Short Sale Video Tip # 1
Feb 16th, 2008 | By cboatright | Category: Short Sale Video
We just closed on another short sale with HomeQ! However, we LOST some of the fees that we would have got approved on the HUD1 if we labeled them differently. Why? Well… this short, corny, very amateur video explains it. My goal is to start releasing more short video tips every few days to help other short sale investors. I hope you take this tip and use it. It can save you THOUSANDS OF DOLLARS! Remember… be a servant, Cory Boatright Loss Mitigation Specialist www.ShortSaleFundamentals.com/blog P.S. One of my students recently closed on a short sale deal and made $96,0000! Watch for an interview I will schedule with him soon.
This is some text prior to the author information. You can change this text from the admin section of WP-Gravatar To change this standard text, you have to enter some information about your self in the Dashboard -> Users -> Your Profile box. 
(No Ratings Yet)
Loading ...
Print This Post
That was VERY Good..
Thanks Sam
What did that mistake cost you?
Great tip, as always.
Thank you very much!
Thanks for this tip, you just saved us thousands…though on behalf of your loss .
We are assigning a shortsale to someone far far away and finding a way to working our assignment fee as a loss mitigation and, to prevent any conflict, working in a way for the realtor who will move the property for us ethically. We were not sure how to list it on the HUD1…but now we know what NOT to list it as.
We’ll post once we figure it out and see how it goes.
Thanks for writing this. I was just in a conversation with someone about a short sale we’re working on (hmm, I wonder whom) discussing this exact issue before we read your tip. Extremely helpful!
I haven’t figure it out who you are working with Darren…(wink wink). Since it’s all behind asset protection corporations, land trusts, assignment of beneficiary, and much much more that we learned from Cory’s system.
This did just save us thousands!
I believe I am under duress to sign a non-disclosure agreement. You WILL be hearing from my lawyer.
Cory,
Ok, so if you submit the fee as a loss mitigation fee and are asked specifically what that means, would the following likely qualify: consulting with the Realtor to determine a realistic price, arranging for BPO/Appraisal, Negotiation with Lender for short sale approval on behalf of seller. And if this is ok who is it different from a fee identified as a “short sale fee”. If these are not acceptable services, what would qualify for a loss mitigation fee.
Hi M Davis,
The issue is more “in your face” labels instead of correct type of fees. For example if I list “short sale fee” on the HUD1. The lender immediately identifies that with a fee collected for doing a short sale. However If I list my company and put “services rendered” they may not even ask about that. If they do. You can state those fees are for loss mitigation consulting. Again… the point being avoid the word “short sale” on the HUD1. Essentially you are collecting a fee for being a transaction engineer, but there is a right and wrong way of listing that on the HUD1.
I have always listed my fees under my personal name and company name. When I am questioned, I will usually say that the personal name collects a fee for mitigating, consulting, setting up the sale, paperwork, market price analysis etc. When questioned about the company name, I inform the lender that the company is the buyer’s network and also the caretaker network so that the property is not empty. How I list my fees is determined by the type of sale. If agent or agents are involved, my fees are much lower and sometimes I’ll negotiate them to push a sale through to closing. Most of my short sale transactions are done without agents involved. On those, I pull 6-8%. I always request much more so I have negotiating room and still get what I want.