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If the couple is divorced and only one of them holds title, do both have to fill out the hardship? 

Thank you, 

Mily 

If one spouse is on the mortgage, and both are on title, do both have to fill out the hardship, or only the spouse on the mortgage?

Thanks,

Bill

In Arizona, we have been battling over the application of the FTC MARS Ruling to Realtors and/or any other individual or entity handling short sales.  Over the last several weeks, it has become clear that the Rule applies directly to all Realtors and/or Negotiators handling short sales.  I thought I would share my law firms Legal Opinion Letter which includes how to be in compliance with the Rule. I have had half a dozen consultations on brokers inquiring into the rules and how to submit violations (ie: their competitors). With $11,000 per violation, per day, it will pay to be in compliance.

Please also see the FTC's handbook for businesses on the issue which also clearly states that Realtors are required to be in compliance with the Rule.:

http://business.ftc.gov/documents/bus76-mortgage-assistance-relief-services-rule

Here's the Legal Opinion Letter:

Are Realtors required to comply with the Federal Trade Commission’s Mortgage
Assistance Relief Services Rule 16, cfr Part 322 (the Rule), and if so, how does a
Realtor become compliant with the Rule requirements?

APPLICATION OF THE RULE
According to the Federal Trade Commission and pursuant to the 2009 Omnibus Appropriations
Act and as effective December 29, 2010, with the exception of '322.5 which is effective on
January 31, 2011, a Realtor that promotes their services as a way to help consumers avoid
foreclosure, such as negotiating or referring to another negotiator for a lender’s approval on a
short sale, must be in compliance with the Rule.

As defined under '322.2(j), a “Mortgage Assistance Relief Service Provider” or “Provider”
means any person that provides, offers to provide, or arranges for others to provide, any
mortgage assistance relief service.” Further clarification is found in the historical background as
documented by the Rulemaking process and found in footnote 126:

“As a general matter, the Final Rule is not intended to apply to the marketing of
services to assist consumers in selling their properties to third parties. The Final
Rule, however, does specifically cover the marketing of services involving the sale
of properties to third parties if those services are designed or intended to assist
consumers in averting foreclosure, e.g., through a short sale or deed-in-lieu of
foreclosure. One commenter urged the Commission to exempt licensed real
estate professionals from the Final Rule. NAR at 1–2. The commenter argued the
Rule would restrict real estate agents in helping consumers with the process of
selling their homes through short sales. Id. The Commission concludes that an
exemption for real estate agents is not necessary. Real estate agents customarily assist consumers in selling or buying homes and perform functions such as listing homes for sale, showing homes, and finding desirable homes for
consumers. The Commission is aware that real estate agents may perform these
functions when properties are bought or sold through a short sale transaction, but
does not consider these services to be MARS.”

In conclusion, it is clearly stated in the Rule and supported by the rulemaking history that any
person or entity negotiating or referring to another person or entity to negotiate with a
homeowner’s lender is a MARS provider and must comply with the Rule.

To date, the Arizona Department of Real Estate (ADRE) and the Arizona Association of Realtors
(AAR) have done little to clarify the issues involved in the application of the Rule to the Realtor
community. For example, on January 29, 2011, ADRE and AAR stated that the application of
the Rule remains “unclear.” As part of the issued statement, ADRE and AAR intend to wait
until the National Association of Realtors (NAR) issues further guidance along with the FTC.
Unfortunately, the opinion of the NAR is irrelevant regarding the application of the Rule because
NAR is a private entity composed of Realtors and their membership in the organization. To be
clear, NAR is not a federal rule making entity. Conversely, the FTC is a federal rule making
entity whose legal authority supersedes conflicting state law let alone private membership
organizations such as the NAR.

Under the “Mortgage Assistance Relief Services Rule, A Compliance Guide For Business”
produced by the FTC, (http://business.ftc.gov/documents/bus76-mortgage-assistance-reliefservices-
rule), the FTC has again unequivocally stated that:

 Real Estate Agents. The Rule covers real estate agents who promote their
services as a way to help consumers to avoid foreclosure, for example, by getting
a lender's approval for a short sale. However, the Rule doesn't cover real estate
agents who don't promote their services this way, and who only provide services
to help people in buying or selling homes – like listing homes for sale, showing
homes, or finding homes that meet buyers' needs. (Please see the FTC Compliance
Guide, page 3).

In conclusion, a Realtor cannot negotiate with a lender nor can they refer a short sale to another
party on behalf of the homeowner without being in compliance with the Rule. The Rule
supersedes NAR or even ADRE’s interpretation of the rule.
The only exemption to the Rule is found under '322.7(a) where “an attorney is exempt from this
part” if such attorney is in compliance with all state laws governing client trust accounts and any
advance fees are placed in the attorney’s trust account prior to earning such fees.

REALTOR COMPLIANCE
To be compliant, a Realtor is prohibited from making certain representations; they must provide
disclosures in their communications which includes a final statement from the lender stating all
material changes to the homeowner’s loan, the Realtor cannot take any advance fees and a two
year recordation requirement for all written, electronic and verbal communications between the
Realtor and the homeowner.

Prohibited representations from the Realtor to the homeowner include, but are not limited to the
following paraphrased statements as found in '322.3:

a) That the homeowner cannot communicate with their lender,
b) The amount of time it will take,
c) Any association with any governmental agency, nonprofit or lender(s),
d) Legal representation will be provided by the Realtor,
e) The amount the debt may be reduced or saved by the homeowner,
f) Or the benefits, performance or efficacy of the Realtor.

Disclosures required in all and specific communications by Realtors in short sales include, but
are not limited to the following paraphrased statements as found in '322.34:

a) The Realtor is not associated with any government nor lender,
b) Your lender may not agree to change your loan,
c) All communications must have the heading “IMPORTANT NOTICE” in bold
face font two points larger than the required disclosures,
d) All oral or audible communication must be preceded by “Before using this
service, consider the following information,”
e) And written and/or verbal statements must include “If you stop paying your
mortgage, you could lose your home and damage your credit rating.”

Final statements required by the Realtor to the homeowner under '322.5 include but are not
limited to the following:

a) Final and separate statement to the homeowner at the time of the settlement
offer which includes certain statements that this is an offer and the
homeowner is free to reject the offer and if so, the homeowner owes no fees
for the services,
b) Final and separate statement to the homeowner at the time of the settlement
offer from the lender that describes the material differences between the
terms, conditions and limitations form the current loan compared to the
proposed loan or relief being provided.

To be fully compliant, a Realtor has the challenging task of ensuring that they, or their team,
makes no prohibited statements, all required disclosures are provided on written, electronic
(includes websites), oral and audible communications and that the lender(s) provide a separate,
single page statement that clearly states the homeowner’s current loan and how the acceptance of
the offer will materially change their original loan. In addition to the above requirements, the
Realtor is required to keep all written, verbal and audible records for two years and provide a
documented program for resolution of conflicts as between the homeowner and the Realtor.

With FTC penalties ranging up to $11,000 per day, per violation and the general liability of the
designated broker for actions by their Realtors, it is absolutely vital that the Rule is complied
with by the Realtor and/or designated.

www.opshortsale.com
www.oplaw.com

Does anyone have experience writting a QWR?

Thanks

Dave Haws

Coldwell Banker

Banks drag feet on short sales, survey finds
The CALIFORNIA ASSOCIATION OF REALTOR® (C.A.R.) published its findings of a survey this week, which show that tedious lender requirements and poor communication hamper short sales.
MAKING SENSE OF THE STORY

• Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to C.A.R.’s survey, which gauged REALTORS®’ experience in working with short sale transactions – transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner.
• Although not every homeowner or mortgage is eligible for a short sale, those who are able to finalize a short sale avoid a foreclosure on their credit record and can move on with their lives.
• Banks are taking much longer to respond to short sale offers than those specified in government guidelines for banks. Nearly two-thirds of survey respondents said banks took longer than 60 days to respond to short sale offers. Often, this results in buyers walking away from the transaction.
• “Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery,” said C.A.R. President Beth L. Peerce.
• C.A.R. is asking government agencies, such as the U.S. Dept. of the Treasury, to force banks to complete all short sales following HAFA guidelines and to comply with the program’s time frames.

We here at NextGEN are not at all surprised by these findings. We toil daily, fighting the banks in our desire to help as many California families as possible.
We are currently dealing with a particular onerous company, PHH Mortgage which in this case is acting as a servicing agent for PNC. We have diligently and in good faith been trying to work out a solution for the sellers, a lovely family with two young children. The seller temporarily lost his job for a brief period of time. When he was unable to reinstate the loan, he tried for a modification or loan workout. He was denied in spite of his ability to once again afford his mortgage payment. Worse than that, he was cheated out of $18,000 dollars by one of the many spurious loan modification companies that have sprung up overnight, jackals feeding on the carcasses battered homeowners, adding insult to injury.
Now PHH Servicing, holder of the second mortgage wants to foreclose on this family and throw them out of their home. We've had a ready buyer in place since the middle of January. The buyer and his wife have offered a more than fair, market value offer to the 1st and 2nd lien holders of the mortgage. The first lien holder has been able to intelligently come to an agreement.
The second lien holder PHH Servicing will not negotiate in a fair fashion is demanding a $60,000 payment for a lien-only release and will seek a deficiency judgment. We've been told that it's not negotiable and that they don't care if the senior lien holder forecloses.
This is madness. If the senior lien holder forecloses, the second will receive nothing at all. Where are the shareholders in all of this? Why aren’t they as outraged as we are that an amicable, sensible solution cannot be reached with so many lenders? What about the enormous losses on their books, the huge costs to the banks to foreclose on a home, the costs of marketing while these homes languish on the market?
And so it goes, as another good family who hit a rough patch in the road gets forced out of their home while another honest family is denied homeownership, even when they are qualified borrowers willing to pay retail price for home. These types of decisions by servicing firms such as PHH Servicing just don’t make sense and will further hinder the US economy to a recovery within our volatile housing market.

The National Association of Realtors® (NAR) issued a legal memorandum confirming that all real estate professionals working on short sales are required to make specific disclosures under new federal regulations. NAR’s statement came in response to the Mortgage Assistance Relief Services rule published by the Federal Trade Commission in November 2010. The rule requires any mortgage relief service provider to make certain disclosures to consumers if they negotiate a short sale with a lender on behalf of the homeowner. While the rule specifically exempted attorneys, it failed to provide a similar exception for Realtors. Prior to NAR’s statement, very few Realtor associations commented on the issue, leaving many Realtors to speculate as to whether they needed to comply with the rule when handling short sales. The legal opinion clearly states NAR’s position that any Realtor working on short sale transactions are subject to the rule if they negotiate a short sale with a lender, advertise short sale experience or take any up- front fees from their clients.

WHAT IS THE FTC MARS RULE?

The FTC’s final rule is primarily directed toward loan modification companies, but it also applies to those who negotiate “a short sale of a dwelling on behalf of a consumer.” The FTC began its rule making process in 2009 in response to numerous consumer complaints against fraudulent mortgage relief entities. NAR immediately submitted comments and testimony during the rule making session seeking an exemption for real estate licensees. The FTC addressed NAR’s comments in the following footnote:

The Commission concludes that an exemption for real estate agents is not necessary. Real estate agents customarily assist consumers in selling or buying homes and perform functions such as listing homes for sale, showing homes, and finding desirable homes for consumers. The Commission is aware that real estate agents may perform these functions when properties are bought or sold through a short sale transaction, but does not consider these services to be MARS.

The FTC refused to exempt Realtors from the rule, as they did attorneys, because it did not consider ‘customary’ Realtor services to be MARS. Without an explicit exemption, therefore, Realtors were left to speculate as to whether they were subject to the MARS rule when handling short sales. On the one hand, the FTC stated that a Realtor exemption was unnecessary, yet they clearly intended that the rule apply to anyone negotiating the short sale of a dwelling.  For the next two months, legal experts and real estate professionals debated whether the MARS rule applied to Realtors working on short sales.

NAR’s BROAD INTERPRETATION OF MARS:

The National Association of Realtors broadly interpreted the MARS rule to conclude that “negotiating a short sale of a dwelling includes any communications with a lender about the possibility of a short sale transaction involving a consumer’s loan.”  Thus, “anyone who provides short sale negotiation services is considered a MARS provider and subject to the disclosure requirements”.  Based on this interpretation, NAR expressly stated that “the MARS rule can have an impact on real estate professionals who represent short sale clients or markets themselves as a MARS provider or a short sale specialist”. The NAR opinion strongly encouraged all individuals handling short sales, while working under their licensed capacity as a real estate professional, to comply with the new disclosure requirements.

MARS REQUIRED DISCLOSURES:

NAR requires a real estate professional to make three types of disclosures to short sale consumers. Depending on the type of communication, the MARS Rule contains specific requirements as to how the disclosures must be presented to consumers. In all cases, the disclosure must be clear and prominent. For printed materials, the written disclosure must be at least 12-point type, or one-half the size of the largest font used to list the name of the firm providing the disclosures, whichever is larger. Below are examples that could be used in written materials.

1. General Commercial Communications Disclosures: A real estate professional that advertises MARS, not directed at a specific consumer, will need to include in all advertisements a clear and prominent disclosure with the following:

IMPORTANT NOTICE (in two point-type larger than the font size of the disclosure): (Name of company) is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

2. Consumer-Specific Commercial Communications: The second disclosure is required in allcommunications that the MARS provider directs to specific ‘prospective’ clients. These communications must be provided by the MARS provider before the provider begins mortgage assistance services on behalf of the consumer. The time when the real estate professional needs to provide this disclosure will vary, as a listing broker may not be aware that the transaction will need to be a short sale until far into the listing process. A listing broker should provide this disclosure to the client in a letter or memorandum once (s)he is aware the transaction may be a short sale, highlighting this fact in the document and prominently displaying the below disclosure statement. The disclosure must provide the following:

IMPORTANT NOTICE (in two point-type larger than the font size of the disclosure): You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us (insert amount or method for calculating the amount) for our services. (Name of company) is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

3. Disclosure When Providing an Offer of Mortgage Relief: The third disclosure needs to be provided in a clear and prominent manner at the time the real estate professional presents its client with the lender’s short sale approval letter. The disclosure must be provided on a separate page and state:

IMPORTANT NOTICE: Before agreeing to this service, consider the following information (in two point-type larger than the font size of the disclosure): This is an offer of mortgage assistance we obtained from your lender [or servicer].You may accept or reject the offer. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us [same amount as disclosed previously] for our services. If you stop paying your mortgage, you could lose your home and damage your credit rating.

The real estate professional must also provide the consumer with a notice from the lender or servicer that describing all material differences between the seller’s current loan and the lender’s proposal to modify the loan,  or accept a short sale. This information will likely be contained in the lender’s short sale approval letter. If, however, the approval letter lacks this language, the MARS provider’s disclosure should include information regarding the lender’s ability to hold the seller liable for any deficiency amount and encourage them to seek the advice of independent counsel.

NAR unequivocally requires all Realtors working on short sales to provide their customers with clear and prominent disclosures. Depending on the type of communication, the disclosures should contain the language of the above-referenced examples.  In addition, NAR expounded upon their interpretation to point out that the MARS Rule not only affects how a real estate professional markets their services, but also applies to those referring a  short sale client to an independent third party or collecting any type of up-front fee.

MARKETING MATERIALS:

The MARS rule requires any entity specifically marketing MARS to consumers to make certain general disclosures in all advertisements promoting MARS services. As a result, any brokerage that specifically solicits business from short sale sellers will need to include these disclosures in allof its advertisements, including telephone solicitations. A real estate brokerage that isn’t specifically seeking to be a MARS provider, yet wants to mention its short sale experience in its marketing materials, may or may not need to provide the general MARS disclosures and will be judged on a ‘reasonable’ consumer standard.

The FTC’s practice is to review ads on a case-by-case basis, and determine the impression that a particular ad would make upon a ‘reasonable’ consumer. Thus, an advertisement listing the accomplishments of a licensee and the types of services that the licensee provides to his/her clients which mentions short sale experience, among other services, may not need to comply with the MARS advertising rules. On the other hand, an advertisement promoting a real estate professional’s short sale brokerage business will likely need to comply with the rules because the average consumer would have the reasonable impression that these advertisements are from a MARS provider.

REFERRALS:

NAR warned real estate professionals that MARS disclosures may be required even if you simplyrefer a short sale client to a third party. The Rule encompasses “any person who arranges for others to provide any mortgage assistance relief service”. Thus, any licensee referring a client to a MARS provider, therefore, should comply with the MARS disclosure requirements. According to NAR, the real estate professional may also need to take steps to ensure that any third party to whom it refers customers is also complying with the MARS rule, as it is a violation of  ’substantial assistance’ to refer someone that you know, or should have known, is not complying with the MARS rule.  In short, NAR encourages Realtors to err on the side of caution when referring short sale clients to third party service providers and encourages them to comply with the disclosure requirements.

UP-FRONT FEES:

The MARS rule clearly bars the receipt of up-front fees. Any brokers who collect up-front fees without providing disclosures need to be aware that they will be in violation of the rule, even if they take an up-front fee from a client and later determine that the transaction will be a short sale.  Furthermore, if a Realtor collects a separate negotiation fee, in addition to their standard commission, they need to comply with the MARS disclosure requirements.

NAR REQUIRES REALTORS TO COMPLY WITH MARS:

Admittedly, the FTC could have clarified this issue long ago had they simply included a Realtor exemption to the MARS Rule.  Fortunately, the National Association of Realtors’ legal memorandum clearly states that all real estate professionals working on short sales are required to make specific disclosures. NAR concludes that all real estate professionals performing services on behalf of their short sale clients are subject to the MARS Ruling if they negotiate a short sale with a lender, advertise short sale experience or take up- front fees from consumers. As short sales continue to account for a large percentage of home sales, it is imperative that all real estate professionals update their advertisements and marketing materials to ensure that they are in compliance with the Mortgage Assistance Relief Services Act. 

Continue reading about MARS here...

About the Author: Greater Boston Short Sales, LLC (GBSS) is Massachusetts’ leading short sale negotiator. GBSS assists homeowners, Realtors and attorneys with getting their short sales closed.  Contact us today if you are a homeowner facing foreclosure or a Realtor seeking assistance with a short sale transaction. GBSS is a MARS provider. Please read our disclaimer HERE.

This article is from the Florida Association of REALTORS(R) daily news letter:

More legal snags jeopardize real estate deals NEW YORK – March 15, 2011 – With a real estate market filled with complex deals, legal disputes from real estate transactions are on the rise. Legal snags from short sales, foreclosures, and disclosures are prompting more real estate deals to end up in court.

Legal disputes stemming from short sales, in particular, are increasing, from how banks handle defaults to disclosures and contract performance sections of the sale.

Some sellers are taking legal action against their real estate agents, accusing agents of pushing through short sales and failing to inform them of their possible loan deficiency and tax obligations, such as how the amount forgiven by lenders may be subject to income taxes. READ THE REST OF THE ARTICLE

To solve this challenge, AHP has been bidding to acquire pools of REO's and subperforming mortgages at large discounts. By gaining control of the REO's and mortgages, AHP can then approach each family and offer them an AHP Lease/Option if they want to stay, or an incentive payment if they want to move.

If the family does not want to stay or the home is vacant, the home is marketed through local real estate agents to sell promptly at discounted prices to cash buyers. Because the pool properties are purchased at substantial markdowns, they can be resold at wholesale prices and still generate a good return.

This approach creates a built-in pool of potential AHP clients. Effort now squandered in dealing with uncooperative servicers and lenders can be better spent providing families with long-term solutions to stay in homes in which AHP has taken over the lender position. Ideally, acquisitions of REO's and delinquent note pools will become the primary driver of families to AHP.

AHP completed their first note pool purchase in February and dispositions have proven successful. Now, AHP has entered into a rolling contract with a large bank to acquire their REO's, the majority of which are still occupied. The REO's are expected to continue to be acquired on an ongoing basis.

In a quest to keep AHP a Main Street solution without the poison which comes from Wall Street money, AHP is utilizing private investors to fund the REO and Note purchases. Investors receive assignments of the Notes and Defaulted Mortgages, or Participation Agreements and Security Agreements on the REO's. Due to the anticipated short 14 - 90 day life of most of these investments, the annualized returns are projected to be significant. Investment sizes range from $9,000 on up, well within the reach of many investors. AHP puts 10% down each acquisition and, due to the time value of money, AHP and investors both have the incentive to turn over investment funds as fast as possible. Also, bridge investors receive the first right to acquire the homes of those families who choose to stay with an AHP Lease and Option.

American Homeowner Preservation is excited about this next step in their evolution.

Glendale, CA Real Estate – I recently received a short sale question from a client of mine, Julia. Here’s Julia’s question.

“We have American Home Mortgage Servicing, a loan processor for a Mortgage held by Deutche Bank, adding a 1% “processing fee” that ONLY the buyer can pay at closing.

This was never revealed until we received the short sale approval letter. The buyer is upset.” Julia.

Here was my answer to Julia’s Question. Yes, the buyer is upset. Buyers think they are in control in today’s market. They can’t see why they should pay a fee if they are buying a house in a “Buyer’s Market.

I think this fee is unethical. We had the fee waived on a short sale we did. Your e-mail indicates that the buyer does not want to pay that fee.

The buyer needs to decide if they will or will not buy the house with the current terms and that fee. If that is the case, then you need to have the buyer put that in writing.

Send that letter to American Home Mortgage Servicing. Here is the problem that AHMSI has.

AHMSI doesn’t own any mortgages. Instead, they act as the front for other entities that own the mortgages.

From the sound of things, the owner of this loan is a pension fund or “Average Joe” stock market investors.

The guy we talked to at AHMSI said they had checked with their legal department on the fee. The legal dept said it was OK.

But, once we threatened to contact the owner of the loan directly they agreed to waive the fee. They only reason they are able to get away with this is because the loan owners never check to see what is happening.

This is such a blatant example of a lender breaching their fiduciary duty to the loan owner. It’s wrong. But, do you know why AHMSI can get away with it?

The loan owner doesn’t know about the fee being charged. So, let them know about in on your short sale. Find out who owns the loan. Contact them and let them know what AHMSI is doing.

Here is the bottom line. A buyer that has to pay 1% to AHMSI is going to pay 1% less for the house they are purchasing.

This causes the pension fund that owns the loan to lose even more money. What an atrocity! Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at CMe4Homes@JenniferEscobar.com. I will contact you for a free consultation.

Thanks for reading this, Jennifer Escobar.

Jennifer is a Real Estate Agent at Qwest Real Estate.

My BLOG: www.Glendale-ShortSales.com

My WebSite: www.JenniferEscobar.com

Glendale Short Sale Specialists | Burbank Short Sale Specialists | Granada Hills Short Sale Specialists | North Hollywood Short Sale Specialists | Van Nuys Short Sale Specialists | North Hills Short Sale Specialists

So our second loan was charged off and a law firm is now collecting.  They are the ones that will issue the approval letter through Citi Mortgage.  They are saying Citi will not allow 6% commission unless its Fannie or Freddie.  They will only approve 5%

Well the 1st loan is with BOA and they have approved 6% 

Anybody dealt with this and have suggestions ?

Thanks

We are the buyers.  made offer the first of December, Did all the paperwork and BoA accepted the price Feb 7.  We were told it was going to investor.  Since then scant news.  I know as the buyer we don't have much standing in all of this.  Here are the question:  We did hear that it was at a BoA executive to approve the letter. not sure what this means,  Is it the last step, or does it then go to the investor.  How do we move this along.  We recently sold our house (in a few weeks for the price we wanted), we are living in an apt and don't want to have to sign up for another 6 months.  I know this sounds routine, but we just want the letter and close.  it is a cash deal.

dennis

Los Angeles, CA – Sometimes it seems like short sales are tough. “Don’t try to short sale your house. Short Sales never go thru”, people tell you.

This isn’t true. Here is how one agent beat the odds and succeeded with a short sale.

A member of the Stop Foreclosure Institute told me about a short sale he recently worked on. Here is the story from the member.

“I had a short sale with a large national lender. The loan was owned by Fannie Mae, not the lender. We had an over zealous short sale negotiator.

We had the home on the market for several months and finally received an offer for $180,000. We submitted that to the lender with all the short sale paperwork.

The lender came back and said the price needed to be raised to $257,000 and the seller needed to sign a $50,000 promissory note.

Neither the buyer, nor seller would agree to those terms. At that point, the only alternative was to let the property go to foreclosure. But, I knew that the home would sell for even less than $180,000 and the homeowner would suffer from a foreclosure on their record.

So I did something about it. First, I knew the $180,000 was a good offer that reflected the Fair Market Value of the property. I also knew that Fannie Mae didn’t normally ask for promissory notes.

In fact, Fannie Mae’s policy is to erase the debt when the property is a primary residence. (This home was a primary residence.) Here’s what happene

I went over the short sale negotiator’s head. I contacted Fannie Mae direct and held a 3 way call with the seller. We found out that the lender had lied. They had never even submitted the offer to Fannie Mae!

They had told us what they thought Fannie Mae should ask for. After I spoke to supervisors in Fannie Mae, I was then called by three different reps for Fannie Mae.

Within 72 hours a supervisor from the lender called up and gave me their net, which was 162k. This was well within the acceptable price of the offer of 187k offer.

The problem was that the buyers were so angry for having to wait 53 days on a 45 day allowance that they walked. However, I met another buyer and we sold the house to them.

The bottom line is the short sale negotiator lied, and got busted lying. I had to send in comparables and beg the BPO agent to get the inside scoop.”

As you can see, some agents are making things happen with short sales. This agent did an awesome job. He thought of calling Fannie Mae direct on his own. As you can see, not taking no for an answer helps you to be successful on a short sale. Thinking about a short sale?

Thanks for reading this, Jennifer Escobar.

Jennifer is a Real Estate Agent at Qwest Real Estate.

My BLOG: www.Glendale-ShortSales.com

Glendale Short Sale Specialists | Los Angeles Short Sale Specialist | Los Angeles Short Sales | Short Sales in Los Angeles | Burbank Short Sale Specialists | Granada Hills Short Sale Specialists | North Hollywood Short Sale Specialists | Van Nuys Short Sale Specialists | North Hills Short Sale Specialists

Jennifer Escobar Specializes in FREE California Loan Modification Help to Southern California distressed homeowner’s who are seeking FREE CA Loan Modification assistance in their pursuit of a Loan Modification in Southern California. Furthermore, Jennifer Escobar also Specializes in Los Angeles Short Sales and has successfully listed, marketed and successfully negotiated hundreds of short sales in Southern California. Jennifer Escobar is a Short Sale Specialist successfully negotiating short sales in Los Angeles, Glendale, Burbank, Granada Hills, North Hollywood, Sunland, Tujunga, Sylmar, Van Nuys, Valley Village and Lake Balboa. Los Angeles Loan Modification Help, Los Angeles Free Loan Modification Help, Los Angeles Short Sales, Glendale Loan Modification Help, Glendale Short Sales, Glendale Short Sale Realtor, Short Sale Realtor. Glendale CA Short Sales. Glendale Realtor. North Hollywood Loan Modification Help, North Hollywood Short Sales, North Hollywood Short Sale Realtor, North Hollywood Realtor. Granada Hills Loan Modification Help, Granada Hills Short Sales, Granada Hills Short Sale Realtor, Granada Hills Realtor. Burbank Loan Modification Help, Burbank Short Sales, Burbank Short Sale Realtor, Burbank Realtor. Van Nuys Loan Modification Help, Van Nuys Short Sales, Van Nuys Short Sale Realtor, Van Nuys Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Jennifer Escobar, Qwest Real Estate, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Escobar’s personal views and do not reflect the views of Qwest Real Estate.
This information on Glendale, CA Real Estate | Los Angeles Short Sales | Los Angeles Short Sale Specialist | Short Sale Specialist | Short Sales | CA Free Loan Modification: How One Agent Overcame The Odds is provided as a courtesy to our viewers to help them make informed decisions.

Today’s trend in short sales is "waiver of deficiency”.  A short sale is where a property is sold without enough proceeds to pay off the mortgage debt. A "waiver of deficiency” is what happens if the lender accepts the short sale proceeds as payment in full, and cancels the balance of the debt. 

It used to be difficult to get waivers of deficiency from companies such as Bank of America and Chase.  Now it is getting a bit easier, albeit not less painful for the homeowner.  Typically, a cash contribution or promissory note is required for the lender to issue a waiver.

If a deficiency waiver is not issued, there is a chance the lender will pursue the borrower for the balance of the note after the short sale closes.  They may sell the note to a collection agency and might seek all legal means to get the monies owed, including a deficiency judgment in Florida.

Not all short sale sellers want a waiver of deficiency. Some have a higher tolerance for the uncertainty of future collection efforts. I’ve had recent short sales in Destin and Fort Walton Beach Florida where the homeowner states:  "I know I owe the money.  I will pay the bank later.” or "I cannot come up without enough funds now to contribute to the loss.  I will deal with the lender if they contact me.”

Even if a property is sold without a waiver of deficiency, there is a chance the lender may not pursue the homeowner for the balance due.  It’s always best to consult with an attorney to discuss your situation.  Given options – each seller needs to make his own decision during short sale negotiations.

Learn more about Short Sale Negotiations on the new webinar by my www.ShortSaleSuperstars.com partner Bryant Tutas and me.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Los Angeles Short Sales – I have a good story today about another bank losing their shirt because their short sale process is so tough to work with.

The bank in question is a large, top 20 American Bank. They actually owned the loan in question. So their stockholders lost 50k from their negligence. Ouch

Here is the story from a Stop Foreclosure Institute Member. “We met some buyers at an open house. They told us they were buying a house just down the street from one that we had for sale.

They had a contract to buy the house for $275,000. They knew the house was a short sale. They were getting frustrated because they had been waiting for the short sale to be approved.

They had already been waiting for several months with no answer. They mentioned something about 3 mortgages and the junior mortgages were hard to work with.

5-6 months later we noticed that the house was back on the market. They time the asking price was $229,900. It finally sold several months later for $229,000.

That means this bank lost $46,000 on the lower sales price. In addition, we estimate that the lender lost another $15,000 in lost interest income and property taxes.

That means this lender lost $50,000 to $60,000 because their short sale process was so hard to work with. To be honest, I would be kind of embarrassed if I was the CEO of that bank.

The other thing is that the short sale Realtor in question was inexperienced. She had very little experience with short sales, which she openly admitted.

If that lender pushes for a deficiency judgment, that agent’s lack of short sale experience could have cost those home sellers $50,000. Ouch!” Thinking about a short sale?

Thanks for reading this, Jennifer Escobar.

Jennifer is a Real Estate Agent at Qwest Real Estate.

My BLOG: www.Glendale-ShortSales.com

Glendale Short Sale Specialists | Los Angeles Short Sale Specialist | Los Angeles Short Sales | Short Sales in Los Angeles | Burbank Short Sale Specialists | Granada Hills Short Sale Specialists | North Hollywood Short Sale Specialists | Van Nuys Short Sale Specialists | North Hills Short Sale Specialists

Jennifer Escobar Specializes in FREE California Loan Modification Help to Southern California distressed homeowner’s who are seeking FREE CA Loan Modification assistance in their pursuit of a Loan Modification in Southern California. Furthermore, Jennifer Escobar also Specializes in Los Angeles Short Sales and has successfully listed, marketed and successfully negotiated hundreds of short sales in Southern California. Jennifer Escobar is a Short Sale Specialist successfully negotiating short sales in Los Angeles, Glendale, Burbank, Granada Hills, North Hollywood, Sunland, Tujunga, Sylmar, Van Nuys, Valley Village and Lake Balboa. Los Angeles Loan Modification Help, Los Angeles Free Loan Modification Help, Los Angeles Short Sales, Glendale Loan Modification Help, Glendale Short Sales, Glendale Short Sale Realtor, Short Sale Realtor. Glendale CA Short Sales. Glendale Realtor. North Hollywood Loan Modification Help, North Hollywood Short Sales, North Hollywood Short Sale Realtor, North Hollywood Realtor. Granada Hills Loan Modification Help, Granada Hills Short Sales, Granada Hills Short Sale Realtor, Granada Hills Realtor. Burbank Loan Modification Help, Burbank Short Sales, Burbank Short Sale Realtor, Burbank Realtor. Van Nuys Loan Modification Help, Van Nuys Short Sales, Van Nuys Short Sale Realtor, Van Nuys Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Jennifer Escobar, Qwest Real Estate, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Escobar’s personal views and do not reflect the views of Qwest Real Estate.