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What is your mission at ShortSalePackage.com?
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To help pre-foreclosure investors multiply profits by providing hands-off debt negotiation services.
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What type of discounts do you achieve for investors?
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It is largely dependent on the condition and attractiveness of the property. We are experts at using negotiation
techniques to achieve the lowest possible discount; however, below is a list of general guidelines:
- The typical discount on a home in great condition and in a good location (a "pretty" house) is 10% to 15% of the value.
- 15% to 30% discounts can be achieved on properties with a marginal level of repairs or problems.
- Discounts of greater than 30% can be achieved on "ugly houses" with the proper justification. We have achieved discounts ranging from 20% to 60% of the ARV (after repair value) on ugly houses.
NOTE: These are only general guidelines. Every Short Sale is different and there are many factors involved which determine the discount that we can obtain. Some factors we can control or impact and others we can't.
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What do I get when I sign up for your service?
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- The Service: The ability to send in completed short sale packages for negotiation by our trained debt negotiators. The membership will last for two years or up to 100 short sale packages (which ever comes first).
- The Online Track System: This online system will allow you to view your deals as they progress. Every time a phone call is made, a fax is sent, or an offer is accepted, you will know about it.
- Documents: You will receive all of the documents you need in order to submit deals to us.
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What is the "Golden Number"?
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This is the highest price that will still make the property a deal for you. This is the most important number that you need to figure out. If your number is too high, you could overpay for the property. If your number is too low, you could lose out on getting the deal when you could have gone a little higher. We will stop negotiating if the bank surpasses your "Golden Number". You should figure out this number by finding out the going rate for other distressed properties in the area.
This is not the number we start negotiations at. We will make the lowest possible offer according to our expertise and attempt to obtain the lowest price possible. We will work our way up and stop negotiating if we surpass your "Golden Number".
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Can other investors submit deals to you using my membership?
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No. Your membership only allows you to submit deals. Anyone who is found to have other people besides themselves and those in their business submitting deals under their account will instantly lose all account privileges, and work on all deals in the pipeline will be stopped.
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Will you negotiate other liens besides mortgages?
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Yes, we will negotiate other liens.
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What kind of success do you have with deals?
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We try not to cite a specific number or percentage. As anyone who has done Short Sales will tell you, it can be very hit or miss. Short Sales can create huge profits with great discounts. But sometimes, no matter how much sense it makes for the banks to work with us, they won't. Limiting the types of deals we accept increases our rate of success, but there's no guarantee.
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How long does the process take for the deal to close?
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The process extends from the time we receive your complete Short Sale package until the time you close the deal. Although we greatly influence this process, there are too many moving parts and variables, as well as a great dependency on the lender, to be able to make any definite promises. In the past, this process has taken anywhere from two to eight months, and your deal could fall anywhere in between. You should not promise any particular time frames to your seller, nor should you expect them yourself.
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What exit strategies do your investors use and do you help with the exit strategy?
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Below is a list of commonly used exit strategies:
- "Flip" the property - Make repairs and immediately sell it for profit.
- Hold as a rental property - Create rental income.
- Lease Purchase the property - Find a renter who can qualify to purchase the property six months to a year later.
- Simultaneous Closing - The property is purchased by you and sold to another buyer simultaneously. The difference between the Short Sale price and the price to your buyer is your profit. This is the most difficult exit strategy to achieve. We do not help you find a buyer for simultaneous closings. It is up to you to find the buyer.
Also, it is your responsibility to have all financing in place at the time of closing.
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What are my responsibilities in the transaction?
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- Do marketing for pre-foreclosure prospects
- Screen prospects to find out which are deals worth going after.
- Manage the homeowner's expectations.
- Manage the Realtor's expectations, if the property is listed.
- Collect the paperwork.
- Submit the paperwork.
- Get a title report.
- Get comps to send in with deal.
- Find an inspector to get a repair list and send us justification for the short sale (repair estimates, photos showing repairs, etc.).
- Meet the BPO / appraisal agent and influence the outcome with the appropriate variables.
- Figure out your exit strategy.
- Find a closing company.
- Close the deal.
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What are ShortSalePackage.com's responsibilities?
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- Decide if the deal qualifies.
- Submit short sale package to lender.
- Handle all communication with the lender.
- Send all faxes to the lender.
- Request for a BPO.
- Review the offer and schedule BPOs for the property.
- Negotiate with the lender using our proven techniques.
- Negotiate any junior liens.
- Note all activity in the online tracking system.
- Get an approval letter.
- Help you get closing instructions over to your title company or closing agent.
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What are your requirements for the deals that I submit?
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- Deal must be submitted at least 15 days before the foreclosure sale date.
- No deals from investors in foreclosure with multiple properties.
- No mortgages less than 18 months old.
- Property must be at least 30 days behind in payments.
- Your "Golden Number" has to be in the realm of possibility and proper justification must be included.
- If the client is in bankruptcy, we must receive a dismissal letter or proof of discharge before negotiating the Short Sale.
- Deals must be complete and have all appropriate documents signed and completed.
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Can you do multi units or commercial properties?
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Not right now. Just focusing on single family homes.
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What happens if my deal doesn't meet your qualifications?
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You can get our opinion on what route to take or you can decide to negotiate the deal yourself.
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What happens if you reach the "Golden Number"?
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Once we achieve the "Golden Number" (or better than the "Golden Number"), we have accomplished our goal. We will notify you immediately and your credit card on record will be charged an "Approval Fee".
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What happens if you don't reach the "Golden Number"?
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If we don't reach the number, you have two choices. You can do nothing and will not incur a fee, or you can choose to go with the number we were able to get and pay the Approval Fee. For instance, if you have a house that you wanted for $200,000, but we were only able to get the bank to accept $210,000, you have to decide if you want to move forward or not.
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Do you negotiate IRS liens?
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Yes and no. We will try to have an IRS lien removed or released from a property.
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Can you do deals all over the country?
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Yes, we can do deals all over the country. However, depending on the state you live in, certain procedures may differ. There are judicial states and non-judicial states. These differences change the time frames of the whole foreclosure process from start to finish.
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What documents do I need to submit in the short sale package?
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- Short Sale Work Order (form provided by us) - Contains the "Golden Number" and other information.
- Property Information Form (form provided by us).
- Authorization to Release Information Form (form provided by us).
- Purchase and Sale Agreement with you as the buyer.
- A loan pre-approval letter or proof of funds to purchase the property.
- A recent mortgage statement from the mortgage company or financial institution for all mortgages involved (1st mortgage, 2nd mortgage, etc.).
- Two years of W2 forms or Schedule C forms, if self employed from the homeowner.
- Last two bank statements from the homeowner.
- Last two pay check stubs from the homeowner.
- A "Financial Information Form" completed by the borrower and co-borrower on the mortgages.
- A copy of bankruptcy discharge or filing information (if applicable) from the homeowner.
- A Hardship Letter - A brief one page statement (hand written or typed) signed by the homeowner detailing the reasons why the mortgage payments were not paid.
- Lender specific documents - Some lenders require use of their documents. We will obtain these documents from the lender to be forwarded by you to the homeowner for completion. In some cases, the
lender will send these documents directly to the homeowner. It is your responsibility to ensure that the documents are completed and delivered to us.
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What happens if you negotiate a deal for me and hit the "Golden Number", but I can't close the deal?
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This is not a problem unless it comes to a point that it is clear that you are not able to close any (or a very small percentage) of your
deals. If it reaches that point, your membership may be cancelled. What makes this business worthwhile for ShortSalePackage.com is closing deals.
Note: We have never had to cancel an account for this reason. Most investors will stop submitting deals and paying Approval Fees if they are unable to close
a profitable number of their deals.
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What guarantees of success do you make on the deals I send to you?
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We make no guarantees. Although we are very confident that we have the best Short Sale debt negotiation in the industry, there are many variables. Many of them are out of our control, and some are even based on your abilities, including influencing the BPO and closing.
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What is the Online Short Sale Tracking System and why is it so important?
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The tracking system allows you to view all activity related to your deals. Simply by signing into the system, you will know the status of your deals without needing to pick up the phone, send emails, etc. It also allows you to interact directly with the Short Sale negotiator handling your deals
by allowing you to enter notes and comments into the system. If you are comparison shopping for a Short Sale negotiation company, our tracking system should be a key factor in your decision. Without a tracking system,
you have no way of knowing if your deals are actually being worked or if a valid attempt is being made to get your deals approved!
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How often is it updated?
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The tracking system is a real-time system and is updated immediately after a new action occurs. Notes containing new activity will be available online for your immediate viewing.
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Do I need to be good with computers?
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No. If you can check email, you have the skills to be able to do everything with us online.
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Why should I take action now if I want to do this?
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All of the variables are in place to build wealth using Short Sales as an investment method. The foreclosure rates are at all time highs nationwide and
the lenders are taking a major beating right now.
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What's the process for becoming a member?
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- Read all of our FAQs.
- Sign our Membership agreement.
- Pay the Membership fee by clicking the "Sign Up" link.
- Get to work finding deals and making money!
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What is your fee structure and do you offer a money back guarantee?
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Fee
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Description
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Amount
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| Membership Fee |
The Membership Fee covers a 2 year time period up to 100 deals. We offer a 30 day money back guarantee on the Membership Fee. If you are
dissatisfied or cancel for any reason during the first 30 days, the Membership Fee will be refunded. |
$3,000 |
| Approval Fee |
The Approval Fee is the fee paid when we negotiate an approval which meets your "Golden Number". This fee is not for each lien negotiated. It is
paid once we get an approval (or approvals in the case of multiple liens) which meets your "Golden Number". |
$1,000 |
| Renegotiation Fee |
If we meet your "Golden Number"; however, you would like us to attempt to obtain an even lower number. We charge a
Renegotiation Fee if we are able to successfully negotiate the lower number. This initial Approval Fee is still due. |
$1,000 |
| Extension Fee |
When we are successful in obtaining a written Short Sale approval, the bank will generally require you to close within 30 days of receipt of that letter. It is imperative that you have a plan and are making the arrangements for the purchase of the property. Sometimes situations will arise that will force you to request an extension. In these cases, you will incur the Extension Fee if the extension is granted to cover the additional work by us to argue your need for an extension. Our goal is to avoid this and for you to close for minimum expense quickly. |
$1,000 |
| Closing Fee |
This is the fee that the lender is usually willing to pay for our negotiation services. If it is paid by the lender, this will not increase your "Golden Number" and will be included in the purchase price.
The lender will pay this fee over 90% of the time; however, if the lender is not willing to pay, we charge a flat 2% of the purchase price as the Closing Fee to be paid by you. In many cases, the purchase price can be raised to cover the fee or
many investors pay it from their own resources. |
Paid by the Lender or 2% of the Purchase Price |
All fees paid by you directly may be a tax write off because they are the cost of doing business; however, consult a tax professional.
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Are your fees negotiable?
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No.
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What if I can't pay the Membership Fee but still want to do the program?
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We provide the option of paying for one Short Sale at a time. The price for us to negotiate one deal is $750.
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What is a Short Sale?
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If you are unfamiliar with Short Sales, we have materials and an instructional course that we suggest you take
advantage of.
A "Short Sale" is a negotiated real estate transaction in which
the proceeds from the sale are insufficient to satisfy the liens on the
property. The lien holders (usually mortgage companies) agree to accept less
than what they are contractually due to facilitate a pre-foreclosure sale.
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Should I quit every other type of real estate I'm currently doing?
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We believe that once your Short Sale pipeline is full, you can expect consistent monthly, and sometimes weekly, closings. However, it can take months to get to this point. We can speed up the process a lot faster than most people trying to do it themselves, but there is still no guarantee.
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How can you do this any better than me?
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- Our team of negotiators consists of former loss mitigators with years of experience working for lenders on the national level. We know what the lenders expect and the techniques used to get Short Sales approved for the lowest purchase price.
- We are dedicated and this is all we do. Most investors do not have the time to properly handle a Short Sale. It involves lots of follow up, phone time, and being available when the lenders contact you.
- Successfully negotiating Short Sales takes an aggressive personality which most people do not have. Our negotiators are aggressive and know how to get through the many obstacles placed in the way of getting a Short Sale approved.
- We are organized and use technology to appropriately track all deals.
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What if I know others that could use this service?
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We have an excellent Referral Affiliate program. For more information, email us at info@ShortSalePackage.com.
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