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I was listening to talk radio and was intrigued by the teaser for the next segment. "Ohio man bulldozes $350K home to avoid foreclosure".Hmmm. I REALLY wanna hear that one. I listened to the entire interviewand at the end I was perplexed. First of all, here are the details.Terry Hoskins of Clermont County found himself in a predicament withhis Moscow, Ohio home. He was facing foreclosure and was upset that thebank that held the note, River Hills Bank, would not work with him. So,to quote Mr. Hoskins, "When I knew I was going to lose it, I decided totake it down". In fact, he even advised the bank that, "I'll tear itdown before I let you take it". He went on to tell the radiointerviewer, "When I see I owe $160,000 on a home valued at $350,000,and someone decides they want to take it – no, I wasn't going to standfor that, so I took it down,"
After listening to the entire interview, I noticed that Terry Hoskins sounded like a reasonable and prudent person. He wasn'tranting, he wasn't raving. He spoke plainly with good enunciation andproper diction. He seemed to be a really nice guy. So what was hethinking?
Okay, many homeowners facing foreclosure probably feel like doing the same thing. But before you support his drastic actions, lets lookat a few more interesting facts about the story. First of all, Terryused his home as collateral for a business loan. The business wentSouth. Apparently, he wasn't a good businessman nor partner. He laterfound himself in a further predicament after his brother and formerbusiness partner sued him and won. Did you hear that? His OWN brothersued him. The property also had several liens on it filed by theInternal Revenue Service. So, Mr. Hoskins wasn't such an innocentvictim in the whole foreclosure process.
All the while during the interview, all I could think of was, "Why couldn't he have tried everything to avoid foreclosure?" In theinterview he mentioned that he owed $160,000 on the loan and the housewas worth $350,000. I'd have to leave that up to a local Realtor toverify but I figured there would be lots of Realtors out there thatwould have jumped at the chance to assist him with a possible ShortSale. Especially with all the programs the government is coming up withto assist homeowners to avoid foreclosure. And even if he couldn'tavoid foreclosure, there's a lot of families that would have loved topurchase the home from the bank.
I don't understand nor support his decision, despite the fact that I do understand the frustration that comes with foreclosure. It isobvious that he made some very poor financial deciisons and yet hedoesn't take responsibility for them. So what is your opinion in thisstory? Let me know what you think. I would like to know.
With the help that the government is providing with their short sale incentive programs, many homeowners facing foreclosure now have optionsto avoid the devastating affects of a foreclosure. And that’s good newsfor Realtors who specialize in Pre-Foreclosure options.
By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available toavoid this devastating occurrence. And know that there is someone hereyou can trust to help. As a Certified Pre-Foreclosure Specialist, Iunderstand the ins and outs of Short Sales and Loan Modifications. I amalso a Wachovia and World Bank trained Pre-Foreclosure expert and welleducated in the Government’s new H.A.F.A. and H.A.M.P. programs forhelping homeowners facing foreclosure.
CLICK HERE TO AVOID FORECLOSURE
Are you a buyer looking for a home?
The California Association of Realtors released their "2009-2010 SURVEY OF CALIFORNIA HOME SELLERS”. The report showed that approximately 67% of all California home sellersthat were able to sell their house in this market sold their homebecause they had an inability to meet their mortgage obligations. Inother words, they couldn't afford their house. Whether it be due to avariable rate mortgage that was resetting higher, a job loss, sicknessor just the fact that they overextended themselves, the majority ofthose homesellers basically HAD to sell.
The 67% figure includes standard sales as well as short sales. The interesting fact with this report is that the Obama administration hasonly recently begun making steps to help homeowners avoid foreclosurethru their H.A.M.P. and H.A.F.A. programs.
Other figures in the report showed that 63% of homes fell out of escrow prior to closing. Of those fall outs, 70% had buyers who couldnot get acceptable financing and 26% were due to "buyer's remorse". Ofthe homes that finally did close escrow, only 50% closed on time.Meaning 1/2 closed late!
With the help that the government is providing with their short sale incentive programs, many homeowners facing foreclosure now have optionsto avoid the devastating affects of a foreclosure. And that's goodnews for Realtors who specialize in Pre-Foreclosure options.
By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available toavoid this devastating occurrence. And know that there is someone hereyou can trust to help. As a Certified Pre-Foreclosure Specialist,I understand the ins and outs of Short Sales and Loan Modifications. Iam also a Wachovia and World Bank trained Pre-Foreclosure expert andwell educated in the Government’s new H.A.F.A. and H.A.M.P. programs for helping homeowners facing foreclosure.
CLICK HERE TO AVOID FORECLOSURE
Are you a buyer looking for a home?
I really hope someone can help me on this one, I had research for almost 2 years how to put a back to back closing ( ok please do not laugh) I have the seller I have the B (investor buyer) how does the investor market and list a house that is laready listed by the agent who is representing the original seller? in other words how does the B list a property as a seller to C buyer?
how does the B to C transaction takes place when doing a new listing? ( to re-sell to a higher price)
It is not an option........does the buyer need to get a Power of Attorney or a quit claim deed? to re-list a property at a higher price and flip? please help this is really important to me.
I hope I made myself cleared if not please ask me as I only have 2 days to figure out and a whole life to learn....
A to B (ok, done deal) the idea is same day flipping......
Lets talk short sale! If I have a seller who wnats to sell to a Buyer, for an X amount, then the buyer who now becomes a seller wants to resell this property and does not have to close unless the B to C transaction is complete..... my question is if you get the A to B stariaght (no closing)... how do you go about the B to C? when listing? what do you have to say? or disclose? is it necessary or just a foramlity? POA or Quit Claim Deed or just a stipulation on the contract as to othis matter? and if so will your broker let you list as the seller with no doc in hand? wneh you are representing the actual seller? (NO)
A ( listing agent ) B (selling egent) B (becomes seller, how? by means of POA or QCD? then B only sells if C buys
how is this put together?
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
HAFA,(Home Affordable Foreclosure Alternatives Program) will be implemented on April 5, 2010, is part of the Home Affordable Modification Program (HAMP). The new initiative aims to help homeowners who are unable to retain their home under HAMP through the use of short sales and deeds-in-lieu of foreclosures. As part of the program, incentive payments will be provided to both homeowners and servicers, but homeowners must meet certain requirements to participate.
NAR’s new resources on HAFA were created in response to the Realtors Confidence Index, which showed that buyers continue to be discouraged with the extended short sale process. As a result, foreclosures that could have been prevented often take place. NAR’s HAFA resources explain how the program aims to streamline short sales and, in the process, save more families from foreclosure.
NAR president, Vicki Cox Golder, reports that our members report that short sales are often full of "red tape," delayed and completely lost due to the complications and dealings with banks and service providers. However, we as Realtors are dedicated to helping and improving the short sale process for both buyers and sellers. I also would like to give a caution against compaines like BGS3's Program 3684 and Foreclosure.com solicting agents. These 3rd party companies get between you, your brokerage and your client. I have seen nothing except monies flowing into their coffers at the expense of the agents and brokerages where they are active. Also, I do not believe that they are licensed in all of the states that they are trying to operate in. Caution is the byword. There are alot of "wolves in sheeps clothing" out there that are more than willing to take your fees and part of your commissions.
NAR and SFR certified Realtors, are ready to help make this new program a success. The new guidelines and incentives under HAFA are a crucial step towards reducing problems with the short sale process and provide Realtors with the resources they need to navigate short sale transactions - as well as provide guidance on helpful government programs designed for homeowners facing the loss process. Keep up to date and best to you and your troubled clients.
Great Short Sale, Foreclosure Seminar.
NAR Resource to Reduce Short Sale Stress: Learn more about it:
http://www.realtor.org/RMODaily.nsf/pages/News2010021902
If you need short sale training to feel comfortable pulling off the deal, you’re not alone.
The number of foreclosures happening across the United States is unprecedented, and it’s not often that short
sales are mentioned outside of this kind of economic environment.
It’s time for you to get the expertise you need, because short sales are becoming extremely common. You don’t want to be caught feeling unsure when a client asks for one.
That’s why we offer you three different training solutions, each of them custom-made for agents just like you. These training materials take you from complete confusion to calm confidence in no time flat – and you’ll be able to turn that new knowledge into perfect closures immediately.
This five-part Webinar with short sale superstars Bryant and Wendy takes you through 8 full hours of short sale training, walking you through each step of a short sale so you know exactly what to expect and how to deal with problems that may arise. Read more...
Bryant and Wendy interview a short sale negotiator from one of the major lenders to get you the insider secrets that make your short sale a huge success. If you want to come out ahead in a negotiation, ask the negotiator – and we did just that, so we could give you that insider info. Read more...
First short sale? Use this handy listing package, and you won’t leave anything out next time. Everything from the short sale submission letter to a listing checklist, as well as anything else you'll need, all in one tidy package so you don’t have to stress. Just check it off, and close the deal. Read more...
The CEO or Freddie Mac, Ed Haldeman, recently gave a speech to the DetroitEconomic Club regarding a number of issues including the state of thecurrent Real Estate market. According to Mr. Haldeman we are in a “transition to a recovery”.He went on to state that the two main factors were the stimulus packageand the fact that the Fed was keeping interest rates at record lows.
One statement he made during his speech was particularly interesting to me. He said that he expected the 30-year mortgage fixed interestrate to remain between 5% and 6% throughout this year. Even if theydid rise to 6%, the interest rate would still be a record low. When Iwas a mortgage banker/broker prior to going into Real Estate back inthe early 90’s , 7.5% was a GREAT rate!
However, I was discussing the interest rate issue today with a buyer awaiting an answer on an offer. He clearly stated that if interestrates rise much above 5%, he’d be out of the market for the house hedesires.
We may be only 2 months into 2010, but in today’s market it may take several months to search, find, make an offer, and open escrow on abuyer’s “dream home”. If interest rates go up at the end of this yearor the beginning of next year, the amount of house a buyer can affordwill in turn go down.
NOW is the time to buy!
As we all keep hearing, interest rates are at “historic lows”. But pardon me for sounding a bit like a retail shop owner when I say, “these rates won’t last forever”. We need to get buyers off the fence and into the market before they regret not buying like so many buyers before them.
Are you a buyer looking for a home?
CLICK HERE TO SEARCH ALL AVAILABLE HOMES
By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available toavoid this devastating occurrence. And know that there is someone hereyou can trust to help. As a Certified Pre-Foreclosure Specialist, Iunderstand the ins and outs of Short Sales and Loan Modifications. I amalso a Wachovia and World Bank trained Pre-Foreclosure expert and welleducated in the Government’s new H.A.F.A. and H.A.M.P. programs forhelping homeowners facing foreclosure.
Here is a brief market snapshot for the Riverside and surrounding communities. I’ve included the number of homes currently available onthe market in contrast with the number and percentage of homes thathave closed escrow in the past 30 day time period.
RIVERSIDE
2239 homes for sale
344 closed in 30 days
15.4%
MORENO VALLEY
1468 homes for sale
259 closed in 30 days
17.6%
CORONA
1688 homes for sale
247 closed in 30 days
14.6%
PERRIS
851 homes for sale
123 closed in 30 days
14.5%
Are you a buyer looking for a home?
CLICK HERE TO SEARCH ALL AVAILABLE HOMES
By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available toavoid this devastating occurrence. And know that there is someone hereyou can trust to help. As a Certified Pre-Foreclosure Specialist, Iunderstand the ins and outs of Short Sales and Loan Modifications. I amalso a Wachovia and World Bank trained Pre-Foreclosure expert and welleducated in the Government’s new H.A.F.A. and H.A.M.P. programs forhelping homeowners facing foreclosure.
One of the simplest negotiating tips:
When you leave a voice mail message for your negotiator (I know, they "usually" answer the phone, but play along with me here).
When you complete your message, hit "#" to send it with urgency. Doing this will often page your negotiator, send them a text directly to their computer, and, for some it will actually send them an e-mail.....good stuff.....
Today marks the 1 year anniversary of President Barack Obama signing the American Recovery and Reinvestment Act. For the past 365 days, thepurpose of this stimulus package was to take our hard earned taxdollars to stimulate the American economy. Part of the package wenttowards items such as a 2.6 million dollar solar panel system for theDenver Museum of Nature & Science, which by the way, has over 90million dollars in their bank account. Another $25,000 went to thelittle town of Sykesville, Maryland. This well to do community of over4,400 residents don't know where to use the money but they promised toput it to good use. 9.3 million went to Harvard to create a colony oftiny little robots called"robo-bees". Another $500,000 went to DukeUniversity so they can send 6 students each year to Costa Rica to studythe rain forest. Kinda reminds me of summer camp. Or there's the$400,000 that went to New York State university for their study of theaffects of drinking malt liquor and smoking pot. I wonder how manystudents volunteered for that study. That's just a small portion ofthe long, long list of outrageous expenditures from the 856 BILLIONdollars of the stimulus. However, I believe the MOST egregious of theamounts spent was the 700+ million dollars used just to "administer"the program.
President Obama stated today that, "This program has run cleanly, smoothly and transparently". However, a recent poll shows that 71% ofthe American people do not believe it is working despite Vice PresidentJoe Biden commenting that the "...taxpayers have gotten their money'sworth".
Now, don't get me wrong. I am currently taking advantage of all the consequences of the past and current administration's efforts tostimulate the economy. I am pushing the $8,000 first time homebuyercredit to help get buyers off the fence and into the market. I lovethat the decline in home prices has allowed many buyers to enter themarket when just a few years ago, they thought they'd never be able toafford a house. I love that we now have the lowest interest rates inmy lifetime. I am busy helping numerous homeowners escape the tragedyof foreclosure by helping them with loan modifications and shortsales. And I REALLY enjoy that much of my "competition" (Realtors that recently entered the business when things were easy and good) are now jumping ship to go back to their old jobs because they don't know how to handle this type of shift in the market.
Our national debt is out of control, our unemployment rates are skyrocketing with no real recovery in sight. So where are we today?Are we better off? Have things improved? What do you say? Are youcelebrating along with the current administration or are you feelingthe hurt? I'd really like to hear your comments and find out whereeveryone is in their thinking. So please let me know.
Thanks!
Are you a buyer looking for a home?
CLICK HERE TO SEARCH ALL AVAILABLE HOMES
By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available toavoid this devastating occurrence. And know that there is someone hereyou can trust to help. As a Certified Pre-Foreclosure Specialist, Iunderstand the ins and outs of Short Sales and Loan Modifications. I amalso a Wachovia and World Bank trained Pre-Foreclosure expert and welleducated in the Government’s new H.A.F.A. and H.A.M.P. programs forhelping homeowners facing foreclosure.
Hi Folks. Richard Zaretsky wrote a post earlier this week titled:
SHORT SALE MARKET EVOLUTION - GMAC SOLUTION TO FALSE BUYERS If you haven't read it pop over to ActiveRain and do so. Here is the language GMAC wants if you have a short sale with them as the lender:
"2-3% earnest money must be agreeable to buyer. Contingencies must be removed 14 days after we issue approval letter and earnest money becomes non-refundable. If buyer walks, buyer and seller must agree in writing that earnest money will be wired to GMAC."
It's my opinion that GMAC is interfering with our listing agreements and interfering with a purchase agreement. This is, in my opinion, Tortious interference. They are NOT a party to either of these contracts and have no right dictating the terms.
GMAC's new "deposit language" is interfering with my contractual right, as per my listing agreement, to a percentage of the deposit when a buyer walks. Why? I didn't do anything wrong. In fact, I spent time, effort and money during the pending status of the contract and have the right to be compensated if the deal kicks due to the buyer walking.
And what about the fully qualified buyer that doesn't have 2% to 3% to put up as a deposit? They could be purchasing the home using VA or USDA (100%) financing but may not be in a position to place 2% to 3% down as a deposit. Now due to this GMAC requirement they are blown out of the water. And of course these are exactly the buyers that are willing to pay a premium for a property.
Make no mistake about it this is just one more step towards banks dictating the real estate market.
Banks are now:
- Limiting how much I can charge for my services.
- Preventing me from being compensated for my time and effort.
- Dragging property values down even further by limitting the buyer pool.
You can be sure I will work the system to my advantage. BUT...dictating how I can charge for my services is a violation of anti trust laws. GMAC can certainly choose to not accept a short sale. That is their decision. How I get paid is my business and they are interfering with my contract.
GMAC is not losing money. They are the servicer. They get paid whether payments are made or not. This new verbiage is not to lesson their losses it is to increase their profits.
I wonder if they pass the claimed deposit off to the investor? I doubt it.
***I am NOT an Attorney. This post is my opinion only. What's yours?
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From their website:
GMAC Mortgage has experience creating customized solutions for banks, credit unions, brokerage houses and
other financial institutions. We service a full range of financial products and asset grades, including:
- First Mortgages
- ARM loans
- Closed-End Second Mortgages
- HELOC
- Unsecured Consumer Credit
- Alt-A
- Subprime
- “Scratch and Dent”
- Non-performing
Remaining in control of your relationship with your customers means maintaining brand awareness. As a leading lender and servicer, we not only provide the basic services listed above, we also offer a suite of ancillary services, including:
- REO Management
- Charge-off Recovery
- Master Servicing
- Bond Administration
- Special Operations
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
I just started to upload Pictures, CMA's, BPOs and whatever I can get my hands on in Equator, since BoA is the most unbelieveale, unreasonable of all!!!! has anyone done this? does it make a difference?
I took it as an advantage since they don't care what we say but what the "BPO" says FMV is, if I can show them the BPO was wrong in their decission for Market Value, by showing them actual damage or decline in market, maybe and maybe they they will see that this agents probably did not take the time to actually do a thorough research. I am really hoping this makes a difference in the Negotiator's eyes......
If we did this on all our packages, there would not be any need for BPO, except maybe to confirm our findings. I do BPO's and I actually resaerch well to determine what FMV is, this a pre-foreclosure market why are agents still doing things the old way? pricing properties as if the market was a stable one, to me that is a joke ( sorry sellers) but these agents should probably not be doing BPOs, they are helping no one but complicating things for the market to resurface. $30.00 to mess things up? I wonder what kind of people is this that do not know the current market.
For the first time in two years active resale home in the greater Antelope Valley is above 1,300, with active core over 900. Banks seem to be releasing some of their stockpile of REOs. Short Sale are keeping pace with the REOs at present.
With the First time buyer ($8,000) and repeater ($6,500) tax credit being extended through the end of April now is the time to make the jump and buy.
Heard on NPR “In the days before the housing crisis, the idea of a bank foreclosure filled a homeowner's mind with dread and shame. Now, with so many Americans owing more on their homes than they're worth, some people are taking a whole new approach: essentially saying, "Foreclose on me, please." It's more technically known as a "strategic default.”
You don’t need to let the bank foreclose you can sell for less than the balance of your loan and in many cases have a less significant hit to you credit score. A strategic default might make sense at first blush, however it will stick with you for years. Need to buy a car, can’t do bad credit, getting back into a home could take 10 years, Rent? With a short sale you will have a better shot at getting back your good credit sooner.
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
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