The most complete step by step program for Real Estate Professionals
In today’s market, real estate agents are bombarded with questions from overwhelmed clients who don’t know what to do. In order to best serve your clients and protect yourself and the agency from liability, it is essential to understand the foreclosure process and all that entails.
What is the foreclosure process in your state? Are foreclosures judicial or non-judicial? What are the applicable timelines, including reinstatement periods and statutory redemption periods? With multiple lien holders, who has top priority? Who gets wiped out? Who is paid?
With the number of foreclosures soaring; rules, regulations, laws, and state statutes are changing and agents need to keep up-to-date. Lenders have received billions of dollars in bailout money, yet how many homeowners are they really helping? Loan modifications from just six months ago are already in default. Lenders are suggesting that property owners work with a real estate agent, list the property, and try to sell it as a short sale.
Sellers are asking…
What is a short sale and how does it work? Will I be charged a deficiency? Is it better just to let my house go through foreclosure? I’ve received notices but I don’t understand them. How long can I live in my home? Will I be able to rent? Is my credit destroyed? Is it possible for me to buy on a contract for deed?
Buyers, on the other hand, are flooded with negative information daily. Yet they are being told that this is the greatest time to buy!
Buyers are wondering…
How can I enter this market? Where do I start? How much money do I need? Which properties are better for rental or investment? How do I determine which properties will cash flow?
Prices have dropped to 40-50% from just 2 years ago and rental prices are increasing. Buyers may know properties are needed that cash flow, but may be unsure how to determine which ones will. Our rental income and expenses worksheet will help you make that determination. Learning how to assess and evaluate a property quickly will also help select better properties to purchase. Considerations include: price of repairs, the structural integrity of the property, and the quality of construction (e.g., better siding, windows and doors).
Many buyers/investors are using their self-directed IRA, Roth IRAs or Solo(k)s to purchase properties as part of their retirement/investment portfolio. Or they may be using the money in their self-directed plan for the down payment, and financing the rest within their qualified plan. Rental payments are received within the qualified plan, and payments are made through the qualified plan. This course provides great foundational information. Your clients would also want to work with a qualified plan administrator, making sure the real estate your client purchased and all the payments received and paid for the property, stay qualified.
This market offers phenomenal price discounts on great properties. Buyers are buying properties “as is” and need to know what they are buying. Lenders may further reduce the price on properties with problems. One example is a “freeze home” where lenders will reduce the properties to unbelievable prices. Yet those properties can cost far more to fix and have serious health risks. So how would I know which properties to avoid? What kinds of things should I look for?
About this course
This course is meant to walk agents through the process giving them an incredible resource to understanding the complex foreclosure market. The examples given throughout and the sample copies of documents such as notice of default, notice of foreclosure sale, summons and complaints, will make understanding the process much easier. This course will also provide you with downloadable forms that you can customize for your clients in the negotiation process.
Short sales can result in deficiencies. If the lender is only willing to release the lien but not the underlying debt, what does the seller want to do? Junior lien holder(s) are also pursuing court judgments for debt owed on the promissory note. Are you advising your clients to consult with an attorney immediately? Having this information upfront and in writing is part of the key to negotiating. Wrong information can result in significant agent liabilities.