Okay. I am familiar with the name, and it’s just another shiny object, magic pill, invented by the gurus to sell you something. Selling back overleveraged houses back to a homeowner, first, it’s illegal. The banks will not allow to be sold it back. The bank will not take a short sale, which means a loss on the property.
So they gave 400,000, for example, to the seller and now they took short sale at 200,000. They lost 200,000. They forgave that seller 200,000. And do you think they would allow that seller, that homeowner, to benefit from that and take that house back at half — reduced the amount? No. In all the approval letters and everywhere it’s stipulated that you cannot sell, the owner cannot benefit from that transaction. So first of all, that’s the problem with that.
Second problem with that is, I am not familiar with who is that guru or whatever, but I heard from my students, another thing that’s advertised with that is, we will pay you $5,000-10,000 for every overleveraged house you find us.
Again, I call BS on it, because there are plenty of overleveraged houses, so why would someone pay to someone $5,000-10,000 for finding an overleveraged house when you can find an overleveraged house by just sending 100 postcards to a list of foreclosures and you will find as many overleveraged houses as you want? So it really doesn’t hold water. It’s really — I would say, stick to the proven methods that have been around forever, that work, and this all new strategies and new, new, new things are worthless. So I wouldn’t waste your time on it.,
I mean, I am sorry if I disappointed you, but I wouldn’t waste your time and hopes on it, because you won’t make any money with it.
So that answered the question. And will I be teaching it? No, because it’s nonsense.
And also your comment was that there are more and more homes underwater. Let me just correct this thinking. I mean, obviously I am your coach here and a mentor and I want the best for you, so don’t take me personally, but I just want to correct the thinking.
It’s not that there are more and more homes underwater; there are less and less homes underwater. There are fewer homes underwater, because real estate in most areas in the country has hit the bottom and in many areas it’s already going up. So what happens is — and even if it’s down at the bottom, many houses are getting through a short sale process and that overleveraged number of houses is reduced — is getting reduced, because they are getting through a short sale process. So there are fewer and fewer houses that are overleveraged as we go forward in the future.
It’s important to kind of understand your position in your marketing and in the future. Make sure to know how this is happening, how the market is actually clearing itself.
And that’s the right way of capitalism in a way, it’s a market cycle and it’s going to clear up on its own. The government tried to do the HAFA, so many of these different programs, nothing actually worked. At the end what’s going to happen, what should have happened from the beginning, let the market do its own correction and that happens. So there’s a lot of supply of the houses, that gets taken away, prices go down, the supply of the houses gets taken away, and then the bottom is there and it turns around. So that’s the cycle and that’s the cycle we are in.
And it’s going to happen the same thing, it’s going to go up in value and then it’s going to go down again. But luckily, if you stay connected and you participate on these calls and you listen and you listen to CDs and everything, then you will know when things happen and when they happen and how they happen, because the good thing is, they don’t happen overnight. So you have plenty of time to correct and to do whatever you want to do to make the most money out of it and prevent losing money.