Harder for Investors and No-Investors to purchase property

There has been a decrease in REO's due to more properties being sold at auction. These properties are mostly bought by investors who have the cash on hand to purchase them at the court house steps. Investors have reported that the lenders are aggressively pricing the opening bids at the auction to attract more bidders. Typically the lender would start the opening bid at what is owed on the property however; due to the costly nature of a foreclosure the lenders are trying to keep these properties off their books.




In addition to avoid foreclosure the lenders are pushing for homeowners to short sale their property. We are going to see alot more short sales come on the market and a continuous decline in REOS. What does this mean for investors? Most lenders agreeing to short sale are requiring" No-Flip" Affidavits to be signed by all buyers. Most investors want to turn properties in 30 days. With the increase in short sales and decrease in foreclosures I can see this as a potential problem.



Investors typically drive prices down while the short sale lender wants the highest and best offer with the ability to show them the properties were marketed for a substantial amount of time. If these properties are being re- sold significantly higher than what they were purchased at 30 days later and a "No-Flip" Affidavit was signed, that puts all parties a risk. The decrease in REO's are not easy on the non-investor either. Most home buyers do not have the cash to buy a property at the auction.



Short sales are going to become the primary focus of Investors and non-investors purchasing property. Working with investors are going to be tougher with the new forms the lenders require to be signed. Typically the" No-Flip"Affidavit is an agreement stating that the buyers and buyers agent are not involved in a profit scheme to flip the property and there are no current agreements written or otherwise, to immediately re-sell the property at a higher price and that no transactions of this nature will take place WITHIN 90 DAYS of the date of closing the short sale transaction. If there is knowledge that the home will be re-sold after the 90 day mark, it is my opinion that the short sale lender should be made aware and if possible get it in writing that it is acceptable.



For the non-investor purchasing a short sale it would be in the best interest of all parties that the property is the home the buyer truly wants and the buyers agent sets expectation with the buyer giving proper time lines. A homeowner going through a short sale may have a sale date and any hesitancy removing contingencies or putting in multiple offers can put the homeowner at risk of foreclosure.



With the increase of legal action that has been taken against agents who may or may not have operated above board in the short sale lenders eyes; non of us can afford to take risks in any fashion. The more dark allies that people choose to go down the more eyes that will be upon us all. Though this is going to be a stressful time, I believe we can work through any changes and obstacles that come our way.




(Quote) Observe constantly that all things take place by change, and accustom thyself to consider that the nature of the Universe loves nothing so much as to change the things which are, and to make new things like them.

"Marcus Aurelius"


REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?







Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.



LOTUS REALTY GROUP



PROFESSIONAL SHORT SALE NEGOTIATORS







At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...


400 S. Sierra Ave. Ste.102 Solana Beach, CA 92075



858-764-7300



http://www.lotusrealtygroup.com

Create a habit of discipline

( Quote) “Part of being a winner is knowing when enough is enough.

Sometimes you have to give up the fight and walk away, and move on to something that's more productive.” Donald Trump



I think one of the hardest things in life is to change old beliefs and patterns or ways of being in general in order to move forward and achieve our goals. We take the things we have learned as a child and recreate them over and over again. If these were all positive patterns that would be great and everyone would be successful; unfortunately that is not the case for everyone. Some of us may get lucky and be gifted with unimaginable talent and discipline but a majority of us typically go through some form of a hardship that teaches us what our unimaginable talents are therefore creating an act of discipline for our lives to nurture those talents and allow them grow.




I am going on my fourth year in business. When I look back at where I came from to where I am now , those are two very different people. I had to truly fight to let go of some of those things that didn't serve me anymore. I wanted change. I wanted success, But most importantly I wanted freedom. Freedom from the old tapes so I could fly. I had to create that habit of discipline everyday. I had to create a schedule and follow it religiously and then some. I had to have the desire, the passion, the drive and the commitment to the path that I had chosen. One thing I was chatting to my partner about today is after all this time you realize that the tapes will still play, nothing changes really. Its the decision you make every day to not listen to them so you are able to keep moving forward and accomplish what you need to accomplish.



I am in process of interviewing agents to join Lotus Realty Group. I remember when I started my business I was a bit nervous. I was originally with Keller Williams and I really liked it there however; my need was to create my own company. The nervousness I had was due to the fact I was starting a new name that no one knew about yet. The old tapes were playing strong. I am really glad that I did not listen because over 3 years later we have closed over 150 short sale transactions and provided training to many agents in this market and people do know who we are. I am very proud of that. The bottom line is; it does not matter where you hang your hat. If you have the desire, the passion, the drive and the commitment you will be successful no matter where you go. Some of the greatest businesses in the world started in someones garage.



We do offer a wide range of support, training and a competitive commission structure along with a warm environment. If you would like more details please contact Erik Orezechowski at 760-529-1732 or by email Erik@lotusrealtygroup.com for an interview.




At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...