Short Sale Shift

We have some first-class material today. Reading the New York Times this morning, we noticed that we are hearing the phrase “strategic default” a lot more recently. Strategic default is essentially letting your home go into foreclosure. The home owner decides not to make payments because the worth of your property has gone down. The home owner might also not be making payments because ultimately they will not be able to make payments. So they are only speeding up the inevitable.

Core Logic came up with some interesting figures on what the wealthy are doing with their wealth and what some of the middle class are doing with their wealth. More than one in seven home owners with million dollar loans are critically deliquent. Below a million dollars, the statistics are just one in twelve homes. Core Logic chief economists think that the affluent are a little more merciless. Fannie Mae and Freddie Mac are begging home owners to keep making their mortgage payments, but the affluent are not obligated to do so.

Investment houses with an initial mortgage over a million dollars, have a deliquency rate is 23%. For cheaper investments the deliquency percentage is around 10%. The affluent and successful are less vulnerable to the dishonor and fear mongering used by the gov’t and mortage lending business to keep underwater home owners from acting in their financial best interest.

It is remarkable that the editorial says bad stuff about the rich making this business choice. Many banks are addressing strategic default. We do not make a position on either side of it. However, the rich are making a good business decision. If the middle class was a little more economically knowledgeable, maybe they would make the same choice.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

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Short Sale Shift

Every once in a while, we want to vent our frustrations to maintain our sanity in the difficult short sale industry. It also helps us continue fueling the passion to combat the lenders because some days are more difficult than others.

We don’t hate Wells Fargo. Nevertheless, they are failing us in the present day. The loan that we are having difficulties with is an FHA loan. So, that could be part of the problem holding things up. We will have to escalate with this file. Here is the account.

We received an offer on a house, a town house in Maple Grove. The listing price was lowered to $129,900 and we got a very good offer on the house. We actually counteroffered and got an even higher offer. So, now we are sitting on an appraisal dispute because the lender is not content with the value that they got.

Wells Fargo showed us the appraisal information and they were using comparables from six months ago and failed to consider any houses that were short sales or REOs. Also, the whole town house development is short sales and REOs. They will only take into account active listings that were of conventional sales.

Obviously, this is a short sale. However, we are not permitted to utilize the exact same town houses that were sold by means of foreclosure or short sale. We have a closing that is thought to be in August. This procedure with Wells Fargo is ludicrous. Why don’t we go back four years ago and glance at those sales?

We will get this sale completed. This has happened before, but we wanted to provide people a little insight as to why loan modifications don’t work and why other agents don’t complete short sales and why short sales take so long. We have submitted seven comps that were lower than the proposal on this town home. We will gladly pay for a plane ticket for Wells Fargo to turn up and see the comps and visit the property. We know the marketplace and we will close this deal.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

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Short Sale Power Hour

From the very start, shortsalepowerhour.com has spoken on the subject of the outback mindset. The outback is a solution oriented mindset to recognize processes that do not work and producing answers for them. Most people in a short sale deal are devoted to saying I can or I can’t do this based on what someone else has told them.

We would like to talk about the HAFA program which rolled out April 5th. It was thought to be a game altering course. The HAFA program, in my opinion, has been a huge disappointment. That’s not to say that people have not qualified for HAFA, but the point is that the predefined requirement standards are a slap in the face. The whole idea has been missed because nobody understands the program even though the information is out there.

So, sellers come to us and say, “Hey I heard i can get $3000″. That is the instigation for the process and it leads to an opportunity for an emotional circumstance and leads to more victims.

About a month ago, I was up in Scottsdale at a large event where Matt Vernon, Bank of America official, chatted about short sales and the troubles that they have had with them. During the session he brought up HAFA and I laughed at him. I laughed because HAFA has been a complete catastrophe. Interestingly though, according to Matt Vernon, Bank of America has devoted themselves to creating their own course that is comparable to HAFA to speed up the practice and incentivize the home owner. The expectation is that the short sale procedure can be whittled down from 120-150 day short sale down to 60-90 days.

2 years ago, based on results, Coach Collard hated you guys at Bank of America. It is wonderful to see that you are talking about direction and you are making things come about. We appreciate the fact that you are openly communicating with short sale agents. Stick to the results and make it happen.

Short sale FAQs and more.

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Short Sale Shift

Today we are going to chat in relation to Minnesota’s foreclosure and policies. Firstly, every state can be a little bit unique with foreclosure policies and laws. In the state of Minnesota, the rules are very lenient so that the property owner has more choices. This gives the house owner the opportunity to redeem the property and get back to current on their mortgage.

So, obviously, the first part of this process is falling behind in your mortgage. The property owner will be receiving tons of calls from the lender collection unit demanding payment and threatening you. Ultimately, they are trying to scare you.

Every short sale that we have, ultimately the house owners miss payments. There are a lot of tactics that the banks have, various that are proven to work. The lender is obviously attempting to get as much money from the property owner as feasible.

After that, when you are 3 or four months behind schedule, you will be served documents and given you a sheriff sale day. Typically that is about six months from the first payment that you missed. A lot of people believe that is the conclusion of the process. Nevertheless, that is not accurate. In the state of Minnesota we are given an additional six months to save the property. Most banks will work with a short sale in the redemption period as well.

There is lots of time to do a short sale in the state of Minnesota. Even if you are nine months behind it is still workable to complete a short sale.

The final date of the redemption stage is not flexible. When you are in the redemption period there is no way to extend that time line. If you get a proposal prior to the sheriff sale there are many times that the bank will extend that so they do not have to go through the foeclosreu process.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

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Short Sale Power Hour

Forgettable Friday revolves around Bank of America another time today. We’d love to share a tale with you to shed a little light on what is going on out there in the short sale industry. We have become Matt Verson supporters and we need to give some acknowledgment to the staff at Bank of America on this particular file for trying to locate a resolution.

Let’s confirm 2 things very briefly. The company that you pay your mortgage to every month is called the servicer. The company that owns the loan or has a financial interest in it is called the investor.

Both loans in this scenario are serviced by Bank of America. The initial loan has Bank of New York as an investor. The following loan is owned by eTrade. They are in the mortgage industry, i guess.

With an offer of $125,000 and a BPO that was about exactly the same, this offer was a no-brainer. The primary lender agreed to the transaction. The second lender denied it. They were owed about $30,000 and offered $3,000, getting 10%. They demanded $10,000 and then relented and thought that they would agree to $9,000. That was their final offer.

The difficulty is, if foreclosure occurs, they get zilch. The primary investor resolved that they could provide eTrade $6,000 and still come out in front of foreclosure.

Lots of banks will tell you that they are merely the servicer and they don’t deal with the investor negotiations. Bank of America upped their game actually attempted to get this deal completed. With a bit of luck, that deal will get completed this week. We are so close with the assistance of Bank of America.

On a side note, if you know Matt Vernon, inform him that he is more than welcome to be a guest on Shortsalepowerhour.com. He can share some quality details with the short sale community.

Short sale FAQs and more.

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Short Sale Power Hour

Welcome to Shortsalepowerhour.com. We are Kevin Kauffman and Fred Weaver, Group 4610, which is Arizona’s best short sale group. Today is unforgettable Friday and we would like to chat on the subject of HOme Owners Association Fees. There is tons of energy out there around the HOA fees. From the bank side and the agent side both are wondering why each side ought to pay. The whole time, the Home Owner Associations are making out like bandits. The reality that you have to shell out $300+ dollars to even get a pay off is ridiculous.

We were working with a servicer on a file and the servicer confirmed that they wouldn’t recompense for HOA’s. So, we wrote an email to a manager at Freddiemac to figure out, in general, what their rules are on Home Owner Association fees. He noted that Freddiemac will reimburse six months of delinquent HOA fees. He also alluded to the detail that they would pay more than six months if the financials of the evaluation make sense. He was obviously illustrating that this choice was about savings over foreclosure. Yet, we run into positions where we have to battle around HOAs.

We just had a folder this past week where the negotiator came back to tell us that Arizona is a super lean state. The funny part is that she did not say they will not pay it or can not pay. She said that she does not have to pay it. If the house goes to foreclosure, the lender doesn’t owe those back fees. On the other hand, the lender would have one more REO House. We are exhausted of having that chat with lenders. Does it save over foreclosure or not. That is truly the only thing that matters.

Loss mitigation is already difficult enough. So, let’s not make it any more taxing by making it a subjective procedure that is based on some upper level executive’s approval.

Short sale FAQs and more.

Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona

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juegos Services to Offer to Landlords

Your real estate cleanup services for landlords should, at minimum, include move-in and move-out cleaning, debris removal, and yard maintenance. You can also include lock changes, carpet cleaning and changing, painting and minor repairs if you are set up to handle those services.

Remember, your foreclosure cleanup business should already be structured to handle “real estate cleanup,” too; not just foreclosure cleanup. Why? Because when the foreclosure crisis quiets down (and it will be some years), you still want to be able to capitalize off contacts you’ve made during the foreclosure crisis.

Your real estate cleanup division can offer the same services as your foreclosure cleanup division. You will simply market them slightly differently. Remember, as long as real estate is in existence, you will have an evergreen business in handling lawn care, repairs, painting, trash-outs, cleaning, etc., no matter if you’re servicing an apartment building, a foreclosure client, a buyer’s new home, etc.

trabajo #4 Prequalify Yourself

This increases your comfort level by knowing your mortgage qualifications. This is especially important in today’s economic environment. Even before you decide on a property to buy, you should prequalify yourself through your banker. There is generally never a mortgage contingency in a real estate auction. It is best to know you can pay for the property before you bid.

In our current economic climate this one is important. Don’t make the mistake of winning something at auction only to find that the bank doesn’t want to work with you. At best this might only delay the closing if you have to ask for an extension. At worst the whole deal can fall apart and you have to give up your earnest money. Ouch!

Property Management Companies

Many landlords, especially those with more than a few properties, use property management companies as their right arm to handle their rental properties. These companies do everything from screening tenants, to collecting rent, to handling evictions, property cleanup, maintenance, repairs and inspections. Contact property management companies in your area to offer your foreclosure and real estate cleanup services.

Working with Landlords in Eviction Scenarios

You can position your company to work with landlords in eviction scenarios in two ways: 1) you can choose to work with the sheriff’s office to remove items from a home after a landlord has gone through a formal eviction process; or, 2) you can decide to instead focus on post-eviction cleanup, which means you will work with the landlord in getting the property in rental shape after the legalities of the eviction are over.

When working with landlords in post-eviction scenarios, make sure the eviction process is over, over, over before you enter a rental property. If you feel like the landlord is still in the process of evicting someone, do not move a thing out of the home or unit. You need to be sure the legal process has run its course so you’re not caught up in litigation (or worse!) by an angry tenant.

If you’re not sure about an eviction scenario, or your gut is telling you something stinks about the eviction, ask the landlord for proof of the eviction. Tell the landlord it’s simply part of your company policy when working in recent eviction scenarios. Really, this little tactic will protect you, your workers, and your real estate and foreclosure cleanup business.

The Landlord’s “Tenant” May Be Your Next Foreclosure Cleanup Client

Ironically, your business’ foreclosure cleanup arm may very well find its next client in the landlord’s apartment or rental home. How? Many tenants are renting again because they have just come out of default or foreclosure.

According to a recent article in the Wall Street Journal, many owners of apartment complexes actually seek out potential tenants who are in default and nearing foreclosure. For example, the article cited Camden Property Trust, a leasing company that owns 62,903 rental units in the Las Vegas area, as buying mailing lists and marketing to owners who are about to lose their home in foreclosure.

This is proving to be a successful marketing tactic for many landlords and management companies. So don’t be surprised if you are hired for cleanup jobs from the landlord’s new tenant. Some of these tenants ultimately avoid foreclosure by getting paid incentives from their mortgage companies to move out early and leave the home in decent shape; which means they’ll have cash on hand to hire a company like yours.

#7 Register To Bid

Most online auction companies require some sort of registration process before you’re allowed to bid. Some require identity verification by some method. Find out what this is. Call and make sure you’re comfortable with the amount of information you’re providing and what the auction company will be using this information for. Remember: Due to the anonymous nature of the internet they are just as wary of you as you are of them. Seek advice and ask questions from other people or brokers who have participated in an online auction and get information about this Auction company.

Upon completion of registration you will generally receive a bid number, terms of the sale, and other important auction day information (again check the auction company for exact details).

Not much to say here other than get signed up ahead of time. No one wants to miss out of a real estate opportunity because they tried to register too late. If you rush this you’ll feel rushed for the whole process and you’re putting yourself at a disadvantage from the start. Just take the time and get registered early on so it is one less thing you have to worry about.

#8 Check for Required Deposits

If you are the successful high bidder at an online auction, you will be normally be required to affirm your bid with a digital signature or email reply and some sort of deposit. Check with the auction company for exact details on what type of money deposits are allowed and accepted (Generally a certified or bank check are required) and how to get that money to the company since it was an online auction.

This one is all about being able to perform after you’ve won a property. This step will set the tone of the entire closing process. The auction company wants you to purchase the property but they don’t know your financial situation. The auction company is trying to determine if you’re going to follow through with your bid. You have to make sure that you follow directions after the auction to show them that you’re a serious buyer. If it seems like you’re not going to meet the post-auction requirements they will sell the property to someone else. Don’t lose your opportunity to buy your dream house because you didn’t follow the post-auction instructions. You can be published without charge. You can to republish this article in your website or blog. Please provide links Active.

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Short Sale Power Hour

Today we are chatting about home sales, in particular national numbers. We do not usually care too much about nationwide figures. It is important that you go look at your local statistics because real estate is a local industry. Nonetheless, sometimes the statistics are so incredible that they need to be brought to your attention.

According to the National Association of Realtors, pending property sales fell 30% in May from where they were in April. Granted, April was the finish of the tax credit deadline. So that had a little effect on the circumstances. We don’t quite know what has happened from May to June.

Kevin and Fred were foretelling that this would happen as much as a year ago. Essentially, we have been borrowing buyers from the future. With the incentive tax credit presented by the govt, tons of people resolved to buy properties at an earlier time than they would have.

This is just like what happened in the first half of the decade. The lenders were lending money to almost anyone that sought it. Buyers that were not necessarily eligible or were not prepared to purchase a property stepped forward and bought homes. So, in both cases, there is going to be a break time before property sales catch up.

The largest pieces of this dilemma are supply and home prices. Because sales are down and inventory is going to multiply, prices will absolutely drop.

With adjustable rate mortgages and their pending resets, property owners will be taking a closer look at their mortgage and the house value. For a few the payment will go down, but so will the value of their home. There is a glaring potential for an increase in strategic default. We haven’t seen the worst of defaults, unemployment and short sales. The nastiest is yet to come.

We’ve had all of this feel good information with the last few months of sales and pulling buyers from the future. We will be in a poorer position from a national perspective than we ever were in 2007.

Short sale FAQs and more.

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Technorati Tags: foreclosure, loss mitigation, short sale