The HELOC Is To Be Undone

Posted on November 13th, 2010 in All Articles, Short Selling/Buying.

Chicago–Phil Buoscio here. Focused on Short Sales in Chicagoland. After completing another round of training on short sales in an intense 72 hour bootcamp and learning the “option” contract method this weekend with Short Sales Redefined I now can say that I am a black belt. I have been trained in Dallas at the Banks’ own Five Star Trainings (2008/9) and at Keller Williams National Conventions in Short Sale Mastery (2007,2008,2009). I have also closed over 300 overall deals in the last 7 years.. .and alot of the ones in the last two years have been short sales.

Option Method – Investor Is A Flexible Buyer To Get Even The Heloc’s Paid Off

I have a new methodology added to the ways in which we can get someone out of a foreclosure. I currently have over 20 short sales listed and over a dozen under contract. For those clients that want to have a higher probability of getting successfully out of the short sale we now have investors who are lined up to write solid offers on short sales to get them approved on favorable terms to the seller.

This is especially important for clients with the Wicked short sale task of getting someone out of a First Lein and a Second Lein that is a HELOC.

With short sales… it turns out that the “highest” price is not always the one that will be the buyer who will stick around long enough to get the deal done and get you out of foreclosure.  It also is not usually the strongest buyer either. Thus… my job, my fiduciary duty to the seller, is to find the buyer with the most favorable terms. The one with the strongest cash position, with the strongest financing…

For example… what if a seller of a property is in foreclosure… and has two loans. The first is a loan for say $200,000 with a first lein. The second loan is a HELOC or Home Equity line of credit. The problem with this scenario–and not alot of beginner non-specialized Realtors don’t understand this–is that the buyer of the property will likely need to be willing to give a cash contribution to get that HELOC debt settled.A fha buyer with only 3.5% down needing closing costs is not in the position to do that. That’s the wrong buyer. We need to find the RIGHT buyer to get you short sold.

I am of the belief that our clients … should not be signing promissary notes. If you are going to short sell then let’s get it done right… all the way… and get the owner freed up to start new…

We are committed that we get sellers out of all debts and avoid foreclosures and will focus and plan every deal to do so–and hope it works out.

When this is hard …. The hardest challenge out there… is when a client has a  HELOC(Home Equity) to be settled.

In order to settle a HELOC … which is basicallly a lein on your home.. BUT ALSO a COMMERCIAL debt governed under unique set of laws (similar to credit cards).

So to get that HELOC done… we have to find a buyer who is wiling to kick cash into the deal for the seller to pay that HELOC off… this is tricky .. .but we know how to pre-plan the deal… and find the right buyer… and presell the events we can likely predict.

The bank will try to get you to sign a lein.. to not settle that HELOC debt but we will stand firm on no promissary notes.. and settling that HELOC for you.

Call me today if you have a Home Equity Line of Credit and want to short sale. This type of short sale (and any other Short) is not a matter for someone to train on the job with… Our negotiator is a Proven Pro who closes over 40 short sales a month successfully.. with no debt/deficiency … If you want a true professional then let’s get started now.

Phil Buoscio