I recently completed the sale of two houses. They are one mile apart and had comparable market values. However, beyond these two similarities, the two deals were very different from each other. Let me discuss in more detail the similarities and differences between the two offers.

My partner and I purchased two properties from families who were in preforeclosure. Cables for each property came from letters sent to families who have recently received notices of default. The family of one answered me within 24 hours of receiving my first letter. I met them within two hours of receiving your phone call and signed a contract with them in the place to buy your house. The other family I said after receiving the letter from my room. After a few missed appointments and two meetings we signed a contract to buy a house. With each house we did a “kitchen table” type closing within a couple of days of signing the contract. Both homes were purchased “subject to” existing financing is in place. The security deposit for each house was given a dollar.

The first-

We began marketing the first house by advertising in the newspaper at its market value and putting signs in the neighborhood and nearby intersections. We had a verbal agreement with the seller that would remove all their belongings from the house in two weeks. The house was very dirty and filthy. When the seller made no obvious progress the house went ahead with the marketing price and lower sales. After two weeks he had received a few phone calls from prospects generally not interested.

At this point, we reduced the asking price further and changed our signs to inform the public that owner financing was available. At that time, we started receiving phone calls from prospects interested anymore. Our owner financed terms and the price below the market value we apply separately for hundreds of realtor represented homes that needed bank financing.

With the second house, purchased one month after the first, which immediately sold with owner financing. When we bought the house as it is stipulated in the contract that the seller had to vacate the property within two weeks or a fee not to. The seller agreed and cooperative and moved quickly to remove their belongings from the house. The seller of the first house was still dragging its feet and the house was always a mess.

Shortly after the change in the marketing of the first house, he received an offer from a very interested buyer. This house was really ideal for this family and help them to enter. He offered to buy the bank financing and we agreed to sell them. There was still time before the sale to close the sale with bank financing.

He warned that the buyer must apply for a loan other than FHA because it did not have the title long enough for the FHA to approve a new loan. In case you do not know, FHA recently changed a rule that now requires a property to be in the title of at least 90 days before approving a new loan. So I guess what the buyer?

Right. Your mortgage broker and a real estate agent led to an FHA loan program. Fortunately, the buyer qualified for a good program and FNMA. This is provided in the contract that the buyer must obtain approval for the FHA program within 5 days or drop the program from the FHA and to proceed with the FNMA program. The officer and the officer needs at this time that provided in writing, and four days later, the agent informed me that the buyer would not be approved by the FHA and were proceeding with the program FNMA.

The next hurdle was the home inspection. The inspection resulted in asking several hundreds of dollars in repairs that we agreed to do so. The repairs took two weeks. While repairs were being ordered an appraisal of the property. Appraisers in our area are eight weeks late, but we knew an appraiser who would conduct an assessment within a week for 150% of its normal rate. Of course they can not afford to be able to wait eight weeks, so we bought the expensive appraisal.

The next hurdle was to order a preliminary title search, which showed a clear title, thankfully. The previous owner did not have a topographic map, so I had to order a set of expensive investigative records of the region.

Now that the obstacles to closing were nearly erased and we were near the hard deadline, he still had a problem with the previous seller. They had moved a few things around the house and the house was still very messy. They moved in time but not fast enough to be out of the house before the sale. Their lack of cooperation and inability to follow up their verbal promises made it clear why he had neglected his home and let it go to foreclosure.

Since the utilities were turned off and the seller no longer lived in the house who had the right to declare their property as abandoned property and I advised that he would move the items to them. My partner and I spent a day boxing and bagging of personal property from the seller, and reluctantly picked up the boxes and bags until the day before closing. Thank you God!

Second Deal

Now, however, events with the second property process much smoother. We bought the house, found a buyer for a period of eight days, and concluded the sale eight days later.

We decided to sell the second home in a contract or mortgage land wrapped with the current funding is in place. Also decide to establish that the house had to be refinanced within two years or be expelled back to us. We did it to protect the interests of the previous seller in the underlying financing. I do not want to go for a long period of time.

Our “finance” signage has attracted several buyers quickly. We needed a down payment large enough to “cure” the loan, ie, to pay the arrears and current attorney fees. We found a buyer who was eager enough cash and a good income but not enough time in the region to have a high credit rating. Understood the concept of housing finance and mortgage base and we negotiated a contract with him at Starbucks. Negotiating a sale price by offering a larger down payment. Basically, we were able to immediately receive all back-end “profit that would have paid for us in two years, when he refinanced. We received this front in exchange for a lower sales price. It was a fair exchange for both parties.