Comment

Comment by Jim Schneider on April 23, 2012 at 4:42am

In todays Making Home Affordable seminar, the Chase rep mentioned that they will be going on to Equator soon.

 

Also they mentioned a private label short sale process called "Chafa", all I got out of it was it was for hafa inelligible loans, but mirroed some of the same features, pre-approved list price, deficiency waiver, relocation money. Has anyone closed a CHAFA, and explain how they got on it?

Comment by Brian Peters Jr on April 20, 2012 at 9:21am

Nothing irritates me more than a flash or drive-by BPO. A broker can't simply drive by the property and 'say' that they did so. Most of the time, they don't ever actually drive by. They take a photo from the MLS or tax assessors website. The problem with the banks is that they are so worried about their bottom line, they miss the bigger picture, but that is another story.

The problem I have is BPO agents will fluff up the price on my offer, just to obtain the listing from the bank and keep everything 'in house' I am in a market that is RAMPANT with this bologna, especially on REO transactions. Don't worry, I have already complained with the SEC and the FBI and I have been assured that the guilty parties are being investigated, locally. 

My advice to any RE agents in Georgia, let someone, like myself, process your short sales and allow things to get done. Who knows how much time and effort can be saved by letting a third party handle the transaction and paper work, when the agent can be out getting the next deal lined up. I digress. I have harped and HARPED and H A R P E D on this site and most do not understand. Quit playing the banks game, step out of your comfort zone and start faxing the bank at many different fax numbers, at all hours of the night. You can setup a service to do this for you. OOPS. Did I let that little secret out of the bag? I've got more, but it'll cost ya. Think of me as the short sale leprechaun. It sounds silly but I close deals ALL THE TIME. ;)

Comment by SE Davis on April 20, 2012 at 9:06am

William C. Black I agree all agents need to be very careful.

I disagree though and believe that Georgia is the absolute fastest foreclosure state in the Nation. There is nothing relaxed about that. It's reasonable to state that Georgia is the worst state to close any short sale. Lenders don't follow laws, foreclosure attorneys don't follow the law, the states legislature has been in bed with banks for 30 years and State of Georgia AG's mistress is the top banker in the state. (thats an unsubstianted rumour by the way).

There is nothing unethical about a listing agent preparing their own BPO to combat a lenders FLASH BPO (to me there is nothing more unethical than a FLASH-BPO to use as the basis of a lenders counter-offer) or a buyers agent preparing one to support their buyers purchase price. The lender may not give credence to it and yes it sometimes has to be faxed if the lenders registration department removes it.  Big deal I am used to faxing the same docs to the lender 2-3 times during a routine process.

It is not unethical to ask a buyer to support the purchase price and pay for their appraisal report in advance of an approval to assist the process when there are glitches. The buyers doesn't have to agree and all I am stating is that I've used that strategy more than a dozen times and "so-far" 100% of those closed and I get showered by gifts from both sides of the transaction on occasion.

You comment that the sellers gets the $3,000 from the HAFA every time is absolutely FALSE. If they get approved by HAFA and it closes under HAFA then they'll get the $3,000. What is the HAFA success conversion ratio? Less than 1 in 10 and I believe it is much worse than that. More legitimate buyers are lost in the HAFA program than closings that benefit sellers. There is your next 2 years of law suits. Buyers being harmed by HAFA.

Anyway I agree that if I was a licensed agent in most states I would NOT be processing my own short sales.

 

 

 

 

Comment by Mary Ann Carman on April 20, 2012 at 8:28am

William - Your comment below is interesting, but not completely accurate. Perhaps with a Chase HAFA they get the moving expenses, but not with every bank. I have a client with another bank who's not getting it because they (the investor) isn't getting the amount they want, which is more than the property is worth (shown by my BPO and lender ordered appraisal). She'll get all HAFA benefits except the moving expense. We're not happy, but bank wouldn't budge.

Comment by William C. Black on April 20, 2012 at 8:13am

SE Davis- I give Kudos to you on your success. But i also warn that your advice may be "dangerous" for those wanting to be ethical and not be pulled into the courts web of lawsuits.

One thing to note for others is Georgia market is quite different then the West Coast market so things may be more relaxed in that market.  

Also just a reminder to others when you state: 
" Listing Agent BPO works very well “when applicable” it is the first document right behind my package cover page."

Be Aware- Most Servicers have a set-up department that breaks down the short sale packages and re-scans them under category headings, ie: listing agreement, Purchase and Sale, HUD, etc.

So by the time the file progressed to a negotiator the BPO would not be "present" any longer. Make sure you prompt them to go to the imaging system and retrieve it, or resend it directly to the negotiator.

As far as HAFA- it has benefits to the sellers as it offers a full deficiency release and $3,000. Requesting your clients to "decline" it as its in their best interest is a LAWSUIT producing interest and Attorney fees.

As far as the $3,000 in moving expenses- they get it EVERY TIME. 

You are a knowledgeable negotiator but some of your ideas are "unrealistic" to the general population of Real Estate Agents.  

Comment by SE Davis on April 20, 2012 at 7:50am

CEN-BPO.doc

I don't want to get into a forum debate on the HAFA program. I feel that in all HAFA circumstances it delays the process 30-60 days and the lender/investor NPV calculation (now called list assist) has more to do with the current default balance than the current market value. I also believe that there is certain transactional jeopardy for any seller to think that there is a snowballs chance in haydes that they are going to recieve any money at the closing.

As far as your BPO question at this stage. Try it. I avoid spending any money on these transactions with alternative solutions especially for a contractor opinion of repairs cost.

My other solution to flawed valuation lender counter offers is to get the buyer to pay for their lender ordered appraisal report to add their skin in the game, strengthen their commitment and glue them to the deal then allow me to use their full appraisal report to fight these silly counter offer arguments by the sellers lenders.

The buyers lender ordered appraisal report is the HOLY GRAIL to arguing these valuation issues. Some buyers agents don't have the cojones to ask them to spend that small amount of money to streamline the transaction. This has worked for me 100% of the time I've felt the need to deploy it.

Closed two short sales today and I am going to have myself a gigantic frozen margarita.

Comment by Michael Hayley on April 20, 2012 at 7:44am

SE Davis: would you be willing to expand on what you mean by "would never have survived the HAFA listing restriction conundrum". I may be asking Julia's question just in different words. 

Comment by Julia on April 20, 2012 at 7:33am

Hi SE, another question. Why did the fact that your client have HAFA effect your deal?  Are HAFA BPO's running higher in general.  After your client cancelled HAFA why did this make a difference in the negotiators approval?

Comment by Julia on April 20, 2012 at 7:25am

Thanks SE, so then I should just do a good BPO and ask that the lender so a full appraisal then.  I had previously sent in a list of repairs, and he now asking for a bid from a contractor to consider them.  I did find a lic contractor to do the bid for $200 is this necessary at this point?

Comment by Sharona Byrnes on April 20, 2012 at 7:25am

SE Davis - can you post a sample of your listing agent BPO? That would be extremely helpful!!

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