First off, negotiate your closing costs. The average closing costs on a piece of Indianapolis real estate can come to around $3500, which isn’t exactly chump change. Make sure that if you are having to deal with closing costs that they are spelled out in detail (you can request a spreadsheet). Also, many home sellers will take closing costs as a final bargaining chip when fighting over the value of the home.

Secondly, don’t be afraid to insult the home owner. You are fighting for a piece of Indianapolis real estate, which is one of the hottest Midwest areas to buy in due to the explosion of the job market. You know it’s your market right now, so use it. Toss out a low price, in fact, be insulting. Many people have unrealistic beliefs as to what their homes are worth. Tossing out a low price can bring them back to Earth.

What you should not do is to accept the first offer that comes your way. With Indianapolis real estate, the first offer that is thrown out there is not in your best interest. Instead, it’s in the seller’s best interest. You want to ensure that you don’t have a house payment that you’ll regret paying for later. So you have to make your offer count. Don’t be shy about sticking to your price. If you put your heads together, you can come up with a similar price for the home. Stick with that number and you’ll be ok.

Once you’ve settled on a price, don’t be afraid to sweeten your Indianapolis real estate with some extras. Ask for any repair work that the house inspections say need to be done. Also, if you have a large yard and the current owners have a riding lawn mower, see if they are willing to toss it into the deal. In fact, when it comes to heavy appliances, many home owners are willing to leave items behind if you are willing to take them.

Be upfront when inquiring for an appraisal, property line assessment and an inspection of the home prior to your purchase. What you don’t want are any unexpected issues or surprises when it’s time to close on your Indianapolis real estate. There are some homeowners that don’t find out about these things until it’s too late.

When you buy Indianapolis real estate, remember that you’re the one that’s going to have to take care of and deal with it, so make sure you really want it. Always make any concerns you have known immediately when they arise, because you need to be happy with your choice – after all, you’re under no obligation to buy anything.

“I have read all there is to know about lenders and their reasons to sell properties at discounts…

What I want to know specifically is what criteria do lenders base their decision on when selling their mortgage notes at discounts. With focuses on LMREP, it would benefit me tremendously if I was selling my services based on their criterias”. Here is my response: First of all make sure that you are using the correct terms when trying to express your points. You need to differentiate the difference between mortagage notes and properties. You mentioned both in your question.

If you used this same language when making your call to the bank rep. I can guarantee that they would probably brush you off. In their minds, you are probably just a some knucklhead that doesn’t know the difference between a deed of trust and a deed. You can bet that you won’t be getting further repsonses from them.

A Tip on Buying Mortgage Notes

Study your lingo, and make sure you know it before you try contacting your lenders:

You get one chance to make a good first impression, when you’re talking to the key person/gatekeeper when buying mortgage notes.

Great information right?

A list of reasons:

Institutional-Level Reasons to Sell Mortgage Notes:

a) Selling notes is quick. Sometimes the banks need to clear their balance sheets or may be in the process of merging, in these instances they need to move fast.

b) maybe a relationship already exists between the bank and the borrower, or some situation like that.

c) in certain cases, the bank might now want to foreclose on borrowers because of the negative press they will get. These actions may affect their public image.

d) although the banks have no problem starting the foreclosure process, a lot of them do not want to carry our the actual foreclosure. When buying mortgage notes, you may see a lot a week away from foreclosure proceedings.

e) the loan can be negative equity, and the banks dont want the recovery action/expense. (small loans amounts might never be foreclosed on because the expenses are too high, this is a fantastic opportunity in buying mortgage notes)

f) To see the amout that people would pay for their loans, a bank might price a part of their non performing book.

Individual Rep Reasons to Sell Mortgage Notes:

a) Borrowers can be flaky, they won’t follow through on payments, or just unwilling to work with the bank. The loss mitigation rep does not want to work them anymore as well.

b) borrower is non-responsive, no contact

c) foreclosure processes in their state are too long

e) the rep doesn’t want to go above their head to get an approval for a write off or mortgage note sale. So they sell at their authroziation level or at the direct managers.

f) in order to meet quotas, they may sell off a couple mortgage notes so they can get their bonus. (this usually happens in banks)

I hope you found this information useful.