Should a Homeowner Sign a Promissory Note or Let Their Property Go to Foreclosure?
Posted by Patrick Precourt in Business, Investment, Preforeclosure, Real EstateSep 3rd, 2009 | 4 responses
Letting a property go into foreclosure versus having a client sign a promissory note has always been a hot topic. Listen in as I go over why you have to be careful listening to the advice of some real estate so-called professionals who have it all wrong! This videos also covers the new FHA discount guidelines, what line item to put seller concessions on your HUD1 Settlement Statement, why some portfolio lenders are sitting on REO’s and much more. www.FridayCoffeeBreak.com. Visit www.FridayCoffeeBreak.com and www.ShortSaleDailyNews.com for more real estate specific videos and articles.
4 Responses to “Should a Homeowner Sign a Promissory Note or Let Their Property Go to Foreclosure?”
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About Me
Hi Pat and Bob,
This may not be the forum to ask this. I am curious about the flagship system and how it relates to the system (The retail shortsale system) I own now. I don’t have the funds to buy any other systems at this point. The process of short sales takes some time to implement, so the cash flow is a bit short. BTW, I do appreciate these Friday coffee breaks. Thanks
Jonathan
If that is a Fannie Mae requirement that the seller on contract match the seller on record,
how are so many people doing those one day double closings with transactional funding?
I love these Friday Coffee Breaks. I wish someone would type out what you say because you speak SO FAST that I’m sure I’m missing 75-80% of the good information. Aaaaggghhh!
By the way, wait till your girls have tons of homework in school, like in middle and high school. You won’t be so thrilled about school starting then, trust me. Because then it will mean that YOUR vacation is over, too. Plus, they have to get up and get to school at ungodly hours. Ridiculous!
Thanks,
Karen
Pat & Bob,
I would like to make a comment on this video. You mentioned that Bank of America will foreclose “them off” (wipe out) the PMI company if the homeowner doesn’t agree to the MI company’s prom note request. I am not sure if it’s just the way you explained it or what, but this is not true. In the situation of the person asking the question in your video about this, Bank of America would typically not go against their MI company. If the lender forecloses on the property, they will collect a percentage of the loan from the MI company. So the lender wins either way. The MI usually just wants to get something back from the homeowner since they’re taking a loss either way. That is when they ask for a prom note. In many cases, the MI will require some sort of prom note from the seller in order to approve the short sale. This can also be negotiated. The way you explained it, it sounded like you were saying that the lender wipes out the MI.
You also made a comment in your video summary:
“…be careful listening to the advice of some real estate so-called professionals who have it all wrong!”
I specialize in short sales and I know much more about this process than most people that think they do. This comment makes people like me sound bad for no reason. I have been focusing on short sales for a while and have an extremely high closing ratio. I do agree that there are many agents and investors out there that think they know what they are doing and they don’t, however there are a few like me that truly are an expert. I give excellent advice to my clients and have helped many agents succeed with short sales as well.