General Investing Questions & Answers

All of our loan officers are thoroughly trained and experienced to assist investors in every aspect of rehab and financing of thier real estate project. From purchase, to rehab, all the way to selling, Direct lending Partner & its loan officers have the experience investors need to complete a fast no hassle rehab investment.

Read More >>>

---

Short Sales & How They work

Short Sales are one of the most effective techniques for discounting loans in real estate. Short sales create huge investment opportunities and are a must if you want to be competitive in this market. There are several important steps when conducting a bank short sale. Too many times, beginning investors skip vital steps that ultimately cost them the deal. Many of the rules have changed regarding what the banks will and will not allow you to do. The process on average is taking a longer because of all the inventory. However, there is almost 3 times the opportunity for real estate investors and a good time to start doing short sales.

Read More >>>

---

The Short Sale Process

The short sale process is fairly simple to understand if you have any experience with real estate. Let’s go through the different steps in a short sale so you know exactly what you are getting yourself into. The short sale process starts when a homeowner is delinquent at least 90 days and has been issued a notice of default. The lender is now in a position to accept less than what is owed on the mortgage. The investor or real estate agent handling the short sale will need to sign an authorization to release form that will be sent to the lender giving them permission to speak to the lender on the homeowners behalf.

Read More >>>

---

What is a Short Sale?

A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $300,000. You write an offer to the lender for $220,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.

Read More >>>

---

What is a Trust Deed Foreclosure?

Trust Deed foreclosure is different than that of a mortgage foreclosure because there are no courts involved. Simply put, most investors refer to trust deed foreclosure as a third party action. Investors use different terms when dealing with a trust deed foreclosure. The borrower is called the trustor, the lender is called the beneficiary, and the third party representative (the one who is holding the title) is called the trustee. The trustee, who represents the lender or beneficiary, is brought on for the sole purpose of holding the title of the property as a security measure against the debt.

Read More >>>

---