Subscribe via RSS Feed Connect with me on LinkedIn

Category: Foreclosure Short Sale

Texas – Produce The Note Challenges

Foreclosure laws vary from state to state, and some states are more in support of lenders than others.
In Texas for example, the time frame for filing a Notice of Trustee Sale is only 21 days prior to the sale, and this is the first public record filing in a non-judicial foreclosure required in Texas.
So also, in Texas the lender is generally not required to “produce the note” in order to show that its claim is legitimate and it has a right to foreclose.
I found this interesting opinion by a Texas law firm who apparently markets its services to lenders who are being challenged by borrowers demands to “produce the note“.
My comment is this:
The “produce the note” strategy is only the surface effect of a much deeper running concern.
Typically, a lender or loan servicer produces photocopies of paperwork that
1. Does NOT mention the lender or loan servicer in any principal role,
2. Does NOT link the lender or loan servicer to a principal role of the note,
3. Does NOT show that the lender or loan servicer is authorized by a principal of the note.
Since the original note has real value as a negotiable instrument in exchange for full payoff, accepting copies of the original is like taking the copy of a personal check that’s executed by someone else.
Nobody in their right mind would do that if they fully understood the procedure – not even in Texas.

Please let me know your opinion or if you’ve had any experiences or challenges that are related.


July 30, 2010 | 1 comment | View Post

How to Get Killer Short Sale Comps

How cool would it be if you could know upfront and in advance what price the lender will accept on your short sale offer?

That’s exactly what you get to know if you follow this killer short sale strategy (click play to watch…)

Save 50% on GotForeclsoure Short Sale Secrets – Limited Time Special Offer

Are you struggling with short sales? One of the biggest issues is knowing what price the lender might accept.

There is an easy way to find out!

Every day in your area, dozens of properties are sold (or not sold) by lenders at trustee sales or foreclosure sales.

Many of these properties ended up at the sale because of failed short sale negotiations.

Here is the “Ah-Ha” moment: The same lender who was stone walling you and not letting you know what price they would really go for, reveals the price right here – in the opening bid amount of the trustee sale or foreclosure sale!

Now that the volume of foreclosure sales is so high, the opening bid amounts of comparable properties are true short sale and wholesale comps. Use them to add to your powerful arsenal of short sale negotiation weapons.

This powerful strategy – and many more are inside GotForeclosure’s Short Sale Secrets – now available for a limited time at 50% off – click here for more!

Questions or comments? Leave them below and get more exposure for your own real estate investing!


January 21, 2010 | 0 comments | View Post

Lake Los Angeles Homes for Sale

I had my own “shock and awe” today, when I looked atCanon 113
homes for sale in Lake Los Angeles, and found a home that was
right next door to the very first foreclosure deal that I ever bought.

The house that I bought was a 3 bedroom 2 bath ranch on half an acre
on 174th St in Lake Los Angeles.

Back then when I got started I did quite a few deals in that area and
every one of them has a unique story of trials, challenges, and
eventual success.

Going back to my beginnings, I notice one huge difference:

Urgency!

Even though this happened in a “hot” sellers market that is by
no means comparable to what’s going on today, all the deals that
I did at first were taking some time.

This first foreclosure ever for me – the seller called me 7 days before the
trustee sale and asked me if I could still do anything…

I was a total “rookie” then, but hey, there weren’t too many callers
that were pretty much out of options then.

And in spite of my “total rookie” status I made it happen! I made
arrangements with the foreclosing lender to come to the “cryer”
at the trustee sale, and hand him a cashier’s check for about $9,000
to bring the loan current.

I thought “Wow, if I can pull that off that I snap this property
away from under the noses of 65 eager trustee sale bidders,
that’d be something!”

And sure enough – that’s what I did.

So, yes, there was that urgency to GET the deal, but there was
no urgency at all in selling. Sure, I was totally nervous about
getting the house moved, and it was a 2-hour drive one way
for me to get to it…

But it wasn’t like I (or anybody else) EXPECTED to get any
deal sold within a few days! – Even though it was a “hot sellers market”!

Why then is it that everybody expects this now – in a slow buyers market?

Yes, it’s true – many deals have to be validated by having eager “wholesale
buyers” swamp your web site the second you send out an email, but I think that
many “rookie” and seasoned investors alike are cheating themselves
for a lot of gains by being too impatient.

Lake Los Angeles homes for sale are now MLS listed for half the price that
I paid for my first foreclosure. Do you really think it is hard to make
these deals profitable?

Here’s a solution: Do your homework!

Watch for tomorrow’s post on this blog:
“Top 5 Must-Dos in Real Estate Market Research”

Download your copy of the “Shock And Awe Real Estate Report“:spread3

** How to GET UNSTUCK and rapidly accelerate the
growth of your business…

** How to get clear and focus only on the most
results-oriented activities…

** How you can connect to a network of proven
50/50 investment partners who do deals with you
again… and again… and again…

** And FINALLY… how to avoid the 8 common
mistakes that cause 92% of investors to fail…


September 23, 2009 | 1 comment | View Post

Short Sale Commission Squeeze

This just in from the Short Sale Trenches…

In several of our recent Short Sale Negotiations the lenders have been trying to squeeze the commissions paid to real estate agents on the short sale out of the transaction and HUD-1.

In particular, when we were buying under an LLC or other entity that was obviously an investor buyer, the lender tried to refuse to pay any commission based on the argument that “the agent did not do any marketing for the property”.

Nice try!

Here’s how we countered and got the commission approved: We pointed out to the short sale lender that real estate commissions are not “marketing fees”, but they are paid for representing the buyer and/or seller as a licensed real estate agent.

Since there are serious liability issues attached to agents representation, we asked the lender to check with the board of realtors and the state association of realtors about the liability they are getting themselves into when they force the seller and/or buyer in a short sale transaction to be without agents representation.

As I mentioned before, we got the agents commission promptly reinserted into the HUD-1 and approved for the short sale.

Are you running into similar issues with ridiculous demands by short sale lenders?

I’d like to know about that! Please feel free to comment on this story and share your own experiences below.

Talk soon!

Thomas Bartke


September 10, 2009 | 12 comments | View Post