SO YOU’RE THINKING ABOUT WORKING WITH AN INVESTOR? Courtesy of LIVEforeclosureFREE.com
Forget all those horror stories you’ve heard about investors. For centuries we’ve heard them about doctors and lawyers too but that doesn’t mean you will never use one of these professionals when you need them. So eliminate the fear by educating yourself and taking the appropriate action steps to find and focus on what you're looking for. We give no legal advice, so check with your legal council should you have any questions about this information. I know outstanding people who are investors and some are even close personal friends of mine. None of them would ever dream of taking advantage of anyone. That doesn’t mean deceitful investors aren’t out there, I’m just suggesting that you keep your mind open and give the good ones a break. If you are considering working with an investor on selling your home through a short sale, here are some tips for you. 1. Do not list with a Realtor until you speak with the investor you are considering working with. Most investors want to deal directly with the bank themselves. 2. Be sure their company is legitimate. To know what types of interviewing questions to ask the investor, sign up for our FREE valuable resources on our website homepage. It is your right to interview them! 3. Check out their references if they have supplied any. If you were going to drop your kids off at someone's house wouldn't you want to know ahead of time how they would care for them? Call the references they supply you with. 4. If you are in need of a short sale, (asking the bank for a discount), because you are over-leveraged, (owing more than the house is worth), then you will want to know how many short sales they have done and whether or not they were successful. 5. Ask the investor to put the proper wording into the contract for the purchase of your home so that the bank will agree to waive the right to any deficiency judgment against you as the seller. THIS IS VERY IMPORTANT to minimize the risk of the IRS taxing you on the amount
that was discounted through the negotiation process. Check out this link for more information http://www.irs.gov/irs/article/0,,id=179073,00.html 6. Be aware of the documents needed. You might be asked by the investor to complete the following documentation: o Authorization to Release o Bank Contact Information (Phone, Fax, Account Rep) o Purchase and Sales Contract o Hardship letter (in your own words) o Financial Statement o W2’s or 2 Years Tax Returns o 2 Most recent bank statements o 2 most recent pay stubs o Documents supporting hardship (credit card debt, utilities, car) o Listing Agreement (If applicable) This list is not meant to scare or overwhelm you. It is intended to help you be more aware of what is expected of you in the event you do decide to sell to an investor before the possibility of a foreclosure exists. Our web site is new so we are currently working on building our investor list. Finding an investor that is competent in short sales is like finding a doctor who specializes in allergies so building a large list might take time. We will do our best to provide the most ethical companies for you to contact. However, remember that our company is not liable for the outcome of your venture in any way. So dig in and get your house sold if that is what you wish to do. Don’t allow fear to rule your choices. You have the interviewing questions, you know what documents you’ll need to work on, and you even know what to put into the contract to protect yourself. So go for it! You can do it!!
Kellie These articles are copy righted protected and written to help anyone seeking information to improve their situations, add personal growth to their list of priorities or coach someone they care about. I encourage you to share them, but please make certain they remain in their full and complete version when you do. Thanks!
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