A complete guide to understanding the foreclosure market and the short sale negotiation process

In today’s market sellers, buyers, and investors want answers to many questions. Sellers may be overwhelmed with the situation they are in, not knowing what to do. It is extremely important for sellers, buyers and/or investors to understand the foreclosure process and timelines, judicial vs. non-judicial foreclosure, reinstatement periods, statutory redemption periods, short sales, deficiencies, judgments, lien holder priority, who gets wiped out, who gets paid? With the number of foreclosures soaring; rules and regulations, laws, and state statutes are changing and buyers and sellers want to stay informed. Lenders have been given billions of dollars in bailout money, yet how many homeowners are they really helping? Loan modifications from just 6 months ago are already in default again. Lenders are suggesting property owners work with a real estate agent, list the property and try to sell 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 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).

Larger down payments on loans are required for properties used for rental or investment. Many buyers/investors are using their self-directed IRA, Roth IRA’s or Solo(k)’s to purchase properties as part of their retirement/investment portfolio, or 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 will give your great information. You would also want to work with a qualified plan administrator, and a knowledgeable REALTOR® in finding you properties that you might consider as part of your qualified plan.

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 homes” where lenders will reduce the properties to unbelievable prices, yet those properties can cost far more to fix and have serious health risks. How do I know which properties to avoid, what kind of things can I look for?

About this course

This course is meant to give you an indepth understanding of the complex foreclosure market and to walk you through the process involved with purchasing foreclosures and negotiating short sales. 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 can be customized in the negotiation process.

• Instructor: JoNell Reed