Requirements for Financially Distressed Homeowners - Shorting Your Own Property

Hi Friends,

We have been getting so many emails from homeowners and investors who are in trouble. Many of you are wanting to do your own short sale. Here are some guidelines to help...

Assuming you are at least one payment late, we’ll qualify you under financially distressed homeowners. In the next section, we will talk about what to do if you haven’t missed any payments yet.

The number one thing the bank always requires is proof that your story is true. Anyone can call and state that they can’t afford their house anymore and that they want to walk away from it. With proof, banks can be surprisingly easy to work with. Here are the cold, hard facts that the banks have to consider:

 Markets are down.
 It is taking months to sell properties.
 Property values have dropped over 30 percent in most states.
 Insurance rates are rising.
 Taxes are going up.
 Gas is out of control.
 Interest rates are up.
 Payments are resetting at record increases.
 Unemployment is high.
 Bankruptcies have never been higher in our countries history.
 Banks are painfully aware that these circumstances can lead to increased foreclosures.

If you are behind in payments, but not yet in foreclosure, a short sale is definitely possible. You’ll start by contacting the work-out department. Your property would not yet be in the loss mitigation department. Typically, loss mitigation comes into the picture once the foreclosure paperwork has been filed. People are often confused about what a foreclosure is and what a pre-foreclosure is. Here is how we classify the terminology:

 A pre-foreclosure is a property where the payments are late, but the foreclosure papers have not been filed.
 A foreclosure is a property where the foreclosure papers have been filed, but the homeowners still own the house.
 A bank-owned property is where the payments were late, the foreclosure papers were filed, the house went to the sale, and the bank now owns the property.

Many people consider a foreclosure a property that already went through the entire process and is now owned by the bank. We want to make sure you use the proper terminology so that when you are reading the papers, watching the news or talking to loss mitigation, you know what everyone is really talking about.

Since financial hardship typically does not happen overnight, gather information from the past two years. Typically, a homeowner begins by missing a payment here and there: being 30 days late on a mortgage payment, missing an insurance payment, being late on a credit card, paying two months of electric at once, and so on. Once the foreclosure is filed, things seem to spin out of control. This is why we want you to gather information from the past two years. It shows the unravel of your finances.

If you are an investor and bought properties at the top of the market, find articles that show the beginning of the market decline, when your tenants moved out, copies of late payments and all of the other items we mentioned above.

Since you are financially distressed, again, proof is your best bet. Start putting your “Proof of Hardship Package” together. The last chapter in this section has a complete hardship package that we have put together for you – letters, websites, forms, and so on. Some of the information we can’t put together for you; it is information only you can provide. Here is a list of information you will need. Gather and photo copy as much of these items as possible:

 Two years of tax returns that show your income has dropped.
 Copies of lay-off notices or proof that you were let go.
 Copies of late electric bills.
 If you are involved in a divorce, provide proof.
 Copy any medical bills you have had in the past two years.
 Articles of market declines in your area.
 Copies of any investment properties you bought that have dropped in value.
 Proof of empty rentals.
 Proof of any rentals that were trashed by tenants.
 If you are not getting child support, show proof.
 Write a letter explaining your hardship – a sample letter is in the last section of this chapter.
 If you or anyone in your family has been to counseling, show proof. Counseling shows emotional distress.
 If there is a probate situation, get a copy of the death certificate.
 Copies of your bank statements – savings and checking. We are assuming that your cash flow is very low right now. If the bank sees that you have cash, it will want it.
 If you have tapped into your 401 or any retirement fund, show that as well. We are going to talk about this later – not going broke over a property.
 If you have cashed out a life insurance policy to make mortgage payments, show proof.
 Maybe you have used the college fund to keep up with the mortgage payments.
 If you have pawned something, show proof.
 If you are in jail or know the owner of any property who is in jail – definite hardship.
 If you have refinanced any property and used the money to make mortgage payments, show proof.

We’re sure you get the idea. The more financial hardship you can prove, the deeper the short sale. The deeper the short sale, the easier it will be for you to sell the property and start over.

* Something to remember – whether investor or homeowner – whether in distress or not – once a bank accepts a short sale, you must sell the property. The bank wants the property off the books.

We hope this helps. The most important thing to remember is that the banks are in just as much trouble as you are...

Have a Blessed Day,

Dwan
www.theieu.com

FREE Government Money

Good Evening Friends,

My friend, Chris Johnson, specializes in how to get free government money. He graciously provided these web sites. See if anything will help you - there is money for houses, rehab, foreclosures, down payments, rent, and so much more. In today's market, even investors are in big trouble...

Government Programs to Aid Owners in Distress

In order to get help from the government, you’ll need to start in the white pages. There are many agencies that offer emergency payments for electric bills, water, mortgage payments (more difficult on an investment property), food, diapers, baby milk, insurance, doctors, and much, much more.

The downside to using a government organization is that the red tape can take so long. If you need emergency assistance, you might not have 30 days to wait.

Most individual cities have local government funding. These departments are given a budget each year and if they don’t use the entire budget, they lose it or it is reduced.

There are also grants for home repairs – handy for investors – down payments on another property, closing costs grants, and many more. With most grants you have to live in the property for at least two years and then the money becomes free. If you move or sell before then, you have to pay the money back.


We have a very good friend, Chris Johnson, who specializes in free government money. Chris was very generous to provide these sites for you. For more information, contact him at www.ChrisFreeMoneyJohnson.com – he is happy to help in any way possible.

FINANCIAL RELIEF

Soldiers' and Sailors' Civil Relief Act
www.defenselink.mil/specials/Relief_Act_Revision/

If you are a reserve component service member called to active duty, you may qualify for any or all of the following:
• Reduced interest rate on mortgage payments
• Reduced interest rate on credit card debt
• Protection from eviction if your rent is $1,200 dollars or less
• Delay of all civil court actions, such as bankruptcy, foreclosure, or divorce proceedings
Housing Choice Tenant-Based Voucher
www.hud.gov/offices/pih/programs/hcv/tenant.cfm

This program enables a family to choose housing, then rental subsidy payments are made to the owner to subsidize occupancy by the family.

Low Income Home Energy Assistance Program
http://liheap.ncat.org/sp.htm

LIHEAP offers one-time financial assistance to qualifying low - income households who require support in paying their home heating or cooling bills.

Trade Readjustment Allowances (TRA) Income Support
www.doleta.gov/tradeact/benefits.cfm#6

Trade Readjustment Allowances (TRA) provide income support while you are participating in full time training.

Rural Housing Rental Assistance Program
www.rurdev.usda.gov/rhs/

Rent subsidies under the Rental Assistance Program ensure that elderly, disabled, and low-income residents of multi-family housing complexes financed by HCFP are able to afford rent payments. With the help of the Rental Assistance Program, a qualified applicant pays no more than 30 percent of his or her income for housing.

Earned Income Credit
http://www.irs.gov/individuals/article/0,,id=96406,00.html

The Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Farm Loan Programs
www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=landing

FSA makes direct and guaranteed farm ownership and operating loans to family-size farmers and ranchers who cannot obtain commercial credit from a bank, Farm Credit System institution, or other lender. FSA loans can be used to purchase land, livestock, equipment, feed, seed, and supplies. Their loans can also be used to construct buildings or make farm improvements.

Scholarships for Disadvantaged Students
http://bhpr.hrsa.gov/dsa/sds.htm Mortgage Relief

The Scholarships for Disadvantaged Students program provides scholarships to full-time, financially needy students from disadvantaged backgrounds, who are enrolled in health professions and nursing programs.

State Financial Assistance Programs

States have their own funding for their low-income or unemployed residents. The guidelines and rules vary from state to state, so check to see what your state offers:

Alabama - www.dhr.state.al.us/page.asp?pageid=359
Alaska - health.hss.state.ak.us/dpa/programs/atap
Arizona - www.de.state.az.us/faa/appcenter.asp
California - www.dss.cahwnet.gov/foodstamps/PG839.htm
Colorado - www.cdhs.state.co.us/coworks/
Connecticut - www.dss.state.ct.us/svcs/tanf.htm
Delaware - www.state.de.us/dhss/dss/tanf.html
District of Columbia - www.dhs.dc.gov/dhs/cwp/view,A,3,Q,492411.asp
Florida - www.dcf.state.fl.us/ess/tanf.shtml
Georgia - dfcs.dhr.georgia.gov/portal/site/DHR-DFCS/
Hawaii - www.realchoices.org
Idaho - healthandwelfare.idaho.gov/portal/alias__Rainbow/lang__en-US/tabID__3328/DesktopDefault.aspx
Illinois - www.dhs.state.il.us/page.aspx?item=30358
Indiana - www.in.gov/fssa/families/tanf/index.html
Iowa - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dhs.state.ia.us/PolicyAnalysis/PolicyManualPages/Manual_Documents/Forms/470-0462.pdf
Kansas - www.srskansas.org
Kentucky - https://apps.chfs.ky.gov/Office_Phone/index.aspx
Louisiana - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dss.state.la.us/departments/ofs/Family_Independence_Temporary_.html
Maine - www.state.me.us/dhs/bfi/tanf/TANF.htm
Maryland - www.dhr.state.md.us/how/cashfood/tca.htm
Massachusetts - www.mass.gov/dta
Michigan - www.michigan.gov/fia/0,1607,7-124-5453_5526_22957---,00.html
Minnesota - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dhs.state.mn.us/main/idcplg?IdcService=GET_DYNAMIC_CONVERSION&RevisionSelectionMethod=LatestReleased&Redirected=true&dDocName=id_005325
Mississippi - www.mdhs.state.ms.us/ea_tanf.html
Missouri - dss.missouri.gov/fsd/tempa.htm
Montana - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dphhs.state.mt.us/about_us/divisions/human_community_services/additional/tanf_eligibility.htm
Nebraska - www.hhs.state.ne.us/fia/adc.htm
Nevada - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://dwss.nv.gov/index.php?option=com_content&task=view&id=122&Itemid=319
New Hampshire - www.dhhs.nh.gov/DHHS/TANF/default.htm
New Jersey - www.state.nj.us/humanservices/dfd/dfdcwa39.html
New Mexico - www.hsd.state.nm.us/isd/fieldoffices.html
New York - www.otda.state.ny.us/main/ta/
North Carolina - www.dhhs.state.nc.us/dss/ei/ei_hm.htm
North Dakota - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://lnotes.state.nd.us/dhs/dhsweb.nsf/e486bc94591422b58625662c007143ec/33755491882e73ec862566730069c62e?OpenDocument
Ohio - jfs.ohio.gov/localservices/
Oklahoma - www.okdhs.org/programsandservices/tanf/
Oregon - www.oregonhelps.org/
Pennsylvania - www.dpw.state.pa.us/About/OIM/003670281.htm
Rhode Island - www.dhs.state.ri.us/dhs/dfipref.htm
South Carolina - www.state.sc.us/dss/contact.html
South Dakota - www.state.sd.us/social/TANF/index.htm
Tennessee - www.state.tn.us/humanserv/st_map.htm
Texas - https://www.yourtexasbenefits.com/wps/portal
Utah - www.utah.gov
Vermont - www.dcf.vermont.gov/esd/reach_up
Virginia - www.dss.state.va.us/form/index.html#financial
Washington - www.workfirst.wa.gov/
West Virginia - www.wvdhhr.org/bcf/family_assistance/wvworks.asp
Wisconsin - www.dwd.state.wi.us/dws/w2/default.htm
Wyoming - dfsweb.state.wy.us/districts/base2.htm

MORTGAGE RELIEF

HomeFree-USA “Save A Family” Foreclosure Prevention Fund
www.homefreeusa.org/ht/d/sp/i/4943/pid/4943

Thousands of American families face threats to their homeownership every day. Unemployment, illness, and predatory lending practices threaten the most valuable investment that a homeowner can possess, their home. On average, five families call HomeFree-USA for help every day. As a HUD approved housing counseling agency, HomeFree-USA is required to help these at risk families with no charge to them.

In some cases, they need help to pay the mortgage for a month or two. In other cases, they need an advocate and assistance with their lender to forestall foreclosure. In all instances, a significant amount of time and/or money must be spent to ensure a positive outcome.

With more than a decade of experience and a 0 percent foreclosure rate, HomeFree-USA has the knowledge, experience and willingness to help at risk families to successfully protect their homes.

To help with the financial aspects of saving a family, HomeFree-USA has established the “Save a Family” foreclosure prevention fund. HomeFree-USA solicits contributions to this fund to offset expenses related to saving a family from the pain and degradation caused by the loss of a home. These expenses may include funding to ensure that at risk families have basic necessities such as goods and clothing as well as housing.

Home Equity Loss Prevention Program (HELP)
www.acornhousing.org/TEXT/fap8.php

If you are behind on your mortgage, ACORN housing counselors may be able to intervene on your behalf with your lender in order to come to a resolution that will ultimately bring your loan current. The HELP program has established relationships with 43 major lenders in the U.S. in order to get loans out of foreclosure. Recently, they assisted over 4800 families in working out repayment plans, forbearance plans, loan modifications, refinances and partial claims, which allowed these families to keep the equity that they built in their homes.

Mortgage Relief Fund
www.mortgagerelieffund.com

The Mortgage Relief initiative has grown from five regional banks to nearly fifty banks of every size, with branches throughout much of New England. The participating banks represent a safe and sound place to discuss your credit needs and financial situation, with expertise and respect.

Whenever possible, the banks participating in the initiative will help eligible homeowners refinance into conventional loans that will better meet their needs. The banks aim to help homeowners who are having difficulty making payments (or expect to) because of high-rate, nontraditional, or resetting loans.

Hope Now Alliance
http://www.hopenow.com/members/members.html

The Hope Now Alliance is a cooperative effort between the US government, counselors, investors, and lenders to help homeowners who may not be able to pay their mortgages. Created in response to the subprime mortgage crisis, the alliance claims to have helped over one million homeowners avoid foreclosure.

Housing Partnership Fund
www.housingpartnership.net/lending/housing_partnership_fund/

The Housing Partnership Fund is a CDFI-certified lending affiliate of the Housing Partnership Network that provides members with short-term, equity-like financing for affordable housing rental and ownership development.

The Fund's loans, which offer terms of up to three years, generally bridge public subsidies that are not committed at the time of acquisition.

USDA Centralized Servicing Center (CSC)
www.rurdev.usda.gov/rhs/sfh/bor_sfh.htm#What if I have financial difficulties?

To improve service and cut taxpayer costs, USDA Rural Development created the Centralized Servicing Center (CSC), which uses an automated system to expand benefits to new and existing home loan borrowers nationwide. The CSC services all USDA Rural Development single-family housing loans.

Veterans’ Mortgage Relief
www1.va.gov/opa/pressrel/pressrelease.cfm?id=1514

Hope this helps some of you...

Have a Blessed Day,

Dwan
www.theieu.com

Short Sale Deal Coordinating Sheet

Good Evening Friends,

When we work on more than one short sale, we use this form to keep track of who everyone is. When working on 15 or 20 short sales at once all the different people seem to run together. You will find this form helpful, especially if this is your first short sale. Whether you do just this one, are a full-time investor now, or decide to help homeowners for a living, keeping track of the different players, the different calls, faxes, emails, and more is crucial to your deal. You certainly don’t want to call loss mitigation and forget where you are in your deal.

Date: ____________________________
PROPERTY ADDRESS: _____________________________________________
_______________________________________________________________
PURCHASE PRICE $_______________________________________________

Listing Agent: __________________________________________________
Email:___________________________________________________________
Cell Ph:___________________ Office Ph:_______________ Fax: _______________

Buyer’s Agent: __________________________________________________
Email:________________________________________________________________
Cell Ph:__________________ Office Ph:_______________ Fax: ________________

Owner or Seller: ________________________________________________
Email:________________________________________________________________
Cell Ph:__________________ Office Ph:_______________ Fax: ________________

Short Sale Bank Name(s):_________________________________________
Email:________________________________________________________________
Cell Ph:__________________ Office Ph:_______________ Fax:_________________

End Buyer:_______________________________________________________
Proof of Funds: _______________________________________________
Email: _________________________________________________________
Cell Ph:__________________ Office Ph:______________ Fax:_________________

Closing Information:

Title Company #1: _______________________________________________ Contact:_________________________________________________________
Office Ph:________________________ Fax: _________________________
Email: _________________________________________________________

Buyers Mortgage Broker/Lender: __________________________________
Cell Ph:______________________ Office Ph:________________________
Fax:_______________________ Loan info: __________________________

Sellers Lender: _________________________________________________
Cell Ph:__________________________ Office Ph:____________________
Fax:_____________________________ Loan info: ____________________

Real Estate Commissions Due:
Realty & Fee: ___________________________________________________
Assignment Fee: _________________________________________________
Consulting Fee: _________________________________________________

BACK UP OFFERS: _________________________________________________
Straight Sale: __________ Assignment: ___________ Double Closing: ____________
Closing Date:___________ Time:________________ Location: _________________
 

Hope this helps you...it does us..

Have a Blessed Day,

Dwan

How To Aggressively Sell Your Property In Today's Market

Good Evening Friends,

We have been traveling around the country all summer and have run into an astounding number of people in financial trouble - investors and homeowners alike. If you are in trouble and need to sell, here are some great tips that will help...

Whether an investor or a homeowner in distress, selling your property is always going to be your best option. If it sells before the sheriffs sale (the foreclosure sale date) you won’t have a final foreclosure on your credit report. Your credit report will reflect that a foreclosure was filed, but that it was solved before the final sale date. It does help your credit when starting over.

If you are an investor who owns several investment properties, selling them will help a lot. Having ten foreclosures is hard to recuperate from. You might be better filing bankruptcy and wiping the slate clean.

Let’s cover aggressive ways to sell your property. If this does not work, we have many other options for you – a short sale, deed in lieu, renting, and much more – so please keep reading.

Financially Distressed Owners Who Can’t Sell Their Property

You’re in foreclosure or behind in payments and have made the decision to sell. You may still be experiencing a hard time emotionally, but you are one-step closer to getting back on track and getting on with your life.


Before you call a real estate agent and list your house, try a few other options first:
* Place an ad on www.craigslist.com
* Place an ad on www.ebay.com
* Place an ad on www.loopnet.com
* Place other ads on any “For Sale By Owner” site you can find

If you have a $200,000 property, you could save $12,000 in real estate commission, which means you can sell the house for less. We suggest trying to sell your property yourself only for 30 days. If you get no bites, consider listing it.

To determine what your house is worth, look on www.zillow.com for comparable sales. Zillow is a free service that offers comps. Remember, you are facing hardship so sell the house for a low as possible to unload it. Now is not the time to get greedy and look to make a profit. Now is the time to move is as quickly as possible before you lose it.


Here are a few sample ads that have worked great for us:

2/1/cp. Seller desperate. Will pay cc. New w/d, c/h/a. 555-5555 $99K

4/1½/1. c/h/a. New everything. Motivated seller. Will pay cc.
555-5555 259K OBO

3/2/1. seller will pay costs. Newly remodeled. Need to sell. w/d/c/h/a. 349K
555-5555

Bring your toothbrush, 3/2 spotless & ready for your family $99,700 Desperate Seller! 555-5555

Low down, Seller will help" - 3/2 Dollhouse, needs nothing but your furniture. Seller will help. $57,400 555-5555. OBO

Low down, low monthly to qualified buyer. Seller will help. 2/1/1,fcd yd, fm rm. $69,900, 555-5555

You pay for each line when running ads so abbreviate everything. The goal is to put as much information in the ad as possible. Look at ads in your local papers to get a feel for what they abbreviate. The person taking the ad should help with this. Most papers will allow you to place an ad and will bill you in 30 days. This helps cut immediate costs. Here are what some of the abbreviations mean...

3/2/1cg = 3 bedroom, 2 bath, 1 car garage
2/1/cp = 2 bed, 1 bath, carport
4/1½/1 = 4 bed, one and a half baths, 1 car garage
fc yd = fenced yard
fm rm – family room
OBO = or best offer
CC = closing costs
w/d= washer/dryer
c/h/a= central, heat, and air


Notice in our ads we state “seller desperate” or “motivated seller” or something along those lines. This will cause your phone to ring. The more calls you get, the better your chances to sell your property quickly.

Don’t be embarrassed to use these words in your ads. You want your phone to ring and other people are always looking for a good deal and it will generate interest.

* Always advertise your property as far below market as you can to sell it before the foreclosure goes any further.

If properties are selling for $150,000, sell yours for $129,900. Again, the goal is to sell your house as quickly as possible. The lower the price; the more buyer’s who will show interest. Even if you have 20 houses in your neighborhood that are for sale, do not let this intimidate you. Yours could be the perfect house for someone else and might sell the first day.


If, after 30 days of trying to sell it yourself, no one has shown any interest, consider listing it with a real estate agent. Real estate agents will also run comps and give you their opinion of value, have you sign a listing agreement, and put it on the market. Since many people looking to buy a house use an agent, it might prove worthwhile.

The downside to listing your house is that most people who use agents look for new listings. Once another 30 days had passed, your listing will be old and will get very little attention. Also, many agents take as many listings as possible just hoping that one will close and don’t put much effort into the actual selling process. They rely on agents who show houses to sell their listings. You have listing agents and selling agents. Look for a selling agent.

Take time to interview an agent. Ask how many listings they took in the last six months and how many of their own listings they sold. If they took 25 listings and didn’t sell any, your house won’t sell either.


There are many reasons your house might not sell in time to beat the foreclosure sale:
* You owe more than your house is currently worth.
* It needs too much work to sell it retail.
* You are in one of the many areas that is very depressed.
* Industry is moving out of your area and there are no jobs.

If any of these situations apply to you, we have a possible solution – a short sale. We will talk about short sales a little later, but the jest of it is this:

* A short sale is where you negotiate with the bank to accept less than what you owe against your property as full payment. For example, you have a house worth $100,000, you owe $100,000 and are facing foreclosure. You call the bank, ask them to do a short sale, they agree and they accept $60,000 as a full payoff. Now you can sell your house below market and get out of foreclosure. Banks will short sale investment properties, too.

Many times a real estate agent can list your house and in the “special clauses” section of the listing agreement put the words - “Bank will accept a short sale. Bring all offers.” The agent then takes any offer given and presents it to the bank. The bank will then decide to either accept or pass. Because of the millions of foreclosure that are predicted, banks are doing more and more short sales everyday.

I hope this helps...

Have a Blessed Day,

Dwan

Top Notch Landlord Tips from Mr. Landlord

Hi Folks,

Wow - sorry I have not been on for a week or so. We arrived in Iowa to get our amazing space ready for our training classes and we had some flooding issues. It has been a mess trying to get things ready.

With the help from many people - we are about ready to roll....

My friend, Jeffery Taylor, is know as Mr. Landlord. He is one of the nations top experts on how to maximize rent and keep happy tenants. I wanted to share his tips this month. I love the one about the "dog run" - what a great idea.

From time to time - I am going to share tips from others in the industry. Jeffery has a fantastic newsletter you should subscribe to...

MRLANDLORD.COM TIPS ON MANAGEMENT

USE A LIMOUSINE TO FILL VACANCIES - One Michigan rental owner said one of the most popular strategies to fill vacancies was to use a Limousine. The owner bought a limousine no longer in use at a big discount. Then he advertised the fact, the limousine was an exclusive bonus perk available to those who rent his properties. Residents could “hire” out the limousine for practically nothing (just the minimum cost of paying a low hourly fee to the driver). Prior to the “limousine” advertising, the owner had a 20% vacancy rate. Now the owner has a waiting list.

EVER THOUGHT OF BUYING A USED U-HAUL? - A Missouri landlord bought an out-of-service U-haul truck to offer as an extra perk to rental applicants and new residents. The used truck was bought for just a few thousand dollars. When applicants are applying, the landlord makes mention of the fact that he can offer them free moving assistance with a truck. This perk definitely gives the landlord an edge over his competition. Obviously the truck also comes in handy for general maintenance use in the landlord's normal rental operation, transporting carpet, appliances, etc when needed. And if a resident goes sour, the truck can be used to assist in helping a problem resident get moved out of the property so that it can be more quickly turned around and ready for the next resident. Depending on the circumstances, the move-out assistance however, may or may not be offered for free.

OFFER DOG RUN AS A SERVICE UPGRADE - A Southern California rental owner shared what he offers pet-owning residents as a service upgrade. He offers to put up a fenced in Dog Run. His dog-owning applicants love the idea and are willing to pay an extra $45 per month for this upgrade. Residents who desire this added service upgrade sign an additional service agreement which permits the owner to increase his income even in a rent-controlled area. The landlord also loves the added benefit that with the addition of the Dog-Run, there is less wear and tear and less property destruction to the property by the dogs that are now in a fenced area.

GOOGLE THEM! - When screening rental applicants, consider using both Google.com and MySpace.com. To do so, start by asking for email addresses on the rental application. Sometimes a red flag can be raised by the email address that some applicants use. For example: hotmama@escortservices.com or pothead@xxx.com. Google not only the email address, but also google the applicant's name and phone number.

In regard to MySpace, you want to see if applicants have a MySpace account. More and more rental applicants have one, as many as one third to half or more depending on your target market, especially if you rent to those in their 20s. By checking MySpace, you can often learn interesting tidbits about the applicant’s lifestyle, hobbies, pets, work and more. To search MySpace, go their home page, click the Search link which will allow you to search by name or email address. Google and MySpace are just two more tools that a landlord can take advantage of using when screening rental applicants.

STRESS IMPORTANCE OF ON-TIME PAYMENTS - Explain your rent collection policy to all new residents before they move in. Have this policy in writing, and stress the seriousness of prompt payment. Remind new residents that late payments may affect their credit rating. Have the new resident circle and initial the lease section that says rent due on the 1st. Because many owners offer grace periods, residents may think rent is due on the 5th. Consider, if your state permits, not providing a grace period. “Rent is due on the first with a $XX late charge on the second.” Sounds tough, but it works! But you must enforce late charges. Threatening late charges but never enforcing them only causes more delinquency. The residents will see you as all “bark” and no “bite.” If you clearly communicate the rent collection policy before move-in and reinforce your conversation by giving new residents the policy in writing, then they will believe and expect you to enforce the policy.

Move quickly on delinquencies. All residents who have not paid by the first must be sent notification on the second. If the resident says, “It’s in the mail,” ask for a substitute check and return the mailed check when it arrives. Again, the key is acting immediately. Demonstrate an expectation to every resident that you know they will pay rent on time. When a resident is late, be understanding, but make it clear to the resident “We want the rent, and we want it now.” Do not accept excuses nor negotiate with the resident to catch up next Friday. One possible option for stimulating payment of rent is the "emergency contact". Hopefully your rental application gives you permission to contact all "emergency" references in case of non-payment. If so, notify the resident’s emergency contact if rent is not paid on time. Yes, our residents sometimes have legitimate financial problems. Job lay offs, car troubles, or medical emergencies can really put some of your great residents in a financial bind. Yet, your obligation to your family is to collect ALL the rent remains. The ethical thing for you to do is aggressively go after full payment and late charges. Your response to the delinquent resident should be, “Sorry you were laid off from your job, but your rent is due now. Let me suggest the following options.” 1) Ask for a loan from family or friends. 2) Use a credit card for a cash advance, 3) Take money out of savings or retirement fund, 4) Contact your church or some other agency to see if you can get help.

If a residents pays, but pays a couple of days late, remind the resident of the actual due date and asses appropriate charges if they were not included. Say something like, “We really appreciate your rent, but since it was paid after the due date, the following amount is now immediately due to avoid eviction proceedings. Thank you!” Be aware of all residents who are delinquent. Do not harass or embarrass the delinquent resident, but be firm with your policies. Do not entertain options that do not include the resident paying the rent ASAP. If you negotiate and let the resident off easy, the real loser is you! And never use the eviction as an empty threat or a mere collection strategy. When you start to evict, go through with the process. These tips are from excerpts and tips shared on MrLandlord.com website and in the Mr. Landlord newsletter. To receive a free sample of the newsletter, call 1-800-950-2250 or visit their informative website at MrLandlord.com and register to win a free landlording book.

Great tips Jeffery...thanks for sharing with us..

Have a great day Friends...

Dwan

How To Find a Good Title Company

Good Evening Friends,

I need some help here....I am very confused. I want to see what your opinion is about a matter I am having a problem with...

If someone buys a training program - uses ALL the coaching (three months), takes the ENTIRE three month course, KEEPS all the programs - is this person entitled to a full refund?

Please let me know what you think...

Now - on to business... I get so many calls from people who are having a hard time finding a title company or understanding their role in the closing. Maybe this will help...

Title companies can be found through numerous sources. Your real estate broker may be able to recommend a trustworthy company that you can try. It is good to know that people you respect use a particular title company that they like well enough to recommend.

Meet with a representative at the title company to discuss how the company can service your needs. Title companies handle closings, sometimes called settlements. A title company performs title searches. This is a search, sometimes called an abstract search, through the title of the property beginning with the original owner and continuing through the current owner. This search is performed to locate any unpaid liens or judgments existing against the property or the owners of the property. Occasionally, a lien will be overlooked and for this reason title insurance is available. Once a title search is completed, and if clear, the title company will provide an owner's title insurance policy. This is a policy issued to you, at your option, to protect against arising liens or claims of ownership not found in the title search.

Generally, if a purchaser will be placing a mortgage against the property in order to purchase it, the mortgage holder will require a mortgagee's title insurance policy, which will be issued to them by the title company and paid for by the borrower. This policy is issued to the mortgage holder to insure against arising liens not found in the search.

When the title company receives a Contract For Sale and Purchase, including the earnest money deposit posted under the contract, it places that deposit in escrow. An escrow account, also known as a trust account, is a non-interest bearing bank account set up to hold a deposit until the closing occurs. The title company will prepare an escrow letter for the lender. This is a letter stating that a deposit is being held pending a certain contract. In most states, without a deposit being held, no valid contract exists, regardless of signatures.

The title company does not represent the seller or the buyer in the transaction and has no duty to protect their interest. The title company is being hired for a transaction. In order to fully protect your rights as a seller or a buyer, hire an attorney. As closing nears, the title search will be completed and a title commitment will be issued to the lender. This is a commitment to the lender that title is clear and a policy will be issued.

At closing, all agents, buyers, and sellers meet to execute the closing documents and exchange money, keys, and warranties (if any). The title company will either overnight mail or courier the deed, mortgages, etc. to the courthouse for recording. If you establish repeat business by using the same title company to purchase and then to sell, discuss reduction of your costs. Ask to pay "promulgated rate" for title insurance. This is the lowest rate (price) allowable by law that a title company can charge for title insurance.

Remember, almost all costs are negotiable.

Hope this helps...

Have a Blessed Evening,

Dwan
http://www.theieu.com/

Thanks to Everyone

Hi Everyone,

I want to thank all of you so much for your support. Our book launched and we went to #1 on Amazon in four categories!

#1 Real Estate Book
#1 Business Book
#1 Business & Investing Book
#1 Professional and Technical Book

We also hit #3 for new releases and #4 for best sellers! Wow - I can't say thanks enough!

What a crazy week we have had and so much fun. If you haven't done so yet, please order a copy today. If you order from www.amazon.com and then email your receipt to www.dwan@theieu.com - you will get a bunch of FREE bonuses like - free training classes from several speakers and so much more.

I am already working on a new book for underwater homeowners. It is due out in January. I am hoping for the same great results.

Since I haven't been on for a few days, I want to cover a few short sale things....here is an excerpt from our new book...

HOW TO PRESENT YOURSELF TO THE BANK...

The package is ready. It’s time to contact the bank. The department you want to speak with is called Loss Mitigation. Believe it or not, loss mitigation reps can be very difficult to deal with. The key to success is to pin the rep down as to when you can expect an answer.

If you are dealing with a bank for the first time, you may want to call loss mitigation to confirm that they short sale before you spend time preparing the entire package.

All of the larger banks do:

• Washington Mutual
• Bank of America
• Wells Fargo
• Country Wide
• First Union
• Fifth/Third and so on.
• Option One
• Ocwen
• First Franklin
• Fairbanks
• Litton Loan Servicing
  

There are many more. The problem with calling the bank first is that you may get a new person who has no idea what a short sale is and tells you no, when, in fact, the bank does short sale. I prefer to prepare the package, call loss mitigation, and ask who I need to fax the package to in order to get my deal accepted. I assume that all banks will say yes.

Most banks do say yes to some sort of a short sale. If you have a property worth $100,000, with a $100,000 mortgage balance and the bank accepts $90,000, the bank considers that a short sale. It’s just not a short sale I would accept.

If the bank does not have a loss mitigation department, ask for the foreclosure department, work out department, loan modification department, late payment department, bankruptcy, or who ever helps homeowners in distress.

Give the seller’s name and loan number and ask for the representative who is handling the seller’s account. Once you have the right person on the line, ask for the fax number and fax the authorization to release while you are on the phone with the rep.

Before you begin dealing with the loss mitigation reps, it is important you understand the mind-set of this person. Most of these folks are overworked and underpaid. Some reps have as many as 500 files on their desk at any given time. Because these reps are so overwhelmed with their case loads, they often blow you off on the phone if you don’t appear to know what you are doing.

There are several ways to represent yourself to loss mitigation:

* As a friend - You could represent yourself as a friend trying to help. The problem with this approach is that the rep may think you have no experience and may not want to bother with you. On the positive side, the bank may like the fact that you are not a smooth talking investor.

* As an investor - As an investor the rep may think you are out to take advantage of the homeowners as well as make a killing from the banks loss. On the positive side, the rep may like the fact that you have experience and will be less trouble than someone with no experience.

* As a real estate agent (if you have a license) - As an agent the bank looks at you like a neutral third party, but may not have the confidence that you will follow through without a buyer as agents show houses, not purchase them. On the positive side, the bank may take your offer more seriously because you are an agent and are considered a professional.

You have to decide in which role are you most comfortable. I have used all three with great success. There is no right or wrong way to present yourself.

The key is let the rep know that you are easy to work with and will make the transaction as smooth as possible.

When speaking with the loss mitigation representative, always be professional and refer to the sellers by their first names as often as possible.

Bring as much emotion into the conversation with the rep as possible.

This will hopefully help the decision to accept a short sale become more meaningful rather than just financial.

Hope this helps.

Again....thanks for your support.

Have a Blessed Day,

Dwan

BTW - check out the video of Sharon and Juan's "Short Sale Baby" at my youtube page. www.youtube.com/dwanbenttwyford - it's great!

How To Recognize You Are In Trouble

Hi Folks,

We just got home from Iowa last night. Wow - the flooding is incredible....so much devastation. It makes me even more excited to move our training classes there. There are so many homeowners who need our help right now. The short sale opportunities will be amazing...

The more we travel, the more we see people in trouble. It stuns us how many homeowners get into trouble and don’t realize it until it is too late. One of the biggest problems is that many creative loans make it so easy to buy a house. In the early part of the 2000’s a bank would lend you money based on your debt to income ratio and your credit score. Back then, a maximum of 30 percent to 40 percent of your income could be used toward a mortgage payment. Meaning, if your monthly income is $2,000, you could qualify for a mortgage payment between $600 and $800 per month PITI– with the proper credit.

Banks figured that if you used more than 40 percent of your income for the mortgage payment, you would be “house poor.” If you used $800 of your $2,000 income for a mortgage payment, that leaves $1,200 for everything else.

Let’s look at what this could mean:
Income - $2,000
Mortgage - $800
Electric - $150
Car Payment - $300
Gas - $250
Phone - $100
Groceries - $400

Based on these very realistic figures, you are dead broke every month. What if you have a car repair, medical bills, need a home repair, need to buy clothes, or anything else? Where does the money come from? What about trying to save for retirement or trying to care for ailing parents?


Sometimes life just takes over, you have a problem, you use some of the money that should be used for the mortgage payment, and next thing you know – you’re one payment late, then two, then three, then the bank files foreclosure papers, and then everything spirals out of control.

Most Americans live paycheck to paycheck. The best way to stay ahead of the game is to control your debt. If you are a two-income family, our thought is to live on one paycheck. This way, if one of you gets sick and can’t work or if you fall victim to divorce, your lifestyle won’t change. We realize that right now may of you are thinking – no way could I possibly do that, our bills are too high. By living on one of the two incomes, you can get so far ahead – it would stun you.


If you are a one-income family, try living on 80 percent of your income. I realize how hard that can be, especially if you are a single parent. You must cut back, downsize your lifestyle, get a smaller house or apartment, drive a less expensive car, pay off credit card debt, save 10 percent of your income for emergencies, and don’t forget to tithe 10 percent of your income to God.

Don’t worry about keeping up with the neighbors. The neighbors aren’t going to pay your bills if you get into trouble. In fact, my guess is that most of your neighbors will gossip about you if you do get into trouble. It is sad how shallow our society has become. You don’t have to have the best of everything. You do need to be prepared for emergencies and hard times. Our economy isn’t going to pick up for several years and we don’t want to see you fall victim to the hard times that lay ahead.


If you have already fallen into hard times – don’t worry about it. We have so many great ideas for you and you can start over. Did you know that Henry Ford went bankrupt seven times? Think about it – he started a company and went bankrupt; started another company and went bankrupt; started another company and went bankrupt again; started yet another company and went bankrupt again; now it’s getting hard to read – he started another company and went bankrupt yet another time; with all the naysayers in his life he started another company and went bankrupt again; still not defeated, he started another company and went bankrupt again; then he started Ford Motor Company – who you may be making payments to right now.

If you look at the average life span, we live to be 75 or so. If you are in financial hardship and it takes you three years to recover, in the big picture, it’s not that much time. When you recover and start over, you’ll have many more good years than bad.


People tend to live above our means in this country. We have both traveled extensively around the world and we are the most spoiled country. Personally, we like living a spoiled lifestyle, but we didn’t come by it easy. We have both had financial problems in the past, been divorced, suffered foreclosures, and barely gotten by. Through a lot of hard work, cutting back, and many blessings from God, we were able to make it to the top percentage in the entire country.

In the mid 2000’s, the mortgage industry came up with what seemed like a good ideal at the time – easy loans to boost the economy. These loans were designed to give as many people as possible the chance to live the American dream – homeownership. People are often so focused on owning a home that they are willing to stretch themselves just to do it. This is where is all started to go downhill. Too many people went out on a limb. These creative loans did just what they were supposed to do - boosted the economy. The problem is that no one really thought it all the way through.

Over the next few weeks, I am going to offer advice to people who might be struggling as well as those of you who are or want to be investors.

Folks, remember - no matter how bad your day seems or how many problems you might be having - God loves you...and so do I!!!!

Dwan
www.youtube.com/dwanbenttwyford

Common Newbie Mistakes

Hi Folks,

Bill and I are in Clinton, Iowa getting our space ready for our first training class. We are so excited to hold training classes here. Doing training in Iowa allows us to add a bus trip to our class! We are so excited about that. I love going on bus trips!

We try to buy one new rental each time we come here. We have a really cute place we just took over last month and are in the process of painting it for our new tenant. We had over 70 responses to our rental ad...it's crazy here.


We just returned from a 4-day class in Hawaii. Pete Youngs was gracious enough to take our class on a bus trip there. It is so much fun to meet new students who are looking to begin rehabbing. Whenever I meet new rehabbers or new investors of any kind - I always want to give some advice - so here goes...

I remember the excitement of being a new investor. I was so excited that I wanted to buy every deal that came my way. The excitement of “the deal” can get you into trouble. Because of that excitement many new investors don’t always look at the deal from an objective viewpoint.

I think one of the biggest mistakes new investors make is that they want to rehab the property themselves to save on the rehab costs. This is fine if you have the skill, the tools, and the time. Unfortunately, what I often see happen is that new investors try to work on the property on weekends and in their free time. BIG mistake!

Picture this, you worked hard all week and now the weekend is here and it’s time to work on your new rehab project. The first weekend is so exciting. You see such great results after the end of the weekend that you can’t wait until next weekend to do it again. The next weekend comes and you’re really tired, but it’s time to work on the house. You sleep in late on Saturday and end up putting in a half-day on Saturday and full day on Sunday. You still see results, but you are really tired and have to go back to work in the morning.

The third weekend comes and now you’re really beat from no time off for three weeks. You sleep in Saturday and work on Sunday. As each weekend passes, less work is getting done. Soon you are either exhausted or going every other weekend. Now several months have passed and you are making extra hard money payments, your property is still not finished, and you are beat.

What did you save? Nothing! It would have been cheaper to hire a crew and pay them as opposed to making extra hard money payments and burning yourself out. The worst part is, your property is still not sold!

Another mistake I often see is investors partnering with people they don’t really know because they don’t have the money to do the deal themselves. Just because you meet someone at one of the investment clubs, does not mean that person needs to be your partner. Take the time to investigate anyone you may be thinking of partnering with. Call a group leader and ask for a reference, ask the person for bank statements, go to the courthouse and see if they truly are buying and selling properties. Do your due diligence now, draw up a detailed partnership agreement (be sure to discuss loses), and pray for the best.

How about overextending yourself? I see many new investors, who have a few dollars saved, buy more than one property. Unless you have a lot of carrying money and free time, this can turn into a bad situation...fast. Do you have the time to oversee several crews, do you have the time to take all the ad calls, can you show the house everyday and then do open house on the weekends? Be care not to get so excited that you buy everything you see.

Until you have some first-hand experience, stick to one deal at a time, hire someone to do the rehab, and when the property sells, buy another. Being an investor is a great way to earn a living, just be cautious.

Folks....please take my advice. I can't tell you how may people I have seen go bankrupt trying to make it big as a real estate investor. Follow my advice and you'll do great!!!

Have a Blessed Day,

Dwan

BTW - Pray for all the people here in the Midwest. There is so much flooding. It's really sad. We are one block off the river and the water is high!!! Kinda un-nerving:-).

Ace the BPO Everytime!

This is Gary Prescott. Gary runs our Apprentice Week in Florida. He is a superstar and makes millions every year and has since day one.

Watch as he does a live BPO - notice how he points out every detail- the floors, the smell, everything...it is so funny.

This is exactly how a BPO should go down....



OK ... OK ... I could not figure out how to copy the video from my YouTube page to here, so you'll have to go to my YouTube page to watch the BPO...sorry:-(

www.youtube.com/dwanbenttwyford


It's worth taking a look at - Gary is awesome!

Thanks,

Dwan

Deal Finding Favorites

Good Morning Folks,

Another beautiful day in Hawaii. Today is the last day of our boot camp. I am sad... This means we leave soon. Tomorrow we are going snorkeling. I can't wait.

Yesterday, the class loaded up on a bus and looked at foreclosures all day. It was such a blast! It never ceases to amaze me how many people still say that they can't find good deals. Folks, deals are falling out of the sky right now....

I want to cover a few of our favorite "deal finding" techniques...

There is an over abundance of deals out there right now. We think that many new investors, who watch too much late-night TV, are under the impression that if they decide to become an investor, the “investor fairy” will drop deals out of the sky. Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine to five rut and bound by the bosses’ rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.

We want to share a few of our favorite methods for finding deals. First and foremost, the oldest method in the book: knocking on doors! We’re here to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don’t know what to say. It’s simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property and you‘d like to help. NEVER mention the “F” word…. get your mind out of the gutter.. we mean foreclosure. Ask them if they took care of it. Typically they say, “Yes.” Ask what they did… filed an answer, sold it, brought the back payments current, what? You can tell by the blank look on their faces that they haven’t taken care of anything. Offer your assistance and move forward with your deal.

What about postcards? Do you religiously mail them? To whom? Most investors mail postcards to people in foreclosure. This is a great idea, but did you know that there is a wealth of other information that is public knowledge? Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge that the typical investor doesn’t tap into. NEVER be typical.

What about mailing lists? Have you ever considered buying a mailing list and “farming” neighborhoods? It works for Realtors, why won’t it work for you! We buy lists by the zip code and mail where we want to own property. Doesn’t it make sense to have several properties for sale in the same area opposed to all over the county?

How about phone calls? How often do you sit down and call foreclosures? Never? Why not? With a criss-cross directory you can find almost anyone. Investors, take the time to find people who have moved or changed their numbers. If they have moved, you have a deal because the mental attachment to the property is gone.

Do you run ads in newspapers? Why not? Many investors think ads are too expensive. How many deals do you have to do to pay for a year’s worth of ads? One? We’ll give you a little known tip: place your ads under “money to lend.” Many times the homeowners’ first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal.

You will make as much money as you are willing to work for. Our question for you is: how much are you willing to make? The sky is truly the limit. The bottom line is this, there are thousands of deals out there. If you don’t make the effort to find them, other investors will. We know because we’re one of them!

I have to get back to class....have a great day and go find some people who need your help.

Remember - always put the homeowners and their needs before your paycheck. You have lots of deals around the corner and they have one chance to start over...give them a fair shot at a new start!

Have Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Kodakgallery.com Slideshow - Clinton, Iowa

Hi Friends,

We received a slide show from a friend in Clinton, Iowa. We wanted to share what a sweet town our training classes will be held in.

Bill and I are are so excited to have an official training center. Iowa is such a great state to invest in. Bill and I are 50'ish and we want to invest in areas where growth is steady. I want to be able to count on my rental income as I approach my 60's and 70's. We feel certain that we'll be able to by investing in the Midwest.

When you attend our training classes, we'll take you on buses to view properties that will be available for investment purposes.

It's very exciting.

We are still Hawaii, having a blast and teaching a great class.

Talk to you soon....

Dwan
Kodakgallery.com Slideshow

How to Present Yourself to the Bank During the Short Sale

Hi Folks,

Wow! I never got over how great Hawaii is...warm, sunny, nice people, great food, did I mention - warm:-).

We are super excited to teach this class this week. We have almost 150 people coming! We are adding a day on the bus to tour houses on the island...maybe we can find something for ourselves:-).

When you first start doing short sales, you may not know how to present yourself to the bank. Here are some tips that should help...

The key to success is to pin the rep down as to when you can expect an answer. If you are dealing with a bank for the first time, you may want to call the loss mitigation department to confirm that the bank accepts short sales before you spend time preparing the entire package.

All of the larger banks do short sales:

• Washington Mutual
• Bank of America
• Wells Fargo
• Countrywide Bank
• First Union
• Option One Mortgage Corporation
• Ocwen Financial Corporation
• First Franklin
• Litton Loan Servicing

There are many more. The problem with calling the bank first is that you may get a new person who has no idea what a short sale is and tells you no when, in fact, the bank does do short sales. We prefer to prepare the package, call loss mitigation, and ask who we need to fax the package to in order to get our deal accepted. We assume that all banks will say yes.

Most banks do say yes to some sort of a short sale. If you have a property worth $100,000 with a $100,000 mortgage balance, and the bank accepts $90,000, the bank considers that a short sale. It’s just not a short sale we would accept.

If the bank does not have a loss mitigation department, ask for the foreclosure department, workout department, loan modification department, late payment department, bankruptcy, or who ever helps homeowners in distress.

Give the seller’s name and loan number and ask for the representative who is handling the seller’s account. Once you have the right person on the line, ask for the fax number and fax the authorization to release form while you are on the phone with the rep.

Before you begin dealing with the loss mitigation reps, it is important you understand the mind-set of this person. Most of these folks are overworked and underpaid. Remember, some have as many as 700 files on their desk at any given time. Because these reps are so overwhelmed with their case loads, they often blow you off on the phone if you don’t appear to know what you are doing.

There are several ways to represent yourself to loss mitigation:

• As a friend. You could represent yourself as a friend trying to help. The problem with this approach is that the rep may think you have no experience and may not want to bother with you. On the positive side, the bank may like the fact that you are not a smooth-talking investor.
  
• As an investor. The rep may think that as an investor you are out to take advantage of the homeowners as well as make a killing from the bank’s loss. On the positive side, the rep will like the fact that you have experience and will be less trouble than someone with no experience. With bank reps having as many properties to unload as they currently have, presenting yourself as an investor is a really good thing. The reps know that you have experience, that they won’t have to train you, and that you will make their hectic job easy.
  
• As a real estate agent (if you have a license). The bank realizes that as an agent you are a neutral third party, but the bank may not have the confidence that you will follow through without a buyer, because agents show houses, not purchase them. On the positive side, the bank may take your offer more seriously because you are an agent and are considered a professional.
  

You have to decide which role best suits you. We have been able to use all three with great success. There is no right or wrong way to present yourself. The key is to let the rep know that you are easy to work with and will make the transaction as smooth as possible.

When speaking with the loss mitigation representative, always be professional and refer to the sellers by their first names as often as possible. Bring as much emotion into the conversation with the rep as possible in the hope that this will help the rep’s decision to accept a short sale become more meaningful rather than just financial.

Your initial conversation with the loss mitigation representative will go something like this:

You: Hello, Mary, my name is John and I am working with Bob and Sally Brown to help them with their situation. May I have your fax number so I can send you my authorization to release?

Bank: Sure, my fax is 555-456-7890.

You: Hold on, I’ll send it right now. (Fax it while you have the rep on the phone.)

Bank: Okay, I’ve received it. How can I help you?

You: As you know, Bob and Sally are in foreclosure. I told them I would do my best to help them if I could. Upon researching the property it looks as if they owe more than it’s worth. Bob thinks their mortgage balance is $100,000. Is that correct?

Bank: Yes, it is.

You: Great! When is the property set for the sheriff’s sale? My real estate agent says the property is worth only about $40,000 to $50,000 because it needs so much work. Based on the fact that Bob and Sally owe far more than their property is worth, I’m willing to purchase the property, but only if you can take a short sale. Where do we need to be pricewise to get this deal closed?

Bank: Fax a sales contract and a net sheet and we’ll see what we can do.

You: Great, Mary. I will have that faxed to you as soon as possible. I’d like you to know that I am prepared to close quickly and will not make you work hard on this deal only to bail out at the end. I can close as soon as you can get me a yes.

Bank: Fine.

You: I’d like to ask you a few questions if I may. Do you make the decisions or does your boss?

Bank: My boss does.

You: Great. How often do you meet with your boss?

Bank: I meet with my boss twice a month.

You: Great. When was the last time you met with your boss?

Bank: We met last week.

You: So … if I get you everything you need today, will you be able to present my offer to your boss next week?

Bank: Yes, if you get the information I need I’ll present your offer next week.

You: Okay, great. I’ll get you as much information as I can by the end of the day. Then I’ll call you to see if my offer is in a range that your bank can accept. What percentage does your bank usually discount?

Bank: It’s different with every deal. Get your offer to me and we’ll discuss it then.

You: One last thing: I just want to remind you that I can close quickly. I am sending you a cover letter, a sales contract, a hardship letter from the homeowners, a list of repairs, a net sheet, and pictures. Is there anything else your bank requires?

Bank: Wow, it sounds like you have a great package ready. That will be plenty of information to get started. Get your package to me and I’ll do my best.

You: Great, I’ll stay in touch.

See how often we use the homeowner’s names? We also reassured the rep that we could close quickly. We also told the rep what we were sending and asked if there were any other items the bank required. This shows your professionalism and experience.

Once your package is submitted, follow up until you get a yes.

OK - that's it for now. I have to get some sun before the sun sets...

Have a Wonderful Evening,

Dwan

www.youtube.com/dwanbenttwyford

Look at the bobble head video - it's so funny!

Another Successful Student

You have to LOVE this!!!!!!!!

She is such a great girl and I am so very proud of her... This could be you:-)....

Getting Through a Stonewalling Lender

Good Evening Folks,

I am headed to Hawaii and I wanted to make sure I wrote to everyone before I left. We are doing a boot camp there so I will be blogging. I went in April for two weeks and was MIA most of the time:-). Hawaii is one of my favorite places to visit - so peaceful, warm, great beaches, it is wonderful.

We have hired a few people to help us make some major changes - we are moving all our training classes to a state-of-the-art facility in Iowa, we are making a membership site with all kinds of great freebies for those who register, building an entirely new web site, starting a web TV show, offering all sorts of great services like tenant checking, online rental payments, property maintenance, and so much more. Just wait until it is all launched.

Working on all this has kept me really busy. I have been writing letters and making flyer's and posting information and working my butt off. My goal is to provide you with an amazing place to learn online - The Investors Edge University - is taking on a new life.

Once I get everything launched - I will post new information daily. It's a big commitment on my part because I will have to get online no matter what I am doing:-). I'm excited though. I need some structure on my life:-). I lose all structure in the summer when no kids are getting up for school - I sleep in, walk the dogs in the middle of the day, stay up really late, and just get out of control:-). It's a good life.

My youngest, Billy, just got his drivers license today! Another 16 year old on the roads - watch out. No seriously - he is a really good driver. All three of the kids are. It's hard to believe all three of my kids are so grown up. I am excited to have raised one amazing daughter and to have come into Billy and Kris' life when I did and get to be part of their raising as well. It's been a real blessing to have raised three wonderful children.

So, what does all this have to do with real estate investing - nothing. Just felt like saying hi to everyone before my 200 hour flight:-). Have a great evening, spend time with family, turn off the TV, make good use of this beautiful night...

Before I go - I wanted to give you some tips on how to GET THROUGH A STONEWALLING LENDER...

Trying to get through to the right person is difficult at times. Getting that individual to actually answer their phone is even more difficult. That’s why it’s important to get the fax number or e-mail address of the person you will be working with. Many times, their voice mail will tell you not to leave a message more than once in any 24-hour period. That’s how inundated they are. The trick is to do your best to get the rep’s e-mail address.

E-mail is one of the best ways for them to communicate with you. But if you can’t get an e-mail address and phone tag doesn’t work, then fax them repeatedly until you are contacted. They have so many delinquent loans they are dealing with that files are often pushed to the bottom of the pile. Constant communication helps keep your short sale on the top of the pile. We don’t want you to be so pushy that the rep doesn’t like you, but be professionally persistent enough to be taken seriously, even though you are a pain. Have you ever heard that the squeaky wheel gets the oil?


We have faxed the same rep over 200 times in one day … seriously. On one particular day, a rep simply refused to call us back. We had left over 13 messages. We were both very frustrated and were at our wits’ end. We don’t know what came over us, but we decided to fax until we got a call back. We began faxing throughout the day. Finally, at the end of the day, the rep called, yelling, “You faxed me over 200 times today! What is wrong with you?!” We stated that we hadn’t received a confirmation and didn’t realize how many times the fax had gone through. The rep stated that she would never work with us, because we had gotten her in trouble. We reminded her that tomorrow was a new day and we had nothing to do tomorrow except fax her again, and, after a long pause, she took our deal. It was great!

Don't let the bank push you around - stay tough....

BTW - you have to watch the bobble head video I put on my youtube page. It is hysterical:-).

Have a Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Memorial Day

Hi Folks,

Sorry I have been off a few days...lots to do before we head to Hawaii.

Today is Memorial Day ... Do you know what this day signifies? It is a day to remember all the men and women who have fought for your freedom - freedom to read blogs, watch youtube, attend a seminar openly, be your own boss, marry who you want, for men and women to walk and talk openly, for your right to vote, for everything you should hold dear.

I hear so many people complain about America. I have traveled to over 30 countries - and we ARE blessed! We live in the greatest country in the world. So many people have sacrificed for our rights. I hope all of you take a moment today and say a prayer - not just for the fallen soldiers, but every single person who has fought for you whether you wanted them to or not. So many people came back maimed, mentally destroyed, lost homes in foreclosure, had wives or husbands cheat on them, weren't here to see their babies born, and so much more.

When I hear people complain about America - I get so upset. My thought is - if you don't like it - move out! Most Americans wouldn't last one week in another country. Much of the world is very poor, has little resources, had no technology, or offers little opportunity for you to become a self-made millionaire.

I don't mean to be on a soap box, but most of us really do take for granted what a great life we have. Even with all the foreclosures, the high gas prices, the recession we are supposed to be in - we are still the greatest country in the world. Our country was founded on Christian values and I hope we can remember that - God has truly blessed our country.

I have some great stuff coming up this week, so stay tuned.

Have a Blessed Day,

Dwan
http://www.theieu.com/

Changes in Freddie Mac/Fannie Mae Lending

Hi Friends,

Good afternoon ... I hope this posting finds you well. Before we get down to business, I have to tell you how excited I am that David Cook won American Idol. If you are reading all my posts, you know I always watch Idol ... what can I say - I do waste time once in a while, I guess:-). I think what excites me is that I see people get to live their dreams. I am living mine and it is the greatest feeling in the world. I teach to help you live yours and I get all weepy watching others live theirs. I was so excited last night I screamed when he won:-).

OK - down to business ... Freddie Mac has made a change to their lending guidelines - they are NOT refinancing properties that have been held in an LLC at any time in the previous six months. What does this mean to us? Nothing really - it just means we have to plan a little better.

• If you have any properties you plan to keep for long-term, this won't affect you at all.
• If you have a property you want to refinance and it is in an LLC - take it out of the LLC seven months prior, refinance it, and then put it back into the LLC.
• Find a lender who is willing to refinance a property in an LLC - other than Freddie Mac or Fannie Mae.
• Put the property into a Land Trust naming the LLC as your beneficiary.
• Do what we do and take properties "subject to."

We take properties subject to. Once we accumulate several, we make the homeowners payments on time for awhile, and then refinance them all at once using different banks. This way, I am not applying for 10 loans at the same bank. I am applying for 10 loans at 10 different banks. It is much easier to qualify this way. I do all my re-fi's at once and then collect rentals for awhile and do it again. This also gives me lots of different banks or work with when I do need to borrow money.

As lenders, the government or the IRS try to change laws, we have to stay ahead of the game. Most of these new laws in the foreclosure business are in place to prevent homeowners from being taken advantage of. Sadly - there are lots of predators out there. A few bad apples ruin it for the rest of us.

As long as we stay ahead of the game, run our business ethically, and ALWAYS do what is right for the homeowner - we can sleep at night without worry of going out of business.

If you don't already have a Land Trust - I'll give you one. Email me at www.dwan@theieu.com and request a FREE Land Trust. I'll email you the one I use ... FREE!

Don't wait - email today - also ... we are having a scratch and dent sale on some products that came back to us slightly damaged. If you need something, name it in your email, and I'll have Billy call you and see what we have left. We are selling things as low as $149.

Have a Blessed Day,

Dwan

BTW - Fannie Mae hasn't adopted this policy yet, but, most likely, will very soon.

www.theieu.com

Permanent Boot Camp Location

Hi Folks,

I am so excited! We have made the decision to use one of our buildings in Clinton, Iowa as a permanent boot camp location. I know some of you are already saying, "I'm not going to Iowa!" Hey - it's OK...you'll be glad you did.

We really want to help you to become as successful as possible. By holding classes in one location, we can add a bus trip to the classes. In addition, we own rentals there and will be able to offer many new services:

• State-of-the-art location
• Catered lunches
• Parties on the rooftop
• A bus trip to look at and PURCHASE properties right where we invest
• Monthly property maintenance
• Someone to process rental applications for you
• Handy men you can trust
• MUCH cheaper hotels
• Riverboat gambling
• and much more

We are really excited to make this change and we hope and pray you will support our decision. In this tough market, we feel it will be a major asset for you to be able to invest where we invest. We can't guarantee success, but if you follow what we do - you should have the same results ... rentals that are FULL and CASH FLOWING!

We have done very well in river front towns and want to offer the same to you. We are planning to hold the first class in July. Instead of teaching in Chicago - we are going to try to have the space ready for - The Investors Edge University Training Center.

If you are struggling in this market, please plan to attend a class as soon as possible. Our goal is to teach you how to survive the crashing market and come out on top.

On a sad note...one of my dogs - Ruthie - has had cancer for a while. We had to put her to sleep today. It is a sad day for me, so say a little prayer for me today. Thanks for you support...

Have a Blessed Day,

Dwan

www.theieu.com

What To Do if Your Rentals are NOT Producing

Good Afternoon Friends,

I received this response to one of my posts and I want to share it with you...Again - this is why I dedicate so much of my time to teaching. God has given me a gift and a business I can share with others that can change their lives. Thanks for your support. Each time I read a letter like this, I thank God for the blessing of being part of your life and for you being part of mine...

Dear Dwan,
I am a real estate investor who for several years has done very well. I am a buy and hold investor as well and I, too, enjoy sharing and educating along the way. I had purchased rehabbed and then refinanced. This became my income and artificially produced a very high income I became accustomed too. Last year when the lending business changed overnight, my income was gone...who moved my cheese?

Since then, I have gone back to work in the industry I was in prior to becoming a full time investor. I have to say I love the work and the people, and yet I love the freedom being self employed gave to me and my beautiful wife. Unfortunately, I also had a property manager who has been less than 100% ethical. I have a total of 64 properties, of which 19 are building lots. The majority of my rental are with this one PM company. So I received a double whammy wake up. Instead of me getting my 14-15k per month I began getting 1k-2k per month.

I then began a short sale process to sell my properties. The real estate agent took so long to do their job (third one hired to do the short sale) that the properties are now being foreclosed on. I am reading your book, which I received when I attended a seminar in December. It is renewing my strength and confidence. And now with reading your subject to, and using land trusts to take possession of your rentals, this will be the direction I will head.

I am inspired and re-committed to get back to rebuilding my real estate, and your blog, your book and the stories within have been a direct catalyst.

God Bless you and thank you.

Wow! Thanks for the kind words. I do want to offer some advice right now. If you have 64 properties, sell some of them and pay off the others. Say you were able to sell off 50 - use that money to pay the other 14 off completely. This way you'll still have several rentals to start over with.

I realize that the market is down - but - did you know that you can do your OWN short sales. Call the bank, explain that you have 64 properties that are in foreclosure, get the bank to agree to accept a short sale and list them in the MLS - "subject to a short sale." You should get a ton of offers. If other investors by any of them from you, have them give you some cash at the closing. Use the cash to pay off the others or if there are any with equity, sell them in a package to pay off others.

Put them in smaller packages - maybe 6 or 7 in a group. Advertise them on www.craigslist.com. We have had great response buying and selling on craigslist. If they are bundled together, you might get some interest. Folks, if any of you are stuck with unwanted rentals, try this. You'd be surprised what you can come up with when you need to.

Sadly, markets like these can catch people with their pants down - there are hundreds of thousands of investors who got caught up in the pre-construction craze sitting with 1/2 finished properties that now require a payment. It's unfortunate...

The good news is that you can rebuild and be much better off. Did you know that Henry Ford went bankrupt 7 times? Think about this - started a company ... filed bankruptcy; started another company ... filed bankruptcy; started another company ... filed bankruptcy; started another company ... filed bankruptcy; started yet another company ... filed bankruptcy; started yet another company ... filed bankruptcy; started another company ... now it's getting painful just to read ... filed bankruptcy; started Ford Motor Company and many of you now pay him.

Think about what it must have taken to go bankrupt 7 times! All your friends thinking you are a nut for starting another company, people losing faith in you, you losing faith in yourself...what perseverance it must have taken.

So, when a market like this catches you off-guard, turn lemons into lemonade....

• Sell some of your rentals to pay off others.
• Rent to people in the Section 8 program.
• Use the Section 9 program - people with aids.
• Use programs for people with substance abuse.
• Use program for people just getting out of jail.
• Use special needs housing programs - handicapped people.

There are all sorts of programs where the government will PAY you HUGE amounts of rent. All you have to do is search them out and use them. ALL my tenants are from the Section 8 program. My rent is paid by the government and I am getting rent increases every year. Nothing is vacant and none of my rent went down during this housing market.

I like to think of government programs as "recession proof" rentals. There is no person elected into public office who would sign a bill stopping programs for the poor and handicapped. It will never happen.

Folks, this does not have to be the end of the world - change what you are doing and you will come out on top.

Hope this helped some of you. Rentals can make you very wealthy and can also cause you to lose everything. Even if you have lost everything because of rentals - do what I said the other day - use subject to's to rebuild during this market. You will come out on top.

Buy in places like the Midwest. Especially river front towns. Gambling boats are huge and anyplace along a river will soon have a gambling boat - which means more jobs - which means more hotels - which means more jobs - which means new industry will move in - and so it goes...

Have a Blessed Day,

Dwan

www.youtube.com/dwanbenttwyford

Rising Foreclosures and Subject To's

Hi Friends,

The rising foreclosure rate is staggering. I read today that in some counties in Colorado 1 in every 86 homes is in foreclosure. It's so hard to imagine. How can so many people be losing their homes?

I was talking with another educator yesterday and he said there is a Bill on the table right now to outlaw "subject to's" in the entire country. I would hate to see that happen because that is how we take our rentals. Whenever you hear of anything like this - do something about it. We are planning to support a lobbyist who is going to bat for investors nationwide. Sadly, we have no real voice in Washington. As I get more information, I'll let you know what you can do to be part of the solution.

Speaking of subject to properties... this is how we get most of our rentals. We have the homeowners deed the property into a "Land Trust" and then we become the beneficiaries. We have an attorney who is our Trustee. As beneficiaries, we are the owners of the property. Many people don't understand what a land trust is and how it works.

The deed is filed into the name of a land trust - instead of into YOUR name. That deed is filed at the courthouse and the land trust is now the new owner. The actual land trust itself is a document kept by you. In the document it states who is the trustee (the person who represents the land trust) and who is the beneficiary (the owner of the trust and; therefore, the owner of the property). The land trust document is NOT filed. It is kept in your hands. This is why the bank does not realize that the title changed...people are allowed to put their properties into an asset protection entity without calling the "due on sale" clause.

We name the land trust the property address. So, if we were buying a property located at 123 Elm Street. We would name the land trust - The Elm Street Land Trust. The bank assumes that the homeowners put their property into a trust for asset protection. If I named the trust - Bill and Dwan's New Rental - it would raise red flags. The new deed now states that the Elm Street Land Trust is the new owner. The ONLY document filed at the courthouse is the new deed. The actual land trust remains in your possession, naming you as the beneficiary...get it?

By using this method, we are able to take all our rentals without ever raising any questions with the banks. By taking over the homeowners payments, we don't have to qualify for new loans every time we get a new rental. With this crashing market, taking over properties subject to is the best way for you to accumulate wealth without having to use your own money.

I keep telling everyone - if you have the means to keep rentals right now - do it. Properties have never been so cheap. Take a look at my youtube pictures. There is a cute, little white house. We just got a new tenant for $600 a month - moving in June 1. The payment is $233. How crazy is that? It's a great deal for everyone. Part of the reason we are going to start doing boot camps in Iowa is to expose you to some of the amazing deals we are getting.

As more people lose their homes, they will need to rent. You can fill a need as well as help homeowners get a fresh start. What can be better than that?

OK, I have to run. I am doing a live call in 20 minutes...hopefully you will be tuning in.

Have a Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Jim Ferebee - $40,000 in ONE day!

You have to love this guy!!!

Dwan, thank you for the opportunity to take these photos with you. It was an absolute Honor to stand beside someone who has changed my life completely when it came to being able to finally do something for myself and quit my job at Ford Motor Company.

I could not have done this without the benefit of having your course and following what you laid out for me to do. You truly have changed my life and I appreciate you forever....I had co-workers saying that I was crazy to leave a job like that. I believe they did not wany me to make it just so they could say I told you so.

Even what I thought was a close friend did not believe that I could do it and was told that I was crazy as hell to think that a bank would discount their loans so that I could come along and make money like that and that I was a dreamer and I need to stay at Ford where I belong. But boy did I prove them wrong......

I have my boss fax number and quite often send them a copy of my checks just to show them it can be done. I feel like McDonalds, "I'm Loving It"

Thanks Dwan!!!!

Sincerely,

Jim Ferebee Jr