Minnesota Short Sale Homes

This article was written by Mario a licensed agent that specializes in mn short sale homes

Your question is more of a marketing question then how to get into pre-foreclosure. My suggestion is to goto barnes and noble and pick up a

couple books on it. You would be suprised on how much there is on this

topic these days. even a couple years ago it was hard to find anything on

them but now it is common knowledge. Reading these forums will get the

majority of your questions answered that come to mind after reading a

couple books and getting the foundation laid.

As for the examples of marketing that you mentioned… To each his own.

Court house works well but you need to have a different message then

everyone else, be consistant at sending the letters, and do mass amounts

because it is a numbers game. Bandit signs work wonders, calling

houses for rent, looking on post sites, and even talking to agents that dont

do shorts because right now agents are sitting down with a lot of

sellers that cant list the traditional way because they owe too much and

the agent doesnt know that they could do a short sale. tell the agent

that you want every contact they get that they can not list because the

seller is upside down and just tell them you have alternative ways of

helping the seller. if the agent cant help them… tell them to at least

let you help them.

Most importantly, before you step into deep water you need to at least

know how to tread water, let alone swim. The worst thing you can do is

get a seller and not have a clue on where to start. so go do a little

reading and research to get comfortable and then start looking for

sellers. I dont agree with being an expert before you start because the only

way you become one is by doing it and messing up from time to time so

dont let research hold you paralized but u need to have a plan. I

always tell people who get stuck in research mode, you goto the library and

i will goto the bank.

Good luck!

Ron did a longer more detailed article at this link for minnesota short sale

Don’t Do MN Foreclosure Leasebacks

This article is written by Mario and agent that does specalize with mn short sale homes

Dont do the lease back for two reasons:

1) depending on your state laws it is sometimes very risk for the buyer

to do it and not come across as a preditor. I live in MN and we have

so many stupid laws to protect people but at the same time it is because

some people take advantage of and screw people that are already down

and out. In our state it is Very hard to do a foreclosure bailout

legally and usually not even worth it because they regulate how much you can

charge in interest and term and reapercussions and even how much more

you can sell it back to them for that it just takes the money out of it

and lets the seller/tenant walk all over you if they choose. Now

remember it’s not like someone is looking over your shoulder to make sure you

are doing it legally but at the same time all it takes is a

seller/tenant with a victom mentality to turn around and say that you were using

preditory tactics to steal their house and you have a mess on your

hands.

2)If they are that far behind right now with their BANK then why would

they hesitate to not pay you when they know you will make the mortgage

payment either way because it effects you. Now i am also not telling

you that the seller/tenant deliberately didnt make their mortgage payment

but there is a reason lenders look at credit reports… it shows thier

track history and the level of risk a lender is taking when giving

them a line of credit. You need to pay attention to the persons history.

if he is still in the same line of work and has no other form of income,

it is simply a matter of time before this person hits the same

financial situation again but this time you are the “bank” and you are the

jerk that has to evict them from their own house.

Lease backs are very risky and i have friends that did them for a while

and will never do them again because of the amount of times that

people they were trying to help turned around and screwed them and stayed in

the house as long as they could to make the situation even harder on

the investor.

Do it right and buy it outright from him and if you want to deal with a

tenant, put one in that has a good track record of paying thier bills.

that is y it is so important to ask them what their plan is if they

are not going to sell, because that is most likely their only option

besides foreclosure.

Ron did a longer more detailed article at this link for minnesota short sale

Minnesota Short Sale Homes

This article comes from Mario, and agent, who has done a lot of mn short sale homes

The deed into the trust is not recorded until the day of closing. So although a deed transfers ownership rights (whether recorded or not) you cant transfer it twice. So when i am first getting docs
signed i do have them sign the deed and get it notarized but I dont record it until the day of closing. I have the closer record it with all the other docs she is overnighting to the county.
both the trust buying from the seller and end buyer buying from trust must happen on the same day. In order to avoid any confusion when the end buyer is getting financing lined up (because they will not see the name of the trust on title or tax records but will see the trustee on the
executed pa) i will tell the end buyers agent or the buyer that we have very RECENTLY deeded the property into a trust to avoid having liens put against the property before the closing and tell them that is why a
trustee executed the pa and is now in charge of managing the sale of the property. Although there is nothing wrong with it, if you have read any of my other posts you will know how I feel about this but, most agents dont understand real estate if it is not the most simple structure
and a lot of advanced investors dont even understand trusts so you want to keep things as simple to understand as possible for them to avoid confusion and having to over explain everything for an hour.
This is probably the most confusing part for people because they are used to hearing about “subject to” deals where they walk away with a deed and go to record it and then can go sell it when ever they want. Its a little different because of the seller’s lender’s guidelines in the short sale approval letter.
Hope that helps. let me know if you have anymore questions.

Ron did a longer more detailed article at this link for minnesota short sale

Ron wrote an article about the minnesota short sale process

This article was written by Mario about assignments for investing in real estate…

Mario is an agent who specializes in mn short sales

Your assignment shouldnt be an issue depending on how you word it with the lender. All you do is get the original offer accepted with the seller’s bank. after that is done, assign the contract to a new buyer and
that agreement is between you and the new buyer. That is not part of closing. MAKE the buyer pay you his fee up front. that is where things get messed up, if you are trying to get paid your assignment fee out of closing. Only deal with people who can actualy afford to do the deal, it will save you headaches in the end. Once again, have them pay you the
assignment fee and then contact the seller’s lender and tell them that you needed to change the name of the borrower because that buyer will not be able to perform. Dont lie and say their financing fell through or
anything like that because you always want to be honest. make it seem as though you are doing them a favor by finding a new buyer for them really fast with the Same terms, same close date, same net, just different borrower. Bet you $100 that they say “oh… ok”. have them send over the new acceptance letter. Be ready for the lender to request a new preapproval letter for the new borrower. Obviously the last guy didnt come through so they want to make sure the new guy can actually perform.  These mitigators are used to buyers financing falling through and they are thankful that they dont need to get an entirely new package approved from management because they have a million other deals they are working on. they may request a copy of the purchase agreement with the new borrowers name on it but that takes all of 2 mins to throw the new one on there.

As for land trusts… we use the regularly and when it comes to short sales, they need to be used a little differently. In a normal transaction most people have the sellers deed the house into the trust and leave them as beneficiaries until the day of close (to avoid due on sale claus and just to know that they are not hiding anything from their lender) and the day of closing will have the seller assign their beneficiary interests over to the buyer. at that time the 1st buyer goes to closing table and sells it to end buyer. with short sales, it is a little different because you are dealing with the sellers lender and then you need to remember that the seller can not recieve any proceeds. so in that case the house needs to stay in seller name until closing and then seller sells to trust, that you are the beneficiary of and then the trust sells it to end buyer. if the seller is ever beneficiary of the trust in a short sale, it will cause problems with the sellers lender because THE SELLER CANT GET ANY PROCEEDS.

If you just want to use the trust to assign the deal then someone before me was right. Get a purchase agreement accepted from the sellers lender with the trust being the buyer. You are the beneficiary of the trust. Then you go get an assignment contract to assign beneficiary interest in the trust not to assign the purchase agreement. Most likely you will keep yourself or a nuetral person as the trustee to keep things simple so at closing you or an attorney or neutral person still will sign for the trust. if you change trustee then you will need to do more paperwork and it is somewhat un-neccessary (cant spell).

Please make sure that you consult with your attorney about the simo close and land trusts. Laws in my state are different then yours and to make sure we are always doing things within the law, we do the closingswith an attorneys office instead of a normal title company. that way we know that we are doing things the right way.  Hope that stuff helps cuz my fingers are sore!

Thanks Mario for the great article, we have his future articles in the “Mario” category