12 Ways to STOP a Foreclosure | Pre-Foreclosure Leads | Daniel Moore

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hey good morning everybody it's Ron and

Daniel for Monday's edition of propely

alive we don't have a thing song like

fancy-dancy grant camp but today we are

talking about what mr. Moore twelve ways

to stop a foreclosure so there are many

different ways to stop in one minute

mini will end up with the owner

retaining the house many will end up

with their owner selling the house but

either way around

we've got 12 different ways to stop a

foreclosure for you today but before I

get too much further into this I must

give a shout-out to my daughter Tyler

daddy loves you I was trying to leave

this morning and like she was just mad

because I was having to go to work and

then she tried to compromise well then I

go to work with you and I was like sorry

kiddo and so yeah it was a rough morning

trying to get out of the house so hi


daddy's watching us sweet yeah she was

she was not wanting me to go to work

this morning so it was it's always rough

as a as a parent trying to leave

whenever your kids are like don't go

just like yeah and that goes back to you

know as an entrepreneur yes you get a

lot more time with your kids but

eventually you still have to do some

work here and there so yeah that's rough

I'm sorry buddy oh it's a good day but

either way around let's get in here and

let's start talking about foreclosures

the fun stuff ex home thank you for

hopping in Toby and Sonya I appreciate

y'all both tuning in week it looks like

we've got close to 20 people watching

already so if you're out there watching

don't forget to drop some comments below

tell us where you're watching from I

find it interesting when we see people

from all over the United States watching

we even had some people in was it France

or Germany watching the other day

somebody that was stationed overseas

I don't remember again the only way we

actually get to know you on this live

stream and know where you're from is if

you comment like Sonya she's from I

believe Phoenix I know it's Arizona but

I believe Phoenix in Arizona and she's

very active so we really appreciate that

Cameron he's from Virginia and he's

fairly active recently we used to have

some other Kobe ammerman from he he was

from Arizona and

Joe from California he hadn't been on in

a while so come on step it up anyway so

comment below let us know your from if

you have questions in the middle list

this is a live setting so we can ask

those we're both on Facebook we're both

on YouTube so if you haven't turned on

those notifications of when we go live I

think there's like a bail thing turn it

on because this is great contact for

replaying but it's even better when it's

live hey misty from Decatur Evan Currie

Chris low all y'all thank y'all for

tuning in so let me get started on this

and start digging in a little bit here

let's see so let me just start with the

beginning week we received a private

message over the weekend from one of our

regular watchers asking you know if we

could get him a power of attorney so he

could contact the Bank on the behalf of

the seller that was a motivated seller

that was facing foreclosure and let me

just go ahead and start with that from

there one of the key pieces when you're

meeting with the sellers you're gonna

need to get what's going to be called a

third party authorization on file with

the bank with the sellers creditors like

the banks the you're going to get it on

file with the trustees if you're working

with you know in a wow I'm having a

rough time this morning I'm just like

all kinds of just just tongue-twisted

this morning do we want to plug the

slides in so it makes life easy you've

got the slides right okay but wait

school I'm trying to say is if you're in

a deed of trust state you're gonna want

to put your third-party authorization on

file with the trustee and if you are in

a mortgage state you're gonna want to

put your third-party authorization on

file with the foreclosing attorney to

get that third party authorization it's

real simple I'll drop a comment I'll

drop a link in the comments below but

it's essentially saying I'm the seller

and I want this other person that's not

related to this loan to be able to talk

to you about my loan on my behalf it's a

really simple document it's nothing more

than that really but in the reason

obviously the reason that's important is

if you've tried to have any kind of

communication with a cell phone company

and you're not the person they want to

talk to you they won't talk to you so

think about it when you're talking about

a loan or anything that has actual

weight they're definitely not going to

talk to you so you have to have the


work in order to actually you know have

those communications have those talk the

banks absolutely not going to talk to

you unless you have a third-party

authorization on file and on top of that

don't trust your sellers to do it


they they've allowed them get to get

themself in this position they're not

gonna I don't know you know you pretty

much have to hold them by the hand and

do everything for them but the

third-party authorization you're going

to depending upon the bank you're going

to call the bank up and find out exactly

how they want that submitted is they're

easily gonna want it faxed emailed some

of them will even want it physically

mailed but with that to be said find out

exactly what they want and don't just

assume they're gonna want it faxed and

that you have the right fax number

because the banks will have 35 different

fax numbers and they want it sent to

only one fax number so call the bank up

and then once you have submitted the

third-party authorization call back

daily to make sure that it has been

imaged into their system that's what

that's the term they're gonna often use

so you'll call up the bank hey chase

have you imaged XYZ document into your

system or in regards to the XYZ property

and if they say no just fax it again

just keep faxing it every single day it

might seem like a waste of time

but what you don't want to do is fax it

day one and then wait because they told

you it might take up to 72 hours to be

imaged into their system you wait 72

hours and they say oh well we still

don't see it fax it again because if

you're dealing with foreclosures and

you're dealing with that type tight time

crunch just go ahead and fax it in every

single day until you know for a fact

that it got imaged in because you got to

remember when you're working with those

people they're probably a salaried

position work they're 9:00 to 5:00 they

take their hour hour and a half lunch

break and there's zero motivation on

their part to help you out to them it's

just move a to be a to be all day long

so you have to go out of your way to

again do the work for them you have to

do 100% of the work form so here's

here's another tip on how to get a third

party authorization on file a little

faster and that's going to be while you

are actually sitting there with the

seller get the seller to call the bank

up right then and there

then while they're on the phone say hey

mr. mrs. banker can I put mr. mrs.

homebuyer on on file as a temporary

authorized user until we can get the

paperwork submitted and if they do that

right then and there for you then more

often than not you'll at least get like

a 24 to 48 hour window where you can

call the bank and talk to the bank prior

to your third party authorization being

imaged into their system so anytime I'm

out of sellers house I'll just get the

seller to call the bank right then in

there and try to verbally put me on and

normally with a verbal one that didn't

last too long they only last like 24 to

48 hours but if I can get the seller to

do that for me that gets me immediately

on the phone with the bank requesting

payoffs reinstatement fees what type of

loan terms is it is it a thirty year

twenty years that have a balloon is it

God you know adjustable adjustable

interest rates all things that I might

want to know before I'm pursuing this

deal I can find out on the phone right

there in just side tangent on that but

also a call back to a previous episode

this talking type of documentation

that's in your toolbox right like when

you go to appointment and you're about

to you're about to sign the deal and you

know you need to you need that

documentation you need that third party

third party operational always gonna be

in my phone it's there so you don't have

to go back and come back to them it's

right there ready to be signed that way

because again you have somebody ready to

sign to sell their house yeah you need

to get done and any time you forget

something you're just adding hurdles to

not close that deal and not actually get

that deal done so make sure to get that

done then once you have that done

that'll give you the ability to start

talking with the bank and one of the

first things that I will do whenever I'm

dealing with the foreclosures are try

and get a bank stopped to get a

foreclosure stopped is I'm going to ask

for just a simple forbearance agreement

that'll be probably one of the first

things that'll pop out of my mouth

whenever I'm talking to the bank is

something along the lines of hey right

now I know that you're scheduled for

auction in five days but right now we

have a purchase agreement and purchase

contract that has been that has been set

forth that'll get you paid in full you

won't have to foreclose on this property

I have sent you copies of this purchase

agreement I've got it sent to title

we're ready to close on this just give

us enough time to get it closed can you

postpone this month off

for 30 days so we get this closed a lot

of times the banks will it's kind of

like a toss-up you know sometimes they

will sometimes they won't sometimes you

need to be a little pushy er than others

but for the most part I've had good

success doing nothing other than just

saying hey would you go ahead just

postpone this auction for 30 days and

gives us a chance to get it sold more

often than not I've had banks go ahead

and agree to that so I know what it is

but I was asked anyway at its core what

is a forbearance agreement essentially

the bank just agreeing to stop the

foreclosure for a certain period of time

so you're just extending the the deal

just give me give me an extension that's

the best way of saying it just give me

an extension before you foreclose so

I'll have some time to try some some

remedies to resolve this because again

the reason it's good for the banks is

the whole foreclosure process a involves

lawyers are developed it's a hassle and

it involves money and the the

hassle-free option is always going to be

the path of least resistance so that is

that is step number one and quite often

will succeed for you now depending upon

what's going on I'm gonna press

everything I possibly can to get it

closed before the extension date comes

comes do as in like it let's say I get a

phone call on a on a Thursday and I know

that this properties goes to auction on

Tuesday that's a short period of time to

get this property closed and sold can I

do it yes but it is a small period of

time so I might go and hold that

forbearance and push on the bank early

on on Thursday but even if they do say

you know what I'll go ahead and give you

another 30 days that doesn't change my

timeline I still try and get it closed

by Monday because the the best way I can

use this the best way I can think of to

say this is a seller that's motivated on

Thursday when they call you that finds

out that the foreclosure has been

postponed in another 30 days loses their

motivation does that make sense yeah a

lot of times a seller that's working

with you just fine on a Thursday morning

when they find out that you got an extra

30 days forum all of a sudden ignores

the fact that you have a contract with

them and then they start trying to

ignore the fact that they agreed to sell

you their home and a lot of other things

pop up I guess so I try to perform that


it goes back to the whole the reason the

reason they're most likely in that

situation obviously there's other things

that happen but I'm not getting that but

for the majority is they they close

their ears they close your eyes and they

just did the whole out of sight out of

mind if the problems right not right

there in front of them there is no

problem so if you give them the 30-day

is like there's no problem and that's

the exact problem that I have so from my

own experience I've learned to even if I

am able to get that forbearance

agreement pulled off that I just do

everything I can to get it closed before

that auctions so that way the sellers

motivation remains there and it's not

like I spent all this time effort and

energy to get this done for them and

then they're like well I'm gonna sell it

to somebody else and it's like that's

not what we agreed to and that's also

why have memorandum of contracts right

so moving forward in real quick just so

you know in the time of this our we're

actually dealing with a similar

situation of this topic so if daniel has

to take a call or look at his phone

that's what he's doing and so it's just

kind of interesting how real estate

works about this top this actual topic

we're talking about Daniel is working

through it right now as far as people

watching on I just want to say hello to

their very Miranda good morning Sonya

Toby Jeff Matt Cameron hopefully you got

Sonya Matt or Sami and Cameron you gave

shoutouts earlier misty Decatur hey

misty let's see Evan Curry I've never

seen you man welcome to checking out our

stuff Chris Greg from Florida hazel

Angelica anyway help us out get those

shares going get those lights going if

you turn on those notifications ask

questions let us know where you're from

and we'll keep going let me see if

there's any questions so far

sorry if I'm pausing here like literally

we have another one going to auction

tomorrow and I'm getting it stopped

right now so I have to kind of somewhat

bounce back and forth between here

sorry hey dead hair there there it's

free contact people you can do it I

think five seconds oh yeah like

literally we got one going to auction

tomorrow that we're fighting with so I

do have to pay attention to my phone

while I'm going through this so another

one that we're gonna look at right here

and that's going to be if I if I'm

moving forward the forbearance agreement

will be on my side one of my very first

options for trying to get this thing at

the very least postponed so that way I

have more time to deal with figuring out

what's going on if I have plenty of time

for Barents agreement might not be too

important to me but this seller you know

maybe the seller needs only 30 more days

to get a job or they've got a new job

coming up but they're not going to get

paid whatever the situation might be if

the seller needs more time a forbearance

agreement might be an option for them to

achieve that another option that might

be able to stop a foreclosure for them

and like I said I've got 12 different

ways of doing it right here not all 12

are going to be pertinent to you as an

investor but they're all gonna be things

that you might run into when you're

talking to a seller seller might say

well I'm gonna do this to get the

foreclosure stopped these can all be

used as objections you know you're

working with the selling the seller is

gonna be like well you know what I'm

just gonna do this well as a foreclosure

as somebody that works in foreclosure

you should know what that's gonna be

what some of the benefits and drawbacks

to that are so that way when you're

talking to the seller you can educate

you can speak to them on an educated

level about the process so repayment

plans a repayment plan is exactly what

it sounds like who the seller is gonna

be able to speak with their bank and say

you know what I'm only 90 days behind

that's three months payments I'm only

$3,600 behind on payments I've been able

to fix my situation I've got a job now I

lost my job for a short period of time

but I'm back on my feet again

can you give me three months six months

nine months 12 months to make a bigger

payment than what I normally would let's

say my payments normally $1,300 a month

or $1,200 a month if it's $1,200 a month

can I make a $1,600 a month payment for

the next you know year and get myself

caught up like that now that's overall

what the repayment plan is going to be


essentially just taking all those past

due payments breaking them down into

into monthly installments and then

paying that monthly installment above

and beyond your normal bank your normal

mortgage payment and that right there

will get them caught up in when you're

listening to this you might be

scratching your heads going well I'm an

investor I'm trying to buy this house if

they're doing the repayments that means

I don't get a house so here's your gold

nugget for this episode or this this

video 12 ways to stop a foreclosure is a

way that you when you're working with a

seller if Ryan the investors coming up

says hey I can stop your voting a

foreclosure ah they're like okay what if

Daniel comes up it's like look I've got

12 different alternatives to stop your

foreclosure who sounds more reputable

the guy that's going hi or hey I've got

12 different ways so we reason we're

listing this out is you're hitting them

with all these different options so yes

a repayment program you're not gonna get

the house but the end of the day as

Daniel likes to say often if you have

the ability to keep somebody in their

house you need to take that or you're

just a soul yeah the point of this the

point of foreclosure investing isn't to

buy their house the point of it is to

figure out what their problem is and

provide them with the best solution and

if they have a solution to save their

home and leave and be left in a good

situation and you don't you don't tell

them about it that's that's just wrong

that's really all I can say about it but

the flipside to that same thing is every

every single option to stop a

foreclosure is an option for the seller

to argue with you about your proposed

solution so let's say I show up to the

seller and I'm like hey we can purchase

your property for cash if we do this we

can do that and it sounds like oh no no

I've heard of a repayment plan and I'm

just gonna go ahead and do a repayment

plan and where the difference between an

educated foreclosure specialist and a

newer foreclosure specialist is they say

okay I'm going to do a repayment plan

well that's the end of the conversation

because that seller is dead set on doing

the repayment plan well if they tell me

they're going to do

payment plan that's an objection to my

offer I might need to break that down a

little bit more I'm gonna ask them some

follow-up questions such as okay so if

you're gonna do a repayment plan how

long has it been since you've made your

last payment well it's been three years

all right well if I'm looking at 36

months of payments that have not been

paid there were two thousand two

thousand a month we're talking about

twenty four thousand year we're talking

about almost eighty thousand dollars of

repayment they're gonna have to do let's

hop with their career on top of the

current payment I was like are you

currently in a situation where you can

afford to make your monthly payment and

they're like no but I'll get a job okay

so you haven't had a job in three years

you still don't have a job you're gonna

somehow miraculously set up some sort of

$80,000 repayment plan that's gonna

they're not the banks when they do the

repayment plans they're not gonna give

you like a ten-year repayment plan it's

more like you know three six nine twelve

months and if you can't get it caught up

in 12 months the probability you're

getting that repayment plan is slim and

then if you even want to compound that

problem further if you don't even have a

job to prove to them that you can make

these payments they're not going to give

you the repayment plan so I understand

that you mr. and mrs. seller are really

convinced that this repayment plan is

the option that's going to be the saving

grace for your foreclosure I'm gonna

have to smack you with a little bit of

reality in that is there's no way the

banks will give you a repayment plan you

couldn't afford to catch up $80,000 with

the payments even if you tried and you

don't have a job so that's how I'm gonna

approach a seller because whenever I'm

talking about these total different ways

to stop a foreclosure if I see one of

these any of these that I see that are

viable solution form I'm gonna present

to them but if they start hitting you

with some of these ways to stop a

foreclosure it's absolutely ridiculous

in their current situation I might have

to try and steer the reality back into

position so just know your options and

if you know these 12 that we're gonna go

through you have an answer to the

rebuttal were you ever rebuttal to there

yeah I don't know language what I got I

got a I got a comment here from Greg

cook he says you know help them and walk

away pat yourself on the back it'll make

you feel better there's an Earl's - you

get a reward it's far as I'm concerned I

get far more gratitude out of walking

into somebody's house and giving them a

solution to the problem that doesn't

involve them and uprooting their family


then I do making a quick 10 grand I mean

for there's plenty of just there's

plenty of people out there to take the

10 grand over at out of helping somebody

but I'm not one of them so that's that's

just a good explanation for you real

quick on the repayment plan and how that

might work then it's going to be

different than a loan modification so

that's totally different from a loan

modification so I just want to throw

that out there but if you show up with a

seller that's only a couple of months

behind it does have the ability to

remake the repayments on it a repayment

plan is a good option for them and if

you know you can tell that they're not

in a financial situation to be able to

take on a repayment plan now you know

how to handle those rebuttals so coming

back through there's gonna be another

one and let's call this one the loan

modification this is almost always the

objection that I'm gonna get whenever

I'm dealing with a seller I'm gonna be

speaking with the seller and the seller

is gonna say oh you know what I'm just

applying for a loan modification and I'm

gonna go ahead and move this move

forward with that right this is the one

that everybody's like oh yeah everybody

can do it

and like this is one of those great real

estate myths out there that ya know it's

everybody does it

yeah the so let's just dig into that

first let's just go ahead and define

that a loan modification is a permanent

restructuring of the mortgage

permanently like they completely changed

the way the note looks the deed of trust

the the security agreements it's all

completely redone and the terms of the

borrower's loan are changed to provide a

more affordable payment I don't consider

that definition to be accurate I just

read that definition off of the internet

right here but they said that the loan

are changed to provide a more affordable

payment let's talk about loan

modifications for a second because a lot

of sellers consider this to be the

saving grace do your own independent

research have your own independent you

know site cited material that you bring

with you on appointments I always had my

foreclosure package that I'd bring with

me on all my appointments that would

give me information solid information to

hand back over to these sellers so it's

not just me telling you hey you know

your plan is not going to work take my

plan right I don't

like doing it that way so I'd bring hard

facts with me printed news articles

printed state government you know

reports that came out and I'm like okay

so and I don't have none of this

memorize something's gonna just throw

some numbers out there it's like okay so

in 2017 looking at this study from from

FHA or Fannie Mae or whatever government

India I'm gonna cite it said out of

three hundred thousand four hundred

thousand loan modifications only six

hundred of them were accepted another

six hundred that were accepted more than

ninety percent of the people ended up

going to foreclosure anyway because even

though the loan modification was

designed to help lower the payments and

make them more affordable more often

than not in a foreclosure situation the

home the price of the loan goes up every

single month putting them even in a

further situation that they can't afford

they end up going into foreclosure

anyways that was a long ramble but you

can find tons of documentation out there

on Google if you just search a success

rate of loan modifications or number of

people approved for loan modifications

because it's like cuz the myth is it can

happen but the reality out of like

thousands of like twelve billion maybe

eighteen get approved yeah there's a

very obviously those numbers don't exist

but I'm just saying go out and find the

real numbers because the real numbers

are shocking you was from back in the

day and like it was like 2009 there was

a report done from Bank of America that

was this is reasonably close numbers I

don't have a memorize but they received

like three hundred thousand loan

modifications in 2009 of the three

hundred thousand loan modifications they

approved like thirty so you got like

less than a one percent chance of

actually getting approved for a loan

modification in 2009 from Bank of

America those numbers have probably

changed a little bit but all you have to

do is go out to the internet and start

doing your own research to find credible

sources of information and that's going

to point towards more often than not if

you are able to get your loan

modification through your loan payments

are gonna go up and you're not going to

be able to afford ending up in

foreclosure anyway but the big

difference is is right now you've got

some equity that you can walk away with

if you continue with that loan

modification now we end up another year

down the road that twenty thousand

did have is gone because you you're

further down the Holden what you were

and you're not in the situation where

you can sell anymore and recapture some

of that money put yourself back in good

terms as did that rambling make sense

the the I think the the the easiest

thing that you could take out of it is

yes that's a good plan but getting a

loan modification approved and through

the system is like winning the lottery

because very very very very few people

get it that being said if you actually

do get it your interest rates and your

payment plans you're gonna lose any kind

of equity you have the house already and

it's really not that good of a option

for you anyway it really isn't so let me

let me go ahead and hit you all with

Golden Nugget its galore this time look

most of my background is in foreclosure

so that is a topic that I feel

comfortable reverting back to at any

point in time because it's easier for me

to speak on that but let's let's look at

loan modifications for a second because

this is going to be more often than than

anything else the rebuttal you're gonna

get the most from a seller oh I've

already got it taken care of them I'm

processing as a loan modification at the

very least in Texas our foreclosure

process is fast it is fast you got 3045

days from the time public notice hits to

being able to get out there and get

something done a seller is gonna say you

know what I've got a loan modification

working right now oh you do when's the

last time you submitted your paperwork I

have they requested any additional

paperwork well as I start asking these

questions I'm asking these specific

questions for a reason that's because

quite often as they're submitting this

paperwork to banks like oh I'm missing

this document I resubmit oh I I didn't

get I didn't get the documents I

resubmit okay we have your documents

we're working on them now I call back

two days later hey are you still working

we don't have your paperwork and you

think I'm joking here the banks are

extremely disorganized and they mess

this stuff up already so what I'm hoping

to do with that sellers start hitting

them with some of those realizations of

pain points of have you already

submitted all your paperwork have they

requested any additional paperwork I'm

trying to get them to start bitching

about the bank saying yeah I've

submitted this I've done this I've done

that I'm like alright banks are

extremely disorganized with all of this

and although the loan modification might

be a good good option for you and I'm

just going to go ahead and agree with

them if I've got them to the point if

they're to the point where they're

combative with me about whether or not

they're gonna make this loan

modification successful I'll just come

back with them and just just let them be

right let them be right loan

modification is your option okay but we

have a very short period of time between

now and the foreclosure option we're

looking at about nine business days in

nine business days there's still enough

time in the event that the loan

modification does not go through to

process this and give you at least the

option of getting your equity out of

this house so it's not lost in

foreclosure but since I know that you

want to make the foreclosure work how

about we do this we're going to work a

plan B you have you ever heard the term

you know don't always put all your eggs

in one basket well this is gonna be your

opportunity to make sure that you do

everything possible to give yourself the

best options for getting out of this

foreclosure loan modification is going

to be great for you but in the event

that the bank does not make this loan

modification happen before the auction

here in 12 days or whatever we're going

to call it if they don't get it done and

then you find out the day of that it's

not happening your chances for getting

this home sold have turned to zero

instead of doing that how about we

applied two different options at the

same time you move forward with the loan

modification you and I work together I'm

putting together this a purchase

agreement but what I'll put in this

purchase agreement is that you have the

right to cancel this contract at any

point in time up into the day of auction

in the event that you are able to

successfully receive your loan

modification so on that one thing I just

heard that I hadn't heard in the past or

at least haven't thought about is it's

not necessarily an option contract where

they can cancel if another investor

comes along and says hello I can do it

what Daniel said plus a dollar it's only

if the modification doesn't come through

so I have I have I have it written up in

such a way that says they're out in this

contractors if they have a successful

loan modification out or not if they get

a backup offer right if you get a backup

offer that you like better than mine

that doesn't take into consideration the

amount of time that I'm spending on

working your file and everything else

I'm doing in between no I'm not letting

you walk away from this contract so you

can continue shopping around and

four right if you're wanting to shop

around an offer shop around an offer all

back out but if you don't have an answer

to me within a specific period of time

my offer is going to continuously go

down because my room for due diligence

goes down my room to do abstracts of

title title making sure that I have a

clean paperwork just in case I need to

sub to it there's a lot of stuff that I

want done before this gets started if I

don't have the opportunity to do so my

offer is gonna start dropping and in the

reality is if you don't necessarily have

to be a dick but sometimes you do have

to be firm and there's always the

back-up line of if I have to I'll just

buy it at auction so it's with

foreclosures I'm gonna have to go ahead

and just state from my experience more

sellers than most of the sellers that

I've had to deal with or what I'm gonna

call ostriches they bury their head in

the sand and ignore the problem until

the very last second with that mentality

typically came the that mentality is I'm

no psychologist but often in my opinion

born from a sense of helplessness they

don't know what to do they don't know

who to trust and in that state of

confusion they decide to do nothing and

you know there's a lot of people that

can get past that fear and there's a lot

of people that can't get past that fear

and for those people who can't get that

past that they just have a state of

helplessness and when you show up to

their home they're scared of you or

they're scared cos they've got everybody

trying to hit them they don't know

what's going on and you're gonna need to

be able to at times snap them into

reality and that might neat that might

mean just honest truth you'll have

people you'll have sellers that are

gonna be like oh you know what I've got

this resolved I'll catch up and I'll be

like you know that this property's going

to auction in 48 hours right and you're

about $90,000 behind on payments what

options do you have well I just figured

that you know maybe I'd win the lottery

like literally you'll have people come

back with just because they're trying to

say everything that they possibly can to

just get you away from them because

they're embarrassed they feel hopeless

and they don't want to be taken

advantage of but at times when you have

somebody like that you just have to get

them on some

hard facts it goes back if you've been

in this business for any length of time

you knew you know the type of people

were talking about where they have

there's a roof leak there's a giant

water stain in the ceiling and they

don't even recognize that it's exist

that it exists it's been there for a

year and a half you see it they see it

but to them it's not a problem and

you're like sir ma'am you you're

literally your roof is completely about

to cave in if we have another rainstorm

but in there I mean we've all if you've

walked any number of houses you've seen

it you've know the type we're talking

about and it's just a matter of

recognizing that the house is about to

cave in so like you were saying you say

you know not to be an ass but sometimes

with foreclosure sellers you really just

you you got to be an sometimes

and after you have done that I've seen a

lot of sellers come around because

you're just hitting them with just a

dose of reality you're not biessing with

them you're not lying to them you're not

fluffing up the situation like oh this

is gonna be fine it's like hey you're 48

hours away from going to auction you

have a reasonable amount of equity here

that you can control and take advantage

of before the auction once it goes the

auction the controls out of your hands

what I'm looking at right here is you're

saying in the next 48 hours you're gonna

come up with $90,000 in past due

payments how do you plan on doing that

and then they'll say well you know I

don't know and then I'll just be like

how about we just hit this up with some

reality in the next 48 hours I can put

$20,000 in your back pocket and leave

you in a situation where you've got 30

days to figure out what you're doing

next if you don't take this option in

two days you're going to auction in the

next person that's going to come to your

house as a constable and the person that

just bought your house asking you and

your family to get out yeah and I know

we've been kind of really hitting hard

the loan modification but the reality is

it's it's that that pie-in-the-sky thing

that everybody goes to everybody knows

about it's that myth it's that

mythological creature unicorn that I'm

gonna get em on you're not you're just

not and you really get a hammer the

point that they're not real quick before

we go on to number four we do have our

handy dandy t-shirts so if you want a


we'll be given away those here soon or

at the end

for every hundred comments we'll give a

t-shirt so if we get 300 comments we'll

give three t-shirts the way you the way

you entered a winner's shirt is you drop

a comment if you drop one comment that's

one entry if you drop ten comments

that's ten entries so the more comments

you drop the higher the probability of

you getting a shirt will be and if

you've already won a shirt we'll do a

book or something we're not gonna leave

you hanging

so get those question on that board

keep those questions let's see if we

have any comments on what we've talked

about so far before we go on to number

five misty if you bought a low interest

rate loan modification is a myth because

you still likely have a pass to escrow

for taxes insurance and those costs

being recruited for in your house by the

more exactly golden I get yep yep yep

yep some real quick mins if we miss your

question you wanted it it answered

asking again because it's hard for us to

keep up with the comments but dropping

below and I'll keep on going and if I

see any more lessons from today don't be

an don't be a dick but everyone

just goes back and forth but uh you

could be a professional dick hashtag

professional dick alright so here's a

here's a way to stop a foreclosure that

I'm gonna be willing to bet of the 50 or

so people we've got watching right now

many have not heard of and this is going

to be a perfect opportunity for you to

kind of shine as the foreclosure expert

when you're talking to these sellers

you're gonna need to know what this is

how it works and all of the nuances

behind it I'm just gonna read it

verbatim off of my slide here but do it

go ahead and do your own research behind

this and I'll explain that here in a

second as to why but we're gonna talk

about partial FHA insurance claims so

when you buy a property you're gonna

have private mortgage insurance PMI

you're gonna have that insurance problem

back there that you're gonna have to pay

above and beyond of your pity payment

for and that's that PMI is going to

essentially give the bank's some

protection in the event that the

property sells for less than what it

should have sold for that insurance

kicks in and helps the bank out I'm not

going to sit here and get into all the

uncle's behind it but that's just the

gist behind it is it's an insurance for

the bank in case the bank takes a loss

that the PMI will cover the loan up to

like 80 percent of what what was lost or

whatever it ends up being partial FHA

though is if you have an FHA alone and

you start getting behind a partial FHA

claim is an interest-free loan from HUD

to get caught up on the overdue payments

the loan does not have to be repaid

until the first mortgage is paid off or

until the borrower no longer owns the

property so this is going to be like a

another lien filed against the property

HUDs gonna be the one to make the loan

HUD will make the loan to catch up all

of the past due payments after HUD has

made that that payment or after loan is

caught up all your past due payments HUD

will have a lien against your house but

that lien is going to come after you pay

off all of the liens that are already

there so it's not like your payment goes

up it's just if you own your house for

30 years at the end of 30 years when

you've paid off your first loan well

guess what you now have another loan

that falls in behind it do you have to

start making payments on and that's

where the ament's it's not an

interest-bearing loan and it's cool

because if you tend to hold that house

forever at the very end all you do is

make your last few payments to HUD and

you're caught up so having zero

experience personally with this that

sounds to me knowing how the government

works having other conversations with

HUD that seems like more of a unicorn

than the loan modification it has quite

a few stipulations to it mm-hmm you so

like have you ever seen a successful one

of these I have not personally dealt

with one I have dealt with a short sale

specialist that has okay so I'm not

gonna pretend like on my side I have

experience with this but several short

sale experts that I've talked to have

heard of this coming through and working

out for people so there are caveats to

making this work that's why I suggest

you go out and do some of your own

independent research but they won't kit

like if you're sellers 48 months behind

on past due payments what HUDs gonna say

is mr. or mrs. banker

you should have done something about

this a long time ago we're not gonna

catch up four years worth of past due

payments for it the pretty much the FHA

partial claims for people that are like

three months to a year behind right

additional caveats to it is that the

seller needs to be able to prove their

ability to make their loan payments

going forward they're not going to take

somebody that doesn't have a job catch

up all the past due payments just so

that they're going to be be lost on them

again right so the seller has to be able

to have established income that can

prove their ability to make payments

moving forward and there's a couple of

other caveats that play into it the bank

has to work with them on that the seller

can't approach HUD and ask for this the

bank has to approach HUD and ask for

this not HUD FHA but I as the seller can

initiate that conversation with the bank

and say I want to file a partial FHA

claim can you assist me on working

through this there's a lot of paperwork

that has to be done there's a lot of

other things that have to be done but if

you get through all of that that is an

option for getting this property caught

up that might allow the seller to keep

their home so it's out there if you hear

about it you know about it if you've

smart and you take some time after the

show to go out and do your own research

you'll be better about it and just throw

this into your foreclosure package so

when you are sitting at a sellers house

and they have this question so you have

some reference material to go back to

but the going back so I've already said

but if you sit there and say hey I've

got 12 options for you and you can graze

on this and be like hey if if we were to

if we would have had this conversation a

year and a half ago this could could

have been an option but honestly it's

just not an option for you moving on to

the next one what what what I like about

having that documentation with me right

then and there is is if they try and

give me some pushback is like oh no I

know this will work and I'm good you

just told me you're 18 months behind on

payments here's the HUD documentation

right here it says you cannot be more

than six months behind on payments so

although you think it works I'm not

lying to you here's the HUD

documentation right here that says you

can't be more than six months behind so

I got a question here from a Facebook

user I am NOT an expert on this I will

give you my input and once again I'm not

a lawyer and advisor or anything like

this is just my personal experience I

got a facebook users are asking is this

HUD loan for FHA mortgages only that is

my understanding it is for FHA mortgages


I do not want to give that as an

ultimatum go out and do your own

research but from my experience it's for

FHA loans only or at least government

backed loans so don't let me mislead you

there I'm just throwing out some

information for you all to kinda just

start taking in but but even on that st.

you you get them started on that process

you still have that same thing we talked

about with the loan modification well

that's plan a and let's move forward on

that but Plan B let's go ahead and get a

contract in place that way if worst case

scenario we could still help you out but

so you don't lose your house and lose

all the equity etc etc etc for those of

you out there that did not realize how

big of a golden nugget that was probably

at least a third of the contracts that I

received were plan B because the seller

was so set forth on plan a that they

would refuse to try anything else and

when I proposed to them Plan B in the

way that I proposed it to him I'll hit

him up is like you go you've probably

heard more than once in your life never

put all of your eggs in one basket well

the way things are going right now

you're putting all of your faith and

hope into this loan modification and if

it doesn't work out you have no other

options but it's at least work together

on a plan B so that way if plan a

doesn't work out you you have an

alternative and what I've found so often

is that with a seller that is hanging

all of their their hopes on this one

plan the second that I give them a

second option that they have agreed to

they ignore plan a almost always and the

reason I'm assuming the reason that is

is plan a usually requires the seller to

do work to file paperwork to make phone

calls to do the follow-up to fax this to

fax that so you just jump through all

these hoops and hamster wheels of stuff

or just give me the problem or let me

take care of that for you and almost

always if they are talking about plan a

and you get plan B into role playing a

just gets forgotten about right because

plan a requires them to address all

those things they've been ignoring for

two years and it is more than likely the

fact that although they were dead set on

talking about Plan A

they were likely taking zero effort

toward making plan a actually happen

they just want you out of the house they

just want you out of the house so these

are just different things for you to

look at when you're looking at this so

we're gonna keep on going so past the

partial FHA claim we're gonna have

another one you're not going to see this

very often but this is an alternative to

getting out from underneath this

foreclosure refinance now that might

sound real awkward right up front

because you're already thinking well

these people are in foreclosures are way

behind on payments refinancing might be

an option for somebody that has quite a

bit of equity in it let's just say they

owe let's just say they own a house

that's worth a hundred thousand and

they're only Oh fifteen thousand on it

they got a lot of equity there and they

got like five to ten thousand dollars in

past due payments so really they're like

twenty five thousand is what they owe on

this house and it's worth one hundred

tons of equity there maybe they have

reestablished a job that has got them

back on their feet and they can afford a

loan payment at that lower price or

whatnot refinance is a possibility maybe

their credit shot and they have to bring

in a credit partner such as their sister

brother cousin friend that will help

sign off on that loan for them it is an

option don't discount it as not being an

option for that person to refinance out

of it if they have massive amounts of

equity so one of the one of the things

I'll sit down with when I'm talking to a

foreclosure sell arms and ask them

straight up upfront I was like really

there's two options in this scenario one

do everything you can to fight and keep

the house or be you've already made the

decision that you're ready to move on

somewhere else which one appeals to you

more are you that well are you the

person that's like you know what I'm

just done with this house I'm done with

the problems the headaches that it's

caused me and I'm ready to move down the

road and then you got the sellers it'll

like I will give up my left arm to keep

this house so you got to figure out

which seller you're working with and

then based upon that that depends upon

how many of these twelves do I need to

go through if I got somebody's like I'll

cut off my left arm to save this house

all right look at this refinance you do

have the equity to do this

you have something that'll sign off on

it for you and then I'll start helping

them get through that process while I'm

always working Plan B at the same time

always because we're on number five and

because we've still got about 20-30

minutes left okay I gotta do something

that I have

I've only done once the past year I have

to use the restroom

so please plug away please talk I'll see

you in a few seconds all right so it's

not so so right how to go to the

bathroom real quick I'm double checking

on my foreclosure trying to get a

bankruptcy filed right now so got to get

that done so all right so talking about

the refinance some some some this is not

something you're gonna hear somebody

brought it bring up very often and it's

more likely that it'll be use it'll need

to bring this up but if you see a seller

that's in a situation where they have a

considerable amount of equity they have

the ability to make a new Loudoun

payment they just can't get caught up if

they're in that type of situation and

they have someone that's willing to

co-sign for them they might be able to

refinance the property refinance all of

their arrears into a new loan with it'll

allow them to make those payments move

forward and not lose all their equity

and have to move now if you have

somebody that's talking about doing this

and they don't have a job and they don't

have any equity in the house this is not

this is not an option they're gonna be

like oh well I owe 150 thousand dollars

I'm a hundred thousand dollar house and

I don't have a job I'm just gonna refi

it's not gonna happen if there's a lot

of equity and there is the ability to

repay a new loan this is an option for

these people to move forward so

continuing to move forward so outside of

the refinance here's another one that

you'll probably never hear about but

this is why I call it 12 ways to stop a

foreclosure and that's why I am doing

foreclosure marketing one of the very

first things that's on my paper very big

at the top is I have 12 ways to stop

your foreclosure many of which you've

never heard of it'll catch the person's

attention and I'll talk about one or two

of them in the copy and then I'll get

them to call me to figure out these

other ways of stopping a foreclosure so

that way I can at least get on the phone

with these people and figure out what's

going on but this next one coming up is

very similar to the last one which was

called a refinance this next one is

going to be called a short refinance

it's going to be a rare option that

people will be able to perform but if we

have a loan on a property that let's say

they owe 150 thousand dollars on a

property that's

worth 100 grand but the seller has

phenomenal credit and the ability to

repay but they've just gotten to a point

where they're like this house will never

be in a good position for me to ever own

it I'm significantly underwater on it

why should I spend the next 30 years

trying to pay this thing off and in

situations like this you might be able

to talk to the bank and get the bank to

accept a short to pay off of their loan

and refinance at that short rate this is

so rare that I'm not even going to

discuss it in great detail

just consider short sale which means I'm

going to short the bank if you pay off

and combine that with a refinance so I'm

going to short the payoff and refi it

into a new loan I now have a smaller

principal balance that makes more sense

for the house that I own and I move

forward under those premises and if

you're paying attention to one through


you know the forbearance agreement yes

that that's a common thing it happens

but replacement repayment plan loan

modification partial FHA claim refinance

or finance those are all like

pie-in-the-sky unicorn' options but

again if you are trying to be perceived

as the expert in the room and you're

giving you all these options even though

in the back your head you know damn well

none of these are actually going to be

an option you're at least giving them

you're giving them way more knowledge on

the subject matter than your typical

wholesaler coming they're like hey I'll

give you a 50 thousand you know it's

your credibility shoots through the work

roof it really does because instead of

showing up to try and get what I want I

show up to show the options of what's

available and then if I give this people

like of all the 12 different ways to

stop a foreclosure I really see these

for being prominent options that might

be able to help you move forward you

know some of these I can help you with

some of these I can't help you with but

I can at least put you in the right

direction to move forward with those if

I do that and I show credible

credibility in my desire to help these

people it more often than not builds the

rapport that I need to continue moving

forward because again the the rewards

the three rewards are one they actually

get to keep their house to you

get a potential property or three they

get to give the house and then you get

one hell of a referral for future

business yep so thank you for tuning in

Ben Mario Nick Wade if I Sohail so Saul

I don't sure if I'm saying your name

right if I'm not going curricula on that

Chris Misty all y'all want to say thank

y'all for tuning in remember we are

giving away t-shirts today if you want a

chance to win a t-shirt drop comments

below every comment that you place will

give you a new entry in to win and a


DeMarcus has a great question how you

know how do you know if there is equity

in the house based on the reinstatement

and how much they'll have left to pay

off I don't notice a we don't necessary

have to go into much detail because

Grant and I actually did an episode on

this where we go in and do all the

research show you how to get county

records and then basically get you

within 500 dollars of what that payoff

would be so that was a good video to

watch but essentially you're gonna

figure out what current market value is

for the property in its peak condition

after repaired value

what's the after repaired value of the

property what's their current loan

balance what are their arrears what are

any other liens attached to the house

worth what are the repairs so you take

the after repaired value - - the the

loan of balance as well as any other

liens against the property plus the

arrears minus the repairs you get all of

that and that's going to County the

difference between what the ARV is and

all of the stuff that they owe against

it's their equity there's a full show on

that just a loan that Grant did so go

ahead and check that one out but so yeah

Brady Elizabeth all of y'all thank you

for tuning in for some of the y'all that

already got shirts go ahead and drop

some comments below showing us some

pictures of you and your shirts out

there tag propely oh when it would be

we'd love to see you oh yeah so going on

past the short refinance like I said

that one's a definitely a pie-in-the-sky

one there are of some of the ones I've

showed you like forbearance agreements a

solid that right there I use all the

time the repayment plan is pretty good

for people that are only a few months

behind and is

definitely a good possibility loan

modifications not not so good the

chances of that working out for them are

relatively low partial FHA claims if you

catch it early on enough and you

understand the thing and you can get the

bank to work with them on that that's a

good one for you because it's not so

much you that's gonna be able to file

the partial FHA claim it's gonna need to

be the bank and you're gonna have to get

the bank to work with you on that going

on past that we got the refi that is a

that is not so much a pie in the skies

and it's not capable of being done it's

just the seller situation needs to fit

that mold if it doesn't fit that mold

it's not going to happen

gonna push past that the short refi

that's going to be extremely rare and

here's another one that's gonna it's

it's what I call a band-aid this isn't

gonna stop the foreclosure but it's

gonna buy you more time and this is

called a TR o temporary restraining

order what this is gonna be as the

seller petitioning the courts to receive

an immediate relief from harassment from

the bank and in order to do this the

sellers gonna need to put up from my

experience the sellers gonna need to put

up some form of bond to get this TR o

put into place they're gonna need to

hire a lawyer and they're gonna get this

put forth and it's gonna normally take

it can take 24 hours or so to make this

happen 48 hours but if you get the

restraining order that'll buy you at

least a few weeks and if that few weeks

happens to be during the time of your

foreclosure auction your oxygen will get

post bumped now the T ro is an expensive

option unless you have an attorney on

your team that's just gung-ho for you

it's gonna cost you probably somewhere

between five to six grand to get going

but if you have a lead that you just

need a little bit of extra time on and

you can't take option number two which I

was what I'm about to show you this is a

good alternative if as long as your

attorney and legal team is on point with

this and they know what they're doing

you can get a TR o file which will be an

immediate stop of the foreclosure but

usually good didn't you say when you do

those though it's it's like you said

it's a band-aid because eventually the

bank is going to get their legal

apartment and that what's the turnaround

is that are we talking three days a week

two weeks this can this is where you

definitely need legal assistance on it

because let me let me try and put this

as clear as I can so that way people

don't misunderstand this you need a

legitimate reason to go to the courts

and say these people are harassing me

and they need to be restrained from

causing me any further harm and to get

that get that judge to go ahead and give

you that restraining order legitimate

reasons here's my bank account I can

prove to you I've made every single

payment to this Bank for the last 15

years I'm not one day late on this

they're gonna sell my house at the

auction on Tuesday and there's zero

reason for them to be doing this I've

made every single payment that's a

legitimate reason coming up to them and

saying you know what

here's another legitimate reason I

bought all this paperwork from Chase

Bank of America's trying to foreclose on

me they have zero documentation proving

that they have any right to foreclose on

me at all they don't have the right to

foreclose on me but they're doing it

boom a legitimate reason the courts are

gonna say well let me hear the facts

behind this and we'll move forward now

if you go in there

and you file a fraudulent whatever you

want to call it just to get the bank to

foreclose because I'm trying to buy more

time in this house you might be able to

get that pulled off but if you are able

to get that pulled off the judge isn't

gonna be too happy when they find out

that you mr. seller you know are just

trying to buy more time is it a

possibility yes how can you get it done

yes but unless you have a legitimate

reason for doing it the bright the

courts are gonna frown upon it once they

realize what you've done and this is

where we say consult your attorney you

need the right attorney team in place to

make that happen

so just throwing that out there but that

brings me on to the next step and the

next step is going to be BK bankruptcy

if you've got a seller this is going to

be the easiest way absolute easiest way

to get to foreclosure stop you just go

out and file a bankruptcy you're gonna

the seller is going to need to make the

own decisions on this you're not a

lawyer not able to give financial advice

or legal advice but bankruptcy is an

option for getting this foreclosed or

getting this foreclosure stopped if you

do that it will immediately stop the

foreclosure for an indefinite period of


almost always somebody that ends up

going into foreclosure or that it goes

into foreclosure that files bankruptcy

and they use that bankruptcy as a

band-aid to try and hold on to the house

for longer almost always still lose the

house to foreclosure in the future but

if you are working with the seller as a

real estate investor and you need just a

couple extra weeks to get something done

bankruptcy all day long will get the

foreclosure stop literally minutes

before the auction if this property went

to auction at 10:38 a.m. and you filed

the bankruptcy at 10:37 a.m. boom sale

gets reversed and you still get to own

the home in the minute the ultimate

benefit to the seller if if they go

through bankruptcy yeah for seven years

they have a bankruptcy on the record but

what is what are some benefits for them

to do that see with the bankruptcy just

because I file it doesn't mean I have to

complete it it doesn't mean I have to go

through the entire process I'm not here

to give legal advice go out and talk to

your own bankruptcy attorneys but for

the seller that has options that need to

be that need more time that can be

completed bankruptcy all day long for

the seller that needs more time in the

house and just has zero other options

bankruptcy just don't think that the

bankruptcy is a solution more often than

not the bankruptcy is a band-aid to give

you other options so that's kind of

really all I got on that in that and I

never heard that before though it was

your own if you just start the

bankruptcy process process you don't

necessarily have to finish the

bankruptcy process

all you got to do is get it filed once

that that's a huge and I get home there

you go huge nugget real quick Jeff had a

quick question how do you follow up the

following week when a homeowner is told

told them that there was a forbearance

and went back in the house any nugget

for that like how do you do the follow

up like the seller they got a

forbearance and now they don't want to

deal with the investor anymore how do

like if I already had a contract at that

point in time it would be a case-by-case

basis based on the seller but a

voicemail that I leave quite often with

the seller that goes dark on me is a

very short voicemail and a follow-up

text that just says something along the

lines of hey I don't know if I made you

upset what did I do wrong just something

simple like that and as stupid as that

sounds that will get a lot of sellers to

open up and call you back and or you

know you know if that doesn't work

follow-up like hey I've got a lot of

time and money into this what's go

what's going on and if that doesn't work

hey I filed memorandums of contracts in

public record so that way it would

protect all of the money that I've put

into this house which prevents you from

being able to sell it to anybody else

and you know it just depends I'll have

to get further and further into it with

the seller but if I have a soda that

goes dark on me after a forbearance

agreement it's gonna be a personal

decision as to how how deep into that I

want to go hey everybody out there on

YouTube watching mm-hmm

Brady at least I think it's Brady he had

a good I think it just broke this but he

had a good comment on YouTube which was

with loam back to the loan modifications

that there's actually a lot of

fraudulent loan modification companies

out there that basically they're just

taking advantage of the deposits from

people yeah and then on in addition that

is another rebuttal to the sellers like

yeah a there is that is a unicorn option

but again you got to be one out of a

billion to get it and if you do are

pursuing something make sure that it is

actually a legit thing because there is

fraud out there something that you need

to be doing as a foreclosure specialist

going out on foreclosures is whenever I

meet with the seller I always asked for

especially if I get the contract I like

I see your trash bag over there full of

mail that you received in the last month

can I can I have that or can I give you

50 bucks for it real quick as I as the

foreclosure specialist I like to see

what everybody else is offering because

in foreclosures you're not competing

with other investors only you're

competing with other investors

bankruptcy attorneys loan modifications

solicitor you're gonna be competing with

multiple different people and if I if I

see a bankruptcy attorney that's

offering X Y & Z I might need to be able

to as an investor see what those options

are and see if I can incorporate that

into my marketing somehow so it makes my

marketing more appealing I like to see

what everybody else is offering so that

way I have rebuttals and/or address that

inside of my own marketing Mario this is

the first time I've ever seen on

Facebook so hey thanks for watching

Mario he was saying why would you even

waste a seven thousand on on the CRO as

far as the seven thousand I guess that's

your lawyer rate I don't know if it's

seven thousand and I got the opportunity

to make 50 grand or a hundred grand or

two hundred grand

despite whatever it is it's my risk

versus reward right if I know for a fact

that something's gonna there's a really

good deal here and I just need an extra

couple of days to get this knocked out I

might get the seller to sign a deed into

my name so that way I can control the

property pay the seven thousand for the

trro give myself the two extra days that

I need to get this property done and

close it out yeah that's one of those

huge lessons in economics that a lot of

people fail in and don't get caught up

on what you're having to pay out get

caught up on what the return is so if I

have to pay a hundred thousand dollars

but my potential return on that is five

hundred thousand a million dollars guess

what I'm gonna be spending a hundred

thousand dollars every single day if I

can repeat those returns if it's been a

hundred thousand to get a thousand

dollars back I don't know

that's it depends is that a hundred

percent guaranteed well then it's still

worth it what's my risk vs. rule yeah


but it goes back to but don't get caught

up on what the payout is or what you're

paying out is be worried about what's

coming in the return and your risk and

the risk yeah so bankruptcy is like

magic fairy dust it will stop a

foreclosure and like just get in touch

with your attorneys it's bad man I wish

we could have preps because then I'ma be

like glitter like fairy dust alright so

we have gone through as of right now I

don't know one two three four five six

seven eight of the 12 options these next

four are going to move more towards

actually selling the house so here's

another one and that's going to be pay

off all the rears mrs. sellers $10,000

behind on payments and they make that

10,000 a pay that $10,000 back

foreclosures immediately stopped that

can go both ways if the seller was in a

situation to be able to pay off the

$10,000 in past two payments they

probably would have already done so but

if I'm on an appointment and I'm talking

with the seller and then I'm like hey

man that's a badass boat you got out

there they're like yeah that was a gift

to me from my father from years ago you

know it's it's my pride and joy and I'm

like so you own that thing free and

clear and they're like yeah I was like

well you really wanted to you could

probably sell that boat and keep your

house and then you'll see the husband

look at the wife the wife look at the

husband and then you got a divorce and

they save the house but you know you

sometimes the sellers will have assets

that could pay off their arrears if they

were just willing to sell it one of them

being I remember sitting down with the

seller I was like you see that ring on

that finger right there you could

probably get the money to catch up your

past due payments if you just got rid of

that ring yeah and then it's like how

about I just sell the house instead what

if they're like that that isn't like

boom good let's let's continue moving

forward but you know there are options

where a seller might be able to pay off

the arrears that they're not aware of

and you might be able to point them in

the light of yeah you could probably

sell off one of your 19 cars or you know

get rid of your beloved Star Wars

collection if you yeah in that and that

gives in to a side nugget that we've

talked about in the show but you know we

always get new people watching always

get creative with your deal structuring

I know Daniel has a fairly fun arsenal

of weapons that came from a house deal

where you know he was stuck at one

number and the seller won in this number

well okay well let's meet here but guess

what all those guns

I want them yeah I like I like

sweetening the pot whenever I'm

whenever I'm working in deal especially

if I'm working a deal with a seller

that's just being rude mm-hmm I'll start

I'll start I'll start I'll start

negotiating more towards my favor

whenever I'm dealing with the seller

just getting on my nerves yeah so like

if they've got a really nice boat you

like I'll buy the boat and a discount

but whatever yep anyway just the point

being there is get creative and and

realize what's in the house what assets

they have and go to town so for

everybody else that is watching and we

were just talking about paying off to

your ears how does that work for you as

a real estate investor though so we

talked about what happens if the seller

pays off the arrears what happens if I

is the buyer pay off the arrears then

I'm gonna be talking to that seller

about subject to this is the great segue

into subject 2 it's like alright you're

$10,000 behind on payments I'll catch up

you're 10 you're $10,000 in past due

payments but in exchange I want the deed

to the house and I want the rights to -

to the house from that day moving

forward so there's situations where that

plays well and you might be able to get

property subject-to just by correcting

the arrears so that's a way for you to

buy the house without using your own

credit and potentially without even

using your own cash if you pay off to

your ears and then turn around and sell

it on a rap so go a good little segue

into situations that work for you as a

real estate investor

okay moving forward we got deed-in-lieu

Dean and Lou is an option for getting

rid of the house without having to go

through the foreclosure Dean lose where

the seller gives the deed to the

property back to the lender without the

lender having to go through the

foreclosure this benefits the seller by

not having a foreclosure on the record

and this might benefit the bank by no

longer having to proceed with the

foreclosure but for those of you that

understand lien positions and collateral

of collateral public record whatever you

want to call it when we're looking at

lien positions one of the biggest

benefits that the bank has to taking

this to auction is that whenever they

foreclose it wipes the slate clean it

clears all Junior

positions and everything else any other

claims the title get white whenever the

bank files that foreclosure and

completes it what happens if I give the

bank the deed in lieu and the bank takes

the deed and then comes to find out well

you've got two more liens on this

property that I wasn't aware of that's a

risk that the bank has and that's often

a good reason why the banks won't accept

a deed-in-lieu now if you're working

with the banks

you might be able to get one pulled off

some people don't realize this but in

Texas there was a law passed that said

that if a bank accepts a deed-in-lieu in

Texas and they later find out within the

next two years that the title was

encumbered that they could reverse the

deed in lieu and foreclose any ways to

protect title which gave the banks in

Texas a little bit more of an incentive

to accept them so your state may vary

things may vary with you but

deed-in-lieu is something you might hear

a seller mention now if I ever hear a

seller mentioned even Lew the very first

thought that comes to my head is they're

done with the house they're ready to let

it go if they're going to give it to the

bank why not they just give it to me so

I might try and get a seller that's

thinking about deed-in-lieu to try and

work with me instead of just giving it

to the bank at that point it's just a

matter of well how about as little cash

for keys yep just hand them a little bit

of cash take the keys to the house and

you're good from there we've only got

two more left and we're getting towards

the end so the number 11 is going to be

short sale fewer sale is a way for you

to purchase the property and create the

equity that you need is a real estate

investor to make a deal out of a

property that is underwater

if I I have made massive amounts of

money off of short sales working with

melody medley if you are in DFW or if

you're in Texas and you do not work with

melody medley oh yeas real estate we

call her the queen of short sales

this woman has knocked out like six

seven hundred foreclosures short sales

stops hundreds and hundreds of

properties from going to auction and she

has created awesome opportunity for

investors to create equity and

underwater properties and she's an

all-around cool person she really is big

shout outs to her will drops will drop

her information below but melody medley

at over at oh yeas what a short sale

does is oh if you have a property that's

worth a hundred thousand and they owe

two hundred thousand on the property

you'll know

go she ate with the lenders to get the

property down to what it's worth instead

of the bank saying oh I want $200,000

for this hundred thousand dollar

property which is never gonna happen

the melody will work with the banks on a

short sale to get the bait excuse me to

get the bank to drop the value and then

when you do the BPO show up in a full

hazmat suit and see that number go down

even further short sale tips 101 so as

Matt sees it really is I'm not a lot

I've done it before and that there was

one short that they owed the bank right

around like seventy-five to eighty

thousand dollars somewhere in that range

and I was offering lot value for the

house I was offering eight thousand

dollars the like ninth BPO that I got

this this for this short sale was going

on probably almost a year and a half two

years I like the ninth or tenth BPO I

got when he came out I had the

full-blown respirator alcohol wipes and

the booties and everything I was like if

you go into that house the probability

you're getting six like phenomenal

everybody that's ever gone into that

house has been massively sick afterwards

because of all the problems within the

house here's your respirator

here's your this and he just looked at

me he looked at the house he looked at

me he looked at the respirator and he

was like how much did you offer on I

said eight thousand he said I think it's

worth about eleven and he left I was

just like cool works for me we bought it

for I think twelve because the bank

wasn't gonna go less than twelve we

whole tailed it for like thirty six

thousand so it worked out really well I

bet when you did the hotel and you

didn't wear a hazmat suit before we get

to number 12 on the list we're at

currently 167 168 number of comments

just reminder if we can get 200 comments

while we're live we'll do two t-shirt

giveaways if you already want a t-shirt

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day if you jump on YouTube if I can get

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you already got a t-shirt drop them in

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anyway thank you so much for watching

make sure you turn on those

notifications and you know and all

remember to use a restroom before we go

live next time what do we got we have

any more shout outs Mario this is the

first time I've seen you on here so

thank you for joining in on us misty I'm

glad to see that you've been watching

more I know you just started watching a

couple weeks ago so that's awesome Gregg

always good to have you on here

I know Brady was watching so thank you

so much

he's great Brady actually has one would

you offer cash secured with a second

lien to pay off their ears with the

ability to foreclose and take over the

first if they do not repay you

barring the sub to of course you got to

be careful with that I'm not a lawyer

but if you give them alone and you

record a lien against their property and

it's their homestead you might be

dealing with homestead lending laws

there might be some major legal stuff to

be aware of there in the instance that I

am moving forward with the purchase and

sale of this house and I've got the

purchase agreement there I will get the

seller to sign a deed versus a second

lien position and because if I'm about

to drop $7000 you secure it I'm gonna

say okay you sign the deed I'll put up

the seven grand you've already agreed to

sell it to me anyways and that kind of

gives them zero options for backing out

of this thing you know I don't even know

if that's legal so you need okay and

there's something else that you really

need to disclose in here and that is if

you're working with foreclosures the

laws vary drastically across all 50

states there's some states where you

can't even speak to a homeowner unless

you're licensed as a foreclosure

specialist there's a lot of legal that

goes on with this so if you're like I

know Oregon's pretty tight about that

and I know that in other states it might

be as well so study up on your local and

state laws before you start doing this

and always make sure you speak with

legal before you try any of these things

that we talked about because while I may

have used them successfully in Texas

they might not work in

State and although I may have used them

successfully that's not guaranteeing

that I unaware only unknowingly may have

broken some laws so and on that going

back to Brady's point I would throw out

there what strategy what are you trying

to do are you trying to be a lender or

you trying to be a real estate investor

where you're trying to get the house at

the end of day if you're doing second

liens to other investors doing deals and

doing transactional funding more prior

to you go for it but I wouldn't

recommend being a second lien lender to

every Tom Dick and Harry homeowner out

there because if they're already in a

situation where they're about to get

foreclosed on what makes you think that

they're gonna pay you an alternative

strategy that some people use though and

that is I'll take the second lien

position and if you fail the code if you

fail to pay me I foreclose and take

proper T sub-2 the first lien position

but you need to understand your your

lending laws because if this is your

home right and I provide a loan to you

that might be a home equity loan that

might be something along those lines

that can get me at massive amounts of

trouble but you'll see a lot of times

like you know those guys that do the tax


oh those what their goals drop down is

they're doing that with the strong

assumption that you're not gonna be able

to pay them back and then they get the

right to get and if you see one of those

liens on any property they're not

negotiating is their whole strategy is

they want to be able to foreclose and

get that house but that's a different

that's a different that's where the

second liens might be able to come into

plays if you learn how to do this right

I can work out but again that goes back

to make sure you consult your attorneys

to draft up like just ironclad type of

documentation that you're not just

another lender you're a lender with a

strategy of getting that house and if

you're out there watching right now and

you're struggling seeing us show up in

your news feeds I see that Facebook's

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you know hey never miss a video from

propely go see their latest videos at

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that button that'll help you out being

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content we do this content three days a

week Monday Wednesdays and Fridays I'm

on Mondays grants on Wednesdays and we

have a special guest come in on Friday

so if you're enjoying the content every

day like I'm every day

if you haven't checked out for paleo

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a website for your investing business

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you can go through papilio get your

website get your business email setup so

all good resources for you out there you

about ready to give away a book well no

I just want to say if you're an investor

and you come trying to buy a house with

a at yahoo account

somebody's gonna follow you up and say

really as person is a yahoo they're

ridiculous we never finished something

number 12

oh yeah number 12 so while we're doing

number 12 which is gonna be the most

straightforward and simplest of all

twelve please go ahead and drop some

more comments so you have an opportunity

to win the t-shirt coming up so last but

not least and this might sound like way

more than you would have ever expected

but we've given you 11 ways so far and

the 12th one is the absolute simplest

pay off the loan balance essentially

cash purchase if they owe $80,000 you

pay $80,000 for a bank foreclosure will

be immediately stopped that is no gold

nugget we all know what that is but now

at the very least in your marketing when

you're speaking with the seller you can

say I've got 12 different ways that I

can stop your foreclosure many of which

result with you keeping your house so

just to recap number one for back

justice I'm gonna test y'all and we'll

test and Ryan see number one for Vance

agreement number two repayment plan

number three loan modifications number

four partial FHA claim five refinance

six short refinance seven temporary

temporary restraining order eight

bankruptcy that's that's your fairy dust

number nine pay off the arrears number

ten Dean lieu 11 short sale with melody

and number twelve pay off the balance so

whom can't say propely owes never hooked

you up before Mike drop real quick you

didn't talk about the Academy and I know

you're very passionate about that so

let's get extremely excited about the

Academy so anybody that is watching

right now this is not turning into a

sales pitch the Academy is free so if

you enjoyed the educational content you


here we are looking at beta release of

the Academy on the 14th of this month

and we were looking at final release of

the Academy on October 1st the Academy

is going to be content just like what

you saw today but broken down into

organized digestible nuggets from

beginning to end

every investing strategy that you can

think of every back office piece

marketing negotiations resources

contracts paperwork short sales sub -

raps foreclosures probates divorces how

to structure your legal lending private

lending quest IRAs coming in and

teaching the the IRA a self-directed IRA

stuff we've got people coming and

teaching bank lending hard money lending

so if money's your problem

we're teaching you how to find and

access money there if strategies and not

understanding the different ways of

pulling down a deal or your problem that

will all be taught in the Academy and

once again this is all free and it will

be online at the propellor Academy so if

you are interested in being a part of

that stay tuned to make sure to

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released you will get the reward and

then also on that if you are if you want

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release on that just drop in the

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then your email and one of our guys will

you know just type in propel your

Academy and if your emails there they'll

add it to the list real quick does

lakeisha's acid is propelling you have a

referral list for a list of attorneys

lenders etc we don't necessarily have a

referral list that being said if you ask

directly who we prefer we'll give you

some shoutouts attorney wise depending

on what your needs are sub twos we like

to say Matt ACOG Scott horn

probates McGee Brandon McGee or McGill

oh yeah

for me like I always like referring if

you just have general real estate

investor stuff I like to throw out Julie

Pettit if you're talking about its

lenders if you go to any other events we

have tons of lenders so it's really hard

to say hey which one do you prefer I

prefer private capital I know heeda

Daniel likes prefer a private capital

that being said not everybody has access

but as far as lenders

I that's better a DM conversation

because everybody's pretty good but I

can tell you who we don't like and but

I'm not gonna do that on life

Daniel mind but he's got bigger

confidence tonight if all of the

attorneys that you just dropped are all

ones that I'd gladly recommend to

somebody I mean your mileage may vary

I'm not warranting their ability to do

what you want them to do but they're all

people have great success with look at

look at melody on here so melody dropped

her info there if you want to shout out

to melody let's give away a shirt though

one real quick Shaun had it had a good

question out of the 12 foreclosure stops

which one you think is the most

effective if you're looking to do a

subject to or do a rehab for resale if

I'm looking to do a subject to I'm more

than likely going to pay off to your

ears and in as my benefit for paying off

the arrears I get the deed to the house

if I'm looking to do a rehab on it I'll

either do a sub 2 by paying off to your

ears and use that first position lien as

my underlying debt and then possibly

pull a second lien from a private lender

for the rehab money outside of that I'll

go ahead and just do a cash purchase and

use that cash purchase to stop the

foreclosure and move forward from there

so the two that I use most often

whenever I'm purchasing a property is

either pay off the arrears or pay off

the full loan balance both of which end

up with me owning the house and giving

me the opportunity to move forward as I

chose cool well I know you're ready to

get out of here we got 224 so in the

next three minutes we get to 300 we'll

do three shirts but for now we're doing

two shirts who's the winners - so let's

see winner winner winner winner Ryan I

cannot wait to release the Academy man

Fernando San Antonio won Fernando I

think I have your mailing address but I

do not have your your search size so go

ahead and just DME both your shirt size

and your email address

next one Fernando Fernando Fernando is

the first one we've got number two mark

boy so mark boy for the comment what

about Texas who would have known there

you go you are the winner so both of you

all will be

seeing some t-shirts today for everybody

out there watching on YouTube

we'll pick later on today a comment from

there if we get to at least 25 comments

so if you're looking down below and

you're not seeing the comments there

drop at least 25 comments in there but

it's not the live chat because we got a

live chat it's directly after this and

I'll do it later today but in the

comments section of the YouTube it's

YouTube's weird okay but I like it I

like YouTube and we're learned we're

still learning but there's like a live

chat and then there's a comment after oh

it's weird and I haven't figured out how

to do a live live live chat uh we didn't

get to your questions we'll try and

answer them all as we flow as we close

out from here but I do appreciate

everybody for tuning in we're good and

then set a plug for a couple of minutes

tonight we have our mastermind so if

you're in DFW area you want to hang out

come check out the event we're gonna be

at the place this place called the study

it's the old Irving public library we

moved there just so you know we actually

have chairs so that's tonight at six

o'clock next Tuesday August 14th drum

roll we are gonna have our August DFW

real estate investor meetup join us

there gonna be about four to six hundred

people there we have plenty of speakers

but the cool thing we're really excited

about is we're gonna have will Crozier

we're gonna have like a sit-down with

him where it's open Q&A to the public

but also where should we talk to him

about how he went from zero to gajillion

err doing multifamily apartments the

cool thing about what we got is we

always try to change it up give you a

little bit different type of feel that

way it's not as just structured to where

it's like you get this you get this you

get this we want to give you something

different every single time that way you

don't get bored for all you San Antonio

people August 20th same thing we're

gonna have a lot of fun so make sure you

register and we'll see you there that's

all I got what you got we're good cool

guys we'll see you on Wednesday with

Grant for another episode a grantee

something no one thank you