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 ARTICLESRead more…
Broker Bryant and I just finished teaching Short Sale Basics: Session 2, part of our 5-session webinar series about short sales. Today we covered qualifying the seller and short sale documents. There was a lot of material, in fact we went over time! Part of our in-depth analysis included dissecting the financial worksheet (one of my favorite things to do). We provided a made-up example and found “errors” for discussion.Here are a few of the possible mistakes you might find in the financial worksheet:Numbers don’t add up – that’s right, simple math mistakes adding up income and expenses.Monthly gross income used, not net incomeAnnual gross income used, not monthlyBonuses from last year are included in current yearCurrent year commission or P&L is based on last tax year, not recent incomeRental income listed when tenant is moving outGross rental income is not adjusted for expensesListing the same military base housing allowance when it is changing upon relocationIncorrectly assuming property value when listing assetsNot including current mortgage and associated expenses for short sale propertyNot including anticipated rent and expenses upon relocationSpending money on frivolous items, like tennis lessons, skydiving, vacations, etc.Not itemizing “miscellaneous" expensesFinally, when monthly net income is more than monthly expenses- there may not be a hardship at all!The financial worksheet is one of the most problem-ridden parts of a short sale package. In a questionable hardship case, you can use the financial worksheet as part of your seller pre-qualification.
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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.
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BofA has cancelled my 2nd lien approval 2x so far. They said that the BPO was too high compared to the offer. They want a higher offer. My jaw dropped...they don't have any authority. Wellsfargo (1st Lient) has already approved the sales price and package 1.5 months ago. BofA is playing the game. We are also offering them over the original 10% which is $10,000 which Wells approved. Now it is at the 3rd negotiator and I'm hoping they don't kick it out again.
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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
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When listing a Short Sale it is imperative that the property is priced right. When I say "priced right" I mean as close to market value as possible at a price that will get the property under contract quickly.One of the problems I see in my market is that short sales are priced way to low. It seems like listing brokers are just picking a number out of the clear blue sky and placing the property on the market. While they may generate a lot of activity, these deals, more than likely, will not close. Plus they are doing the Sellers a major injustice. The Seller will either be foreclosed on or end up with a huge deficiency judgment against them. Not to mention the possibility of owing good ole' Uncle Sam some money.Pricing a short sale should be just like pricing any other property. You are looking for a price that will sell the property in a reasonable amount of time and at a reasonable price. The fact that the property is a short sale, requiring 3rd party approval, is nothing more than a negative market condition.If the true market value of the property, if not a short sale, is $200,000, then what you should be doing is taking this figure and making an "adjustment" for the "negative market condition(short sale)". Depending on your market it could be a 10% to 20% downward adjustment. Let's say that your market is showing you that short sells are selling for 20% below a normal sale of similar properties. That means that this property should sell for $160,000. So maybe you price at $165,000 or $169,000 depending on your area's sales price to list price ratio.Now you have a property that is priced right AND you have a very good chance of getting the Lender to agree to the short sale if you bring them a CONTRACT at $160,000.OK so here's the second step. Negotiating the deal. Notice up there where I bolded CONTRACT. This is important. Many REALTORS® are submitting OFFERS to the Lenders for approval. This is wrong and will limit your ability to get the short sale accepted.A short sale requires 3rd party approval of the CONTRACT not the offer. What this means is the Buyer and the Seller should be negotiating the deal as they normally would. Once they have agreed on a price, hopefully as close to the $160,000 possible, they sign the contract and the deal goes pending, subject to 3rd party approval. The 3rd party approval is nothing more than a contingency and should have an end date on it. It's no different than inspections, loan approval etc., except that it is a Seller contingency. It is a contingency that needs to be removed or it will expire with time.Once the deal is signed, by all parties, you are now in a position to submit the short sale package to the Lender. Then the wait begins.It's important to remember that, if you are working for the Seller, your goal is to get them as much as you can for the property in a reasonable amount of time. By doing this you are limiting their liability created by the "short" and you are giving them a good chance to avoid a foreclosure by presenting a fair contract to the Lender.So, if you are inclined to handle some sort sales. Do it right. I know short sale is the "buzz" word right now but as professionals we need to understand what we are doing. There's a lot more to it than just throwing it out there and hoping it sticks. If that is what you are doing then you are harming the consumer and need to stop. I hope this post helps. If there are any short sale experts out there that feel this info is incorrect please let me know. I'm trying to learn as much as I can. Thanks.
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Posted by Petra Norris on August 10, 2009 at 8:15am
When I’m hired as your Listing Agent handling your Lakeland Short Sale, time is of the essence. The lenders may have filed already a Lis-Pendens, which puts the property already in a pre-foreclosure status.Pricing your home is the most crucial step to marketing and selling – the comparative market analysis that I will provide is comprehensive and more emphasis is given to recent sales comparables similar to your home that are in distress as well as condition. My price suggestions are based on facts and statistics. Competitive pricing will generate more showings and a faster offer.Multiple Listing Service (MLS) – Listing your Lakeland Short Sale in the MLS has all the information it requires plus a whole lot more. From the maximum pictures it can hold, to detailed information about room sizes, school information and style to elaborate description of your home that will entice a prospective buyer. Sellers deserve the Best when it comes selling their home. Likewise, Buyers deserve the Best information true to the home they want to make it their own.Marketing Short Sales – My Lakeland Short Sale properties have the same marketing exposure as if it would be a regular Lakeland Home for Sale. From virtual tours to blogging, direct mailing, flyers and the magnitude of web sites available to me – all of them will get your Lakeland Short Sale the exposure it deserves.Communicating with my sellers is one of my top priorities. Handling a short sale on my seller’s behalf requires discipline, negotiation skills, time management, problem solving skills and patience with all parties involved in a Lakeland Short Sale.If you are experiencing hardship or facing foreclosure, please contact Petra Norris at (863) 619-6918 for a confidential consultation. You may be qualified to do a short sale and save your Lakeland home from foreclosure.
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Hi folks. I'm sure there are many of you that are either doing short sales or want to do short sales. Therefore, I am posting this sample cover letter that may help you when submitting a short sale package to the lender. Just remember, you are submitting a fully signed and accepted contract and asking the lender to remove the 3rd party approval. You are not asking them to accept the offer. The lender is not a party to the contract. The offer has already been negotiated and accepted by the Seller.Also, check with your Broker and your State's laws concerning short sales. I am a Florida Broker and this is how I handle short sales. This is my opinion only.*************SAMPLE SHORT SALE COVER LETTER***************Ref: LN# XXXXXXXXXXX345 Saint Blasse Ct Kissimmee Fl 34758Bertha Tutas SSN# xxx-xx-xxxxTo whom it may concern,Following is a complete short sale package. We are requesting a removal of the 3rd party approval clause in the attached purchase contract.Included are 56 pages:*Authorization to release information*Fully signed purchase contract with addendums*Buyer's pre-approval certificate from Bank of America*A copy of the escrow deposit*Preliminary HUD 1*Current listing agreement with addendums*Listing history*MLS property print out*Property market analysis*Hardship letter*Seller's financial statement*Last 2 years tax returns*Last 2 bank statements*Last 2 paycheck stubs*Proof of child support paymentsMy comments:This property has been on the market since 01/04/08. It was first offered for sale at a price of $129,000. The property has been extensively marketed on the MLS, Realtor.com, Craigslist, Zillow, Trulia, Cyberhomes, Virtual tours and was syndicated to over 500 web sites.Unfortunately, with the market decline, there was no interest in this property. The property has functional obsolescence being that it only has 2 bedrooms, a 1 car garage and sits on a "back flag" lot. With over 1200 homes available in Poinciana and only 30-40 selling per month this property was being overlooked. We slowly started lowering the price, however, trying to avoid getting into a short sale situation, we were not able to price the property low enough for the market to be interested.Finally, the Seller, due to the hardship outlined in her letter, had to vacate the home. As hard as she tried to keep the house she could no longer afford to live there. At that time, we reduced the price to $109,000 then slowly reduced every 2 weeks until there was an interest. There were NO showings until we reduced to $59,000. Several days after reducing to this price we received and accepted the attached contract.There has not been a 2 bedroom home that has sold, on the Osceola County side of Poinciana, since August and there has only been 2 in the last 4 months.Based on current market conditions and the fact that this property is not only functionally obsolete but also a short sale, we feel the agreed purchase price of $60,000 is far better than the price the property will sell for if it is foreclosed on and placed back on the market. We have done everything possible to get as high a purchase price as the market will bare.I have 14 years experience as a Broker specializing in selling Poinciana property and on behalf of Ms. Bertha request that Country Wide accept this short sale so we can move forward towards closing.Please fee free to contact me with any questions or additional information that you may need. Thank you in advance for your attention to this matter.
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Posted by Missy Caulk on December 6, 2009 at 11:43am
Michigan Foreclosure Law is somewhat different than other states I have been reading about on Short Sale Superstars.I'll make it easy by going step by step:1) Home owners misses 3 mortgage payments.2) 15 days before it goes in the newspaper, a notice of foreclosure is placed on the door.3) It then must appear in the papers for 4 consecutive weeks.4) Then it goes to the sheriffs sale.4) After the sheriffs sale, Michigan has a 6 month redemption period.5) During the redemption period the homeowner can "redeem" the property by paying all the fees and back payments. A redemption amount is given to the Servicing Company so the homeowner can request the redemption amount.6) We still can continue to market and sell the home as a short sale during these 6 months.7) Until the 6 months are over the bank does not have title to the property. We still deal with the sellers and their banks.8) The sale is recorded with the County as a foreclosure and you can see the county records and count 6 months to that day and know that at that time the sellers (homeowners) will have no redemption rights.9) ****If you own over 3 Ac the redemption period is one year not 6 months.10) We are a non-judicial state. The common term is foreclosure by advertisement.11) We are a deficiency state which means that the mortgage company can come back and go after the seller if the sheriffs sale is less than the amount owed the lender.12) If the home is abandoned then the bank can take possession before the 6 months.
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I sent out a listing agreement a couple of weeks ago for a Destin Florida condo. This was a Bank of America short sale, and no payments have been made for 9 months. I never received the listing paperwork back, so just wrote it off.Today I got a call from “Clyde”, who said he was a licensed real estate agent in the sellers' home state of Georgia and knew them personally. He was helping the sellers with a short sale of their primary residence. Clyde said the sellers still wanted me to list the property, but that Clyde would go ahead and negotiate the short sale for them. He also said he himself would be the buyer, but would line up another “investor” to do a property flip.(OK, I don’t want any part of this, I thought. Help me off the phone.)“Clyde, I negotiate my own short sales, so I cannot help you with that arrangement”, I told him. He reiterated I would not have to do anything but list the property, and he would take care of the rest, even though he was not licensed in Florida. “No thank you, sorry, I am not interested” I restated, and I wished him luck.“Why not get involved?” you might be thinking. After all, I could save hours of calls, emails, negotiating, stress and have a built-in buyer. Well, one reason is I want to be sure my short sale listing closes. I know I have a 90% chance or greater of getting an approval if I handle it personally. And I don’t know Clyde.But the biggest reason is, I don’t want to be involved in a short sale flip, even as just “the listing agent”. Bank of America’s approval letter states “There are to be no transfers of property within 30 days of closing”. Other lenders state there are to be “no assignments” by buyer to other parties. To me, that means, no flipping! I am not going to get involved. Why ever risk getting near a deal like this? Not me.So, I lost a listing today. But you know what? I really didn’t want it.It's Wendy!Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.Destin FL
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I have been recently informed that Phase 1 can now take up to 15 days!! It has been a 10 day process.So much for improvements and getting them closed sooner.Phase 2 still up to 30 days.I've noticed a lot of problems in the last 30 days at BOFA, negotiators disappearing, files being to new negotiators, negotiators not responding to emails or calls, saying short sales are open then saying oops not in the system, etc..My recent negotiators for my Las Vegas Short Sale were great at responding in a timely fashion,,,wish I could get them on all my files!
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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.
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"I had the fortune to be part of your short sale basics webinar. I want to express my gratitude and appreciation to Wendy Rulnick and Broker Bryant sharing their expertise in a conversational setting walking us students through from start to finish of a typical Short Sale transaction. This webinar was filled with materials and information giving the most inexperienced the confidence taking on Short Sales.Having participated in classroom environment, read, studied short sale blogs, information and guidelines in the past; this is by far the best step by step instruction that I have received in my over 10 years experience in real estate. You guys truly are the SuperStars! Thank you, Petra Norris Broker . Lakeland, FL"I had the honor of participating in the first of a five-part series on Short Sales with Bryant Tutus & Wendy Rulnick and the class was absolutely wonderful!" Debe Maxwell, Realtor, Charlotte, NC"I am very impressed with yours and Wendy's webinars! I learn much better with audio, where I can listen to it repetitively. I have downloaded these webinars, and that is just what i have been doing (listening to it over and over to learn the material). You are making the short sale exceedingly understandable. In my previous office, this stuff was secret like REO's, and only for the "experience seasoned agents" That is why I did not have access to this info, or get to learn this. It was not taught!!! Thank you so very much for allowing us to participate, share, and learn. I find you both to be extremely knowledgable in this field, and make it tremendously enjoyable! You both are wonderful teachers! I do love all the real short sale experiences that you share with us also. This is an enormous learning experience for me. I also like the "conversation aspect" of this training. It is very informative to have you and Wendy converse, unrehearsed, so that we may learn. Thank you for sharing!" Ginger Moore,"Thanks for sharing your joint experience in the minefields of Short Sales, the web forum, and all you have done. The webinars have been fantastic. I look forward to sharing with you and the charter members as well. This will be an awesome resource site for all of us as we work through the Short Sale maze. Short sales will be around a long time and there is great opportunity for all. The webinars have been fantastic."Don Duft, Realtor, Virginia"Today's webinar (Session 5) was the best of all, a great capper to the entire series. You and Wendy impart wisdom, not just process. I'm going to listen to this session again" Judy Chapman, Realtor, Oveido, Florida"Both Wendy and Bryant's presentation skills are fantastic and between them they have a wealth of experience with short sales. Thank you Wendy and Bryant I really appreciate all your hard work and help in mastering the intricate details of short sales.Best wishes" Sharon Senger, Sharon Senger & Associates"I have signed up for your class and I have to say it is very helpful. My current focus is working with buyers and this really helps me understand things from your (listing agent) perspective and I am sure it will help me seek out the “good short sales” for my buyers. I wonder if you could create a designation like “Short Sale Expert”? You could even have it endorsed by ECAR or FAR. I will certainly write a letter of recommendation for you." Clayton Bonjean, Realtor, Destin FL"I've enjoyed having my morning coffee with you every Saturday for the past 5 weeks as I listened in and tried to absorb all you had to offer. What an amazing gift you and Bryant are giving - the experience that you share is of such great value and I'm so grateful to be in your circle. I've learned to not be afraid of this process and begin embracing the possibilities. As you mentioned, I think short sales are here to stay for a while. Also, I've really appreciated the personalization of your setup and how you were able to answer our questions.I’ve completed lots of training but feel yours was most valuable in your method of approach and delivery. The dialogue made it feel like I was in an actual brick and mortar classroom with real live scenario" Wendy Weber, Realtor, Scottsdale, AZ"Thanks so very much for all the wisdom, and Relaxed atmosphere. I love listening to yours and Wendy's conversations. I feel like a fly on the wall!! " Ginger Moore"I am really glad you guys are doing this, I was looking for a class taught by practicing real estate brokers." Jana Hristova"Your webinar was very impressive and informative. I feel that it didn't come across as a lecture, but good and clear conversation. The short sale is a very complex process, but you have made it much clearer and there was a lot of useful information." Richard Barton Real Estate Investor"If you are a Real Estate agent, you may want to join up with our short sale educational group. This is a fabulous online group, with 2 awesome instructors: Wendy Rulnick, and Bryant Tutas from Florida. They each have many years of experience in short sales. I have enjoyed it immensely and hope to always be a short sale superstar! Won't you come and join us You won't be sorry!"Ginger Moore, Gastonia NCSHORT SALE BASICS IS 8 HOURS OF INTENSE, REAL LIFE TRAINING, plus DETAILED, REAL EXAMPLES, PACKAGES, and MORE FOR $197 CLICK HERE TO SIGN UPRead more…
Hi there. Whether you like short sales, want to do short sales or want to avoid short sales, they are here to stay. Short sales are a major part of the market and in my opinion will become even more so. Lenders WANT to do short sales. A successful short sale cuts losses and keeps the lender from owning a declining asset.This post is about taking control of the short sale situation from the get go, knowing what we are doing, preparing the Seller in advance of what to expect and being strong enough in our negotiation skills so we do not have to accept whatever bone the banks want to throw us.Here are a few of my thoughts:* With a short sale we are submitting CONTRACTS, not offers, to the lenders. We are not asking them to accept an offer we are asking them to accept a "short" payoff so a contingency can be removed from the CONTRACT and the deal can close. Anyone who submits an offer to the lender to see if they will accept it does not know how to handle short sales and is wasting time and clogging up the system.* The lender is NOT a party to the contract(s)(listing or purchase). They do not control the purchase price and the commission. They do have control over how much they are willing, or able, to accept as a payoff. If this payoff figure is too high then a solution needs to be found. The solution may be to have the seller sign a promissory note, raise the purchase price or lower the expenses of the deal(commission etc...). However, lowering the commission in the deal does not mean the seller is off the hook for paying the FULL commission as agreed in the listing agreement. They can bring cash to closing to pay the difference and/or they can sign a note to the Broker.* If the lender, investor or PMI company ask the Seller to sign a promissory note, a good short sale negotiator, will be able to negotiate the amount of this note downward or may even be able to make it go away. The PMI companies almost always ask for a promissory note to be signed when the seller can afford to make payments. Be prepared for it. If the Seller has funds in the bank, IRA, mutual fund and/or decent income chances are they will be asked to pay a promissory note. This should be ascertained at time of listing. Get a complete financial package from the Seller prior to listing the property.*Our job is to do the best job we can to help qualified short sale sellers salvage their credit. It is the Sellers sole decision on whether or not to sign a promissory note. Their willingness to sign a note needs to be established at time of listing so we don't waste our time trying to help Sellers who are not willing to help us.*When a PMI company comes back requesting the seller sign a note I take it as an acceptance of my short sale request. Now all I have to do is negotiate the note. I have had a note request of $135,000 negotiated down to ZERO and one for $50,000 settled for $1,500 at closing. BUT the reason I was able to negotiate is because the Sellers truly could not afford to pay. Remember we are helping folks with a legitimate hardship not people that just want to avoid paying a debt.*Commission should not be an issue in a short sale. A Broker/agent should know before listing the property what lender is being negotiated with and how much commission they will "allow" almost all are 5% to 6% if there are two Brokers...and 4% if there is only one Broker. Fannie Mae will allow 5%. Countrywide will allow 6% as will Wells Fargo and Washington Mutual. I just closed a on Countrywide short sale and in addition to the commission I was paid 1% as reimbursement of costs to maintain the property for a total of 7%. We need to know these things.Folks, agents are getting screwed on short sales because they don't know what they are doing. Sellers are getting screwed because they are hiring these agents.Short sales are serious business and need to be treated as such. Sellers need to seek legal and tax advice and then hire a Broker/agent that understands the process.My biggest frustration is the lack of education of folks trying to handle these transactions. The public is being harmed and that goes against every thing being a REALTOR(R) stands for. Let's take the time, to learn what we need to know, so we can help folks get on with their lives. Let's all step up to the plate. Not only can we help people but we can get paid for doing so!!! Are you ready to get serious?
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