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Real Estate Marketing "The Podcast" How do I get listings or deals? #Investor #Realtor

David Bartels LIVE from Anaheim CA presentation

805-413-8000
http://www.homeloanadvocates.com/

Banks grant short sales for two reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines, but the basic procedure is similar from bank to bank.

A few examples of a hardship are:
Unemployment / reduced income
Divorce
Medical emergency
Job transfer out of town
Bankruptcy
Death

The seller’s short sale package will most likely consist of:
Letter of authorization, which lets your agent speak to the bank.
HUD-1 or preliminary net sheet
Completed financial statement
Seller’s hardship letter
2 years of tax returns
2 years of W-2s
Recent payroll stubs
Last 2 months of bank statements
Comparative market analysis or list of recent comparable sales

Writing the Short Sale Offer and Submitting to the Bank

Before a buyer writes a short sale offer, a buyer should ask his or her agent for a list of comparable sales.

Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to market value.

The short sale price may have little bearing on market value and may, in fact, be priced below the comparable sales to encourage multiple offers.

After the seller accepts the offer, the listing agent will send the following items to the bank:
Listing agreement
Executed purchase offer
Buyer’s pre-approval or proof of funds letter and copy of earnest money check
Seller’s short sale package.

The Short Sale Process at the Bank

Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process.

Buyers may get so tired of waiting for short sale approval that they may feel the need to threaten to cancel if they don’t get an answer within a specified time period.

That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.

Following is a typical short sale process at the bank:
Bank acknowledges receipt of the file.
A negotiator is assigned.
The bank orders a valuation of the property.
The file is sent for review or to the investor.
The bank may then request that all parties sign an Arms-Length Affidavit.
The bank issues a short sale approval letter.

Some short sales get approval in 3 weeks. Others can take as long as 12 months. A typical Short Sale transaction takes 4-6 months to complete.

I took a listing with Citi Financial last November 2011. Thinking Citi one loan no problem. I though Seterus was bad but Citi Financial is taking the cake on this one.

John Florez who is the Center Manager for Citi Financial in Phoenix has been harassing the homeowners to the point where they called me to see what options they had due to them having to relocate out of state for a job. I advised them about doing a Short Sale and after talking with their attorney and accountant they decided to do a short sale.

We put the house on the market and received an offer less than 10 days. I sent in all the paper work and called Citi to make sure they had everything they needed. Jennifer who works in the offer advised they had everything and that John Florez would call if anything additional was needed.

John called the next day and told me that he had a problem with the HUD. He said they will only approve 5%. I told John I would get the HUD revised. He also starting asking me about getting the homeowner to make 60% reduced payments for 5 months, and then after all 5 of these payments were made he would at that time approve the short sale."WHAT!" I had to repeat what he just said back to him to make sure I heard that right.

He said that after they make payments for 5 months at 60% reduction he would approve the file. I told him out of all the short sales I have done I have never heard of something like this.Why would you make the buyers wait 5 months before approving the short sale. John said this is how it's going to be if you want to make a commission.

Yes at this point was I ever so frustrated. I talked with my broker to see what he could do, but it seemed as if John does not answer to anyone, no boss.. I called John back and advised him I would see what I could do but could he order the BPO to make sure the offer is what they needed to net.

A couple days later John did order the BPO and then called me back saying the BPO is in line with what they need to net now he just needs to get payment from the homeowners, he asked if I could make them call him and give him payment. I told him I would give them the information.

I talked with the homeowner and advised them that I have never dealt with someone like this, someone so arrogant. The homeowners laughed and said now you know what we were dealing with and why we called you. I advised them to get the advise of an attorny and also advised them to make a complaint to the State Attorney General along with State Banking Commission.

The homeowner did make a complaint and were advised it would take up to six weeks to get an answer back. Because the homeowner refused to make payments with John Florez he called and left a VM for me saying the Short Sale is denied. I called John back and said that's fine can you issue a denial letter so I can cancel the contract with the buyers. He said he already sent it and did not have a copy in his file to send me and to ask the homeowners.

The homeowners never got the letter and John didn't have a copy in his file. John said the file has been turned over to their foreclosure department.

It's now January and I advised the buyers agent what was going on. The buyer decided to cancel their contract and I canceled the listing and advised the sellers to keep me updated when they get a response from the Arizona Attorney Generals Office.

They received a response in March 2012 and was asked to provide any additional information they had and also asked if they ever received the denial letter. They responded and the first week of April they received a call from from Citi Financial about the great new Short Sale program where now if they get an offer they don't have to make the 5 payments and at closing they would get 10% back from Citi.

I told the homeowners this sounds like a scam, they received a letter the next day telling them Citi would like them to short sale their home and to have the agent provide a copy of the listing contract, hardship letter, HUD1 and a 3rd party authorization form.

I took the listing and this time I took it at 5% knowing what had happened last time. I received an offer in less than 12hrs and submitted the purchase contract along with a new HUD to John Florez at Citi. He called me and said well since the buyers agent is with the same broker your going to have to reduce your commission to 4%. He laughed and then hung up the phone.

I'm very patient, and I understand that a short sale is an option and not a right, I just don't get how the John Florez keeps playing games with the homeowners and me as the agent. I'm so sick of these banks playing these crazy games. 

Citi you are now on my bad list of banks not to take short sales with along with Seterus.

For all of you agents thinking about taking a short sale with Citi I highly advise against it...

James Moyer

Arizona Real Estate Market

This morning I picked up the NY Times, skimming over the headlines I found this article to be a worthwhile read.  It exemplifies what happened to so many people who thought they were doing the right thing. 

A great read on How a Financial Planner Lost His House: http://nyti.ms/rO86by. -- Short sale stories come from all walks of life...  After a client makes their decision to short sale, we become their best ally in helping them to unravel a piece of their financial entanglement.  Short sales are not for the faint of heart and certainly there are no quick fixes, programs or nonesuch.  

It still comes down to hard work and the three P's; Persistence, Patience and Perserverance. 

Article Source: NY Times - November 9, 2011

So you have to sell. Here is what you should do.

FIND A REALTOR

1.  You can not do this on your own. The banks will want the home to be extensively marketed and you can not do that as a FSBO. Since the lender will pay the real estate commissions that should not be a concern.

2.  Gather your financial information. You will need 2 years tax returns, 2 months bank statements form all accounts, 2 months statements from all investment accounts, profit and loss for 2 years from any self employment.

3. Fill out a financial statement which shows all your income and expenses

4. Write a hardship letter which explains why you need to do a short sale

5. Make your home available for showings and open houses

6. Keep your financials updated every month and give the bank everything they ask for

7. Accept the best offer you can get on the property

8. Be PATIENT

If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194