Sellers (7)

Marshall Short Sale ClosingWe are happy to announce that last week we had another successful Wisconsin short sale closing, this time in Marshall. As you have likely heard, short sale transactions can be complex, and an experienced Short Sale Realtor® is a must.

This was a great home that the new owner is sure to enjoy! If you are thinking of selling or buying a short sale home in Wisconsin, our short sale specialists would be happy to assist you. Give Rock Realty a call at 877-774-7625.

Or, if you are considering a short sale for your home, feel free to fill out our no obligation

Short Sale Home Evaluation Form

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Too often, many homeowners doing a short sale read up on the internet and speak to friends, coworkers, relatives and anyone else whose done a short sale, about how they received $3000 relocation assistance by doing a HAFA short sale.

Sadly...this is NOT always the case. Simply going into the HAFA short sale program here in CA does NOT guarantee you will walk away with money.

Case in point.....First your realtor needs to determine if your servicer(the one you normally make or made your mortgage payments to for your 1st lien)participates in the HAFA program. Many servicers DO NOT!.

Also, even if your servicer(1st mortgage lienholder) participates in HAFA, the INVESTOR who is above your servicer and has final say so...may NOT be a HAFA participant.

Many 1st mortgage liens are SOLD to a private investor or group of investors that DO NOT belong to HAFA, nor do they have to abide by HAFA's guidelines and rules. 

OK, so let's say your 1st lien holder and their investor DO participate in HAFA and allow you to do a HAFA short sale.

If you have a 2nd lien, you need to also find out if THEY participate in HAFA...for if they DON'T...then guess what may happen when you go to close? Your 2nd lien holder could see the $3000 monies awarded to the seller(YOU) by the 1st lienholder and decide to GRAB or TAKE any monies on the table. Thereby preventing YOU, the homeowner from getting ANY MONIES awarded to you. Don't say NO...because I've seen it done.

Also...here's the kicker....and even better than the above. Let's say..Mr and Mrs Seller had a 1st and a 2nd on their home, and the 1st even agrees to a HAFA short sale, and so does their investor.And let's say your 2nd lien servicer WAS a participant in HAFA and agreed to participate. *  If your 2nd in this process gets SOLD OFF or CHARGED OFF during this process to a collection co. for x amount of months of NON PAYMENT on your part, then that COLLECTION co is NOT HELD to HAFA's rules and can collect the relocation monies at funding. The collection companies ARE NOT SERVICERS...and therefore they DO NOT belong or partipate in HAFA's rules or programs...so  since they are a collection company..they can TAKE the monies left on the table. Remember people...they are a COLLECTION company...they don't call them a collection company for nothing!!!!

Remember the 2nd lien holder, whether it be a servicer or now a collection co...has begrudgingly accepted what the 1st will give them, and they are NOT happy.

Please make sure when doing a short sale that you interview an agent who has done them extensively and has much experience in negotiating short sales. Please don't assume EVER that because an agent has these CDPE or SFR designations...that they KNOW or are VERSED in NEGOTIATING short sales. These companies handing out designations are PRIVATE COMPANIES charging realtors a $500 or more fee to take a 1 day or sometimes just a several hour course in short sales. THIS DOES NOT mean your realtor knows in the slightest how to navigate and negotiate the slippery slope of short sales. Many of these realtors who have gotten their licenses not that long ago or get these designations because they know that 50% of the market is upside down and if they want ANY business, they better get with the program and start handling short sales.

I am not knocking these designations....there are agents who have them and legally have experience and know how to handle short sales... the main thing is to check for experience in how many short sales they have done...and if they have DONE it themselves. Farming it out to 3rd party negotiators or attorneys, does NOT guarantee success.

Please ask many questions about the short sale process and scenarios. There is no magic wand that anyone can wave to make sure your short sale goes smoothly, for many things occur as roadblocks to navigate along the way. But with a strong negotiating agent who is familiar with all the ins and outs and possible scenarios that the banks, lenders, servicers, investors,and collection agencies throw our way....hopefully having this extensive knowledge and experience can help you obtain a successful outcome.

 

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Short Sale Road Rules: Getting Buyer and Seller on Same Page

 

One of the most neglected, and yet, most important part of a successful short sale is getting both buyer and seller on the same page.  This may stem from the traditional way of thinking on a traditional “retail” sale:  It’s “Us against them.”  This does not apply to short sales, and if you can over come this mentality, your closing success will skyrocket.  Getting the short sale approval is only part of your responsibility; the other part is getting your buyer to the closing table. This is how I do it:

 

Locking the Buyer Down: The Stick

As I have gone over in my other articles, locking the buyer down into an airtight commitment is part of my “Rules of the short sale.” We do not allow a buyer to have any “outs.” To recap, here are the “Rules:”

 

  1. 90 day contract close date-We need enough time to get approval
  2. Ernest money up front
  3. Inspection time normal 10 days (NO “upon lender acceptance” allowed)
  4. Attorney review normal 5 days (NO “upon lender acceptance” allowed)
  5. Proof of funds for cash buyer
  6. Mortgage Pre Approval (NO Pre-Grades from loan officers-only banks)
  7. Buyer agreement on use of professional negotiator

 

These rules are non negotiable.  If they are refused, we recommend to our seller that this is not a legitimate buyer and we get another offer.  Period.  Trust me, a buyer that refuses is a buyer that will find some excuse down the road to walk away or not close.  Don’t waste your or your seller’s time with these tire kickers.

 

Sounds like a tall order?  I hear it all the time…”Joe, out here in (pick an area) my buyers will NEVER go for these rules….”  WRONG!  They WILL go for it, because you are going to DEMAND IT! It’s just that you are going to do it in a way that brings the buyer over to your side and gets them involved and excited about the process. Remember, the time where agents could make money by being order takers is long gone! You need to put on your big boy (or girl) pants and go out and be a salesperson.   We accomplish this by giving them incentives to play by our rules.

 

The Carrot

We get our buyer on board by offering them incentives. The most obvious one is Price.  Remember, no matter what the objection, Price cures all ills Sounds simple, and it is, but like anything there is an art to it.  First, as a listing agent, it is your responsibility to do a detailed CMA on your listing.  We need to know what the true comparable properties are selling for, both distressed and non distressed. As discussed before, we have set our price aggressively at the very low end of the comp range.  This attracted buyers. Now once an offer has been tendered, we set about to find the most important key to our strategy, the buyer’s “All In” price.  This is where you have to get the buyer and their agent on your side. 

 

Coming Together

How I do this is simple.  I tell them that I have a duty to my seller to get this deal closed, and that if we work together, not only can I help my seller, but we can help your buyer as well. We know that it is in our best interest to make your buyer happy, and to get a great deal for them.  This is why they need to be committed and honest with us.  Remember, WE HELP OUR SELLERS WHEN WE HELP THE BUYERS BUY.  This puts the deal in perspective, and softens the edge a little so we get a more honest answer when we ask for the ALL IN price.  As explained before, no matter what offer was tendered, we need to know the buyer’s absolute, top dollar, price, fees, extra costs, everything price.  This is the ALL IN price.  Once that is established, I then like to ask the buyers to REDUCE their offer by 5%-7%.  You heard that right.  I said drop the offer.  This accomplishes two if things:

 

  1. It gives us negotiating room with the seller’s lenders
  2. It gives the buyer and incentive to stick in the deal.

 

The possibility of a discount is a powerful motivator for buyers, and once you show them that you are allowing them this opportunity, most buyer objections melt away quite rapidly.  In fact, they become your new best friends.

 

Now, I know many of you are telling to “Hold on, how is this benefiting our seller..” Well, again, we help our seller when we help our buyer buy.  What the seller owes is irrelevant.  Our objective in a short sale is not TO GET THE HIGHEST PRICE, BUT RATHER TO PUT THE SELLER IN THE BEST POSITION TO CLOSE. Of course, we have to be quite clear to the buyer that by lowering their offer, they must be willing to bump it back upwards should the lender counter.  This also means the buyer should be ready to bring a little extra cash to the table to buy out a seller deficiency on a second, pay ancillary fees, or cover any seller cost not paid for by the seller’s lender.  As long as our total amount stays below the ALL IN price, we should be good to go.  If you do this right, you will close at a number somewhere between the low offer and the ALL IN price, and everyone will think you are a hero. If, by chance, we end up beyond the all in price, most of the time it’s close enough that you can negotiate some sort of settlement. For those of you who can’t believe that the seller’s lender will go for this…they can and they do everyday.  What some of you don’t realize is that most investor guidelines allow for up to a 20% variance from appraised value if you know how to work the short sale right…hence the insistence of using a professional negotiator.

 

Remember, short sales are a strategy.  You should plan ahead because if you don’t, you will be doomed to react to lender actions and that, my friends, is why most agents fail at short sales.  Get the buyer on board and the rest of the deal will follow.

 

For more Short Sale Road Rules and information about the author, please visit our Facebook Fan Page at http://www.facebook.com/ShortSaleProcessor, and our website at www.josephalfe.com or www.ssprocessors.com

 

 

 

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12433923469?profile=originalShort Sale Sellers; Check your Listing Agents' References! 

Had a listing appointment last week with a potential Short Sale Seller.  He is only 30 days delinquent and his property is spectacular..truly stunning.  The Location is very questionable for a home of this magnitude and that's where he, being the Architect, may have gone wrong.   But..Mr. Seller is very bright, very successful, and well-versed in the world of the Short Sale.

Because there are two loans with two Lenders and a huge amount of money to forgive, this one is going to be a trick..but I think because of the location and the loss of Income here, it should get approved. 

I spent quite a bit of time with my Seller.  We went over comps, we went over loans, we went over Lenders, we went over documentation required and then he asked me for four recent references.  Bless him!!  I had them, gave him the names/e-mails and left feeling pretty confident.  I knew that I was just one of several interviewees, and being a Realist, I know nothing is a slam dunk, but I was hopeful.

Three days later, he called.

"I did contact your references and they were very complimentary of your and your Short Sale knowledge and services.  I definately want to list with YOU!"

I am thrilled, but I also feel even more confident.  I now know that my Seller truly does believe I know my business, and will help me even quicker with anything I should ask him for.  Hopefully, we can make this difficult transaction as smooth as possible.  I'm also very impressed with Mr. Seller.  He actually followed up with my Short Sale references and called them!

Short Sales are not Standard Sales and do not fit into just any old Realtors Agenda.  Find out how many Short Sales your potential List Agent has listed, contingent, pending and CLOSED over the past few months..several years is even better.  All the Certifications in the world do NOT compare to SHORT SALE experience.  Find out if your List Agent is up to the job.

 

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Marketing Mayhem

newspaper1-300x280.jpg?width=200Stepping away from the current economy and its effect on the housing market, lets turn to technology and marketing and how your home should be marketed in today’s techno atmosphere.

The truth of the times is that for the most part print advertising and marketing for real estate is slowly becoming a thing of the past. Not because Real Estate professionals necessarily want that to be the case but because our clients want that to be the case. Buyers and Sellers use home magazines, newspapers and phone book less and less as the internet gives them the instant information that they seek. Customers no longer need to initiate contact by phone conversation. They can simply find a home they like and send a message to an agent. The agent will then call them and initiate contact.

As a seller you should be aware of the new trends your agent should be using to market your home. If your agent begins his presentation with a sign in the yard and ends with an ad in the local newspaper, you may want to start asking some questions. Your listing agent needs to be up to date on all the techniques that buyers use to find homes and know the best ways to get your property in front of potential buyers, regardless of the medium.

A well rounded agent is able to combine the new with the old and develop a strong marketing plan that fits the needs of you, the seller as well as potential buyers that are looking for your property. Utelizing marketing techniques such as listing syndication, text messaging for information, QR codes on marketing flyers, facebook posts, twitter posts, linkedIn posts, writing blog posts about the property listing, and many other options. Those along with the sign that features text messaging options and contact rather than the blow away flyer and a possible empty box is the key to getting your listing in front of as many buyers as possible.

When choosing a listing agent, the marketing plan should be one of the hot button items you discuss. Make sure that whoever is working to list your property has a solid grasp on today’s technology and how he or she plan to use that technology to market your home.

 

Tim Brown,Owner/Broker, Realtor®, ABR,CRS,CDPE®,
Auctioneer NCAL#8560
Hines & Associates Realty
TeamHeidi
Direct Line: 704-619-1008
Client Care Line: 704-815-3208
www.CarolinaHomes4Sale.com


Tim Brown is a Owner/Broker, Realtor®, ABR,CRS,CDPE®, Auctioneer NCAL#8560 with Hines & Associates Realty. He currently serves buyers and sellers in Charlotte, Mecklenburgh, Cabarrus, Cornelius, Huntersville, and other surrounding communities in North Carolina. Charlotte Real Estate, Charlotte Homes for Sale

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Top 5 Mistakes Short Sale Sellers Make


As a Santa Maria Short Sale Agent, I see short sale sellers make critical mistakes time and time again.  Here is my list of the top 5 mistakes I see:

 

wait1-150x150.jpg?width=1501)   They wait too long to put the home on the market.Many times sellers believe that they will work out terms with the bank and their loan modification will be approved.  However, if your back up plan is a short sale, you need to leave enough time for an agent to get an offer and present it to the bank.  Less than a week is generally not enough time to get a lender to stop a foreclosure sale -- it can be done -- but you are taking a big risk.  If you want a short sale, you need to give your agent enough time to present a short sale application to the bank.  There are routine delays with short sales; banks lose documents and packages have to be re-faxed.  Don't wait until it is down to the wire.

 

 

roofer-150x150.jpg?width=1502)  They let the house fall apart. You should do all you can to make sure that your home does not fall into disrepair.  A house with uncut grass and full of deferred maintenance is generally not appealing to buyers.  And you still have to sell your home to a buyer.  You can lower the price to compensate and attract a bargain hunting buyer, but ultimately the lender has to approve that price.  And in my experience, a short sale lender’s estimation of value tends to assume that your home is in above average condition.   Indeed, one of the most common reasons a short sale will fail is “the bank wants too much for it.”  Now there could be other reasons that the bank wants too much (including the existence of mortgage insurance) but often the short sale lender will not want to take a hit on the price just because you decided not to repair that roof leak.

 

 

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3)    They make the home difficult to be shown. Many short sale home sellers are not happy about selling their home.  Some are angry because efforts at a loan modification with the lender have failed.  However, making the home difficult to be shown will not help the situation -- in fact, if you don’t have an offer on your home, it could put you in a jam down the road.  If the bank determines that you are deliberately delayingthe short sale, and you have not been making payments, often they will simply continue the path toward foreclosure.  Also a listing that is difficult to be shown gains a reputation among agents, so don’t assume that agents will begin eagerly showing your home again after you’ve spent months running them around about showing appointments.

 

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4)   They take too long to present the short sale application to the bank. Short sale sellers must remember that the buyer is waiting for the short sale to be approved as well.  They have to put much of their personal life and their entire financial life on hold to buy a home in today’s lending environment   They have concerns on their end as well, including when they are going to move, interest rate fluctuations, and the cheaper short sale next door that just hit the market.  As a short sale seller, you should do your part and have your hardship letter and financial documents ready.  Ideally, you should have all material for the short sale application ready to go when you put the home on the market.

 

 

CoinToss-150x150.jpg?width=1505) They select the wrong short sale agent. Short sales are different than regular listings.  They generally take twice as long, present unique issues, and require a specialized skill and approach.  Some agents have never successfully closed a short sale, or they simply hate them.  That is understandable because short sales require a certain level of experience, determination and tenacity.  They are not easy listings to close and I believe you must be passionate about short sales to be successful at them.  Accordingly, it is important to select an experienced short sale agent that can make it through the long haul, and is prepared to fight it out with the bank for you.

 

 

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent.   If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like ashort sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

 

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.


*  Nothing in this article is intended to solicit listings currently under contract with another broker.  This article offers no legal or tax advice.  Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

 

Copyright© 2011 Tni LeBlanc *Top 5 Mistakes Short Sale Sellers Make*

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Then Senate is poised to approve the ammendment and it will have to get thru the house.

I know all my short sale buyers and sellers are hoping it goes thru! I'm sure yours are too!

If passed buyers will have until Sept 30 to close escrow in order to meet the tax credit qualifications.

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