Tips for Picking Up Bank Short Sale Homes: 3CALoan
If you want to add homes to your investment portfolio, then the pre-short sale homes are a good choice for you. Or if you are interested in flipping homes then it also can help you better at really good prices sometimes below the appraised value. In this article, we will discuss some of the ins and outs of buying the home before foreclosure.
Stage 1 Delinquency on Mortgage:
From this, almost all the homeowner starts to be late on their home loan payments. You can buy the list of 30, 60, 90 day lates from credit bureaus. And also you can start targeting the list with marketing. You will obtain the client information early before the Lis Pendens or Notice of Default(NOD) will be filed by the client with the county and others have access. So, there will be a less competition for you from other agents and it will good for you.
The negative point is it’s almost too early in the process. The client has more time to think about their bank short sale homes and consider their mortgage mod. It will become very easier to negotiate on the purchase of the note with a bigger discount if a note goes 90 days late. While there is less competition, it would be good to talk homeowner first and make a relationship bond better.
Stage 2 Derogatory/NOD filing with County:
In most states, Derogatory or NOD is needed to be filled within 90-180 days of the first delinquent payment with County Recorder’s Office.
The positive point is client will be desperate, so he/she will likely agree to bank short sale homes listing. The client will be also realistic at this stage. The negative point is during this we may be competing with more realtors and we also have less time to close the bank short sale homes. So, we can’t help them to get them early in the process. You can get a nice percentage, only if we target them in the first stage and follow them back after Lis pendens or NOS is filed. According to how long it takes to foreclose, the note should be discounted. Generally, the discount will around 70% or it can be greater. At this stage, the homeowner is now getting prodded constantly letters and calls by the bank. So this is the point where the majority of business takes place.
Stage 3 Auction/ Trustee Sale Date filing with County:
The positive point is client will be more desperate at this stage, so he/she will more likely agree to bank short sale homes listing and will be more realistic. The negative point is, in the stage, we are not getting them late and either may be competing with more realtors or have very little time to close the bank short sale homes. The process will get delay near about 3 months.
According to the state’s foreclosure laws, months to foreclose. If you delay the auction through a short sale, TRS, temporary restraining order or bankruptcy filing. This can add a minimum of 3 more months to the process which can often motivate the bank to sell the notes with heavy discounts. This can be done, but it is stressful and time consuming for all parties involved to get that extension.
Final thoughts
We can help you if you are interested in exploring the options of hard money notes for investing. Buying a home is a great investment, but you have to be careful and avoid making any costly mistakes. We prioritize informing and educating our clients about the home loan process. Our goal is to provide opportunities for people to meet their financial goals. We help our customers every step of the way. Our competitive rates, efficient services, and talented team can help ease the home loan process.
Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan. It is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.
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