to investor’s own promotional materials seeking to sell other’s their system of ‘how it works’).

As always, the best policy is to conduct your business with integrity and to stay away from dubious transactions.

To Your Success!

Thomas Heimann
“Mr. Shortsales”

Follow me on Twitter and/or Facebook:
http://www.twitter.com/mrshortsales
http://www.facebook.com/mrshortsales