Online Investing Daily

Below is a question I got asked recently. I thought this was valuable info, so I am sharing it with you here:

“I have been doing some reading on all the reasons why lenders would sell properties at big discounts…

In regards to lenders and their concerns, what factors determine their choice to sell discounted mortgage notes? Since we are trying to think in the mind set of the LMREP, it would be helpful for us to understand their concerns so that we can sell our services”.

This was my reply: You need to be clear (both in your language and the way you think) about the difference between properties and mortgage notes. In your question, you mentioned both of these.

If you were speaking to a bank rep, they would know that your inexperienced. They would probably think that you’re a newbie that doesn’t know the difference between a deed of trust and a deed, this for certain would get you no repsonse from the bank.

A Tip on Buying Mortgage Notes

Make sure you know the lingo before you call these banks:

You get one chance to make a good first impression, when you’re talking to the key person/gatekeeper when buying mortgage notes.

There’s a great tip right?

A few reasons:

Reasons to Sell Mortgage Notes at the Institutional-Level

a) banks in the process of merging, or posting quarter/annual financials and needs to get assets off its balance sheet. Quick way is to sell the notes

b) bank may have a “relationship” with the borrower, or there are extenuating circumstances.

c) banks may be under pressure (image/marketing, legal or other) not to take “aggressive” recovery action (foreclosure) against borrowers either across the board (image has been hindered by bad press in foreclosure action), in a certain geography (Detroit/Cleveland, hard hit urban areas seen as minority/poor/fraud-rich) or in a certain situation (1st time minority home buyers)

d) the bank may have started the foreclosure processes, but they do not actually want to take the borrowers to sale. (in the past, I have purchased mortgage notes 1 week prior to sale).

3) sometimes the warranty cover/expense is not worth the hassle when the loan is upside down, especially when the loan amounts are so small. (when buying notes, these types of deals are a great opportunity)

f) In order to see what the market would pay for these loans, banks may price a part of its non performing book and send it out.

Reasons to Sell Mortgage Notes at the Individual Reps

a) in some cases, the loss mitigation rep does not want to deal with borrower anymore. Reasons for this can be the borrower unwillingness to discuss matter, or broken promises of repayment.

b) borrower is non-responsive, no contact

c) long foreclosure state/process

e) authorization over certain write offs and mortgage note sales is within the rep or their direct managers authorization. When required to go to upper managment for aprovals the process is lengthened…so in those cases they may pass.

f) the rep might be shooting for their monthly bonus and sell off some mortgage notes to reach this. Sometimes it could just be a matter of meetin a monthly quota.

Hope this was useful to you.

There are many different types of loan modification, short sale and foreclosure-related scams, and new types of scams sprout up every day. There are probably as many scam categories as octuplet mother Nadya Suleman has babies, but today we’ll discuss just three of them. These activities can be loosely described as follows:

Phantom Helper:

In this type of action, the scam artist offers to negotiate with the lender or perform other lender-related services for the homeowner in exchange for a fee. However, in reality, the scammer performs little or no service at all and eventually absconds with the money. Whatever services the scam artist does provide, the homeowner could have probably done on his or her own. The homeowner ends up not only losing the money, but often loses valuable time to make other arrangements to save his or her home from foreclosure.

Bail-Out:

The homeowner is saved from his dilemma by the generous helper who offers to bail him out. Often the helper needs to take title to the property in order to modify the loan, and promises to lease the property back to the homeowner. Then when the owner is able to purchase, he will be able to purchase the property back again. Sounds good, right? Usually the scammer ends up not honoring the agreement, and simply kicks out the owner. Or the helper rents out the property until it is foreclosed upon and keeps all the rent receipts for himself.

Bait-and-Switch:

In this scenario, the homeowner is usually persuaded to do one thing but ends up doing another - like signing a deed and giving up his interest to the property. For example, the scammer might tell the homeowner that he needs to sign a power of attorney to negotiate with the lender to do a loan modification. Then after signing it, the helper uses the power of attorney to evict the owner from the property and rent it out.

In addition to these types of deals, there are many other kinds of scams, including identity-theft, loan fraud, and even elder abuse. How do owners meet these people? The helper can contact an owner by mail or telephone solicitation or sometimes an owner will contact a scammer via a We Buy Homes or Stop Foreclosure Now sign on a telephone pole.

Therefore, if a helper asks for money upfront before providing any service ” beware. If he asks for payment only in the form of cash, cashiers check, or wire transfer”beware. If he asks for a transfer of title or an interest in the property”beware. If he gives an unqualified promise to stop foreclosure or other assurances “beware. If he offers to buy a home for a price above its market value–beware.

Just as one would be wary of eating raw fish as a restaurant with a quality rating of D ” when it comes to foreclosures, short sales and loan modifications, you should be extra cautious with people offering their services to help you too!

There are many different types of loan modification, short sale and foreclosure-related scams, and new types of scams sprout up every day. There are probably as many scam categories as octuplet mother Nadya Suleman has babies, but today we’ll discuss just three of them. These activities can be loosely described as follows:

Invisible Assistant:

In this type of action, the scam artist offers to negotiate with the lender or perform other lender-related services for the homeowner in exchange for a fee. However, in reality, the scammer performs little or no service at all and eventually absconds with the money. Whatever services the scam artist does provide, the homeowner could have probably done on his or her own. The homeowner ends up not only losing the money, but often loses valuable time to make other arrangements to save his or her home from foreclosure.

The Rescuer Technique:

In this one, the helper offers a scheme which will save the homeowner from his dilemma. One common example involves a promise to take title to the property, make up the back payments, and then lease the property back to the homeowner until he can purchase the property. Usually the scammer ends up not honoring the rent-back agreement, kicks out the owner and sells the property to another buyer.

Bait-and-Switch:

The homeowner is saved from his dilemma by the generous helper who offers to bail him out. Perhaps the helper promises to take title to the property, modify the loan, and then lease the property back to the homeowner until he is able to purchase the property. Usually the scammer ends up not honoring the agreement, and does the old switcheroo. Meaning that because he is the owner, he can legally kick out the owner. Often the helper rents the property until it is foreclosed upon and keeps all the rent receipts for himself.

In addition to these types of deals, there are many other kinds of scams, including identity-theft, loan fraud, and even elder abuse. How do owners meet these people? The helper can contact an owner by mail or telephone solicitation or sometimes an owner will contact a scammer via a We Buy Homes or Stop Foreclosure Now sign on a telephone pole.

If you are concerned about a loved one working with a foreclosure helper, some tell-tale signs to watch for include: if a helper asks for payment only in the form of cash, cashiers check or wire transfer ” beware. If a helper asks you to transfer title or your interest in the property– beware; or if a helper makes an guaranteed promise to stop foreclosure or other assurances”beware.

Just as one would be wary of eating raw fish as a restaurant with a quality rating of D ” when it comes to foreclosures, short sales and loan modifications, you should be extra cautious with people offering their services to help you too!

If you’re interested in buying, look no further than Atlanta condos for sale. One of the most famous Southern cities, Atlanta is popular not only for it’s wealth but also for the nightlife. And as its nickname implies, temperatures heat up all year long.

You will never be bored in Atlanta, there are plenty of things to do. You can go for a world class shopping or enjoy quiet southern night at home. You can catch the Atlanta Braves baseball games or visit the CNN Museum as well as the Olympic Park. You will never run out things to do in Atlanta. Here are some tips if your considering purchasing a Atlanta condos.

In today’s internet world so much information is available on the web. Check out the popular and credible websites for photos and detail information about the property. But most of all, check out the property by visiting the condo, talk to the neighbor, people always know more than the machines. Be cautious of comparable sales because depending on the location it can swing wildly. Current market condition is such that you should be able to get a great deal on prices.

Visit your potential property in the evening. While Atlanta condos for sale may seem to be safe when the sun’s shining high overhead, things look a whole lot different at night. You’ll spot things you missed the first time.

With sales of Atlanta condo falling over 88 percent in the second half of the 2008, you sure will find bargains. Huge surge of new construction have over supplied the market in last few years and many developers have auctioned off the available condos at unbelievable bargains.

Prices are the lowest since early 2000’s, interest rate is at all time lows, and the federal government is offering $15,000 in first time buyer tax credit, you should not care about pre-construction deals anymore. There are plenty of deals and value in this market.