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Short Sale Stall

Posted by Heather Sheaffer on January 8, 2010 at 6:15am

Looking for a little help or advice. I am in the 4th month of a short sale with B of A. One loan. The bank had an appraisal done Jan. 2, 2010. Three days before than the homeowner got loan mod. papers in the mail. They had been denied a mod a year ago. B of A handed off the SS to Equator and won't tell me anything. Equator Reps say they are a processor and have no info. How do I find out what's going on and get this closed? Thanks for any and all help.

Contest - What can be done to help make the Short Sale process run smoother?

Posted by Ray Saenz on January 7, 2010 at 6:00pm

Why do I want to do Short Sales?“Short Sales” is my favorite, I enjoy it and it’s a passion to help people on real estate distress, one of my greatest satisfactions is when everything was accomplished, I will tell you why:I enjoy and feel full of satisfaction when people say to me from its heart how grateful they’re with two single magic words “Thank you” that means a lot, means you did something good to someone in need of help and that I helped someone on need of me, that feeling does not have a price changes 360 your world and make you feel that you accomplished that important mission.What can be done to help make the Short Sale process run smoother?I’m going to go straight to the point, we need to stick with every lender’s policies and rules and it doesn’t matter how simple we’d like to make the lender’s processes, we have to stick for what every lenders ask us to do and to comply with all short sale requirements needed so far.What we really need to do is learn and be updated always if there are any lender’s changes in their guidelines, rules or policies.You may add/change, what works for your state,Let’s start:1) Have handy the short sale paperwork needed as: contracts, disclosures, addendums, cheat sheets, I’m including here the most important paperwork required to do a great short sale Look Addendum A.2) Ask your title company or attorney CO to do a fast search for any irregularities against the seller’s home that may have as: liens, judgments, etc. Remember that some lenders are not willing to pay some of those irregularities, avoid any future surprises and doing this you can know ahead where your seller is standing.3) Order a HOA status letter so you will know where the seller’s is standing on and also you don’t disclosure something that you aren’t sure.4) Don’t forget how complete, well done and structured a short sale package needs to be faxed, Include always a complete short sale, don’t waste the seller’s lender time and yours sending incomplete short sale packages. Remember: Exemptions may occur with different lenders, but generally all lenders love to receive complete short sales packages.5) Have a good attitude when you speak with a short sale employee, many times your rate of success depends on how good or bad your handle the situation with the seller’s lender personnel, if you are getting upset or frustrated about the whole situation, then tell the employee that you will call later and when you feel in a good mood to speak with a seller’s lender personnel then call again.6) Seller’s Lender personnel sometimes is the key, if you seem that the seller’s lender employee is giving you a hard time or being rude, then say “thank you for the update, I will call later” then you hang up and call again and VOILA you got a different person and that new person may have a different and fresh attitude, many times willing to help you or more knowledgeable, is like everything eh?I’ve had rotten apples helping me on T-Mobile customer service and good apples as well, so what the bad apples couldn’t do for you the good ones could, that’s a rule.7) Every lender is a little different, there is not a standard, but if you do your best to send a complete “standard” short sale package you will have fewer obstacles, fewer delays or new surprises, for instance: your short sale package was lost = “thrown away”, Note: You can ask to every lender their short sale packages requirements or you can include everything that I include on my package. Remember if your short sale package goes more solid with all information required, seller’s lender may not need more.8) One call daily for a follow up every day to know where you file is standing; ask them to take notes for anything that you spoke with them, TIP I’ve experienced that if you call very early in the morning there are more chances that you are not waiting for long time on the phone line for a seller’s representative assistance.9) Don’t trust all short sale employees what they say, some personnel they don’t have a clue what they are talking about, they can tell you something that you should not be doing, if you are unsure of something please ask someone that really has experience with short sales and you really trust as a fellow realtor here in this website.10) Do a dateline list and write down: Date, Time, department that you spoke with name of the person with last name who helped you that day and your important notes there, I take a manila file and on the left side I write important information there on the right column, you can do it in your computer or any electronic agenda, etc.11) If real estate is heading near the foreclosure sale date, call to the short sale department do an escalation for foreclosure sale postponement and never trust what they short sale departments tell you, until you have verified with the county that isn’t foreclosure sale date, can be through the web or by phone. Always verify that the information is true double checking with the county or the foreclosure attorneys that the foreclosure sale date was truly postponed. Bank of America short sale personnel says that you can call within 5 to 2 business days before the foreclosure sale date deadline, don’t call after or before because they don’t care for foreclosure postponements unless it is a critical situation, if you are working with a different lender ask them what is the time frame for foreclosure sale date postponements.12) Include on all pages of your short sale paperwork “the loan numbers”, I write them as header on upper right side, TIP: You can save time using PDF scanner and copy and paste all the loan numbers fast.13) In the authorization to release information include the Expiration date as well, some lenders they ask for that some others not, you can do it as standard!14) Include a complete Cover Page with all paperwork you are faxing with special notes if possible and write down the number of all pages that you are including the cover page as well. Check Addendum B15) Don’t forget to make sure that short sale package that you sent went successfully through, you need to keep a copy on file that they received your file with Date and Time and the fax number where your sent your short sale package..16) Don’t forget to be 100% sure that the fax number that you were sending the short sale package is the right one, sometimes lender’s personnel they give you the wrong fax number to a different department or short sale state, so ask twice when you as for the fax number where you need to sell short sale package if that is the correct for your loan number.17) Don’t forget that sometimes the Fax # for the authorization to release information is different than the fax # for the short sale package, verify with your seller’s lender the info if they don’t come in the short sale package.18) Be honest to your CO-OP agents “Realtors”, so you know what to expect from the offers that you receive and how strong or weak the buyer(s) are to be waiting for the offer to be accepted.19) Be honest with the seller’s lender negotiator of course when you get one assigned on your file, some negotiators tend to ask you several questions about the distress situation of your client, if you don’t know, don’t answer and say that you don’t know, if you know the answer something that your seller told you answer properly, don’t risk your file!20) Before presenting offers to the seller’s lender, do a prescreen how strong and solid the buyer’s lender side is and ask your seller how they want to proceed if you got several offers, of course that you will suggest what you think that is better for your seller, but the seller takes the final decision what to do, remember that time is critical.21) By the time the seller’s lender request a BPO, it’s time that recall buyer’s lender to have all docs handy from the buyer, so when you are receiving in written a seller’s lender approval, it is a green light for the buyer’s lender to proceed and not waste time.22) Don't ever recommend that the buyer do their inspection and appraisal before you have approval in writing of the short sale, some states may differ, but here we need to have everything in writing.23) Don't ever advise the seller to move out the property, especially when they have an FHA Mortgage, Remember that seller’s lender prefer that sellers are living in the house so they can take care of it.24) If you are new on short sales, check your foreclosure laws from your state, every state is different, if you can redeem a property or not, etc.25) Oh and don’t forget this, don’t ever give any bankruptcy, legal or tax advice, as always stick with your contracts, disclosures that conforms to your state real estate laws.What do lenders need to do to help make the Short Sale process run smoother and faster?Have professionals and qualified short sales personnel as: Managers, supervisors, underwriters, negotiators and the rest of the short sales staff personnel.Have a quality control of professional trust worthy third party companies who orders BPOHave a good organization and a standardization of the short sale process for all lenders to get faster responses in less time.Communication between Realtors and Short Sale’s Department should be done through emails, lenders still don’t trust on this way of communication for lender’s policies.Short Sale Packages should be as standard on PDF format and through email or be uploaded through their website to make easier and faster for everybody.http://www.shortsalesuperstars.com/profiles/blogs/win-free-short-sale-agent

Why Do I Do Short Sales?

Posted by Christine Donovan on January 7, 2010 at 2:13pm

Why Do I Do Short Sales?A few years ago, the discussions around real estate were two fold: either the bubble is going to burst or you better get in before you can't afford to buy.In Orange County, California, our prices sky rocketed between 2001 and 2007, increasing in double digits for several years running. They always say that what goes up must come down, and so it was with the Orange County real estate market.But, I don't think many would have believed how hard it could fall. The median home values are down over 40% in the last couple of years.When I realized how badly the market had been hit, and how much it had changed, I took a look at what was happening to decide where I could best position myself and my company to continue to help our clients.With my background in real estate finance and real estate sales along with my experience as a practicing attorney, short sales just made sense.In doing short sales, I provide a valuable service to my clients by allowing them to avoid having a foreclosure on their record and their credit and potentially avoid deficiency judgments. In addition, I am able to give them some piece of mind and allow them to have at least some say in the final disposition of their home.Although the emotional trauma of a short sale can be difficult, the emotions attached to a foreclosure seem to be much worse.Further, when a seller is able to succeessfully complete a short sale, they may be eligible to buy a home in a relatively short 2 years, rather than the 5 to 7 years waiting period on some government backed loans after someone has had a foreclosure.Additionally, in doing short sales, I provide a valuable service to the community. Homes that are short sales, are generally better taken care of that foreclosures. The homes are not abandoned; the sellers continue to maintain them, at least to some degree. This prevents blights on the neighborhood and the further decrease in value that can result from having abandoned home and foreclosures in a neighborhood.In "short", I do short sales because I believe that I have experience and a professional background which makes me extremely well-qualified to do short sales for distressed sellers, and I believe with this knowledge and expertise comes a responsibility to help these sellers and to help their neighborhoods and communities.If you are facing foreclosure or are simply upside down in your home and are concerned, please email me at christine@donovanblatt.com or call me at 714-319-9751 to discuss you options.

WHY DO I WANT TO DO SHORT SALES?

Posted by Margaret C. Taylor on January 7, 2010 at 5:46am

I want to be SUCCESSFUL at Short Sales because I WANT TO BE PART OF THE SOLUTION for all of us: distressed home owners, neighborhoods and the economy.Short Sales are less detrimental to everyone.Both Sellers, and Buyers, need Real Estate Agents educated in the Short Sale process, trial and error experiences are not enough. We must understand the expectations of the Lenders and meet them.Sellers need to know there is another solution, other than foreclosure. They need to know there is someone who will help them. I want that someone to be Margaret C. Taylor.Most families are devastated at the idea of foreclosure and want to do all they can to avoid it. They may be too embarrassed to ask for help. If other options, such as loan modifications are not available to them, or if they have to move, the SUCCESSFUL Short Sale is the next best option.Buyers need an educated Agent, who does not avoid Short Sales. They need a Buyer's agent who will guide them through the process to a SUCCESSFUL conclusion.I CARE AND I CAN HELP MARGARET C.

Contest - What can be done to help make the Short Sale process run smoother?

Posted by Makoto Sato on January 6, 2010 at 5:45pm

What can be done to help make the Short Sale process run smoother?Well... a couple of things:Agents Seller and Buyer should set expectations of seller and buyer up-front that a short sale refers to the lender approving the seller's contract to sell their property for less than what's owed. It does not refer to any sort of time frame. Some short sales take longer than others.Sellers should consult with an attorney up front as to the legal ramifications as opposed to waiting until the lender accepts a contract.There should be an industry standard short sale package requirement. Along with that there should be industry standard forms (ie. Authorization to release Information, Financial Information form, etc)Lenders should be required to communicate their lowest contract price (with a good through date) to the listing agent instead of having them say , "the offer was too low" after weeks or months of waiting for an answer from the negotiator.Lenders should be given a maximum of 30 days to approve a short sale contract.Realtors should be allowed to scan and send PDFs to the lender instead of faxing and waiting, then faxing the same info again and again.Communication should be required to be done via electronic means. All lenders should allow electronic signatures as opposed to "wet signatures".Lenders should have trained employees who can answer questions or at least have an experienced supervisor standing in the same room with the operators instead of being passed around like a hot potato in their phone systems.Okay, so there are more than a couple of things that can be done to make the short sale process smoother.-Makohttp://www.shortsalesuperstars.com/profiles/blogs/win-free-short-sale-agent

Short Sale Lost…maybe?

Posted by Dan Tabit on January 6, 2010 at 4:16pm

Short Sale Lost…maybe?I represent the buyer in this particular short sale. The listing agent is well established, with a good reputation. The sellers elected to use the services of an attorney to negotiate the short sale rather than have their agent do it for them.Our contract was signed on September 1 and as I understand it, the first lender actually came to terms fairly quickly. They allowed $3,000 to pay off the second lender, a small but not uncommon amount.The second lender however did not respond to calls, emails for faxes from the attorney. An auction is scheduled for Friday, and this week they decide to reply. $3000 is not enough; they require $27,000 or they will not stop the foreclosure. My client upped their offer by $5000, hoping that the second lender would receive these additional funds and accept the deal. Apparently, the first lender demanded these additional funds and will only allow $3000 of the proceeds to the second.The house is within 10% of the listed price and frankly in its present condition isn’t worth substantially more.The seller and listing agent are all making a contribution to this in an attempt to stave off foreclosure. We are still 100% of our commission apart, with no give from the second lender. Does anyone have any experience with Lending Tree or a have any suggestions? I have contact information for the negotiator, but haven’t gotten beyond her voice mail yet. Any suggestions would be welcomed.

Contest: Why Do We Do Short Sales?

Posted by Katerina Gasset on January 6, 2010 at 3:00pm

Short Sales- A Niche Like No Other!Why would you ever want to do a short sale? Agents ask us this question often. Then the next question is, “How do you still have a smile on your face after working in Short Sales all day long?”The answer is quite simple. Your heart is warmed when you see the sigh of relief on a stressed out homeowner’s face who has been biting their nails every day as the court date for their foreclosure is coming up fast.Your heart is warmed when the seller who had absolutely no desire to sell his home contracts Parkenson’s disease. As he watched the life he loves get stripped from him with each month as his muscles lose control. He was a boat captain who sailed the ocean blue. He set sail many a day to live the life of his dreams. As we were standing before him listening to his adventures we could feel his frustration and a sigh of regret as he recalled his captain’s license was taken away from him. It was no longer safe for him to pilot any boat.There were times where he forgot where he put his cell phone or where he put his keys. There were many lessons that we learned from Arthur. He loved his music. We stayed for hours listening to Il Divo. It was the first time I had ever heard of these talented voices. Then the conversation had to lead down a path none of us wanted to go. We went over his finances and there was no way he could qualify for a loan modification. He only had social security now. The numbers just did not work.Having a foreclosure on his record at his age was a humiliation he did not want to embrace. The best option for him was a short sale. We fought against a PMI company who wanted an elderly man on social security with Parkenson’s disease to sign a promissory note and be held liable for the deficiency. The negotiator at his lender went to bat for him. She went all the way to the top of management. Her boss in her office looked at her like she had three heads. Why would she be going out of her way to make this deal work? He wondered why she even cared, this was just a job. She cared because she could relate. She had a sister or aunt that had some medical condition similar to Parkenson’s and she had empathy. We ended up getting him off with a fully satisfied, no deficiency and no promissory note short sale.That day was a day of mixed emotions. Sad with tears for the loss of a home that he loved so dearly yet thrilled with happiness that we saved his home from being foreclosed on and we found a lovely couple to buy the home who took over the caring and loving of Arthur. They helped him move to an apartment up the road. They make sure he has food and gets to the doctor. We ended a chapter in our short sale sagas with a heart felt gratitude that we truly made a difference in Arthur’s life and that he made a difference in ours.Is there a nobler reason, a better cause than to be able to help those who are having a hard time to lose their home with some dignity and a bit of decency through facilitating a short sale for them rather than to have all their belongings removed to the driveway by a Sheriff after a foreclosure sale?We can make a difference. If we use our skills as strong negotiators, good communicaters, empathetic listeners and persistent resolve we will make an impact on the lives of others, the betterment of neighborhoods and communities, adding to the economy through sales which in turn keeps people employed on many levels and finally being able to feed your own family through these tough times and leaving the world a better place.If you would like to write your story about why you do short sales- here is a link to a contest Short Sale Superstars is running.

Short Sales.....made painless

Posted by Tammy Davis on January 6, 2010 at 9:04am

I know, I know, anyone reading this has got to be saying...yeah right..a painless short sale? But it is true that a short sale can be painless provided that rules are followed and a few tools are used.One of the most important rules that I impliment is that my sellers are in the game. I explain that at times it may seem that I am demanding, and asking for more and more documentation (ie. paperwork), but I am just the messenger and at the mercy of the bank. If they want it, I am going to get it to them promptly. As long as my sellers know that up front before I even take the listing, that this may not seem easy for them...I will do everything I can to help them. But, they need to be ready to jump when I ask and they always need to be immediately available whether by email (preferably) or phone.As far as tools...I have a number of them in my short sale arsinal. From brochures explaining the difference between a short sale and foreclosure, to my method for completing and submitting the short sale package.And I must admit with my background in escrow...it helps to know the "lender lingo" and when the lender asks for something, if you get it to them NOW..your file will not go back to the end of the line, but proceed forward.So what can be done to help make the Short Sale process run smoother?The obvious answer would be to have the banks streamline their system. But I think that many banks have done that now, making the process easier than it ever has been. I think as agents we need to do what we can to make the process easier for them and our clients. That means having a complete package ready in our possession and being prepared to hand the lender what they need immediately. If the lender asks for an updated paystub...you should have that in hand unless it is not yet available. I instruct my sellers to deliver to me updated paystubs, bank statements, etc. as they receive them...so I don't have to ask.And the big question......Why do I want to do short sales?We actually...I hate to date myself here, but back in my escrow days.... I have done short sales for over 20 years. At a time when escrow actually did the negotiating with the bank (how many of you remember that??) So short sales are nothing new, they are just more prevelant than they have ever been due to the drop in the market. But back to the question...plain and simple...I want to help people. This is a time when they need help the most. I have seen too many people that were "helped" by others, only to lose their homes to foreclosure. I can help them with the process and we can make the journey together to get their home sold. It's also a good thing for our neighborhoods and communities...a sold sign is much better than a deteriorating foreclosed property.www.tntdavis.com http://www.shortsalesuperstars.com/profiles/blogs/win-free-short-sale-agent

CONTEST - What can be done to make the short sale process run smoother?

Posted by debbie rumsey on January 6, 2010 at 6:05am

I would like to say that this is my own idea, however, I would like to share with you the information I received at a meeting yesterday with a Short Sale Manager from Wachovia Bank. This news is exciting for short sale agents and I am hoping that other banks will follow Wachovia's lead as it will greatly reduce the time frames and headaches for the current process!Wachovia Bank / World Savings Bank is now sending out informational letters as well as pre-approved short letters to clients to select homeowners that are in default along with offering seller incentives to help pay for moving costs or just help them get on their feet. This letter contains a pre-approved sales price as well.Wachovia has placed local short sale managers in the field to help the homeowner and the agents. They are available to go to the clients home with the agent and sit with the homeowner face to face to discuss any questions they may have about the process and what to expect. Wow! There is only one local manager at the bank that the agent/homeowner will have to deal with throughout the entire process.Here are some other fantastic things that Wachovia/ World Savings has done to streamline this process:-Once you take the listing you need to call the local manager so they can order an opinion of value. When the agent sends a fully executed offer and an estimated HUD-1 to the bank they can expect an answer within 3-5 DAYS! (not weeks or months)-The bank will close the sale within 45 days of receiving the contract. Reworded.....45 days from contract to close! (Average right now is 34 days)-Wachovia will go as high as 10% on negotiations with 2nd lienholders.-I was told that Wachovia does not try to reduce an agents commission UNLESS the transaction is double sided or it is a last ditch effort to agree to a price.This is great news for short sale agents and hopefully other banks will see how much less painful these transactions have to be by following Wachovia's proactive process of closing these deals!I can't think of another way to make short sales run any smoother and I can say this is a huge step in the right direction!GOOD JOB WACHOVIA!(I have not dealt with Wachovia / World Savings on any short sales to date so if anyone out there has gone through this process please feel free to comment. I know all short sales are unique and time frames may be dictated by outside forces.)

CONTEST--- Why do you want to do Short Sales?

Posted by Rebecca Fisher on January 6, 2010 at 5:05am

First things first, I'm a new agent. I have no insights into how things can be improved with shorts sales, so if you're after learning about the newest in mouse traps--- just move along. Nothing to see here. That's right folks. Giddy-up. Don't even slow down.So, from the perspective of a total noob, here I am. In all my glory, feather boa and all.Why do I want to do Short Sales? Hmmmm.... the question of the ages. Well, let's see. My broker says that Short Sales account for about 40 to 50% in our area. So there is reason #1. I'd like to earn a living.Like many ~~uneducated~~ uninformed people, when I first heard the term 'Short Sale', I thought that meant QUICK! Buy this house now! Then I said to myself, 'Self, maybe Short Sales means everyone has to be 5'2" or under. But no, that would be discriminating.That can't be. And they are talking about deficiencies. Lack of vitamins?' Confusion reigned complete, but only momentarily.As I researched it more (I'm an information junkie) I began to realize that Short Sales are a blessing to those who have little hope left and a light at the end of a seemingly- endless tunnel. They restore homeowners faith in their fellow man -- they restore the knowledge that someone still cares. They restore dignity.I guess that means means my number one reason just became my number 2 reason.#1. I want to be someones hero.

Smoother Short Sales - Why am I passionate? Chad Ackerson Mattucci Real Estate

Posted by Chad Ackerson on January 6, 2010 at 4:57am

I believe that Lenders are working diligently to streamline the process and that through consistent training and information resources such as Short Sale Superstars, that agents can become and remain educated on the process. Training. Training. Training. But it doesn't stop there. To make a smoother short sale, I recommend that agents inform their seller of what to expect from them and what they can expect from the agent and the short sale process. Getting a COMPLETE and QUALITY short sale package in a timely manner from the homeowner is extremely beneficial to the short sale process.I am passionate about short sales because foreclosure is a travesty that should be avoided at all costs. A foreclosure can not only damage a homeowners credit for a long period of time, but it can effect their current employment and future employment opportunities. The long term effects of foreclosure can be so costly that the full impact can be unable to calculate. It's much more than just credit. Helping homeowners get a Fresh Start and a new beginning is something I'm passionate about.Chad AckersonMattucci Real Estatewww.luxuryshortsalelistings.com

Why I want to do Short Sales

Posted by Rick Schwartz on January 6, 2010 at 4:30am

Contest EntryWhen I became a Realtor three years ago, it was after nearly 30 years in a variety of sales and marketing functions.It is my firm conviction that Sales is a noble profession. People often roll their eyes at me when I say that. They are, clearly recalling some experience they have had with a slimy salesperson who was focused only making the sale at all costs with no regard to the needs of the customer.Bad apples exist in all professions. This does not lessen the value of someone who does it right and puts his client's needs first. I've always earned my living by simply trying to do what is right for the customer and expecting that the rewards will come in due course. So far, this has served me well financially - and I've had the pleasure of helping my clients solve one issue or another.This type of practice is personified with laser accuracy in the world of Real Estate. It doesn't matter if they are are buyers or sellers - the clients who hire us are entitled to and should expect nothing less than someone who has the goal of helping them through the muck and mire following a path to the end game that is as direct, concise and graceful as possible.These needs are focused even more sharply in the world of short-sales. The homeowner is not only facing the intrusive process that is inherent in any home sale, they have the added challenge of facing one of the more extreme emotional issues that they will ever go through.They are, in most cases, selling their home - not because they want to - but because they have to. They may have purchased that home with not just all the money they had but with all their hopes and dreams - and now they are faced - sometimes through no fault of their own - with losing it. While this is going on they are also likely facing financial and emotional struggles in other areas of their life.To help some of those folks through the process, helping them carry the load just a bit, and doing what I can to minimize the pain, is the definition of what being in sales is all about.The second reason for wanting to get involved in Short Sales is more mercenary. With ARMs resetting and unemployment still at record highs, my instinct tells me that Short Sales are not going away anytime soon, and, in fact will probably be on the rise. Using the old Wayne Gretzky quote about skating to where the puck is going instead of to where its been, I think that as Realtors, to grow our businesses we have to try and move into the market segments that are coming - not worry about last year's market.

Why I help Kansas City homeowners negotiate Short Sales--and how they could go better...

Posted by Stephanie Jarman on January 6, 2010 at 4:30am

I have heard it said that FEAR is the great motivator.

My experience has been that fear can cause homeowners to become professional AVOIDERS. Dodge the phone, leave the mail unopened, don't answer the door. And, I totally understand that fear and motivation to stick your head in the sand. I have been in financial trouble, and even faced foreclosure. When my daughter was born and needed a lengthy ICU stay, I thought it would bankrupt my family. We had massive medical debt and no income while we cared for her. I was terrified. For a while, I even avoided.

What I learned through that experience is that knowledge is power. Taking some control and using the tools available to you in a crises can change the course of your fate. It can also help you fight the demons of depression and guilt. I believe it down to my core. I've seen it work.

Since that time, I have helped people avoid foreclosure.

IT'S THE PERFECT MARRIAGE OF MY 11 YEARS EXPERIENCE AND A HEART FOR PEOPLE WHOSE LIVES HAVE TAKEN A DETOUR!

There are several options available to homeowners when you have faced the 4 D'S (as I call them):

Death
Divorce
Disability (medical or otherwise)
Dumb Boss (loss of job)

If you are behind on your mortgage, or can see that you will be, there are tools and laws in your favor. Don't face foreclosure on your own. Don't bury your head in the sand. I can show you at least two options that are better than being evicted. My services are paid for by the bank, and it's my job to help you eliminate some of the debt that can rob you of your joy for life. In fact, 1/2 of Kansas City homeowners can even sell AFTER foreclosure, frequently taking some equity with them, since Kansas is a Redemption state.

How can Short Sales be made easier?

(1) Each lender should have a team whose job it is to review the Short Sale packages as they arrive, and send ONE fax which shows any missing items within 72 hours of receipt. The homeowner would then have 48 hours to rectify the missing item(s). If you doddle, you have to resubmit.
(2) Acceptance into a short sale program should HALT THE FORECLOSURE PROCESS for 90 days, minimum, while the home is aggressively marketed.
(3) An appraisal (or series of interior BPO's) should be ordered at the outset, establishing fair market value upfront, and allowing the marketing to be done at a price which will actually get accepted by the bank.
(4) Time from accepted contract to closing should be no more than 45 days. This allows normal retail buyers to be included in the sales--rather than going on to the next house--and giving investors an upper hand.
(5) Banks must commit to paying a fair and reasonable commission. Otherwise, agents have very little motivation to invest 80--200 hours in a single transaction.
(6) Banks and agents should SHARE a weekly e-mail update, showing what progress has been made and any changes in the status.
(7) Agents should receive intensive training in Short Sales before attempting to take on the system.
(8) Homeowners and agents involved in Short Sales should invest in Yoga, Bible Study or Hypnosis for relaxation and patience. Even a Smash Room!

THE FHA PRE-FORECLOSURE PROCESS WORKS GREAT AND FOLLOWS MANY OF THESE GUIDELINES!!

Some banks have already initiated programs like this, knowing that Short Sales are going to be around for awhile. Contact me if you have questions.

Don't give up or avoid. Fight!

Florida requires third party mediation on new foreclosure actions for primary residences.

Posted by Bryant Tutas on January 5, 2010 at 9:06am

From the Tampa Tribune.TAMPA, Fla. – Jan. 5, 2009 – Florida homeowners facing foreclosure may soon get one last chance to negotiate with lenders trying to take back their homes.The Florida Supreme Court issued an administrative order last week that requires a third-party mediation program with all new foreclosure lawsuits involving primary residences.The goal of the order, written by Chief Justice Peggy Quince, is to help handle the state’s glut of foreclosures. An estimated 456,000 foreclosure cases statewide are clogging the court system, she said. READ THE ARTICLE

Untitled

Posted by Jim Whatley on January 3, 2010 at 11:00am

Contest - Why do I want to do shortsales?

Posted by Susan E. Wood on January 1, 2010 at 2:15pm

Why do I want to do shortsales?That’s quite a question.I want to be the best that I can be to help the client, to do what’s right for them, and also to succeed in this business. I believe that learning the entire process of short sales and becoming an expert on how to do them will not only gain me tremendous experience, but will help homeowners who need an objective, and skilled agent in the coming years.I’m relatively new in Real Estate (received my license in February 2009). I have used the last half of 2009 to find a fantastic broker who teaches me a lot, and I have learned a tremendous amount. I was able to close two transactions by year end, have dealt with a foreclosed (bank owned) purchase dealing with a mortgage broker whose lender shut loans off mid-purchase. I have had to deal with a bankruptcy which caused a sale to go kaput, and multiple offers on short sales which did not work out.I got into this business for a couple of reasons, including the fact that since it’s a changing marketplace that my lack of knowledge in certain areas is no different from those who have been in the business for many years. And this has been proven to be true, with the extreme short sale situations occurring.I believe that the time and effort to learn as much about short sales is important and I want to focus on that in the first quarter of 2010. Winning this contest would be the best thing that I could ask for. Knowledge is Power. I need more knowledge! Thank you for your consideration.

What Makes a Successful Short Sale?

Posted by Margaret C. Taylor on December 31, 2009 at 5:43pm

WHAT MAKES A SUCCESSFUL SHORT SALE?I asked this question on a couple of other group sites. I was surprised at some of the comments and so I am interested in the responses on this site. Maybe the same people are here.As a new Realtor with some specific training in Short Sales I am curious why the word 'offer' is used interchangeably with the word contract. Please help my understanding. Once an offer is accepted it is a contract and there can only be one contract on a property. Do you agree?In Maryland I believe when there is a contract sent to the bank, the MLS is changed to Contract with a contingency. The contingency is third party approval. Another offer can be submitted to the seller as a back up offer but it cannot become a contract, and does not go to the bank. As long as the Buyer knows of these other offers, being a back up becomes their choice, but they are all offers and not contracts. The listing is not active, it is a contract with a contingency.One of the most important tasks is for the Seller, with the Seller's agent help, to determine that the offer accepted is going to be a strong contract that WILL be accepted by the bank. This requires making a judgement as to what the Lender will accept, including amount of closing costs. Putting in offers that are too low, or requesting too much in closing costs will get the contract rejected, or possibly ignored. I know we want to sell the owner's house, but it may be necessary to refuse an offer, or negotiate with the buyer for a better offer, that will be acceptable to the Lender. The lender may reject an offer eventually, but they may not tell you why and they do not negotiate with the Buyer, the Seller does. This is why the offer that becomes a contract should be as 'strong' as possible.This is what my "education" has taught me. Please tell me how your experience agrees, or disagrees, with this.Thank you. Margaret C. Taylor SFR CDRS Century 21 New Millennium, St Mary's County, MD(Hyperlink didn't work for me)

The HAFA program is the government's new short sale/ deed-in- lieu program. The government created the program in an effort to assist homeowners who can no longer afford their home and who want to avo

Posted by Tracey Martin on December 31, 2009 at 3:00pm

The HAFA program is the government's new short sale/ deed-in- lieu program. The government created the program in an effort to assist homeowners who can no longer afford their home and who want to avoid the damage a foreclosure does to a borrower's credit. The following is my understanding of the program guidelines as presented in the MAKING AFFORDABLE Supplemental directive 09-09.The federal government has asked lenders to voluntarily implement a new program called Housing Affordable Foreclosure Alternative (HAFA.) The start date is April 1, 2010 although it is expected that some lenders will implement the program sooner and as I stated earlier, lender participation is voluntary. The guidelines further state that a lender who participated in the HAMP (Homeowner Affordable Modification Program) will be required to participate in HAFA. Loans in which Fannie or Freddie has an interest in do not qualify. They are working on their own short sale program.In order to qualify for HAFA, a homeowner must meet the basic eligibility requirements for HAMP. They are:• The property is the borrower’s primary residence.• The mortgage loan is the first lien originated before 01/01/09.• The mortgage is delinquent or default is reasonably foreseeable.• The current mortgage balance is $729,750.00 or less.• The borrower’s monthly mortgage payment exceeds 31% of the borrower’s gross income.• If the borrower has mortgage insurance, the insurer must waive any right to collection from theborrower.If a borrower meets the following criteria, the participating servicer must give the borrower the option to enter into the HAFA program:• The borrower did not qualify for the HAMP trial period.• The borrower did not successfully complete the HAMP trial period.• The borrower is delinquent on their HAMP modification.• The borrower requests a short sale or deed-in-lieu.The good news for sellers who participate in HAFA:• The lender is required to forgive any deficiency (no more waiting and wondering if they going pursue the deficiency.)• The sellers will get $1500.00 at close of escrow.• Servicers are expected to provide an approval letter 10 days from the date the offer is received (no more waiting for months with no guarantee that the short sale will be approved.)• The short sale will be pre-approved and the server will provide the listing agent with a pre-approved listing price.• The server will pay up to 3%, but no more than $3000.00, to junior lien holders.• If a borrower meets the HAMP qualification requirements listed above, they can participate in HAFA without going through the HAMP program first; as long as their servicer is participating in the program. However, if the borrower hasn’t gone through HAMP first, it will be very difficult for a servicer to get an approval letter to the borrower ten days from the offer submission date, and it will more than likely create delays. During the HAMP program process the borrower’s hardship is evaluated. The servicer becomes very familiar with the homeowner’s situation and all the obstacles that cause short sales to take forever are dealt with. Short sale pre-approval is pretty much determined through the HAMP process, so going through the HAMP program first will help the short sale to move quickly through HAFA.The good news for buyers:• The endless waiting for short sale approval will be eliminated. Short sale approval in 10 days or less.• Lenders must allow at least 45 days for close of escrow.This program will take all those frustrating unknowns out of the short saleprocess.Most of the concerns I have about the program are for those borrowers who have other liens on their property.The HAFA summary states that it is the borrower’s responsibility (with the assistance of their Realtor) to “deliver clear marketable title to the purchaser or investor.” It further says that the servicer can assist the borrower and the listing agent in the negotiations with lien holders, but they are not required to do so. An experienced Short sale agent knows how to negotiate with junior lien holders; however juniors could create problems based on HAFA guidelines.The program provides $3000.00 for junior lien holders. It also requires that junior lien give up the right to pursue any deficiency. If a junior wants more than $3000.00 and/or is not willing to forgive the deficiency, the borrower will not be able to obtain clear title as required. Multiple junior liens could create a problem. If there is more than 1 junior lien holder, $3000.00 may not be enough to satisfy them all.Another potential issue is that senior liens are not mentioned in the program guidelines. Property taxes are considered a senior lien and currently lenders will pay past due property taxes in order to attain clear title. Since the HAFA program stipulates that providing clear title is the borrower’s responsibility, one could assume that the borrower will have to pay any past due property taxes, before close of escrow, so clear title can be provided.definitelyOne other important requirement:• The transaction must be completely arms length. No one involved in the transaction can be related. This includes the Realtors, the buyers and the sellers.My ThoughtsIn California lenders have 2 choices for foreclosure, judicial or, the more popular, non-judicial foreclosure (trustee sale.) Odds are that a lender will pursue the trustee sale route because it is much cheaper. However, by taking the trustee sale route the lender gives up any right to pursue a deficiency.Currently in a short sale transaction the lender does not automatically give up the right to pursue. Large numbers of short sales fail because borrowers are concerned that the lender may pursue the deficiency. The fact that the HAFA program requires that the lender forgives any deficiency is a huge relief for borrowers struggling with their mortgage. Other than the problems that may arise with other lien holders, this program is a major step in the right direction for borrowers who are “under water.” It gives them a real chance at a fresh start. There are so many borrowers out there that are responsible people who find themselves in a night mare they never imagined, this program is an opportunity to move beyond the night mare and begin again. It is also a win for everyone who lives in the neighborhood of the borrower who participates in HAMP. Short sales generally do not bring down the value of the neighborhood as much as an REO does. Overall I see this as a positive solution for a homeowner in a very difficult situation.

CONTEST: What can be done to help make the Short Sale process run smoother? In my opinion...

Posted by Wanda Kubat-Nerdin on December 31, 2009 at 1:55pm

Banks should hire seasoned agents as consultants to train bank personnel from the ground up. Cross train to ensure everyone is on board, especially when people go on vacation or change departments or move on to other banks. Out-of-state banks need to stop thinking properties are worth much more than they are by holding out for that ‘perfect offer’ that will never come. A universal short sale form packet should be designed for all banks to use – no more than 5 pages. Give a deadline of no more than 60 days from the time a complete file is turned in to wrap it up and to be held accountable and charged a per diem if they do not perform.

Win FREE Short Sale Agent Training CONTEST

Posted by Bryant Tutas on December 31, 2009 at 11:50am

Hi folks. What better way to bring in the New Year than to have a contest. Wendy and I have been thinking of some ways to give back next year. As you know, both of us have a passion for Short Sales. We LOVE helping folks avoid foreclosure. So we've decided to have a contest and give away some goodies!!

Let's start with the prizes first.

First place prize will be the complete Short Sale Agent Training Webinar taught by Wendy and I. This training consist of 5 MP3s with almost 8 hours of training that walks you through a Short Sale Transaction from beginning to end. We'll also include the Short Sale Listing Package. VALUE: $124.00

Second place prize is The Negotiator Interview. This is an MP3 of Wendy and I interviewing a Short Sale Negotiator from one of the major lenders. "Craig" has been handling short sales for 18 years and spends 90 minutes answering questions from Wendy and I about the Short Sale process and what the lenders are looking for. We'll also throw in a Short Sale Superstars Tee Shirt VALUE: $60.00

Third place prize is.........a set of steak knives VALUE: Not much

The contest:

Write an article answering one of these two questions.

What can be done to help make the Short Sale process run smoother?

Why do you want to do Short Sales?

Top three articles, as judged by Wendy and I, win. Entries have to be submitted no later than midnight eastern time Thursday January 7th. The winners will be published by Monday the 11th.

"So, Broker Bryant, how do we enter?" Good question.

You have to join http://ShortSaleSuperStars.com Don't worry...It's free. Just click on the link and answer a few questions and you are in.

Write your article. The article must be posted on the ShortSaleSuperStars site as a blog post. "tag" it contest.

Link to this article in your blog post.

That's it!!! If you have any questions you can email me direct at BrokerBryant@gmail.com and I'll get you squared away.

And if you can't wait to get your Short Sale Agent Training.....we won't get mad if you just go ahead and make a purchase!

Available Short Sale Agent Training:

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Note: this page contains paid content.

Note: this page contains paid content.

Note: this page contains paid content.