Blog

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.

A couple of months ago I closed on a short sale with BofA as the 1st and Citizens as the 2nd.  Typical process and timelines.  Citizens got all the client's documentation, had a complete package and submitted the file to a negotiator. GREAT!!!

About a week after, I was told they would be assigning a negotiator.  I received a call on my way to the office.  The negotiator called me to introduce himself and let me know that he was overlooking the file and he needed some updated documents.  Well, like I said I was on my way to the office....driving.  I am not a great multi-tasker when it comes to driving, talking, writing and , uhm, well ...smoking.  Yes, I am a smoker....no comments about the smoking necessary I know it is bad!

In order to lessen the chances of killing myself or others, I pulled over so I could write down what he needed (afterwards I realized I could have just recorded the call on my phone, but I can be a little slow at times).  Here I am thinking I am being a good, responsible adult, I pulled off into the break down lane. I now understand that is a no-no.  

Moments after pulling over, whaddya know, blue lights are flashing behind me!!! I don't know if you call it being pulled over since I was already pulled over, but for a lack of a better name for it, I was pulled over.  

I was on the phone with Chris (the negotiator) and looked in my rearview and exclaimed loudly and in a panic "Shoot (and that was not the word), bluelights!!!!!!"  By Chris' response I am guessing that "Bluelights" is a local thing, because he said "Bluelights?? What do you mean?"

"I am being pulled over!!!!!!! And I was already pulled over!! What the (explative)!?!?!?!?!" 

As politely as could be, Chris started to laugh!! "How about you call me later?" he says.

"Are you nuts!!!! You're a witness!!!!!!' You are staying on this phone!!! Here comes the cop, I am going to put the phone on speaker phone and put you down."

Well, in typical me fashion, I do things without thinking.  The cop approaches my car and asks me if everything is okay, and I responded with "Yes, I pulled over because I needed to write something down."  The cop looks at me rather puzzled and says "What was so urgent that you had to stop?"

"Oh, I was on the phone (and I grab the phone for effect) and I was told that the person I was speaking with needed something so I pulled over to write it down."

The cop looks and says "Well this isn't the correct area to be pulling over, it is dangerous and you shouldn't do it, and also buckle up."

Well.....this is me being me, instead of putting down the phone to free a hand, I decide to free the other hand by flicking my cigarette out the window and at the cop!!!!!!!

Not my smartest move!!! The look I got could have froze water. "And you should really quit smoking to." Then the cop turns to walk back to his car.  Before he could even reach his car I was outta there!!  I grabbed the phone and Chris was in tears he was laughing so hard.  I could not believe that happened!! That short sale got approved and closed a couple of weeks later.

Now here we are in April and I have Citizens mortgage on another short sale.  Driving to my office on Wednesday and my cell rings.....Chris again!!!!  The first question he asked me "Do you remember me?"  Like I could forget him.  Second question "Are you driving?"  LOL!!!

Bobbie Files, C.D.P.E.
Certified Distressed Property Expert
Your Bristol and Plymouth County Realtor
508-238-5000  x.296 Office
508-521-9480                Direct / SMS
888-570-9907               Toll Free Direct Fax

bobbiefiles@kw.com Email

Visit my website at www.BerkleyMass.com

Visit my YouTube Channel at https://www.youtube.com/user/bobbiefiles

Join My Facebook Communityhttp://www.facebook.com/bobbiefiles.realtor

Search for Berkley Ma Homes at: http://BerkleyHomes.BerkleyMass.com

Search for Taunton Ma Homes at:http://TauntonHomes.BerkleyMass.com

For those struggling to pay your mortgage payments please visit:http://shortsales.berkleymass.com

Sometimes I really wonder if people, no matter how hard I stress the importance of submitting supplemental documentation in a timely manner, really see the urgency in the situation.

Day 1 of request:  Hi, Mr. Seller The bank is requesting this form to be filled out and they need it back in 4 days.

Day 2, Hi Mr. Seller Have you filled out that form for your lender? Could you send it back to me ASAP

Day 3, Mr. Seller it is imperative to get that form back to your lender tomorrow. They need it to process the short sale.

Day 4, Mr. Seller If you do not fill out that form and return it to me today, the lender is reserving its right to proceed with a deficiency judgement.  

Let's just see if the Day 4 conversation does anything!!!!

Bobbie Files, C.D.P.E.
Certified Distressed Property Expert
Your Bristol and Plymouth County Realtor
508-238-5000  x.296 Office
508-521-9480                Direct / SMS
888-570-9907               Toll Free Direct Fax

bobbiefiles@kw.com Email

Visit my website at www.BerkleyMass.com

Visit my YouTube Channel at https://www.youtube.com/user/bobbiefiles

Join My Facebook Communityhttp://www.facebook.com/bobbiefiles.realtor

Search for Berkley Ma Homes at: http://BerkleyHomes.BerkleyMass.com

Search for Taunton Ma Homes at:http://TauntonHomes.BerkleyMass.com

For those struggling to pay your mortgage payments please visit:http://shortsales.berkleymass.com

This post might step on some toes but it is not meant to. Most REALTORS are on tight budgets now and need candid answers to questions about short
sales, short sale classes and which class or course is better.

I am not professing to be an expert on which class or course of
instruction is better but I will give my unbiased opinion as to which
is better in my opinion.

I currently hold the CDPE designation, I have completed the Short Sale Superstar Course and I recently finished the NAR Designation SFR course.

The CDPE and SFR course are very similar in structure as they teach the
history of lending and selling that put us into the situation we are
in. Both courses spend considerable time talking about aspects that
have nothing to do with actually performing short sales. Both courses
leave out key elements that you as a Real Estate Professional had
better know before you advise a client on a short sale. (especially
when it comes to tax consequences of selling short and Canceled
Debts).

The SFR course dedicates only about 2-2.5 hours on actually doing short sales. Part of the SFR course is doing 3, one hour webinars (you pick from a
list) that is strictly on the honor system.

The SFR course Itook pretty much had a "no question" policy. I feel this was because
of time constraints but I don't think it is reasonable or responsible
on the part of NAR to take such an important topic and condense it to
7.5-8 hours and then not allow a significant question and answer
period. This class should be a two day class at the minimum. That
being said, every class has a couple of village idiots that need to be
kicked out and I don't know how to handle them.

The Short SaleSuperstars course is definitely the least formal of the courses but I
feel it offers the most education by far. This class is taught over
the web through webinars created by Wendy Rulnick and Bryant Tutas.
Wendy and Bryant are ACTIVE REAL ESTATE AGENTS in what many consider
the epicenter of short sales and foreclosures, Florida. When you take
the Short Sale Superstar course you are learning from two agents who
ACTUALLY sell short sales. I think this is a key difference between
the courses, these guys sell short sales and don't just teach. I have
talked to Bryant several times on the phone when I had an issue and he
and Wendy are always quick to email a response to a question, something
that does not happen with the other two programs. The Short Sale
Superstar program is the only program that went over how to do a FHA
short sale.

None of the programs went over any type ofmarketing plan to get the phone ringing for short sales so the jury is
still out on that. Word of mouth, AR blogging and ads seem to be the
best way. My leads have come from my AR blog which I now have a 2nd AR
blog dedicated to Short Sales and Foreclosures.

Mysuggestion? Short Sale Superstars hands down. If you want a
designation get the SFR, it is the cheapest to get and some of the
information is really useful.....that being said, you had best do the
Short Sale Superstars IN ADDITION to CDPE or SFR.

My only suggestion to Short Sale Superstars? Create some type of designation for those that want one. CDPE did it so it should not be too hard.
CDPE is not recognized by NAR and quite frankly the CDPE is a step
above SFR yet much more expensive than either Short Sale Superstars or
SFR.