Super webinar Jeff…Thanks for ALL the great information and for taking the time to organize and present it for us.

Dr. Watson:
As usual, you have exceeded expectations. Thanks for the info.
Question: Item H on the option contract–isn’t the first sentence sufficient disclosure of the buyer’s intention?

Great call Jeff! Once again you show why you are a class act and why you are the go to source for reliable intelligence. If anyone reading this comment missed your call, they missed a great discussion on not only the mis-information that often gets communicated, but also the plethora of reasons why you should be doing short sale investing with 100% confidence. Again, thanks Jeff and thanks to Josh too…

Thanks Again for the thoughtful, clear and helpful explanation of an ongoing and changing environment that is complicated at best. Your free advice in the midst of your personal and legal obligations is most appreciated. Your Rational, Reasoned and Constructive advice is rare and very valued. Best Regards; Windy City Andrew.

The Webinar was extremely helpfull; as always, the Wizard Watson comes through again!

Great information and points on this call. Thank you for your time and expertise.

Thanks Jeff, the webinar was awesome, very helpfull information

Hey Jeff. Great call today. thanks for being the first to address this.

question: other than the disclosure statement and the homeowner opting out of hafa, is your organization making any other changes in procedures to avoid hiccups on these changes from freddiemac?

-Joe Lawrence

thanks for your help, your AWESOME!!!

Many thanks Jeff. The webinar was extremely informative and helpful.

Awesome job Jeff and Josh. Perfect arguement.

Great call today Jeff. We all need to the powers that be. They are not above the law, just DISCLOSING the facts here…lol. Thanks again ~ DB

Jeff and Josh,

I really appreciate your theory of serving your students and giving practical advice on such a difficult subject. Thanks for the quick overview of this weekend’s bulletin.

Jeff:
It is a tremendous peace of mind to know that I am part of a group of competent professionals like you watching out for our industry and entrepreneurship.

The key to a strong, free, and innovative civic society are informed, honest, committed, principled people that speak out when necessary.

Thank you,

Manny

Miami, Florida

Jeff & Josh as an investor I appreciate the quick response from the industry experts that we’ve come to rely on and trust to help us build respectable and legal businesses.

Jeff I do have a question, I have a short sale approval from Chase. The house has an IRS lien that is being negotiated by an attorney that was hired by the homeowner. I was told by the attorney that I need an appraisal of the property before they can proceed. “Did not the Bank establish the Value by approving the deal”
He also stated that the IRS agent saw the property listed on my website for a much higher price. Should I continue to work with this attorney or should I try and negotiate directly with the IRS myself? the approval letter has a close date of 5/30/2010.

Thanks,

Eric

ps., Jeff let me know if I need to set up a consultation.

Jeff:

We really appreciate your knowledge and research. It is clear from the information you presented that the marketplace benefits from upfront investors who disclose what they are doing and that the residential real estate market needs someone to take the risks inherent in buying “problem” properties. The market has already demonstrated that all buyers throughout America are unwilling to go through the hassles of a short sale without substantial discount from similar properties that are not underwater.

Jeff, thanks so much for taking the time to so thoroughly prepare and give the webinars with Josh Cantwell and Chris McLaughlin & Ron Ballard. Will you be making a copy of the webinar or a “special report” available that we can share with realtors, lenders, mortgage brokers and uninformed Loss Mitigators?? It would be so helpful to have something like that available when we’re creating new relationships to help us correctly and accurately educate new team members.

We all were very concerned since Freddie Mac is a Huge Investors nad of course is gonna have a big impact in our business, we pretty much depend form realtors that bring leads to us, so if they see this article we need to have a explanation to them to keep on working close with them, thanks for the advice and explanation but as students frmo SREC we need more attention and more disclosures to show it to the Realtors and other sources of influence like mortgage brokers and so on…

thanks

Great info!!!
However, my partner has had 2 recent contract rejections by Wells Fargo because we do disclose as per JW and SREC…..It seems like they are already implementing this newsletter as “policy”.
So, in the real world, what do we do when we have provided the lender with Attachment A, etc? Is there another level to pursue with the lender??

Dennis, This has been an issue with WF for months. During the Dallas SREC event I will reveal a way to deal with this.

Get the homeowner to sign the forms required by the IRS so that you can deal with them. Be very careful as to what you represent the value to be. Urge the IRS to get their own opinion.

We all were very concerned since Freddie Mac is a Huge Investors nad of course is gonna have a big impact in our business, we pretty much depend form realtors that bring leads to us, so if they see this article we need to have a explanation to them to keep on working close with them, thanks for the advice and explanation but as students frmo SREC we need more attention and more disclosures to show it to the Realtors and other sources of influence like mortgage brokers and so on…

thanks

The webinar and related blog posts by Ron Ballard and myself should be all the information you need to master the subject so you can talk clearly about the issue.

Hi Jeff
Found this comment on Google alerts in regards to Freddie Mac’s April short sale flipping fraud. It’s not law and never will be,but they will find a way to stop the closing. If Freddie’s opinion persists it will spread. Man that has the gold makes the rules. I’m on hold,until we get clear direction, it takes to much time and money to get to closing.
For your consideration, Thank Jeff

Freddie Mac Releases New Opinions On Short Sale Investing

May 9, 2010 by man
Filed under First Time Home Buyer Michigan

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Short Sale Fraud – Freddie Mac Drops A Huge Bomb On Real Estate Investors

Short Sale Fraud – The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. Freddie Mac’s new short sale opinion – for lack of a better word – could create serious legal and practical issues for real estate investors.

The organization posted a new educational article on April 16, 2010 titled “Emerging Fraud Trends: Short Payoff Fraud.” The article stated, in short, that short sales could be fraudulent if the lender does not have information about a pre-arranged flip of the property after the short sale to another buyer. This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.

The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario involved a facilitator, whose description matched that of a real estate short sale investor, who negotiated a deal with a lender to short sale a home worth $80,000 with a debt of $100,000 for $70,000. In the scenario, the facilitator fails to notify the bank he has a higher offer, 95,000, on the house. When both transactions close and the facilitator pockets his profit, Freddie Mac considers him to have committed fraud since Freddie Mac has now taken a “larger than necessary” loss on the sale.

The writer encourages everyone involved in short payoffs to look out for short payoff flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. Additionally, they encourage people to look for an option clause in their purchase contracts that allow the buyer to resell the property.

Finally, sellers, buyers and lenders are all encouraged to report this short payoff fraud if they are aware of a second purchase contract for a higher price. Short sales may not be breaking the law, but Freddie Mac’s PR team certainly wants the process to be as difficult as possible for all real estate investors.
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