All Posts - Blog - Short Sale Superstars

Short Sale Buyers Should Have Skin in the Game....

Posted by Sally K. & David L. Hanson on January 29, 2010 at 2:32am

No Skin In the Game..... No Steal of a Deal for the BuyerEvery listing agent has to manage a listing...short or traditional the way they see fit...within the laws of the state they live in....and keeping in mind that the foreclosure clock continues to run during the term of the listing on short sales.

We require, with short sales, that earnest money is deposited and an inspection done with time running from acceptance of the seller(s)....not the lender. For us, it works...more importantly...it works for the seller. Buyers don't run down the street, around the block, to the other side of town when they have some "skin in the game." Just like no money down mortgages in the end (and really since the beginning) were not a good idea....we don't feel it is a good idea for buyers not to have stake in the transaction. The other day, an agent was going to write an offer on one of our short sales...and she confessed that she had never written a short sale offer. I explained to her the way we work with our short sales and why....and that if we got offers that had the buyer using the lender's approval to mark their timeline, it would be countered.We got the offer...sure enough....no earnest money...no inspection until the lender approval not the sellers'.....true to our word...the counter was sent to the selling agent with exactly what we had told her ...earnest money and inspection now. We are confident based on experience and experience with this particular lender, the transaction will close...and everyone will live happily ever after. The buyer LOVES the house....if we were playing by the "procuring cause rules" he would have been our buyer as he came into an open house, saw a lender we recommended..then his agent called...it was her ex-brother in law...so in the interest of keeping peace....we told her to go ahead and write it...she thanked us a zillion times.rule bookNo counter offer returned to us...call to the agent...."I would never allow any buyer to put down earnest money and do an inspections for a transaction that may not close." All right then....Ms Never Wrote a Short Sale Offer....we know your buyer still wants the house...he told the lender....the lender told us....and you...don't get to decide...Other buyers are interested...there will be another offer...the point is...know what you don't know...and if the buyer wants the house, you don't get to make the rules.

BPOs for loan Modifications and Short Sales need Agent Involvement! PART 2

Posted by Ray Wright on January 28, 2010 at 6:33pm

This is just a follow up to my recent blog from a day or so ago.I had mentioned in my previous blog the Temecula BPO where the occupant did not have keys to the four children's bedrooms upstairs. I contacted the agent and she rescheduled an appointment for me again this morning at 9:00 a.m. All I needed were the 4 pictures since I had already taken all the other necessary pics previously.Well, i arrived right on time. knocked on the door, rang the door bell and no on answered. i called the Short Sale agent and luckily she answered. I explained the issue and she said she would call the seller. She called me back and a few moments later, the occupant opened the door. The house was full of people which made me wonder why noone answered when I knocked. The doors were still loacked axcept one. I was able to use a tiny flathead eyeglass screwdriver to open the lock on a second door (I brought one just for this reason). But the other two were standard key locks and, again, I was unable to take all the needed pics. I'm submitting the BPO with pics of the locked doorknobs and a notation to the Short Sale Negotiator.In closing let me impress upon you Short Sale agents once more that it is imperative that you meet the BPO agent at the property to assure the BPO is completed properly. Not only to provide your own comps and to point out any deferred maintenance issues or problems that would affect value on the report, but also to provide access for the BPO agent. Plus it is always good to be present with the homeowner to show you are doing your job.Just more food for thought.By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available to avoid this devastating occurance. And know that there is someone here you can trust to help. As a Certified Pre-Foreclosure Specialist, I understand the ins and outs of Short Sales and Loan Modifications. I am also a Wachovia and World Bank trained Pre-Foreclosure expert and well educated in the Government’s new H.A.F.A. and H.A.M.P. programs for helping homeowners facing foreclosure.

Change wording

Posted by Mike Warfel on January 28, 2010 at 5:42pm

The lender came back with "may waive deficiency rights" would not change to "will waive all deficiency rights" so the result was my seller would not accept the "approved Short Sale". Listed the house for 15 months worked the short sale for the last 5 of them, 30 plus hours on the phone mostly on hold.Just to say-Yes I do short sales, they all do not work out as planed.

Don't beat me up because I'm dumb

Posted by Pat and Ben Mullikin on January 28, 2010 at 1:53pm

I'm new to this forum, but not to real estate. I've had an interesting 18 year career and have learned a whole pile of great stuff along the way. I've attended tons of seminars, webinars, real estate related classes at local colleges and universities. But, given the nature of our business, we all have to be ready to evolve, learn and change at all times. Of course, I THINK I know a thing or two about handling the details of a short sale but maybe someone else has had more opportunites to learn other, or more things about this particular subject. That IS the purpose of this and other similar websites(RIGHT??). To learn, to teach, to share. We must be comfortable enough with the format to express openly our questions and concerns without fear of being belittled or shamed by our lack of knowledge. I have read many blog posts on other real estate member-type sites that belittle and shame real estate agents for their lack of knowledge of a subject, implying that the writer of the post has been inconvenienced by the other agent in the natural course of business because the "dumb" agent doesn't have the same level of knowledge as the blog writer. It seems the writer is insinuating that if you're not as up to speed as the writer, you should not venture into that area of business - you should leave it to the agents who know what they're doing. (how does one learn in that environment?) So I hope if I ask a question on this site, or in real life in the natural course of a business transaction that I won't find myself to be the subject of a belittling and shaming blog post here or on any other real estate agent site.

What to say and do when seller refuses to sign deficiency note

Posted by Silvia Dukes on January 27, 2010 at 1:38pm

Second lienholder in this short sale situation is Wachovia requiring seller to sign deficiency note as a condition to release the lien on the property.Seller now states that she won't sign the deficiency and go to foreclosure and then file for bankruptcy.I have asked seller several times to seek legal advice throughout the process and she states that she has "spoken to someone about the deficiency note and was definitely advised against it. He told me that if the house does go into foreclosure because the lenders will not accept the short sale terms, then he advised me to file for bankruptcy"Besides the fact, that I don't know how qualified a person she spoke to, this doesn't make much sense to me especially the part of the "lender not accepting the short sale terms" as it seems to be the borrower who is not accepting them.What else can I say or do so she will proceed? Even after foreclosure couldn't the second lienholder still file for deficiency judgment? The mortgage document states that nothing shall impair lender's right to a deficiency judgment in the event of foreclosure against the borrower.Needless to say, there's been a lot of work and patience involved in getting to this point. Any comments and suggestions are appreciated. Thank you!

Buyers & Buyer/Broker Agreements!

Posted by Ray Wright on January 27, 2010 at 1:00pm

Well, I lost buyers today and I figured I'd vent here to all of you.There's been times when I've stopped working with a buyer before. Sometimes I fire them and sometimes I refer them to someone else, depending upon certain factors. But today, I just lost em.We've been working together for about 5 months and I've shown them quite a few homes in several areas. I've held their hand, helped them secure financing, explained the options and used my expertise to educate them in today's market. We've made 2 other offers and have been beaten out by the multiple-offer-auction atmosphere of the current repo market.I showed the husband a property on Thursday while his wife was out of town and he wanted to get his wife to see it. He really liked it and so we set up a time to go see it after church on Sunday, since his wife was due to be back Saturday, mid-day. Sunday came and I didn't see them at church nor did they return my call. After 2 more voice mail messages over the past 3 days, the husband finally called me back. He was a little hesitant and sounded very apprehensive on the phone. I thought maybe they had a death in the family. But then he said it, "uh...sorry to tell you, but...we already made an offer on that house with another Realtor".Inside my head I was yelling, "WHAT?" and going thru my mind was the vision of me shaking him and smacking him, saying, "What were you thinking?". But all that came out of my mouth was a calm, "Really? Hmmm."To make a long story short, they are acquaintances from church. Because I viewed them more like friends and not clients, I didn't have them sign a buyer/broker agreement and went off of faith and trust. I do that quite often with buyers whom I look at as friends more than clients. The wife got back into town a little earlier Saturday than expected and so the husband decided to drive her by the house he saw. The listing agent was having an Open House and they actually went in and saw the home. Then, the listing agent talked them in to making the offer right then and there with promises of saving them money and guaranteeing them they would get the house if they went with him. The buyer really couldn't explain exactly what the agent said or exactly how the agent was going to be able to accomplish this, but they wrote the offer up, submitted it and got accepted this afternoon, right before he called me.No, I didn't ask how he thought the bank's Realtor would get them a "better deal". I didn't ask why he thought the bank's Realtor would work for a one time buyer just as hard as he works for the bank that gives him 50 to 75 deals a year or more. I didn't ask what price he offered although I expect it's quite a bit more than I would have suggested for that home. I also didn't ask him how he was going to face me every Sunday and Wednesday at church from now on. I just said, "thanks for the call and I hope things work out for you and your family!". What I DID do was immediately go off my diet and buy a Venti Rasberry Mocha, drowning my sorrows in sugar and caffeine and asking myself why I didn't have them sign a buyer/broker agreement.It will be interesting to see how this deal of theirs all pans out. Perhaps in the future, I'll start having even my friends and family sign buyer/broker agreements. Or probably not and I'll be blogging about this issue again in the future the next time it happens.By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available to avoid this devastating occurrence. And know that there is someone here you can trust to help. As a Certified Pre-Foreclosure Specialist, I understand the ins and outs of Short Sales and Loan Modifications. I am also a Wachovia and World Bank trained Pre-Foreclosure expert and well educated in the Government’s new H.A.F.A. and H.A.M.P. programs for helping homeowners facing foreclosure.Click on the link below to find out more about Preforeclosure alternatives:http://www.partnerfirst.org/raywright/Click on the link below to search all homes available in the MLS::http://raywrightsellshomes.com/f-properties.htmlClick on the link below to read what other clients have said about my service:http://raywrightsellshomes.com/f-testimonials.html

Greentree 2nd Loan. When they agree to a short sale--Do they sign off on the remaining debt?

Posted by Adrian Smith on January 27, 2010 at 12:52pm

I hear that Greentree is a nightmare....but my seller wants to know if they'll sign off on the rest or if they still try and come after you after a shortsale? Any input would be appreciated.Thanks!

Loan Servicing Guidelines Tightening up could mean more opportunity for increase in Short sale Business!!!

Posted by Robin Button on January 27, 2010 at 2:30am

Many Homeowners Facing Foreclosure as Loan Servicing Guidelines change and this could mean increase in business for those agent that specialize in Short Sales!Take a Look as many homeowners under the Presidents foreclosure -prevention program may be at risk of foreclosure due to the tightening up of guidelines forcing loan Servicers to make sure all paperwork have been turned in the their files. For those that are missing paperwork they wil get a 30 day notice to complety and failure to comply can put them at risk of foreclosure..According to a Treasury Department guideline issued last month, mortgage companies have until January 31 to review all trial modifications that have been modified due to the Home Affordable Program. New guidelines will be issued next week in attempt to get some control over the loan Modification program and the complaints that paperwork is not being handled properly and the broken link of getting the modifications completed on the files for the homeowners.This could be a great opportunity for thiose agents that specialize in Short Sales to gain new business as those homeowners that are not able to provide the necessary documentation are prime candidates for Short sale of their home in lue of Foreclosure.Lookng for Comment........

BPOs for loan Modifications and Short Sales need Agent Involvement!

Posted by Ray Wright on January 26, 2010 at 4:00am

When listing a Short Sale one of the most important things during the process is the BPO (Broker Price Opinion). For those of you not familiar with these it is somewhat of a mini appraisal done by a Realtor to help advise the bank of the market value during a loan modification or short sale. It is important for the listing agent to meet the BPO agent to assist in providing detailed info about the property and it's value. You never know what the experience level of the BPO agent is. They might not even be the actual BPO agent and merely a licensed assistant. I do tons of BPOs for both loan modifications and other agent's Short Sales. What amazes me is how many times the listing agent doesn't show up when I have an interior BPO.Today, after driving all the way down to Temecula from Riverside, I found that the home was in a gated community. I tried calling the agent to no avail. I searched the MLS from my phone trying to find gate codes. There were none and the property I was headed to wasn't listed. I finally was able to follow someone else in and I was met by the homeowner. The homeowner didn't speak English. I don't speak Spanish. When she answered the door, she looked puzzeled at who I was and why I was there. The best I could do was wave my camera in the air to show her I wanted to take pictures. She reluctantly let me in but I'm not sure if she even knew why. The next issue was that 4 of her 6 bedroom doors were locked and I couldn't get in to take pics. Apparently the rooms belonged to her kids and they locked them before going to school. She didn't have keys.Well, I took pics of what I could and left, leaving another message for the agent to reschedule me driving all the way back down to Temecula AGAIN! I let the asset manager know I needed an extension and why. he thought it was funny.Foreclosures are a bad thing for homeowners. No one wants to be foreclosed on. Realizing this, the Government (along with cooperation from the banks) is making it far easier and appealing for homeowners to conduct Short Sales to save themselves and their credit from the terrible stigma and long term affects of the dreaded foreclosure. Short Sales are a great avenue to help homewoners and the banks are getting better at getting them pushed thru. But without agents out there that are willing to do their job and do it well, the homeowner is left...well, pretty much just left!So, agents...PLEASE! Help me help you! And homeowners, make sure you have copies of your kid's bedroom keys.By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available to avoid this devastating occurance. And know that there is someone here you can trust to help. As a Certified Pre-Foreclosure Specialist, I understand the ins and outs of Short Sales and Loan Modifications. I am also a Wachovia and World Bank trained Pre-Foreclosure expert and well educated in the Government’s new H.A.F.A. and H.A.M.P. programs for helping homeowners facing foreclosure.Click on the link below to find out more about Preforeclosure alternatives:http://www.partnerfirst.org/raywright/Click on the link below to search the MLS:http://raywrightsellshomes.com/f-properties.html

Weekend Update

Posted by Bryant Tutas on January 25, 2010 at 1:58am

Hello fellow Superstars,

OK..... so what's been going on at www.ShortSaleSuperStars.com this week? How about....71 new members! Welcome to all. Please be sure to take a minute and place your information and location on the "Referral Map" You want to make sure people can find you if they are looking for a Short Sale Agent in their area.

Last week we had 2,768 UNIQUE visitors with 58% of them coming from the search engines. www.ShortSaleSuperStars.com is being found by sellers, buyers and professionals throughout the country.

With this in mind, make sure your profile page is as complete as possible. Check out my page and Wendy's page for good examples.

Are you following the conversations?

The Equator system is the hot topic this week. Frustrations are mounting.

Titanium Solutions is getting into the REO business.

New group...Negotiation Strategies

Bank of America is charging a per diem for closing extenisions. Ironic?

In the next few days we will be breaking the 1,000 members mark. This site is growing fast and Wendy and I need help. We are looking for a web site designer, a marketer and anybody else that may have some good ideas to help us grow. If you want to help....let us know.

And.....we are ready to start getting some National press. Please be sure to mention www.ShortSaleSuperStars.com to everyone you speak with. Let's get a buzz going. After all WE (all of us) are the ones that are making a difference in this market and the public needs to know that. They need to see what we have going on over here. So shout it out loud!

Finally, we do offer Short Sale Agent Training for those that need it. At $97 for almost 9 hours of training it's a steal. Check it out. We'd love to have you.

Until next time......LEARN, KNOW AND GROW.

Together we CAN make a difference.

Wendy and Bryant
www.ShortSaleSuperStars.com

P.S. We'd love to hear from you if you have any suggestions to make this site better. It's your site. What can we do to improve?

Available Short Sale Agent Training:

LEARN, KNOW AND GROW

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Aurora Loan Services.

Posted by Todd Sabatini on January 21, 2010 at 5:00am

I have a short sale with Aurora Loans and should be under contract any day. Can anyone give me some helpful advise along with any contacts they may have with this company. thanks in advance, ToddTODD E. SABATINI REALTOR®CENTURY 21 SMITH & ASSOCIATES, INC.13510 HUTCHISON BLVD.PANAMA CITY, FLORIDA 32407CELL 850-819-4073WORK 850-230-2350FAX 850-230-8466TOLL FREE 1-800-728-0853toddsabatini@aol.com

HAP Helps the Military Avoid Short Sale and Foreclosure

Posted by Wendy Rulnick on January 20, 2010 at 3:00pm

Are you an Eglin AFB or Hurlburt Field airman PCSing soon? If you own a home, have to sell, and owe more than your property is worth, there may be help available so you can avoid a foreclosure or even a short sale. The U.S. military Homeowner Assistance Program (HAP) may help you by covering most of the loss to your mortgage holder.These are the basic qualifications for HAP:1. You must be PCSing more than 50 miles2. You purchased your home or entered into a contract to buy it before July 1, 20063. It was your primary residence (not a rental)4. Your orders were between February 1, 2006 and September 30, 2012.5. Your home must have declined at least 10% in value. (That should not be in problem in the Eglin AFB and Hurlburt Field market).HAP may cover 90% of your loss from your original purchase price, with you bringing the difference to closing when you sell your homel If you apply for HAP and are moving from Eglin AFB, Hurlburt Field, Duke Field or Whiting Field, here is part of an email you may receive from the HAP Savannah District:" We cannot estimate or pay benefits until you have provided all requested information, are determined eligible, and have sold your home or have it under contract. You are encouraged to send in the information we request since we cannot determine your eligibility without it.The government acquisition option for... applicants involves the government purchasing your home and selling it immediately to your buyer in a subsequent transaction. This option is for those who cannot afford to close without it. You are advised to make every effort to sell your property at the highest reasonable price under current real estate market conditions. Please note we will require a fully signed HUD-1 Settlement Statement from when you bought your home. Please send this document for inclusion in your file.If you listed major improvements in your application, you must provide receipts for these items if you would like them to be considered. Current guidance is that the Prior Fair Market Value is the purchase price, but it is anticipated that there may be an adjustment for improvements in the final guidance. Improvements and receipts must be in accordance with the guidelines established in IRS publications 552 & 527 (http://www.irs.gov/)."The great news about this HAP guideline, is that your monetary assistance may be based on your cost plus improvements, not just your initial purchase price. This means, HAP may cover more of the loss to your mortgage holders - so YOU will have to bring less funds to closing to cover the difference.If you plan on selling your home for a PCS from Eglin or Hurlburt in Navarre, Destin, Fort Walton Beach, Niceville, Crestview or Mary Esther, Florida, contact a real estate agent who specializes in the HAP program. Don't let your home go to foreclosure!It's Wendy!Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.Destin FL Real Estate Destin Short Sales & Pre Foreclosure Help.Read Wendy's Destin Real Estate BlogCall toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204Email Wendy: itswendy@rulnickrealty.comWendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Richard & Janet OBrian First Post

Posted by Richard OBrian on January 20, 2010 at 11:48am

Short Sale are the new REO and we were positioning our business in 2007 for this market. We have hade our ups-n-downs with the banks as they were hit with the mortgage meltdown, it seemed they only foreclosed. Out business is mainly helping folks sell short.In the past few months we have seen most of the banks working to streamline the process with some still getting up to speed.Our office Keller Williams Realty AV is in the Antelope Valley near where the space shuttle lands when in California. We were hit hard in 2007 and have started to recover in 2008. 2009 was the turning point as sales hit over 9,000. We saw a shift in the market as well when the banks regrouped and started to manage the Bank Own homes and slowed down the release of their inventory and started moving into the short sale world.Successes happen all the time, case in point a seller found us on the internet 15 days before the trust deed sale. We took the listing have an offer into the bank in 3 days and got approval in 1 (ONE) day closed in 30days... Okay this doesn’t happen all the time but we are seeing it more and more...

Loan Modification Program failed miserable in Florida

Posted by Petra Norris on January 19, 2010 at 10:00am

Loan Modification Program failed miserable in Florida

Florida Homeowners hold on to their property with a needle and a thread, hoping for a loan modification under The Making Homes Affordable program. According to the Florida Realtor’s website, only 8,405 in Florida get mortgage modification. This is simply pathetic!Here are some basic rules to qualify:• The property must be owner occupied with the owner still living in the home• The borrower must have sufficient income to support the new mortgage debt• The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less.• The borrower/homeowner monthly housing expenses (PITIA), defined as principal, interest, taxes, insurance and association dues must be more than 31% of gross monthly income.These are the reason, in my opinion, why this loan modification program was doomed from the beginning:• Property values in Florida declined at a staggering rate of 30%, 60% and even 80% in some areas, since the housing boom of 2005. Making it impossible to qualify based on current market values.• High unemployment rates in Florida• Homeowner must have income to qualify for this program.• BureaucracyShort Sales do close in Florida and if you are looking for more information about Short Sales, I invite you to visit www.shortsalesuperstars.com a forum for homeowners and real estate agents that deal with short sales on a daily basis and where I am a member.

Anyone have approval and then at time of closing the file was declined because MI never approved it?

Posted by Kelly Simarano on January 18, 2010 at 9:32am

My agent didn't include the payoff to the 2nd, so in reality this approval would be void anyway. But has anyone ever received approval from the lender, to then have the file declined because MI didn't originally approve the SPO?

Are Lenders more likely to cut commission if you're double ending the deal?

Posted by David Dee on January 17, 2010 at 6:21pm

Just out of curiosity as I was browsing the shortsale deals that have closed in my area. I found that several transaction had the same agent listed as the Listing and Selling Agent. I have not been in this type of situation before so I would like to know if anyone has any feedback on this.Lenders do cut commission as we are all aware in shortsale situations. Some reduce it more than others, depending on the overall numbers shown in Hud1.Common sense dictates that lenders will cut the commission when they see that the Listing Agent is double dipping in the sale. They feel that they have already taken a huge loss and want to stick it to someone else. For those who are involved in representing both sides, what have been your outcome?

Titanium Solutions- Titanium Holdings Enters the REO market with its Launch of Excellen REO

Posted by Dawn Barrier eXp Realty Vegas on January 13, 2010 at 5:50am

We have all been waiting for this news and now it official!Lets hope they can handle it and we can be sent the REO listings!Titanium Solutions- Titanium Holdings Enters the REO market with its Launch of Excellen REOIt is all over the news here is one place at the DSNews to read about itor just Google Excellen REO. I'm sure there will be many posts on this topic.Titanium Holdings, Inc., the parent company of loss mitigation specialist Titanium Solutions, Inc., is jumping into the property disposition arena with the official launch of a new business unit, Excellen REO.Excellen REO is headquartered in Fort Mills, South Carolina, along with its sister company Titanium Solutions and parent Titanium Holdings.Cary Sternberg is the president of Excellen REO a few of his former titles were, he was formerly with American Home Loan Servicing, VP of Loan services for Indy Mac and REO manager for Ocwen.For another company to launch into the REO market indicates to me that the "shadow inventory" we have all been hearing about, is real and it is just a matter of time as to when it will hit the market and if it will be in drips or not.

Winners of the www.ShortSaleSuperStars.com contest.

Posted by Bryant Tutas on January 11, 2010 at 10:57am

Hi folks. As you know we just had our 1st contest at www.ShortSaleSuperStars.com. You can read about it here.We made a couple of changes as we went along. Hey...we own the site and can do what we want :) The first change we made was Wendy and I asked our site moderator, Jeff Payne, to help with the judging. Jeff's a great guy and he's cheap labor so we took advantage of him. Thanks Jeff!!!Secondly, we upped the ante with the prizes. We, as in Wendy and I, decided that since there were so many great entries, 16 to be exact, that ALL should be rewarded. We'll tell you shortly what we decided to do. But first.........here are the 3 winners:1st place goes to Stephanie Jarmon for "Why I help Kansas City homeowners negotiate Short Sales--and how they could go better..." Stephanie's article is about FEAR and how it affects homeowners' decision making or lack of. Her goal is to empower these folks with knowledge. She also has some excellent ideas on how lenders could make the process easier.2nd place goes to Katerina Gasset for "Why Do We do Short Sales". WOW! Is all I can say about this one. A heart breaking look at what Short Sale agents deal with on a daily basis. Katerina's post reminds us that we are dealing with real people with real hardships. Her post is exactly why www.ShortSaleSuperstars.com exist. To help people.3rd place goes to Ray Saenz for "What can be done to help make the Short Sale process run smoother?" Ray's article is a comprehensive outline to assist agents with handling the short sale process. I can tell he spent a lot of time and effort on his entry. Thank you Ray.Pop over and read all of the entries. They are all very good.OK...back to the prizes. We have decided to give all 3 of the top place winners the Short Sale Agent Training Webinar. Plus.....ALL 16 contestants will receive The Negotiator Interview as our way of saying thanks for entering the contest. Stephanie Jarmon also gets to pick the ShortSaleSuperStars Tee Shirt of her choice for taking first place.That's it!! Our first contest comes to a close. A sincere thank you from Wendy and I for all who participated. And a big thanks to Jeff for helping with the judging.Until next time.....Learn, Know and Grow.Together we CAN make a difference!Wendy and Bryant

The Short Sale Facts & Information

Posted by Melissa Polce on January 11, 2010 at 8:05am

SHORT SALE FACTS!Why would my Lender want to allow a Short Sale to help me? The reason is simple; a short sale often has a better return on investment to the lender than a foreclosure. The average savings a lender sees from a short sale property compared with a foreclosure property is $14,000. Not only does the lender receive this savings, they are also paid on the loan 6 months earlier than in the foreclosure process. This allows them to collect and cash-out earlier than they would in a foreclosure. Plus, lenders spend a great deal of money with attorneys to complete the foreclosure process. Lenders created the short sale process as a foreclosure alternative for those reasons. The incentives to perform a short sale on your property are in place to motivate you to participate.When should I start my Short Sale? It is best to begin a short sale when you realize you can no longer afford the mortgage, so that your property can be marketed properly. The earlier you start, the higher our likelihood of success. We have negotiated short sales that have already gone to foreclosure sale. Contact Us to see if you have enough time.How long does it take for you to complete the case once we fill out the paperwork? Typical cases are completed within three to six months. If you have a foreclosure sale date approaching, we can complete it sooner. In the past we have found buyers quickly and have used our relationship with the banks to push back your foreclosure sale date.What is a Deed in Lieu? A Deed in Lieu is when the property is deeded back to the lender with the approval of the borrower prior to foreclosure. (This process may still leave a negative impact on the borrower's credit.)Why should a lien holder accept less than the outstanding debt? After the lender does an appraisal on the property and discovers that the value is less than the payoff, the lender will decide if it is worth further legal actions and cost. A business decision is made to either continue foreclosure action or accept the short sale offer.What is a Closing Statement? A form used at closing that gives an account of the funds received and paid at closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance.What is a Deed? The legal document conveying title to a real property.What is a Deed of Trust? A deed of trust is an instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary) and reconveyed upon payment in full.What is Depreciation? A loss of value in a real property brought about by age, physical deterioration, functional or economic obsolescence.What is Loss Mitigation? Loss Mitigation is a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan.What is a Loan Modification? A mortgage modification is a loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and reduce the monthly payments.What is a Forbearance Plan? A forbearance plan is a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.What is a Short Sale? A short sale is a negotiated settlement. This is when the lender agrees to accept less than the amount owed as a payoff on a loan.What is an Offer on a property? An offer is an indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.How long is a Short Sale process? Depending on the mortgage company and the state in which the home is located, a short sale process can take between 1-4 months.What is the difference between a Satisfaction of a Lien vs. a Release? A satisfaction is a total release from the debt owed. A release is when the lender releases the lien from the property to allow the home to be sold. (The borrower may still be required to repay the balance of the debt.)How does a foreclosure and a short sale show up on my credit? Foreclosures show up as FORECLOSURE, and can stay on your record for seven years. Anytime you apply for a new loan or have your credit run, the foreclosure will show up and is usually a required disclosure you must make on most credit and job applications. A short sale is listed as SETTLED DEBT, and is much less harmful to your credit. Please consult a credit company for more information.What liability do I have when doing a short sale? In a short sale, it is possible the bank could 1099 you for the difference in what you sell your property for and what you owed. This means the IRS could consider the difference as income, and you could be taxed on that income. The bank might also ask you to pay a portion of the difference back in the form of an unsecured note, which is similar to an I.O.U. It is a negotiation, and we employ tactics to have the bank consider the debt settled.In a foreclosure, your house is sold at an auction, which typically causes the difference of the total amount you owe and the foreclosure sale price to be much greater. This means you have a higher potential tax liability. Additionally, the bank may come after you for a Deficiency Judgment.A successful short sale will eliminate a deficiency judgment, minimize your tax liability, and keep the foreclosure off your credit.What is a Deficiency Judgment? A Deficiency Judgment can arise when the bank sells the house at foreclosure auction. The bank can sell the house at auction for any amount less than the total amount owing of the debt plus fees. A deficiency judgment can arise if the bank sells the house for less than the mortgage debt. The lender then holds you responsible for the unpaid portion of the loan. For instance, if you owe $100,000 to the mortgage servicer and they see proceeds after the auction of $55,000, the remaining difference of $45,000 can be moved into a judgment against you. This will also appear on your credit report along with the foreclosure. The lender may be allowed to take further legal action such as garnishing wages to pursue payment based on the laws of your state. Some states have restrictions and regulations on deficiency judgments, but unfortunately the majority do not.Some lenders will choose the deficiency judgment while others may pursue a path to write off the loan. If they choose to write off the loan, the lender may issue a 1099 form which you will have to pay taxes on for the calendar year. Recently, according to an MSNBC news article, President Bush announced plans to do away with this tax penalty. According to the same article, the Democrats said they support this plan. For more information on deficiency judgments and the tax liability you may face based on your current situation, submit your information to one of our analysts for a free consultation, and as always consult your attorney/tax advisor.SEARCH THE MOST UPDATED CHARLOTTE AREA LISTINGS AVAILABLESEARCH NOW FOR THE MOST UPDATED CHARLOTTE AREA LISTINGS AVAILABLECharlotte Multiple Listings SearchLET ME HELP FIND YOU YOUR NEXT HOME!Melissa Polce mjpolce@kw.com 704-450-4335www.MyRelocation2Charlotte.com www.ExclusiveHomesofCharlotte.com www.TheShortSaleAgents.com"Lake to Land, I've Got It Covered"

ASC

Posted by Evelyn Broxterman on January 8, 2010 at 2:06pm

I will be posting some information regarding ASC in the next few days. I noticed (or at least I didn't see one) there was no Lender Group for this company.

Note: this page contains paid content.

Note: this page contains paid content.

Note: this page contains paid content.