In this post I’m going to cover strategies that may help get a foreclosure postponed.

I talk to students all around the country, and one of the main questions I get is “How can I postpone a foreclosure?”. I’m going to give you a tried and true method for postponing foreclosure in this post, whether this is a property going through the short sale process, or not. If you’re a homeowner reading this (yes, homeowners find this site all the time), there should be some good info in here for you as well. We’ve stopped foreclosure sales with only one or two days left before the foreclosure auction!

How to Postpone Foreclosure During a Short Sale:

Most that read this blog are investors or real estate agents, and many of the properties you deal with right now are upside down, so you’re dealing with a short sale. The best way to get a foreclosure stopped or postponed is… Submit a COMPLETE short sale package! Yep, it can be that simple. Postponing foreclosure really isn’t that hard. There’s a little more to it, but this is the start.

When I say complete short sale package, I mean you MUST include everything required for the lender to take you seriously:

1. Last mortgage statement
2. Last 2 months pay statements
3. Last 2 years tax returns
4. Hardship letter
5. Purchase agreement
6. HUD-1
7. Financial statement (note: you may need to use the one provide by their lender)
8. Anything additional required by the lender for the short sale

Here’s the process: Get an authorization to release information from the homeowner and send that to the lender. Follow up and ask the lender what they require for the short sale package (their forms, any specific requirements, etc.). Find out where to fax/email the short sale package. SEND the package and FOLLOW UP! Keep following up until you talk with someone that can make decisions (loss mitigator) about the sale, and they also have access to the person that can give them permission to postpone the foreclosure sale.

Be aggressive and diligent when doing this (just not rude). If the foreclosure sale date is close and you’re serious about postponing foreclosure, you must be on top of this. You’ll find that most lenders are unorganized, and it will be YOU that needs to navigate the path to get this done.

The keys here are to be complete, efficient, and diligent. Follow up as often as you need to so you can get this accomplished. If the lender postpones the foreclosure, it will likely be for 30 days or more, which will give you time that you need.

Postponing Foreclosure Without a Short Sale:

This can be very easy to do, provided you speak to the right person at the lender. Usually the loss mitigator for that specific account.

Postponing foreclosure with a sale of the property that will cover full payoff of the loan and any back payments and fees is very attractive to the lender, you just need to be able to let someone that matters know your intent. I’ve seen many times where this was attempted, yet the decision maker at the lender never knew, so the house went to foreclosure! Sad.

Here’s the process for postponing foreclosure, it’s similar, yet easier than above:

Contact the lender and get an authorization to release info to the right department. Follow up and once you can speak with them, let them know that you have an offer that will completely payoff all debt to the lender. Be SURE to tell them this is NOT a short sale. Once you have your contact, you will send:

1. Purchase agreement
2. HUD-1
3. Listing agreement if applicable

That’s it! Then your job is to FOLLOW UP until you know the right person has this info. They should stop the foreclosure sale very quickly now. Postponing foreclosure is certainly their best bet.

A few side notes:

You must be sure to follow up, while not being rude or pushy. It’s a delicate balance.

Some states/areas require that you be licensed in order to talk to a homeowner’s lender about a short sale or postponing foreclosure – know your area’s laws.

Always be careful of getting in a position where you can be considered “at fault” for not getting the homeowner’s foreclosure stopped.

To summarize, postponing foreclosure CAN be done quickly, if you know the steps.

I hope this helps. Please leave any comments you may have or your own tips on postponing foreclosure below.

David Corbaley

I wanted to give you an update on a program that can be awesome for selling your houses when doing short sales and foreclosures.  It can also be great if you’re buying and holding.
The HUD 203K program is designed for properties that need repairs or need to be rehabbed. Keep in mind that the HUD 203k program doesn’t loan the money, they insure the money for the lender making the loan.
This program can be excellent for investors in the short sale and foreclosure arena, because you can now sell to potential buyers who get qualified for the HUD 203K program. It’s also a great tool for real estate agents that deal with short sales and foreclosures (who doesn’t nowadays, right?).
The HUD 203k loan program is different than a typical rehab loan, because with a rehab loan, the term is usually temporary until the property is completely rehabbed, then the loan will be converted into a long term loan. With HUD 203k, the loan is made in full and set as a long term loan from the beginning, based on the estimated “after repaired” value. The purchase is made, and repair funds are put into escrow and used as needed.
The eligible property must be a one to four unit property that is more than a year old. Also, a single family home can be converted to multi-family, up to four units, or a multi-family can be converted to single.
Bottom line, this program is awesome, and you should know about it when doing your short sale and foreclosure investments, or even just wholesaling! This gives you a great tool for your arsenal when it comes to finding buyers, or providing ideas for their financing. It also keeps you from having to do rehabs yourself before selling. Just find it, get it under contract, and sell it! I wish they would have had this program a few years ago, it would have saved me some time and money with my short sales. This is an excellent tool for short sale and foreclosure businesses.
You can visit our main site any time for more foreclosure training techniques.
You can get more information on the HUD 203K program on the HUD website.

David Corbaley

I created a quick video for you on a great technique for problem solving. This truly is a way to solve most any issue that you come up against.

Tell me if this was helpful to you! Leave a comment below.

Have a great weekend!
David

This video shows how we are looking at a second price decline in the housing markets across the U.S. (video located below)

This was inevitable. The housing crisis will get worse before getting better. The powers that be keep sticking their heads in the sand and suggesting that things are on the rebound. I disagree.

With the coming collapse of the commercial real estate markets, things are going to get ugly.

Watch the video for more info.  21% of borrowers have negative equity!

Note: There is a short commercial at the beginning, then the video starts.

Make sure to leave your comments.

Do you think we’re out of the woods yet?

Talk soon,

David Corbaley

This video taken from thinkbigworksmall.com is a complete eye-opener to what is REALLY going on with this foreclosure/bank/economic mess.

Stick with it, it’s only a couple of minutes, but the picture actually becomes VERY clear. This is unbelievable if you didn’t know it. I didn’t..

Watch it NOW – just click the play button on the video to your right >>>

I told you it was an eye-opener! No wonder we’re in such an economic mess.

Do me a favor and post your thoughts on this in the comments below. Don’t hold back, I really want to know what you think.

David

It appears that those in charge of Fannie and Freddie are going to prevent them from introducing new loan products into the market for awhile. They are preparing for the expiration of the Federal Reserve’s mortgage purchase program.

The FHFA is attempting to reduce the two organizations, and claim that the new role should be focused on expansion of loss mitigation programs and recovery, instead of expansion. The goal is to move them away from being substantial portfolio holders in the market, since their existence is only because of taxpayer buyout.

I would certainly like to know your thoughts below.

Both of these giants have borrowed billions of dollars from the government, just to survive. Those are taxpayer dollars. The FHFA called these numbers “troubling”.

The only hole in the argument seems to be following: even the FHFA admits that almost all non-governmental organizations have withdrawn their capital from the housing market. Fannie and Freddie have invested more. If they now begin to reduce their exposure, who’s going to fill the void? What if private capital and investment doesn’t replace them in the market?

Of course, the CEO’s of these companies received multi-million dollar bonuses for their “effort” in the recovery. Recovery? Have they looked around lately? I don’t know about you, but I’ve always been taught that you get paid for a job well done. This job is NOT done yet.

If you think about it, aren’t they somewhat at fault for this same mess we’re in? I guess I’m confused…

Let me know your thoughts by leaving a comment.

Get great real estate investing info at top foreclosure training

David Corbaley

Note: Reading this post will dramatically increase your success ratio!

I wanted to add a note about dealing with homeowners of property that may be in the short sale process.

In the hundreds of deals I’ve done over the past several years, I’ve come to realize a very important thing:

Homeowners in foreclosure are people too! As a matter of fact, they’re people that need guidance, support and encouragement. Can you imagine – I mean, really, take a moment and think of what it would be like, knowing that you’re most likely going to lose your home. Your family is counting on you, and you have failed. This is what they think.

The number one thing you can do, is show that you care. Let me say that again; The NUMBER ONE thing you can do, is show that YOU CARE.

These people are going through one of the most difficult and depressing times in their life. If you can step up to the plate, give them your promise that you’ll do your very best to make a bad situation better, they will trust you. Especially if you walk your talk.

I’ve been able to gain business from homeowners over and over, AFTER they had already talked with other people that offered solutions. Why? Because I was genuine. Because I lent an ear, and listened to their pain, and showed compassion. See, I’ve been through it. I’ve been foreclosed on. I’ve lived in my truck. I KNOW what they feel. Do you have to experience this to be compassionate? No Way!

Short sale investing, or performing duties as a real estate agent doing short sales require just this one simple, real method to absolutely dominate your market (after you’ve conquered the marketing beast, of course). If you have leads coming in, this is the true way to convert those leads into short sale business.

Show that you care, and you will be rewarded with two things; the trust and business of your client, and the feeling of knowing you truly did your best to help someone in need.

You’re welcome to download a free short sale ebook with more information.

If you like this blog post, please subscribe here to receive new ones!

Sincerely,

David Corbaley

What is “Shadow Inventory” and how does it affect Short Sale Investing?

Shadow inventory is actually a combination of several different things, which I’ll cover here. It’s actually going to have a very big impact on the short sale market. I explain that too.

First, experts are not in agreement about the shadow inventory, or if it even exists. I say YES,it does.

Shadow inventory is comprised of 3 main components.

1. Millions…Yes, I said “millions” of would be homeowners that would otherwise put their property on the market for sale are now hesitant. An example is say, the Jones family, who are fine with their payments. They live in Virginia, but wish to move further south to enjoy the weather of that region. There is one thing stopping them; The under-priced housing market! See, Mr. and Mrs. Jones don’t HAVE to move, they just WANT to. They’ve decided to wait, because they believe the market will turn around, and they’ll be able to sell their home for tens of thousand MORE within just a few years…if they wait. Remember when I said millions? Millions of homeowners are in this exact situation all across the nation.

End result: What happens if all of these homeowners decide to list their homes on the market, because the media says “the housing market is great, and now is the time to sell!”?

I’ll tell you. A FLOOD of homes hitting the market, driving prices back down! it’s all about supply and demand, right? A lot of available homes, too much supply, the prices WILL drop.

2. Lenders that have foreclosed on homes are HOLDING them. Why? The same reason the homeowners above are, they’re WAITING for the market to turn around! You may not know, but a lender who forecloses on a property OWNS that property. They can hold it until they’re good and ready to put it on the market!

How many? It’s estimated that lenders are currently holding around 600,000 houses in REO inventory, just waiting for the right time to list them. That is a LOT!

3. The upcoming wave of foreclosures. the wave that hit in 2008 and 2009 is just the beginning. Unemployment is over 11% across the U.S. There is an estimated 7 million homes facing default. Are you kidding? The impact that will have on the housing market is unimaginable.

The solution? Short Sales. Short sale investing and real estate agents working short sales are going to be paramount in correcting this situation.

How many of these 7 million homes will avoid foreclosure if short sale investors and agents work on getting these homes bought and sold before the foreclosure? They’ll certainly have an enourmous impact.

The Jones’s are just going to have to wait, because there is NO way they’ll compete pricewise with short sales. Home buyers are savvy now, and they know that there are deals to be had if they look for short sale houses. Agents, you should certainly be in the short sale markets, and understand how to deal with short sale transactions of you plan to stay in business. If you list the Jones’s house, you’ll watch houses all over the area sell, via short sale transaction, before (if) yours does.

I believe ther IS a shadow inventory and I believe it’s going to have a huge impact on the market. If you’re doing short sale investing, great. If you’re an agent doing short sales, great. You’re in the right spot.

Learn more about foreclosure training programs so you can be well ahead of the competition!

Sincerely,

David Corbaley

This is Amazing news! Please read.

HUD has decided to waive the 90 day seasoning financing contingency for buyers. What does this mean? Read on.

Effective February 1st 2010, there will no longer be a requirement for a seller of a property to be on title for 90 days or more in order for approval of an FHA backed loan. This is incredible news, since the majority of buyers in today’s market are FHA buyers!

I CANNOT STRESS THE IMPORTANCE OF THIS ENOUGH! This is groundbreaking, and will be unbelievable for those currently, or planning on investing in foreclosures via short sales.

The 90 day seasoning issue has long been an issue for investors and agents when working with short sales. This is changing on Feb 1st.

Below is an excerpt from the HUD website:

[start]
In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

[end]

This will have such a positive impact on the housing ,market, investors, agents, buyers, sellers, and everyone else as a whole! It’s about time. We’ve been anticipating this, and it has arrived.

Ok, here are a few important key points. There a few simple stipulations that are part of this rule, which are actually quite simple to meet. Another – it’s only supposed to last for ONE YEAR. I anticipate that this will change, once they realize the positive impact this has on the housing market and economy as a whole.

Here are a few more rules:

[start]

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

[end]

Read the full details on the pdf released by HUD – Get Flip FHA pdf HERE

IMPORTANT: If you aren’t doing short sales yet, or simply want to learn more, get my free ebook on short sales NOW – the clock is ticking! Get your FREE short sale ebook HERE

Don’t forget to leave your comments on the great news!

Simply add your name and email in the form just to the left, and the ebook is yours, along with some other really cool stuff! You’re going to learn an incredible amount of info, and exactly what steps you need to take to begin, AND be successful with short sales. Get your ebook now – it’s free! Subscribe just to the left where it says “Claim YourFree Ebook”