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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

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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
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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.
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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.
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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.comhttp://www.shortsalesuperstars.com/profiles/blogs/win-free-short-sale-agent
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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
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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.
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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.
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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!
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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.
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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.
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