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SHORT SALES ARE BACK! Mike Linkenauger & Bryant Tutas Interviewed

Posted by Lee Honish on September 30, 2014 at 11:00am

CLICK HERE TO LISTEN TO THE PODCAST: http://tinyurl.com/qa62n6h

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Real Estate Marketing (The Podcast)

How do I get a listing or deal? #Investor #Realtor

Short Sales are BACK!

CLICK HERE TO LISTEN TO THE PODCAST: http://tinyurl.com/qa62n6h

GUESTS: 
Bryant Tutas 
407-873-2747 
Co-founder of www.ShortSaleSuperstars.com. Working Short Sales every day all day.

Real Estate Broker and Owner of Tutas Towne Realty. A virtual Real Estate company specializing in listing and selling Short Sales and REO properties in the Central Florida Area.

Finding solutions that get your property “sold” is what I do.

Folks, if you need to sell your home then give me a call today and let’s talk! 407-873-2747 All calls are confidential. I can help……

….if you’re facing foreclosure. www.CentralFloridaShortSales.com 
….if you need to sell a Holiday Home. www.BuyProperty.ning.com 
….expose your property to over 500 web sites. www.TutasTowneRealty.com 
….educate you on current market conditions. www.BrokerBryant.com

Mike Linkenauger 
904-733-4911

Main website http://www.short-sale-specialists.com

Short Sale Websites - www.ShortSaleHosting.com
Mike got his start in Real Estate in 2005 at the young age of 26. He immediately established himself as a top producer in the Jacksonville, FL market, moving into the top 1% of agents his first year in the business. As the Florida housing market became depressed in 2007, Mike shifted his focus and immediately found a calling in assisting home owners with a short sale. In no time he amassed an inventory of over 100 short sale listings and quickly established himself as one of the top short sale agents in the State of Florida. As his online presence grew, homeowners from other parts of Florida began contacting him for guidance with a short sale and to be connected with a local short sale agent.

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Teacher Credit Union first and second mortgage

Posted by Ashley Den Uyl on February 26, 2014 at 9:48am

I am wondering if anyone has ever done a short sale with Teachers Credit Union? It is not a huge branch but they are not small either.

I was told by the mortgage department (since they don't have a loss mitigation dept) that they will not accept an offer for less than $200,000 since their unpaid balance is $230,000. They are not going to entertain any lower value. They also never waive the deficiency.

I am looking for some good news from anyone who has dealt with this particular lender. Maybe even a success story..?

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Which do lenders prefer, strategic default or short sale?

Posted by Steve Mun Group on August 5, 2011 at 3:00pm

 

I got a chance to watch a couple of agents go at it with each other in a real estate forum trying to answer a question about doing short sales.   It was interesting, to say the least.  Besides the two main agents who proclaimed themselves the “experts” and hijacked the conversation, there were a few others who chimed in and made some comments.  But the question was never specifically answered.

 

The question posed was whether a lender will approve a short sale if the borrower had assets. He didn’t provide a lot of detail but wanted to either do a short sale or let his home go into foreclosure and he specifically asked not to get into a debate about the ethics in not paying his mortgage.    

 

The argument or “discussion” in the forum quickly evolved into a big debate about the ethics of what people considered to be strategic default.  One expert proclaimed it was morally and ethically wrong to engage in strategic default and the lenders would not go for it.  The other expert proclaimed morality and ethics had nothing to do with his decision and it was more about money.

 

As a San Jose Short Sale Agent, I tend to agree with the latter expert.  When you are dealing with short sales with lenders, the department you deal with is called Loss Mitigation.  Let me say it again:  Loss Mitigation.  Their job description is patently obvious: it is to mitigate or lessen the loss for the lenders. 

 

Yes, there obviously are moral and ethical implications of not paying your mortgage when you have the financial ability to do so.   I firmly believe you should pay when you can and live up to your contractual obligations.  However, the question posed specifically asked not to judge the ethical implications but sought opinion as to whether a lender would agree to a short sale when the borrower stopped paying and was headed towards foreclosure.   

 

There is no definite yes or no answer in these matters as the answer lies in the details.  It has a lot to do with how much assets the borrower has or does not have.  However, if the lender is faced between foreclosure and short sale, from my experience, the loss mitigation department chooses short sales over foreclosures.   At the end of the day, the primary decision will be about which method loses less money for the lenders, then, other factors like ethics and mortality can be entertained. 

 

Why do you think big lenders like Chase and Wells Fargo are offering people up to $35,000 to do a short sale without even verifying their financial information?   HAFA recently amended its rules to state that servicers are no longer required to verify any financial information, but only to collect signed hardship letters.  Do these actions by large lenders and servicers sound like they are overly concerned about the ethical or moral issues surrounding foreclosures?   

 

I can’t speak for other States, but in California, the recent changes in the law means if the lenders agree to permit a short sale, then the issues about deficiencies become null and void.  Once a short sale has been approved, the seller can walk away clean without looking over their shoulders.  Yet, another procedure that make completing a short sale more effective and efficient and preferable to foreclosure.  It’s all about money; if the institutions can make more money foreclosing, they will certainly choose that method, but everything recently is geared towards choosing short sales. Yes, the lenders hate strategic defaulters, but they hate losing money even more.    

 

So back to the question about would a lender approve a short sale if the borrower has assets?  It would depend on how much assets the borrower had and whether foreclosure would yield more money for the lender or a short sale. 

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5 Reasons Foreclosure Prevention Is Like Halloween

Posted by Jennie Blackburn on October 25, 2010 at 4:54am
5 Reasons Foreclosure Prevention Is Like Halloween

1. Tricks

I don’t know if kids do this anymore, but I remember part of the fun, the anticipation, of Halloween was coming up with a “Trick” to offer in exchange for candy – a joke, rhyme, hand stand, armpit noise or, if you were desperate, a song. Foreclosure prevention is like that, except sometimes the trick is on the homeowner. You go to the lender’s door, ring the bell, ask for short sale approval and the bank requests a trick. You do the trick, even though it’s ridiculous (e.g., provide the birth certificate of your childhood pet), stick out your palm for your treat…and…and…what the?!...the lender requires another trick. Six months worth of tricks and you might get a treat.

2. Treats

Possibly the best part of Halloween – the treats! For a kid, heaven is having to use two hands to lug home a pillowcase weighed down with candy. Sorry, there is no candy in short sales. But there are treats. For a homeowner, the treat is to “hit the reset button”, to be released from an oppressive situation & constant lender harassment, without the stigma of foreclosure. For lenders, the treat is being spared the cost to preserve vacant property and the legal cost involved in foreclosure.

3. Costumed Characters

Every year, the National Retail Federation publishes a list of the most popular costumes (Michael Jackson in 2009; Spiderman in 2004), but some costumes are classic: Zombie, Super Hero, Vampire, Witch. I have yet to encounter Spiderman in any short sale transaction, but I’m convinced that a prerequisite for hire as a bank’s short sale negotiator is Zombiehood. Bank Negotiators and Zombies. Not. Human. Not human! Both have that risen-from-the-dead, jerky, robotic shuffle. And they l-l-l-o-o-o-v-v-v-e feasting on human flesh. As a Realtor specializing in short sales, I have witnessed scenes of chaos and panic as whole neighborhoods are consumed by Hells Fargo’s (Goo-For-Brains) Zombies.

4. Terror

Halloween and Short Sales elicit more than just fright; they both give birth to Terror. Fright is like a sudden shock – painful, but not enough to leave a noticeable scar and it’s over quickly. Terror implies something more intense. Dictionary.com’s definition of terror is “extreme fear in the presence of danger or evil”, and describes it as “prolonged…and may refer to imagined or future dangers”. For months, homeowners behind on their mortgage payments (1 of 5 Florida homeowners) dread opening the mail or answering the phone. They lose sleep at night, imagining the worst, nightmare images of the Bank of Evil tossing their belongings in the street as the neighbors look on. Halloween terror is also prolonged, but only until the movie is over.

5. Spooky Houses

For homeowners, the place that once represented the future, their piece of the America Dream, is now laced with cobwebs. Windows that formerly framed Norman Rockwell holiday scenes are now hidden behind tightly drawn curtains. Crabgrass replaces flower beds. Picket fences, once proudly painted white, fade to gray in the moonlight.



Disclaimer: My husband, the historian, read this and explained that “trick or treat” actually referred to a bribe, as in, “Hand over the sweets and I won’t egg your house.” Whatevs, Honey.
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Condo Association Fees In Foreclosure

Posted by Jennie Blackburn on October 9, 2010 at 7:50am
When Homeowners have financial troubles, the last thing they fall behind on is the mortgage, but the first thing they stop paying is Association dues. Because of this, many Condo & Homeowner Associations in Florida are squeezed for funds and have become aggressive in pursuing every penny. They now have legal representation, have been successful in litigating similar cases, and are not as likely to back off.

What bank negotiators don’t realize is that if the property goes into foreclosure, it could end up costing radically more than just the delinquent Condo fees.

1. Special Assessments:

Unlike delinquent maintenance fees, Special Assessments are not extinguished in a foreclosure because they are part of the property’s cost basis. In other words, the assessed amount becomes real estate -- part of the property. Example: Structural improvements or repairs not covered by association reserves. Delinquent maintenance fees are part of an Association’s receivables, but assessments are part of the real estate itself. As this assessment directly affects the tax valuation of the property, it cannot be separated from it. Which means when a bank forecloses and the property becomes an REO, the entire assessment must be paid, plus the back due monthly fees and the Association’s legal fees, penalties, and the bank’s legal fees.

2. HOA or COA:

One wrinkle to check for is whether the property is governed by a Homeowner’s Association or a Condo Association. Currently, in a Florida foreclosure, the bank would only have to pay 12 months* of Condo Association dues (or 1% of the original loan amount, whichever is lower) in order to deliver clear title to the next owner. However, litigation in Florida is less certain regarding unpaid back dues owed to HOAs after a lender forecloses.

3. Attorney Fees:

Another thing the bank negotiator may not be thinking of is that, even if they only have to pay 12 months of past due monthly Condo fees after a foreclosure…what about the legal fees owed to the Condo Association’s attorney? Judges are lawyers. You think lawyers look out for other lawyers?

The bottom line is that foreclosure will cost a bank more than just a few months of fees and it is in the lender’s best interest to negotiate these costs as part of a short sale, rather than dragging its feet until foreclosure.

*only 6 months prior to new legislation in 2010
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Chase and the FHA short sale run-around

Posted by Cindy LaPeer on September 14, 2010 at 4:53am
Does anyone have a working number to the Chase FHA short sale dept? Since July 21 we have been trying to get an approval for an FHA short sale. However, I keep getting the same phone numbers over and over - loss mitigation (seller already tried this), short sale (they won't touch FHA), and the mortgage loan dept (why?). My sellers and I are completely frustrated. We have submitted everything, but Chase can't seem to get us to the right dept/person. Contact anyone?
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Making Sense Of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners

Posted by Bob Hertzog on September 27, 2010 at 9:05am
Making Sense Of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners

In September/2009 I wrote a blog titled "Is The FDIC Killing IndyMac OneWest Bank Short Sales & Loan Modifications?". In February/2010, the folks at TBWS used this blog to create a video that ending up going "viral". If you watch the video, you will see that all of the numbers and the explanation of the FDIC loss share program were taken directly from my original blog post. For those of you that are not familiar with the video, at last count it had received over 1.3 million views on YouTube, and even caused the FDIC to issue an official press release debunking the video.

In an attempt to quash the outrage that the video created with Americans across the country, the FDIC not only came out with an official press release, but also released their own YouTube video titled "Loss Sharing Explained" in June/2010. The video attempts to paint the loss share agreements (which they now have with 167 banks) as a benefit to the FDIC. What the video fails to address is the total lack of oversight, and how lenders are abusing the program, and in turn, forcing more homeowners into foreclosure everyday. No matter how the FDIC wants to spin this, the fact remains the same... When a lender can make more money by foreclosing on a homeowner than they can by approving a loan modification or short sale, they will choose foreclosure.

Two weeks ago, I received a call from a woman in South Carolina who had just finished reading my FDIC IndyMac OneWest blog. She had just been turned down for a loan modification from OneWest Bank under the HAMP Program. According to her, they turned her down without even receiving the required documents, and told her that the reason for their denial was that the investor that owned the loan does not participate in HAMP. When she asked who the investor was, she was told that their "policy" doesn't allow them to disclose who owns the loan.

Needless to say, she was furious. I explained to her that without consequences, banks can do whatever they want. And, without transparency, they can tell borrowers whatever they want. The last thing that loan servicing entities like OneWest Bank want is homeowners calling their investors, verifying what the servicing companies are telling them.

In addition, those lenders who are benefiting from an FDIC loss share agreement DO NOT want borrowers to know if they own the loan. By telling borrowers that their "policy" does not allow them to disclose the owner of the loan, they can hide the fact that they in fact own it.

After spending over an hour on the phone with my friend from South Carolina, she came up with a great suggestion. She suggested that I produce a video that explains the FDIC loss share program, and how it affects homeowners who are trying to short sell their home or get a loan modification. Hence, the reason for this blog post today.

The video explains exactly what happened (in a "real-life" transaction) with one of my clients that I represented on a short sale in September/2009. The numbers are the actual numbers that I used to remind OneWest of the profits they stood to make from the FDIC loss share program. When faced with these numbers, they immediately gave up on their demand for a $75,000 promissory note from my client, and approved the short sale. Since writing this FDIC OneWest IndyMac blog in September/2009, I know of at least a dozen other agents across the country that have used this same argument with OneWest Bank, and were successful in closing their short sale deals.

The point of this video is not to bash OneWest Bank. What I hope and pray is that someone in Washington will see it and actually decide that "enough is enough".

I would ask you to PLEASE share this video with everyone you know. If it can get out to enough people, it might just end up on the computer of someone who will actually do something to stop this madness.

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Bob Hertzog

Summit Home Consultants

Visit The For Sale Phoenix Homes Website

Copyright © By Bob Hertzog 2010 *Making Sense of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners*


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