On all properties where we get lien holder approval for a short sale, we promise a minimum of $15,000 to the bankruptcy estate.
How much we get for the estate is dependent on the final sale price.
We've sold homes for as little as $50,000 and as high as $3,000,000. Over the last nine years we've generated over $9,000,000 for the 600 plus cases that we've worked on.
We've used two approaches with lien holders in order to get the funds for the estate. The well known carve-out and the lesser known buyer premium.
We found early on that the carve-out was not readily accepted. While it may be that this was the standard that was established between the bankruptcy court and the banking system, it gave all the power to the banks. In fact, the vast majority of carve-outs we requested were denied by the lien holders. To this day only Wells Fargo and Bank of America have ever agreed to pay a carve-out, and that doesn't happen that often. Don't get me wrong, I'm sure it can be accomplished. But can it happen if the lien holder has already been granted relief from stay?
By switching to a buyer premium we took the control out of the banks hands. The buyer premium is what it sounds like, a fee paid by the buyer, in cash at the closing of the transaction. All parties are aware of the charge and the fee is disclosed on the HUD-1, what is now know as the closing disbursment. The bankruptcy fee (BK fee) does limit who can purchase these properties, but there is always a buyer.