Blog

We have found that when submitting your complete short sale package to a bank it make easer if you include a “cover sheet” for each section of documents you are sending. (i.e.: paystubs, bank statements, taxes, purchase agreement, etc.) Cover sheets simply state the document that will follow in large bold type in the center of a blank page. They help to organize the package and present the documents more clearly to the negotiator. Often times some documents are overlooked because they get lost in the middle of the hundred or so pages you are faxing. We have experienced a much higher success rate with short sale packages the first time using cover sheets.

Regarding Bank of America’s system Equator, when you are responding to the counter offers in this system, make sure you pay attention to the commission percentages. The system automatically defaults to 5%. The bank/investor may be allowing the full 6%, but if you accept the offer at five you are going to have a problem trying to get them to change it back to six! So just make sure you double check the percentage before you hit the submit button.

Richard & Janet - Certified Short Sale Professional
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com

My wife and my Real Estate partner got a call from the legal department of some company requesting that she must remove the term “Certified Short Sale Expert” from her website. It seems they have rights to the phrase. I removed it from her site… Looks like it just got a bit more complicated.

Richard & Janet - Certified Short Sale Professional Realtors
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com

Working wonders with short sales, Janet and I have a short sale where the second lean holder wants a $25,000.00 promissory note; which the seller can’t come up with. The second has PMI which adds to the challenge. Normally a seller who elects to sell short doesn’t have the capital to make the payment and is trying to do the right thing by using the short sale option and not foreclosures. The challenge where’s the money coming from; in some cases the agents will use some of their commission to close the deal. (On a side note that 6% commission is not what it seems to be, on at $100,000 short sale, some banks reduce the commission to 5% then with the splits with the selling side and buyer side that becomes 2.5%. Don’t forget the split with the Broker now we are at 1.25% that’s $1,500 gross. Added costs EO insurance and some fees typically $350.00 total in my office and we are $1,150 and with short sale taking 60 days to close (and that a fast one) the agent doesn’t have much to contribute.) We did the unthinkable, we went to the buyer. The home is just what the buyer wants in the right location and resale in a few years could be substantial.

The buyer ponyed up and we've pulled the deal out of the morgue and are looking to close in a few days… Having an expert in you corner with the experience in short sale transactions is a must, don’t let the deal die, there is always a way to make it work.

Richard & Janet - Certified Short Sale Professional
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com

If you are considering selling your home Short make sure your listing agent uses a licensed Negotiator or better yet they do it themselves. Stay away from unlicensed or unscrupulous short sale third party negotiators. Someone who charges a fee to act on a homeowner’s behalf in negotiating a loan must generally be licensed with the California Department of Real Estate (DRE). An unlicensed person who practices real estate is committing a crime. Also, if you pay that unlicensed person for conducting licensed activity, you too may be committing a crime.

Take care when looking for a qualified Short Sale listing agent. Now the pitch Janet O’Brian is that listing agent she has been doing short sale for years with a 97% approval rating. She does all of the Negotiation herself, so she has the current status of your sale readily available. She has official Certification from the National Association of Realtors® “SFR”. Also Janet holds two other Short Sale Certification, Certified Short Sale Professional (C. S. P.) & Pre-Foreclosures Specialist Certification (P. S. C.).

Richard & Janet - Certified Short Sale Professional
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com

Bank of America have made the move to an internet based short sale system modeled after there foray into the REO world. We have and are currently using the system and it seems to be an improvement at lest with adding information… One issue is supplying the buyer social security number a requirement is the first 5 numbers not the standard last 4. Coming from a computer background I surmise this was a holdover from the older design…

4. Must I give my Social Security number to private businesses?

General. You generally are not legally required to provide your Social Security number to most businesses - including most health care providers - unless one of the exceptions below applies. However, some companies might refuse to do business with you if you don’t provide your Social Security number. There is no law that prevents businesses from requesting your SSN, and there are few restrictions on what businesses can do with it.

If a business insists on knowing your SSN when you do not see a reason for it, we encourage you to speak to a manager who may be authorized to make an exception or who may know whether company policy requires it. If the company will not allow you to use an alternate number such as your driver’s license number, you may want to take your business elsewhere.

SSN required by federal law. Federal law requires private businesses to collect your SSN when (1) you are involved in a transaction in which the Internal Revenue Service requires notification,* or (2) you are engaged in a financial transaction subject to federal Customer Identification Program rules (see below “Why do financial transactions require my Social Security number?”, http://www.privacyrights.org/fs/fs10-ssn.htm#14).

I can see getting the sellers social but I can’t see it for the buyer…

Richard & Janet - Certified Short Sale Professional
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com

If you’ve decided to Short Sale your home, you must find an agent who has the experience and credentials in today’s short sale market. Some questions to ask: How many short sales have you closed? An experienced short sale agent should have closed at least 20. Your short sale agent should know:

ü Authorization to release

ü Collect complete mortgage information

ü Able to negotiate with multiple lenders

ü Contact your lender's loss mitigation division

ü Title search

ü HOA fees (overdue balance)

ü Prepare a comprehensive short sale package for the lender

ü BPO, providing necessary comparables to submit to bank

ü Repair estimates from both seller and buyers

ü Maintain regular communication with lender and seller

A short sale is a process that can be complex and is undergoing changes as banks streamline the approvals. You need the right Short Sale listing agent working for you, it would be best to seek out short sale specialists who will fight for you and succeed...

Richard & Janet - Certified Short Sale Professional
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com