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GET IT OVER WITH!

Posted by Sue Burg on October 30, 2009 at 10:49am

At a recent bi-weekly meeting one of our top agents was asked to speak on the short sale subject. Many of us were frustrated and he seemed to get a high number of his through the system. Well, the first thing he says is "lets just get this foreclosure stuff over with and foreclose on all the houses that are obviously going to get posted" A cheer went up from most of us. He went on to explain that if they were all forclosed on then we could just get on with the work of selling them instead of all the other BS that goes along with them. No one wants to loose their home. The loan modification program is not working, its so obvious my 12 year old niece knows this. 28% of all homes that actually get a loan modification approved are back in trouble within 3 months. So, if we just foreclose on them we can move them out of the system and get to the business of doing real deals on real homes that are going to sell without all the hassel, trouble, and legalities.I personally have seen agents pulling Motrin out of their desks because they have just been on the phone dealing with the banks, seller, buyer and anyone else involved with a short sale. It's heart breaking when you loose a house after so much trouble. It's even worse when your buyer just dosen't want to deal with the trauma of it any longer and they decide to wait. They get emotionally drained. Now, you may have lost a client because of frustration and time. We do everything we can to keep them motivated. But, its hard to keep holding someones hand while writting yet another offer that already has 5 to 15 offers on it. No matter how you counsel your client if they like that house your going to write that offer, it's your job. So, if we get the "dead" houses out of the market then we can move on. I know a lot of you are going "thats a horrible thing to say. People do not want to loose their houses and they should be able to go through the process". I've been in the healthcare field for 18 years. Death and renewal is a part of my life. I can turn myself on. I can turn myself off. Being a realtor is like that. We are supposed to do our job without emotion, be impartial and give our clients our best counsel everyday. You can't do that if you are crying about their house. It's our job to help them get out from under a bad situation, counsel them about it, refer them to the right counsel and get it done. I feel awful whenever I need to counsel someone whose gone Tax Delinquent. I really feel for the home owner, It hurts me on a level no one will ever know. But, the truth is, if I get emotional I can't give them the right counsel. I can't help them get over it and move on. Thats when they loose the house to auction. I have empathy, not sympathy (look up the difference). So many of us need to learn to turn flip the switch. We are in a hard time, but we need to keep our heads and get our jobs done.

New Changes coming for Bank of America(Countrywide), First Franklin

Posted by Laura Forty-Garcia on October 29, 2009 at 9:30am

FYI: New changes with Bank of America, Countrywide, First Franklin.. New second lien holder standard guidelines will be as follows: 5% of the Net is what they want for the Second Lien to be released... This is going to kill so many files.....

"Day in the Life" of a Destin Short Sale Agent

Posted by Wendy Rulnick on October 28, 2009 at 9:27am

Just one of my normal days selling real estate and short sales in Destin, Florida...Buyer agent emails me to say buyer is “walking” if no response from Niceville short sale lender this week.Another buyer agent calls me to say buyer is “walking” by October 31 if no approval given on Destin short sale condo.Another buyer agent calls and emails me three times asking when the approved Bank of America Santa Rosa Beach short sale can close.Another buyer agent calls to ask if my seller will put $7000 in escrow for “as is” short sale for roof repair, HUH?Bank of America emails me asking for all new financials and a revised settlement statement within two days, or they will close the file on a Sandestin short sale.Two days before closing on Destin short sale condo, I am trying to obtain junior lien approval letter from Suntrust Bank. They have been promising the letter for a month.Seller emails me that an agent left the door unlocked after showing his property. Seller is upset.Buyer agent for Fort Walton Beach short sale calls to ask for status on approval.On hold 40 minutes with PHH for Niceville Florida short sale. I ask for supervisor of supervisor, as this short sale has been in process seven months. I finally have to hang up after hold music gives me a headache.Checking on another Suntrust approval, I am told no BPO or appraisal has been ordered after 60 days. I ask “When” is it going to be ordered. The rep tells me she would be a “rich woman” if she could answer that question every time it is asked.Checking on Aurora Loan Services short sale. They say they have moved back all approval estimates by another 30 days.I let Navarre short sale seller know we cannot sell her property if we cannot show it. Tenant-occupied and every showing is denied.My computer starts typing on its own, repeating the same character ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, for ten minutes. This is the third time in two weeks. I am shut down! I replace the mouse and it starts working again.I create a ten-point counter-offer addendum for Destin short sale seller to respond to an offer.Another buyer agent emails me buyer is walking if my Santa Rosa Beach short sale seller won’t agree to his bank’s demands for deficiency balance to be paid.Good email- Boeing relocation for Destin buyer (wow, non-short sale work)Get pre-approval letter for buyer for Fort Walton Beach commercial property. Letter is dated 1999. My seller is concerned.At the end of the day, I tell my husband I am exhausted, as it was a bit stressful. He says, “You wouldn’t have it any other way.”He is right.It's Wendy!Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.Search All Destin Florida Real Estate Destin Short Sales & Pre Foreclosure Help.Read Destin Real Estate BlogCall toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.comCall Wendy Rulnick, Destin real estate agent, to list and sell your home or condo in Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist and has been featured in Kiplinger Personal Finance Magazine and Florida Realtor Magazine.

Agents pleas help get the tax credit approved!!!! Please Read new bulletin out today!!! NAR needs your help

Posted by Elaine Edwards on October 28, 2009 at 7:17am

Dear Arizona REALTOR:The U.S. Senate will be voting on an amendment this week that would extend the first-time homebuyer tax credit.NAR is supporting the Dodd-Lieberman-Isakson amendment because this amendment will:--Provide the $8,000 tax credit to any buyer (not just first time)--Set income limits at $150,000/$300,000 for single/married buyers--Make the credit available until June 30, 2010NAR's Legislative talking points on the Dodd-Lieberman-Isakson Amendment $8,000 Homebuyer Tax Credit also are attached for your use.NAR is asking for your help in generating phone calls from Arizona REALTORS to the offices of Senator McCain and Senator Kyl in Washington, DC.Please request to speak to each Senator's Tax Legislative Assistant and ask them to support the Dodd-Lieberman-Isakson amendment. We need to generate as many calls as quickly as possible. Below are the phone numbers for our Senators.Senator McCain: 202-224-2235Senator Kyl: 202-224-4521Thank you for your prompt response on this important issue!

Foreclosure Epidemic may be saved by Short Sale Remedy

Posted by Petra Norris on October 28, 2009 at 7:00am

I’m a member of a network of over 400 real estate agents and growing at Short Sale Superstars, who are committed to help sellers and buyers with short sales in Florida and across the America. Short sales can be difficult at times and this is why this group of professionals is so helpful not only to us real estate agents, but for you, especially. I would say that we are a Short Sale Agent support group, helping each other, solving uncommon issues for our clients, making suggestions that can only help you the seller or buyer. We are not complainers - we are solvers, here to help you.There is information about lenders, such as Bank of America aka Countrywide, Wachovia, SunTrust, Wells Fargo, Saxon, and Chase just to name a few. This is a place where agents help, inform and reach out to consumer by providing valuable information to make a short sale a success.If you are looking for an agent within your state, who is very proficient doing Short Sales, I'm sure you will find one right here within this wonderful group of Short Sale Superstars. Give them a call!Polk County, Florida - Lakeland, FLWith Polk County’s unemployment rates, this foreclosure epidemic is going to continue and it may even grow. Lakeland Short Sales are at an all time high, there are currently over 400 Lakeland homes for sale that are short sales.The jobless rate in Polk County is at an all time high since 1992 – 13.6%The jobless rate in Lakeland-Winter Haven for September is recorded at 12.7%If you are in a situation where you can’t no longer afford to make your mortgage payments because of job loss, divorce, health, or other hardship; a short sale would be your best remedy to save your home from foreclosure and salvage some of your credit.There are over 1,000 Lis Pendens filed within the city of Lakeland Florida alone. Since September 1, 2009, 143 Lis Pendens were filed with the Polk County Clerk of Courts for properties that are located in Lakeland – a city with a population of an estimated 97,000 people.What is a Lis Pendens?In essence, a formal notice is filed on behalf of the lender, who holds the note on your mortgage. It is considered a lawsuit; however, the homeowner still has possession and the right to sell the property. Short sales can be your best remedy to a foreclosure.Give me a call at (863) 619-6918 or email me at petra@petranorris.com to arrange for a confidential consultation – I’m here to help.

Will Destin Short Sale Lender "Pay" For The Privelege- And Make NOTHING?

Posted by Wendy Rulnick on October 24, 2009 at 3:40am

This is a first for me. As a short sale listing agent in Destin Florida, I have a parcel of land for sale in a ritzy golf course community. It is in a newer gated neighborhood where building lots used to fetch over $200,000. When I took the short sale listing at $90,000, it seemed realistic. But the lot market near Destin has steadily declined, fluctuating between a 3 and 15 year inventory in the past two years. That means it would take at least three years to sell out all the lots for sale at the current rate of sales. A normal market is six to seven months inventory.After a year and a continued down market, we eventually lowered the price to $23,000. When I got a contract this week the offer was for $19,000. The most recent comparable sale, a foreclosure, had commanded a whopping $18,000. So the offer was fair.The problem came after I ordered the HUD settlement statement to provide the short sale lender, Federal Trust Bank. Of course, I had done preliminary title work a year ago, but things had changed, including the price by 75%. Not only were there past due taxes of $12,000, there were thousands of dollars in unpaid homeowner association fees. In fact, the closing costs on the HUD would pay zero to the short sale lender, and would require cash to close of several thousand dollars! You see the closing costs were well over the sale price!The seller has no money to bring to closing and the buyer will not. The short sale lender probably won’t pay for the privilege of allowing the short sale to get not a single dollar.My question is, "What would YOU Do?"It's Wendy!Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.Destin FL Real Estate Destin Short Sales & Pre Foreclosure Help.Read Wendy's Destin Real Estate BlogCall toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204Email Wendy: itswendy@rulnickrealty.comWendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Interest only land loan, from Bank of America is killing this client.

Posted by Steve Loynd on October 22, 2009 at 4:06am

The Short sale and the Sole ProprietorI have been working on a short sale for several months, and the seller is truly in a hardship position…stuck between a rock and a hard place.He is paying an interest only note on land at 8%; he was able to arrange a 90% loan when the property was purchased directly from a developer (not from a Realtor) for $400,000 three years ago.The current market value is approximately half the purchase price, or $160,000 less than the existing mortgage. I advised the seller to list at $200,000 subject to acceptance of his lender allowing the short sale. We have an offer pending and have been through the financials …the seller is currently underwater with his income to expense ratio (making less than his obligations).The seller owns a business and needs his credit to run it.Yesterday after two months of paperwork being compiled and completed, the seller suddenly says I can’t go forward with the deal. If the short sale closed his credit rating would take a big hit, and it would affect his ability to continue in his retail business. He knows the interest only loan is not reducing the principal, he knows there is no way to predict if he’ll ever be able to sell for an amount that will clear the note, and he knows that every month that his cost exceeds his income puts him closer to a total melt down.I have advised him to seek a loan modification, but with the value of the property and his current income it will be nearly impossible to work out better terms. His bank has suggested he do a short sale, but if he does his business will be affected, if he doesn’t he’ll go broke rather quickly...but still own his business. He is stuck with a loan he can’t afford, but must keep making payments (in his mind) to remain in business.The seller has asked me to put the property back on the market for 10% more than he owes…but no one will buy it for that amount. I didn’t sell him the property but feel as though I must make every attempt to find a solution for my client. Any thoughts?

When NOT To Take A Short Sale Listing

Posted by Wendy Rulnick on October 20, 2009 at 12:47pm

Today, I turned down a listing. It was not easy. It was a short sale. When listing a short sale, there are certain parameters that must be met. Here they are:1. The seller must allow you to set the price. You know the market.2. The seller must allow you to adjust the price based on your judgment.3. The seller must provide all financial documentation necessary to complete the sale in a timely manner.4. The seller must authorize you to speak with the lender on his behalf.5. The listing period must be longer than six months. Allow time for short sale processing, so make it one year.6. The seller must be reasonable with his expectations for a short sale.7. The seller must trust you.Short sale outcomes are not guaranteed. The seller may have to bring a cash contribution to the closing. The seller may have to agree to a promissory note. The seller will probably get a 1099-C for cancelled debt. He may get a deficiency judgment and be responsible for the remaining balance. Or the short sale may be denied.In the case today, the seller had returned my listing agreement marked up with additional terms. He added that the short sale lender would remove negative reporting from credit bureaus, not issue a 1099-C, waive all rights to a deficiency judgment and relieve the seller of any further obligation.I informed the seller that these demands were not likely to be met. I would not agree to an undertaking with unreasonable expectations. He insisted. I declined the listing. Would you?It's Wendy!Destin Short SalesCall toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204Email Wendy: itswendy@rulnickrealty.com

A day in the life of a short sale agent

Posted by Bryant Tutas on October 20, 2009 at 12:33am

Bryant,Seller is XXXXX Dromedary Court, Kissimmee 34759. Please send me the listing paperwork and a CMA. I have everything else. We also have new paperwork for you as an agent, the agreement to negotiate as a 3rd party. I’ve attached everything above. Let me know if you have any questions.Thanks, Amy VP: Short Sale DivisionBryant,I spoke with XXXXX today and we discussed the short sale conditions in further detail.If he agrees to bring funds towards closing and signs an interest free promissory note over 5 years then we should be able to negotiate this deal.I have received the most recent offer for $103K however would prefer to have a higher non-cash offer provided. Our last appraisal has expired and I will be ordering a new one today and they generally take about a week to return. Once returned I will be in contact to follow up to see if this offer for $103K will be accepted.Thanks ING DIRECT || Retail Asset ManagmentBryant,I am in receipt of the short sale offer for this property. Thank you for a lovely short sale package. It appears to be pretty complete. I’ll dig into it more when I have the bpo results. Has the pkg been submitted to BOA? I am ordering the IBPO now. What number do you want me to give them for access?Thanks and look forward to working with you.Amy- 3rd Party Loss Mitigation Specialist GMAC ResCapBryant,I would like to express my sincerest gratitude for all the work you have done in selling my house. From the moment I spoke with you, you went to work providing me detailed information and guiding me through the process. Whenever I called you with questions, you patiently answered promptly and kept me informed every step of the way. I was delighted at the level of professionalism you showed by so actively working to sell my house. Your persistent efforts surpassed my expectations when you sold my house within several months. Thank you for making this a positive experience!Sincerely, JeffHEY BRYANT SORRY TO INFORM THAT BUYER IS WITHDRAWING OFFER ON 158 ARGYLE GATE LOOP RD. DUNDEE.

WHO ARE YOU?

Posted by Sue Burg on October 19, 2009 at 3:15pm

I have had much trouble figuring out that question lately. Who am I? Going into Real Estate and leaving behind a world I've called home for the last 18 years has given me the biggest identity crisis I've ever had. I needed to leave nursing and had a Real Estate license, so why not? But try as I might I haden't been able to pull it all together. Then one miraculous day I woke up and realized that I was going about it all wrong. The depression was from not accepting the inevitable, my nursing career is over.Now I can move on. I began working, not in the office, but outside where the people are. Suddenly, I get it. Not that I didn't before, but I was spinning my wheels and going nowhere. Now, I get it. I was trying to be the executive I was when I was in my twenties. I'm trying to be Miss Burg. . .Susan. I haven't been called that in about 20 years. I've been Sue for the last 18 and my whole person has changed. Once I realized that I moved quickly to change everything. My name plate now reads Sue Burg. I stoped looking for a business 'brand' for myself once I realized that this was not the first time I had to pull myself from the ashes and rebuild much like a Phoenix comes again and again from the ashes. Wait, did I say Phoenix and ashes? It's a rebirth that I have gone through! I have 'branded' myself Phoenix Rising, RES and changed every web site I have to reflect that.It's a strange feeling not knowing who you are and having to find yourself again. I've gone through my rebirth and feel as though I've been through the fire again. Only, now I feel happy on the inside, in the pit of my stomach I can feel it. I feel successful again and I'm ready to crush it!

1st Position Lenders ignoring 2nd position Lenders

Posted by Lynn Pineda on October 19, 2009 at 2:42pm

I don't know if anyone else is experiencing this but I have had a number of recent Short Sale approvals come through in which the 1st Lender isn't acknowledging any proceeds of the Short Sale to go to the junior 2nd Lender; written approval with $0 to junior 2nd. I'm having to go back and get the approval letter adjusted and that is just how I'm treating it; I'm bringing it to their attention as if it was a simple oversight by the Lender and they "forgot" to include the $'s. However, what is really going on?I'm just beginning to work out these scenarios and have yet to have responses from the Lenders other than one who has requested a new HUD with the balance owed to the 2nd to reissue to the investor. Can this be an oversight by Lender in not including the amount from the initial HUD that is to go to the 2nd or is there something else going on? You know if these 1st position Lenders were suddenly in the 2nd position that they'd dig their heels in for their money.Have any of you come across this recently?

My Saxon Rant...

Posted by Steve Loynd on October 18, 2009 at 4:26am

Saxon..the Oxen of the Short sale industry.If you have an Oxen in your field....you will be expected to feed it and protect it everyday. For these daily chores you will be ignored, pushed around and drooled upon. If you meet one of these lumbering creatures while traveling in the road, you may honk all you wish but you will not be allowed to pass...traffic will come to a grinding halt.The lesson of trying to work with oxen is this,,they will tear up your field and leave it infertile for years to come. If you are speeding along and encounter one on the road to success they will block your way and bottleneck traffic. They are big, slow, unappreciative and have a brain to mass ratio of a walnut to a school bus.What started this little rant?...I have had a short sale pending since May that has been negotiate and accepted by the Ox of the industry, with a Mid- October closing date. Back in May the buyer's title attorney discovered a title issue related to a broken assignment....and we told the Ox about this in May!. Farm animals like teenagers can be taught to come to the fence to be fed. We faxed them requests for this title repair a couple of times a month for the last six months. As the closing date looms and we have an actual Negotiator to talk to (not just who ever answers can help you). Each time I have spoken with my assigned negotiator over the last month I have asked for an update on the title issue...and each time she has said "I'll send another email to my boss" and each time I say that tactic doesn't appear to be working.We are not going to close on time because of a title issue the first mortgage holder (the Ox) has with their title, and I was just told I will be penalized 20% of my expected commission for failure to close on time. These lumbering creatures are not friendly to the people that feed them and clean up their messes, but they are too near sighted to see that and too dumb to understand if their keepers stop feeding them they will die in their field.In case I've been to subtle...SAXON SUCKS!Posted by...Steve Loynd

Present ALL Offers or ONE Contract to the Lender for a Short Sale?

Posted by Debe Maxwell on October 17, 2009 at 5:30pm

I originally wrote this post on Active Rain, "Presenting Multiple Offers to the Lender for Short Sale Approval" and was reminded today that there are still MANY out there who don't understand the difference between a short sale and a foreclosure! I actually heard on a local radio show, the commentor, who is a real estate agent, proclaim something like this, "And, YES, we present ALL offers to the bank and let them decide which one you (the seller) will work with!" Unfortunately, I could not call in to the show to clarify but, I have spoken with our NC REC attorney who agrees with 1-contract submitted to the lender, seller holds the back-ups. PERIOD!Questions and more questions! While visiting at the NAR site regarding the new short sale designation and visiting the 'discussions' link, I found several questions relating to short sales and one, in particular caught my eye."Can multiple offers be submitted to the lender without seller signatures or can only one offer be negotiated at a time? Can the seller sign multiple offers to submit to the bank?"Ahh, the question of the year! In Broker Bryant and Wendy Rulnick's classes (visit www.ShortSaleSuperstars.com) on short sales, we learned that we only submit one offer at a time. Numerous articles and webinars that I've seen during the last year also instruct agents to submit only one offer at a time. However, repeatedly, this question arises in our day-to-day business. Just yesterday, a client of mine who is selling a beach property informed me that it's been months and they have heard nothing from the bank--he said that they just could not understand because they had presented several GOOD offers to the bank! When I questioned him further, he explained that his agent had informed them that this is he way that she was supposed to handle this but, cannot tell him why the BPO has not been ordered or the bank has not responded. He asked me my opinion.Short Sale or ForeclosureHere is my best understanding of this process:A foreclosure property is owned by the bank, therefore, just as any client, we are required to present all offers to the bank for their evaluation, review and subsequent acceptance.A short sale property is still owned by the homeowner or said owner of record, NOT the bank. If we receive multiple offers for a short sale:* We present them all to the SELLER* We review each of them with the SELLER* We assist the SELLER in determining which Offer carries more weight--o Is the buyer prepared for the lengthy short sale process?o Is the agent willing to work with us during this long process?o How qualified is the buyer--if the bank were to counter this Offer, would they qualify for a higher mortgage or is the buyer at their maximum?o How 'clean' is the Offer?* Evaluate all aspects of the Offers and compare them, selecting the strongest* Remember that the strongest Offer does not always mean the highest sales price!* Keep the cleanest & best Offer and have the sellers sign and return copy to the buyer* NOW, submit the entire package including hardship letter, financials, comparables, etc. with THIS ONE ratified Contract to the Lender for their approval.* Begin the ~~waiting~~ short sale process.Sensory OVERLOAD!Once again, this is only MY understanding but, I have not spoken to one short sale expert who submits multiple offers. Instead, it has been my experience that if multiple, unsigned (by the seller) offers are submitted to the bank, nothing is ever done with them and this is a sure sign that the property will be foreclosed upon if the seller is unable to make their mortgage payments.I would love your opinion as I know that many areas of the country have done far more short sales than we have here in Charlotte NC and I value your knowledge and expertise.One thing that I know for sure with regards to the agents questions is that you don't submit multiple SIGNED offers (by the Seller) to the bank--you can't be 'under Contract' with multiple, independent buyers at once! The other part of the question, I get weekly from someone and would like to be able to confidently answer as to, "Can you submit multiple, unsigned Offers to the lenders for approval on short sales?"

What say YOU?Debe in Charlotte

Middle initial email address generator for when you know a negotiator's first and last name but not their middle initial

Posted by Dominique Van Ryckeghem on October 17, 2009 at 11:32am

Hi all,I cobbled this php application together one afternoon because I was tired of typing in all possible variations of email addresses with different middle initials.All you have to know is the first name, last name and email domain name from the person you are trying to reach.The following app does the rest: http://dianalangley.com/emailgenerator.phpYou can put the generated email addresses in the BCC field of your email application.Cheers,Dominique

Sample Short Sale Approval Letters

Posted by Bryant Tutas on October 15, 2009 at 12:30am

Ever wondered what your Short Sale Approval will look like? Wonder know more. I have embedded several Short Sale approvals that I recently received for my sellers.

I have included:

Bank of America Short Sale ApprovalWells Fargo Short sale ApprovaGMAC Short Sale ApprovalGreen Tree Short Sale ApprovalHomEq Short Sale ApprovalASC Short Sale ApprovalChase Short Sale Approval1st Horizon Short Sale ApprovalPNC Bank Short Sale ApprovalFifth Third Bank Short sale Approval

I have also included a sample Promissory Note. Folks, if you need help avoiding foreclosure in Central Florida then give me a call. I CAN help. OK?

Short Sale Approvals

SHORT SALE LENDER CANNOT REDUCE COMMISSION TO BROKER

Posted by Richard Zaretsky on October 13, 2009 at 12:43am

One of the great drawbacks to a broker taking on a short sale listing is the fear and often the reality that the short sale lender will demand a reduction in the broker commissions. This has created all sorts of contraptions to make the broker whole.I have seen contracts that have inflated commissions designed to make the lender reduce it; I have seen deals to have the buyer guarantee the broker commission short fall. There are more and some not yet invented. But this summer a case was decided in Iowa (and reported by the NAR) where the appellate court said the short sale lender could NOT renegotiate the commission and it is worth noting.The case of Stewart v. All States Quality Foods decided May 29th has specific facts but I have seen this type of scenario several times and it is worth noting if you are a short sale broker.In simplistic summary (you can read the case by the link above and it is not too complicated to understand even on a first read!), the broker brought a contract to the lender and in the contract the lender knew that the seller was to get a commission of 10%. The lender said it needed more money and made a counter offer of a specific amount. The broker got that counter offer. Then the lender said it needed to net more and the broker offered to cut its commission to help get part of the way to that number. The lender balked and denied the sale.The broker sued on its contract for the commission based on bringing a buyer ready, willing and able who met the counteroffer price asked by the lender. The legal theory that won was interference with advangeous business releationship - the listing agreement.The key issue here is that the lender actively participated in the transaction by making the counter offer request and it being met. Also important is the knowledge by the lender of the existing listing agreement.In all short sales that we handle we provide a copy of the Exclusive Listing Agreement to the lender, so knowledge in our situations would be met. If the lender makes a counteroffer then the lender is bound to accept it or it has violated at least one legal theory - if you are in Iowa. However the law and doctrines cited by the Iowa appellate court are in comport with many other states caselaw, Florida included.Be aware of the rights and obligations of the parties to a short sale - especially when the lender oversteps its position as a lender and becomes an active participant.Copyright 2009 Richard P. Zaretsky, Esq.Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.See our easy to understand articles at:TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

TREASURY TO ANNOUNCE NEW PROGRAM TO AVOID FORECLOSURES- (SHORT SALES)

Posted by Mayra G Torres Cagigas on October 12, 2009 at 2:57pm

this will be announce next week byt the US Treasury!!! big news great time to start calling clients and writing Press releases to get the word out!!! THIS IS HUGE!!!Treasury to Announce New Program to Avoid ForeclosureBy JACOB GAFFNEYOctober 12, 2009 5:40 PM CSTThe United States Department of the Treasury is launching, with an official announcement expected next week, a new program to help ailing borrowers escape foreclosure.The Chief of the Homeowner Preservation Office at the Treasury, Laurie Maggiano, released information on the Home Affordable Foreclosure Alternatives (HAFA) while speaking at the MBA’s 96th Annual Convention going on in San Diego. The official launch is expected in the next week or so.HAFA already holds the support of Fannie, according to a VP at the agency, Eric Schuppenhauer, who believes the new program allows borrowers in imminent default to “make a graceful exit” from their home. HAFA will keep the stigma associated with foreclosure away from the borrowers, he added, and help keep communities intact.Maggiano adds that HAFA will offer financial incentives to both servicers and borrowers, and associated secondary investors, in order to facilitate a short sale or deed in lieu of the property.Borrowers will need to be Home Affordable Modification Program (HAMP) eligible and Maggiano released some stats for the crowd’s consumption. 2,484,783 homeowners have requested information on HAMP. 757,955 HAMP plans were offered. 487,081 trials are underway.Other additional incentives to the short sale industry are nearly developed. The IRS will soon offer a 4506EZ form that will enable servicers to pre-fill out the information so that it only requires a borrower’s signature. It also will include softer language so as not put potential participants off.

Here is a link to an article written in Business Week: http://www.businessweek.com/magazine/content/09_41/b4150024719851.htm?chan=magazine%20channel_new%20business This article talks about the death

Posted by Katerina Gasset on October 10, 2009 at 6:24am

Here is a link to an article written in Business Week:http://www.businessweek.com/magazine/content/09_41/b4150024719851.htm?chan=magazine%20channel_new%20businessThis article talks about the death of short sales. There is some information in the article about OneWestbank and what has been happening according to some agents since Soros and Dell put their money up for OneWest.We did just get a closing approved from OneWest and FDIC last month without any deficiency and no promissory note or cash contribution from our seller. But our seller did have a serious medical hardship and he is an attorney whose income fell because of his illness.We need to keep pressure on to be able to have the banks play ball on short sales. It is far better for our economy and communities to close on short sales over foreclosures. Short sales also sell for more money than foreclosures.Please write to your congressmen and woman, let them know what is going on in the real world, where you live and work. Thanks! Katerina

FTHB TAX CREDIT EXTENDED....

Posted by Mayra G Torres Cagigas on October 9, 2009 at 9:02am

i believe that the Tax Credit will be extended to all, this is pointing towards that direction...Great news for all of us!!!House Extends Homebuyer Tax Credit for Service MembersBy AUSTIN KILGORE - HOUSEWIRE.COMOctober 9, 2009 1:56 PM CSTThe House of Representatives unanimously passed a bill that calls for a one-year extension of the first time homebuyer tax credit for service members serving overseas.The bill passed 416-0, and is now in the Senate for consideration.“I am pleased that Congress has decided to move forward to include my legislation in this homeownership assistance package for our service members,” said the bill’s author, Rep. Ron Kind (D-WI). “Service members should have every opportunity to succeed and enhance their life when they return home, and this bill will help them do just that.”The extension is for service men and women, members of the Foreign Service and intelligence community who served on official extended duty service outside the US for at least 90 days in 2009, and their spouses. The bill also eliminates the repayment penalty for first-time homebuyers if the service member sells his or her home within three years of purchase because of deployment.The bill comes as many in the housing industry are calling for an extension and expansion of the $8,000 tax credit that is currently set to expire on Nov. 30, and there is a bill in the Senate that would extend the credit for all first-time buyers for six months..Some have estimated the tax credit has brought as many as 400,000 new homebuyers to the market that otherwise wouldn’t have purchased. But as HousingWire previously reported, a survey conducted by Harris Interactive on behalf of Zillow.com showed nearly one-third of prospective first-time homebuyers said an extension of the tax credit would have “no influence” on their decision to purchase a home in 2010.

Charging clients to negotiate their short sales

Posted by Josh Britton on October 4, 2009 at 12:59pm

I have several past clients who have approached me about running with the short sales of their homes -- from package assembly to SS negotiation/close. Given the realities of the market right now being such that many fail to close in spite of the many hours the realtor puts in, I have two questions for realtors reading this:1. is it pretty standard to be charging an initial nonrefundable fee to the client (homeowner) to at least cover my costs if it fails to close?2. Are you (realtor) actually putting together the financial/short sale package for the seller, or having them take instruction from the bank directly and do it themselves?Any insight would be helpful, thanks!

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