Last Thursday while I was talking to one of my Gold coaching students on one of our coaching calls, he asked me who the short sale lenders are that he should be working with. I thought this would be helpful for your short sale biz as well so I posted it here for ya.

Here is the million dollar question that my gold student had about the lenders right now:

The Question:
Who are the good lenders to work with on Short Sales?
Can you post a list of the good and bad lenders?

My Answer:
Banks that are good to work with now may not be good to work with months from now and banks that are bad to work with now may not be bad to work with months from now. Because we negotiate a lot of deals for our students we are always keeping our hand on the pulse of the lenders.

I don’t recommend avoiding any lenders because all lenders will take a short sale if you justify your case and prove to them that it’s in their best interest to take the discount.

A lot of it comes down to the amount of contacts that you have inside the bank and how good of a rapport you have with the loss mitigators that you have relationships with at each lender. If you don’t know any reps in any banks and are trying get your deals done starting with customer service, your experience could be very different.

Here is a quick crib sheet of what some of the lenders are doing.

I went in to my loss mitigation department and asked one of my mitigators that wasn’t on the phone with a bank and this is what she rattled off the top of her head.

The lenders are changing so fast, this may not be the same list a month from now or a week from now. Some lenders are hiring people in their default departments as fast as they can and some lenders are being acquired by other banks. Some lenders suspend short sale negotiations during their merger process.

This is inside information from my loss mitigation department.
You can’t get better information than this.

Favorable Short Sale Lenders

1. Home Q - they approve quickly
2. WAMU- they also approve quickly
3 American Home, they approve, with only minimal wait.
4. Citi Financial, move very quickly with their files.
5. wells Fargo, they approve, if the no’s are right, they really stand behind the BPO
6. Accredited, they really work with me, approve quickly
7. ASC approves files, if you don’t mind waiting, they are trying to move quicker with the files, they have hired more Loss Mitigators so they are moving alot quicker that they used too.
8. Aurora, they do full appraisal’s, but will note repairs.

Short Sale Lenders I DON’T LIKE

1. Bank Of America, they will only accept 90% of market value, will only do a full appraisal, do not take into consideration any repairs.
2. Suntrust
3. FIRST FRANKLIN they hate our kind, & have no problem telling us so!!!
4. GMAC, they do approve, but if they are the 2nd. they do not walk away, would rather go to auction.
5. Ocwen
6. Indymac, they want to charge $300.00 processing fee.
7. Wacovia, they would rather go to auction, than take a reduction.
8. EMC they will stand behind their BPO, even when it does not make sense, you can send them as many comps as you would like proving your case, it does not matter.
9. Carrington Mortgage – they have their head up their #$$.

THE LENDERS WHO TAKE THE SHORTEST TIME.

1. Citi Financial, had an approval in less than 2 months.
2. Home Q moves quickly.
3. Wamu, once the bpo is back, they move quickly
4. Wells Fargo

ASC takes the longest, they have been the slowest lender yet, but now they have more staff, I believe that will change.

This is why it’s important to stay up to date on what’s happening with lenders on a regular basis.

We are in the Best Real Estate Investing Market than we have ever seen in our lifetimes.

Go Here to get information on The Foreclosure Wealth Seminar in November 2008:

Its pretty easy to find contractors to give you estimates these days because they aren’t very busy and they need work $$$.

First, you need to go and look in the places these guys would advertise to get new clients.

The obvious places are:

The yellow pages

The Newspaper

Your Free Weekly newspaper (Pennysaver, Thrifty Nickel, The Flyer, etc)

The not so obvious place to look is Craiglist.org

Go to Craiglslist and click on

Your State

And

Your City

Then click on Services

Here is an example of where this page is in my area.

http://tampa.craigslist.org/bbb/

(this is also a great place to find people to help you with your deals ie: House cleaners, painters, handymen, sign hangers for your for sale signs, etc)

You will see many services here and you’ll find contractors advertising for new clients.

You are their next New Client.

Pick a few ads you like and call them to setup an appointment to give you an estimate.

Make sure you tell them you want to update the house to make it look like it’s in “like new” condition. Tell them to find anything they can that’s wrong with the house and make a big deal out of it.

There are 2 ways to handle paying a contractor for the estimate.

Option A

You can be cheap and try to get the estimate for free pretending that you are actually going to use them to do that work. (you are not). This will result in a very short relationship and you will be looking for a new contractor soon.

A Contractor is not going to continue to give you free estimates without ever be awarding any of the jobs.

Option B

Or you can establish a long term relationship with the Contractor, tell them exactly why you need the estimate and that you want it to come in on the high side and Negotiate a flat fee for providing the estimate every time you need one. This will make your life so much easier by having a contractor on your team you can rely on to get these done for you when you need them done quickly.

I recommend you go with Option B

The licensed contractor estimate is a critical part of your short sale package and your BPO package.

Just get it done and you will be happen with the results of your short sales.

Committed to Your Extreme Success,

D.C. Fawcett

The Business Building Coach to the Foreclosure Industry

Leave your comments Below:

I was at a marketing conference a few weeks ago with Gene Simmons and during his presentation he said that “this is the time everyone should be buying real estate because you can get it for pennies on the dollar.’

See Gene is a contrarian like me. When everyone is selling you should be buying.

We are in the best foreclosure investing market that we may see in our lifetime. This foreclosure boom is not going to last forever though. In five years we’ll be back to half way normal. We’ll still have foreclosures but the vast opportunities we have now will be gone.

Gene had an awesome presentation and is a brilliant business man. Did you know is behind the whole “I am Indy” campaign? He actually owns the marketing company that promotes the indy car race.

Gene Simmons Says we are in the best Real Estate Investing Market we may see in our lifetime.

BTW, Today I received all of the home study courses I bought last week. I was surprised at how basic these parenting books and courses are. Who do they make these things for? I was looking for something that I could use to help Hannah, our 2 year old, skip a few grades.

Anyway, my buddy Arcadio Diaz Recommended I take her to Kumon to start learning reading and Math so that’s the plan. He told me his Daughters are already a grade level past everyone else in their class. We started watching the Spanish home study course and they’re pretty cool. She’s already saying the words. And it beats watching Barney. i can;t figure out why kids like that purple dinosaur so much.

Talk to you tomorrow.

The Hardest Working Foreclosure Coach on the Planet,

D.C.

Are you using social networking sites like myspace, facebook, and linkin for your real estate investing business? If you’re not, you should be.

Well, there’s a whole group of social networking sites specifically for real estate that can give you some great information and you can connect with local professionals for your dream team. you can easily find, appraisers, mortgage brokers, attorneys, title companies, Realtors, all at the click of your mouse.

These sites offer you a great way FOR FREE to get leads for short sales, leads for workout clients, leads to sell your properties and network with other in investors. You can get your own webpage on these sites for free.

Here are the sites you should be on and while I’m at it, I’m going to give you the direct link to my page on these sites so you can connect to me.

RealEstateInvestor.com Real Estate Network

ActiveRain Real Estate Network

FaceBook General Social Networking

WannaNetwork Online Real Estate Community

Lemme think, any more? that should be good for now.

Talk Soon

D.C.