Mike Martell - RE/MAX Integrity Glendale, AZ

I would change a few things if it was all my money but if I was handed 70 billion dollars to save the economy....I would

Put all the money into a pool to be used to finance homes. Allow those seeking owner occupied homes and are buying pre-foreclosure, homes at the trustee sale or foreclosure homes to borrow money. Only one property and must be owner oc.

I would not look at credit scores but check and would not want back child support or tax liens showing up on them. If there was none of the extremely bad stuff on the report, and they had some stability in job history, I would loan the money.

The loan would be at 2-3% on a 40 or 50 year loan. I know it is low but I will have all 70 billion earning 2-3% interest within the 6 months. Not sure on my math since my commissions aren't quit this high but my calculator says 210 million dollars in interest each year. Heck after 5 years I have another billion to work with. Maybe I want 4%...???

I would also make sure this loan was not bankrupt-able. Have congress or who ever can get the deal done, make it so this is like student loans or something not able to be discharged in BK 7, 11, or 13.

Then each year take the profits and send out a check to each share holder. If tax payers are footing this bill, tax payers are the share holders and will be receiving the profits. Profits would be better than normal because there would be no executive earning over $250,000 a year including bonus, salary, expenses or any other thing. 250k year max. take it or leave it Mr. Executive!! That's all I am paying. Heck, maybe I will take the job....Buy me a boat, RV, couple more motorcycles and a few others.

Sounds like I just about solved the problem. Well I know it can use a little more thought process but until someone gets this to the White House and they call me up for my advice, I will consider it a good blog that earned me another 200 points!!!!

Happy Friday and good showing to all the agents!!!

Keep me in mind for The Arrowhead area of Glendale, AZ.

I have a client looking to do a lease purchase on a home in the Arrowhead area. This home needs to be furnished for the lease part and should be under $850,000 sales price. Monthly rents are negotiable. I will need this home for January 1st through the end of March of 09. The purchase option will be exercised after the lease is finished.

This is for a very good client of mine and qualifying for the end loan is not a problem.

If you have a home or know of a home that would work for this scenario, please contact me with the info, MLS number or what ever info you have.

This home must be furnished, must have a pool, must have some grass in the back yard and must be in the Arrowhead area of Glendale, Arizona. Home should also be at or under $850,000.

I look forward to what you may have.

I have attended a few trustee auctions for homes in foreclosure. I must say it was real interesting to observe the process and witness the actual sales taking place. To my surprise, I would say maybe 10 of the 100 properties to be auctioned were bid on. Of those 10, maybe 3 or 4 received multiple bids. Most of the homes were sent back to the bank to start the REO process.

I did see quite a few good deals passed up as well as a few real good deals get bid on and won by a bidder present at the auction. I took notes and drove by a few of the more desirable properties to see just what they were. Well the best one, in my opinion was in the Arrowhead area in Glendale. I ran some comps and per my numbers this home was picked up for approximately 72% of the current market value of 300,000. The home was in good shape from what I could tell of the outside. It looked vacant with minor TLC needed to increase the curb appeal. This home is in a hot area and will sell fast if priced right and cleaned up. It was the one property I wanted to bid on just because I know the Arrowhead area and know how the properties priced right there, sell quickly.

Another home that was probably the second best win was in Peoria. This home was a little more expensive but had a higher value as well. This hom,e was worth about $320k and sold for about 70% market value. Another hot property to pick up, do some minor repairs and list. This would sell in less than 30 days if priced right and would net a nice little profit.

During my time at these auctions I noticed several companies and investors who are always there. Some are buying for themselves and others are buying for another party. This is becoming a nice way to earn some extra cash by finding, bidding and being the highest bidder, doing minor repairs and selling for a profit.

One of the investors I was took the auction did end up winning a nice property. Once you are the winning bidder, you must put $10,000 certified funds down that is non refundable. The balance is due by 5P.M. the following day. Make sure you do the proper research to make certain you are getting what you are bidding on. Make sure the property did not burn down and there is still a structure standing. Make sure you are not bidding on a second or junior lien. Make sure you do your research to be certain you are getting what you are buying and nothing less.

I did speak to another investor who was there every time I went. He told me a story of an individual who was going there to buy properties but was not doing his research. He had planned to bid on one particular property at each of his 3 times in the auction. Each of these 3 times, this gentleman whom I spoke with, helped him out and found out he was interested in a second mortgage. Finally the fourth time, even after knowing he almost wasted $10,000 3 times, he persisted to bid on a second mortgage and lost his 10k. As we all know, second mortgages are not bringing much in this market and you are just setting yourself up for an expensive mistake.

Auctions can be a good source of income but they are quite risky. Trustee auctions are even more risky than the bigger advertised auctions whe you can preview these homes before bidding. One is more secure and safe but brings more bidders and higher prices, the other is more risky unless you do you research but has fewer bidders and lower prices.

None the less, I found my trips to be quite informative and helpful to both me and the investor I took to purchase one of these homes.

RE/MAX in Glendale Arizona

So in my pursuit to gaining as much knowledge as I can about the short sale process I have turned up an interesting point of view from a lender. I do not want to give details but wanted to make a comment about it so all other agent may be aware of this.

I have a listing, priced comps and listed it right about where it should have been listed. After over 3-4 months on the market, we received an offer at 89% list price. It is not in a desirable area and buyers are scarce. After getting all the way through the process I get word back from the lender saying we needed to come up in price by 227%. Yes that is correct 227% higher. I disputed the value and spent my time completing a BPO for the lender. I submit this to them and the lender says they will take a look at it. My BPO was right where it should be and in-line with the sales price under contract. They get back to us with a new number of adjusting the offer price up by 177%. The contact then states per Freddie they will use the valuation from the contact they have. No room for disputing this. I am trying to get the BPO so I can verify what comps were used and how this value come about. This home has a tenant in it and is set to be sold at trustee sale in a few days.

I have after a long time and a lot of hours discovered the bank had made a mistake. The BPO was 10k less than mine and they are approving the deal. I saved the home from the auction and we are beginning the closing process.