I was starting to feel like the last player picked in dodge ball. The rejections were really hurting, especially since there was never any reason given. Just messages saying your supporting documents were rejected. Oh the pain!

I finally got a really nice B of A negotiator on the phone today who gave me a simple explanation, the buyer's proof of funds were downloaded as a web page instead of being a PDF of the originals, and the current policy is only original statements are accepted, no web page screen shots.

I guess I should not be surprised. Just yesterday I got an e-mail from PNC saying the same thing. They needed the original October bank statement, not the one that was downloaded from the internet. At least PNC did not tell me I was rejected.

So if you want to keep your ego in tact while doing a short sale with Bank of America or PNC, be sure and give your Santa Clara County short sale agent original bank statements (which you may need to order from your bank if you are paperless), or see if you can download something that does not say web page on the screen. And be sure and ask your agent to get original bank statements for the buyer's proof of funds. There may be other banks requiring that now as well, but these are my two latest encounters.

If you have any questions about buying or selling short sales in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

One of the best things that has happened to short sales in the last couple of years is the on line platform for processing a short sale. There are several platforms in use, but Equator is one of the more popular ones, and is the one used for Bank of America and Wells Fargo Short Sales. So, instead of your agent having to fax all the documents, usually several times, the short sale documents are uploaded as PDFs onto the Equator web site. In order to keep the process moving forward Equator will assign a task to be fulfilled by the agent, like uploading an offer or financial documents onto the website. Once the task is assigned they will give you a fixed number of days to upload the requested documents. This number of days is the same, no matter when the task is assigned. So if it isa 2 day task and it is assigned on a Friday, it is due Sunday, period.

So my latest Bank of America short sale assigned me the task of uploading the signed offer on Friday, with a due date of Sunday, which happens to be Christamas.

And that is why this Palo Alto short sale agent is cheerfully working Christmas Eve. 

Enjoy your holidays!

If you have any questions about buying or selling short sales in Santa Clara or San Mateo County please feel free to contact me!

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

As a young child, like most children are, I had a tendency to be arrogant, boastful, selfish and ego centric. I don't guess in this respect I was really any different than my peers however, it was only when I became more self aware, more able to analyze myself in a more retrospective fashion that I was able to see these traits and decide to do something about them. In my opinion, all of these traits are the least desirable of my personality and as such, I made a decision to negate their influence in my life as much as possible. For those of you who know me well, you know that in many aspects, my decision was made for me and my steering of my personality was subject in a great measure by my circumstances of which, were beyond my control. None the less, as with all of us, life takes its role as the developer of the strong and the destroyer of the weak and I found myself rising to the occasion, molding myself through my mentors, my peers, my family and my faith. I remember the day however, can't remember the exact date but can recall the location, and circumstances when I decided that a humble life, a life in which I stand before my belief system naked, prepared to be constantly judged, was a life I would pursue. You see, for me, such a life, where I am transparent and those who know me, or do business with me will not be filtered from my free thought and likewise, they could be honest and forth right with me, was a life where my associations would be my judgment and others could make a truthful decision on as to my intentions......this was a life of constant humility.

In this business, I have learned a all encompassing truth and that is, humility will serve you well. In fact, humility has been the catapult in which my career has stood and through humility, I hope to see career heights that I have only dreamed of. In this way, my life and decision has been a constant state of irony. This has caused in me a struggle....a battle between wills. In one aspect, my ego rises and I look at the trappings of success and my brains tells me that I deserve these rewards, I have worked hard for these rewards, I should take these rewards. Yes, maybe these thoughts are true, maybe in these moments of conflict I find the honesty of my nature however, it's not the life I decided to pursue so long ago. Life in this way can be cruel however, as I have learned, it's in the cruelty of life that we are a truly remarkable people....it's the cruelty of life where we find ourselves triumphant and victorious and it's the irony of life that we find, without such conflict, without such hardship, we would never know the glory of our abilities, when they are set to stand eye to eye with transgression.

Now, more specifically to the issue at hand. Here recently I was contacted by a man who felt I had participated in a wrong against him. He felt as if a promise was made and not fulfilled. In this, he was enraged, angry, bitter, and filled with vitriol that overflowed from his email and made my nose curl in disgust and had my eyes squint with disdain. You see, my role in this perceived  wrong was limited and actually could be logically argued that I had no role for I had no authority in the matter yet, blinded by his own paradigm, he was unable to coherently understand any intelligent argument as to such. Ultimately, those he accused with such fervor rallied the troops, circled the wagons and battle lines were drawn. Granted, the situation hasn't played out to completion however, my experience with this man has been as Epic as Odyssey and just as incomplete so, I expect that my day may come to be measured in it's success by how many times I am having to spend in quelling the fire of his bitter criticism and here we have our lesson.

After a brief discussion with those accused, it was apparent to me that had the man come humble and prepared to request Justice, it would have been well received and Justice would have been delivered in full favor of the accuser. Instead, this man came overwhelmed and out of self control, slinging accusations and making false assumptions that turned favor from him. His actions compelled those he accused to throw their hands up in self defense rather than throw their hands up in submission to his claim. Here is the meat of the lesson and that is, it's human nature to repel bitterness and likewise it's human nature to embrace humility. Had the man come, humble, appreciative, and accepting, his desire would have been satisfied and possibly even been quenched beyond his simple request.

Sadly enough, my experience is that even now, this man has not within him the ability to approach the situation with caution and instead, he will come out guns a blazing to his own folly.

I had heard growing up, it's always easier to catch a bee with honey than it is with vinegar......and, in the back of my mind, I always thought to myself, who would ever try to catch a bee with vinegar......I guess now I know.

50% of Homes with Mortgages now Underwater


I came across the video below and was shocked to hear that nearly 50% (half) of the nations homeowners are effectively underwater. In times like these, it's important to know that there is help available. If you are a home owner that is struggling to make mortgage payments, I would first suggest that you talk with your bank. They may be able to offer you a few different options. They can sometimes lower your interest rate, offer you a forbearance, or even roll your past due amounts into the mortgage principal.

In the event that you need to sell your home due to your financial situation, I would be happy to discuss if a short sale might work for you. This is a process in which we work with your bank to sell your home for less than you owe on the mortgage. Does your home qualify for a short sale? Fill out our Short Sale Home Evaluation Form to find out.

I've seen a lot of articles and blog posts about Wells Fargo, Chase, BofA and others recently. It got me thinking about the future of the REO industry.

I've been an REO agent for over 8 years, back before the REO market was hot. Until recently my largest client was Wells Fargo. Early 2011, Wells Fargo's inventory became non-existant so in June I decided to go out on my own. Knowing that I would lose Wells Fargo as a client (they only work with agencies that have a JV), since there inventory dried up I figured I wouldn't be missing much. Seems I was right, they've only had 2 listings in my area since my move. My question is this.... if you had to align yourself with one major bank moving forward which would you choose? Wells Fargo, BofA, Chase, Other? 

I've found that most Banks prefer to give their REO inventory to agents with working relationships with their local branches (at least with the top 3 mentioned above). I have worked with my local Wells Fargo Rep my entire career, but I refuse to give them business if it's their policy to end a long established relationship with me because I don't have a Joint Venture mortgage company with them. So the question remains, where do I send buyers? Which Bank do you thing will have the most upside in the coming years? 

The group this week hit a milestone I wanted to welcome all the new members and thank the first members for their posting of comments and keeping the group active and growing.

This group is to discuss Bank of America properties with Bank Of America and to share solutions to getting more business with Bank of America or getting in the door with Bank of America and to stay up to date on their requirements.

Website: http://reopro.ning.com/group/bankofamerica
Members: 103

Credit reports frequently have mistakes. Very often consumers are not aware of these mistakes until they are trying to obtain credit for a large purchase like a home or car.  There is a process for rectifying credit mistakes, but it can take some time.

As more and more short sales are being processed it is only natural that some mistakes are showing up on credit reports, especially since there is no standard way for a credit report to reflect a short sale. The bank may report loan paid as agreed, or loan paid for less than the full amount. Which ever way it is reported it should not say foreclosure. Unfortunately occasionally this will happen, but the fix is easy.  When you sell a home as a short sale you will receive a HUD1 statement. this is a statement that spells out what money came in from the sale and how it was distributed. If a home is foreclosed there is no HUD1 given to the owner.  So, if you have a HUD1 your home was not foreclosed.  You should send the HUD1 to the credit reporting agency along with the statement that since you have a HUD1 you were not foreclosed on. They can then remove the foreclosure from your credit report. 

It is probably a good idea to check your credit report 6 and 12 months after a short sale just to make sure this has not happened.

If you have nay questions about short sales please feel free to contact me.

Marcy Moyer CDPE

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Federal Government Disclaimer (MARS): 1. 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 commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Will The New "Point of Contact" Plan Fix The Mortgage Mess?

Washington is at it again.  If you've ever worked with HAMP or HAFA, you already know that sometimes the cure may be worse than the disease.  Now, the U.S. Treasury is pushing a "single contact" initiative to the largest mortgage lenders using the HAMP,  HAFA and Up programs.  On the surface, it sounds like a good idea.  Once a borrower is in the process with the lender he is handled off to one person who handles his file throughout the process.  Borrowers are assigned to one person, one point of contact.  That point of contact makes sure the borrower has two methods of contact for him.  He explains all of the possibilities available to the borrower, and they work together to solve the borrowers mortgage issue.

At first glance, I thought, "This is great.  It will make things so much easier for both borrower and lender."  And then, reality settled in.  Wait a minute.  This is the same lender that loses your short sale file on 3 out of 4 attempts to submit.   It's the same lender that pays the current contact $10 an hour to answer the phone, answer your questions from a script and transfer your call to the next person who is going to hear your story.  What could go wrong?

Think about it.  This point of contact will need to understand the mortgage process from loan commitment through loss mitigation.  He will need to know state laws concerning bankruptcy, foreclosure, short sales and deed in lieu of foreclosure.  Most of the current asset managers I deal with handle up to 300 files at one time.  This person will need to handle an insurmountable number of borrower files, as well as, be the one "expert" dealing each one of those borrowers.  He will need to be available throughout the business day to any and all borrowers on his current file list.  Call centers will need to be divided to accommodate this new division for these consenting lenders.  Most mortgage providers don't consolidate bankruptcy, loan modification, short sales, foreclosure or even delinquent borrowers in the same department. That will mean more hires, more equipment, more locations and more overhead. 

I certainly don't want to pour cold water on an attempt to help with the mortgage mess we're in, but I'm not sure going back to the same people who already make problem loan issues miserable is a good fix.  I definitely agree that somewhere along the line a more streamlined process must be initiated, but is this it?  Beyond the challenges we already face with lenders, is their partner, the US government, who is on the verge of their own bankruptcy the best formulator of a sophisticated mortgage banking shift?  If they can't pay their own bills maybe they need a single point of contact in China.  I guess time will tell.

30 days later and there is no Decision on either File,   I do have an update on one, the Freddie Mac Loan…. THEY LOST IT… YES THEY LOST IT!  Here is the letter I wrote to try and get some attention for my clients.

if you want to see the Video Again here is the Link

http://youtu.be/Mf1qacDNT88

Mr. (*&(&(*& )(*)(*)(*):
Senior Vice President, Loss Mitigation
Bank of America

Sometimes emotion can get over wrought and focus is lost, but sometimes that same emotion can bring a clarity that pushes someone into action that saves lives.  I know this for a fact having worked in Law Enforcement and experienced that action. 

Law enforcement personnel are always aware of  public ire and the personal exposure to criminal behavior brought on by malfeasance.  Needing to take action but refusing.   I have decided I will not be accused of malfeasance.  Strong advocacy for my clients and community is my duty and thus your about to feel some emotion, let’s see if I can share some passion.

I brought two transactions to your attention in a video at www.HAFA.us.  One was a Freddie Mac short sale and the other a twin tracked Fannie Mae Loan Mod failure and possible reconsideration or movement into HAFA which was not offered to the client, which is the GSE mandate.   I do not have answers on either of these transactions, it’s been over 30 days.  That does not count the time it sat with your associate Mr. B(*&(&( or Mr. S(*&)(&(&(*&r who suggested I send the file to the Mortgage Side to get the Branch involved. More on steering later.

I am losing it, not enough passion, lets kick this up a notch.  Your Bank is a total failure you are failing the American People the regulators and real estate professions and in the process your costing our country billions of dollars.  We should lock your doors and put you all on the unemployment line and let you feel what it is like to not be able to get out from under the thumb of the worst Bank in the United States.  To fully comprehend the importance of timely action, your team needs to feel the same pain my clients do.  Now I am starting to feel like I am catching a groove, are you feeling how I really feel about what your doing to my clients?

Right after our last correspondence I gave my (*&(& Street transaction to the most capable of professionals to handle in concert with your  Mr. David (*&(&(*&)( and Mrs. C(*&(&(& *****   so there would be full objectivity and I would not be accused of being incompetent. Late today, I found out that your HAFA subcontractor has lost the file or can not see it in Equator, they are looking for the purchase offer.  This is coming from the Escalation Officer at AMS.

This of course means after you issued instruction to escalate these files it has taken 30 days to even look at the file.  I say break out your CHECK BOOK, FREDDIE MAC IS OWNED SOME MONEY.. and by the way I did my job and I want my commission.  Does your company have no shame?  Do you have no liability for reckless abandonment of these files?  Pay me and fix my client’s credit, which you continue to damage!

My Broker of Record who is receiving a copy of this correspondence can personally vouch for the person who has been working the file. The  incompetence of your Bank is not invented and I don’t think questioning the ability of the people who took over the “hands on” of this file is a good strategy to consider.  Fixing the file is not only a better plan it is the only course of action you can take if your to meet your duty to the investors, the GSE and thus the tax payers.  By all mean I encourage you to call my Broker of Record.  I am sure he will tell you,  I am the first to arrive and the last to leave my the office.  I am tireless in trying to help my clients.

If you are testing the ability of advocates to bring timely action, I personally am up to the challenge.  I have not one single thing that I can not afford to lose.  In fact, inasmuch as your quickly destroying our market and the Real Estate Professionals desire to commit to selling your short sale stock, your own inaction will be what rushes you to failure.

I think it was Socrates that said;  “the only thing I can contemplate which could hurt you more than a lie, is the truth.”   Where the truth can not go maybe a Congressional inspired audit or hearings could help. How many loans are you doing this to?  Do you really think you should be handling Fannie Mae and Freddie Mac loan servicing?  These are Public Loans should we be paying for your incompetence?

As you reflect on this tirade, you may want to get your hands on the list of files I gave Mrs C*()(*_* & &)__ ^%$ .  You have more problems headed your way, I want resolves, my clients are not expecting lip service from me.  They contracted with me for results, that is what I owe them.

In contempt for your inaction, the files land on your desk, good managers own the problem, what kind of manager are you?  Tell me do my clients deserve better than your company is providing?  I think they do.

George Kenner

This is the link to the Video’s of the Bank of America VP.

www.HAFA.us/navigate1.htm

George Kenner, Broker Associate Keller Williams Realty, Lic. 01229957

Contact George at 619-723-5714  or email  g.kenner@yahoo.com

When do you think I am going to recommend B of A for a Mortgage?

How will this effect your current short sale negotiations? Direct
approved assigned short sales are coming fast but are current BofA REO agents
going to get those listings?

Bank of America Home Loans has announced that it will exit the
reverse mortgage origination business and move the unit’s operational resources
into other critical areas serving customers. Bank of America Home Loans will
continue to serve the needs of existing reverse mortgage customers and those
with loans in process.

“We made the strategic decision to exit the reverse business due
to competing demands and priorities that require investments and resources be
focused on other key areas of our business,” said Doug Jones, consumer sales
and institutional mortgage services executive for Bank of America Home Loans.
“We fully understand the critical sensitivity of ensuring that our senior
customers are provided with the same level of excellent customer service that
we have provided in the past.”

On Thursday, Bank of America announced the definitive sale of its
Balboa Insurance organization to the QBE Insurance Group Ltd. The exit from the
reverse mortgage market is an additional step in the efforts of Bank of America
Home Loans to focus on its core mortgage operations.

Bank of America Home Loans entered the reverse mortgage business
in 2006 and expanded its presence in 2007 following the acquisition of Reverse
Mortgage of America in 2007 and Countrywide Financial Corporation in 2008.
Associates not redeployed will have the opportunity to apply for open positions
at Bank of America.

Bank of America President and Chief Executive Officer Brian
Moynihan also announced changes to Bank of America Home Loans and Insurance that
will continue the company’s strong momentum in extending home mortgage credit
while improving its leading mortgage modification programs for distressed
homeowners and resolving legacy mortgage issues.

The decision is the latest in a series of significant actions
taken to resolve outstanding mortgage-related issues while solidifying the
company’s leading position in mortgage finance. Bank of America in September
2010 initiated a self-assessment of default servicing, and in October became
the first servicer to voluntarily suspend foreclosure sales in all 50 states
while evaluating the process. While the review of the foreclosure process found
that the underlying grounds for foreclosure decisions has been accurate, Bank
of America implemented a series of improvements—including staffing, customer
impact, and quality controls.

Barbara Desoer, Bank of America Home Loans president, will
continue building the mortgage business for Bank of America. Desoer is
responsible for servicing loans for the more than 12 million mortgage customers
who remain current on their accounts, and for implementing the bank’s strategy
to be the preferred mortgage choice for its 50 million household customers
going forward. In 2010, Bank of America delivered $306 billion in quality mortgage
lending to 1.4 million customers.

At the same time, a newly formed unit, Legacy Asset Servicing, has
been established. Terry Laughlin will lead this unit and be responsible for
servicing all defaulted loans, and for servicing discontinued residential mortgage
products. In this role, Laughlin will oversee the bank’s mortgage modification
and foreclosure programs, and continue to be responsible for resolving
residential mortgage representation and warranties repurchase claims.

“This alignment allows two strong executives and their teams to
continue to lead the strongest home loans business in the industry, while
providing greater focus on resolving legacy mortgage issues,” said Moynihan.
“We believe this will best serve customers—both those seeking homeownership and
those who face mortgage challenges—as well as our shareholders and the
communities we serve.”

First off, let's all agree that at some point in some random conversation with some random person, we have all done it. We have all bragged about our success but, to be arrogant and bragging....well, it's stomach turning.

I just got off the phone with a local agent who wanted to know the status of one of my short sale listings. Well, if you are an avid reader of my blogs, you know....i don't play that game so, I asked her specifically what she would like to know.

Instead of asking me a question she proceeds to tell me how she doesn't like showing Bank of America short sale listings. Because I didn't hear any question in her statement, this strange awkward silence fell onto the conversation like a lead balloon and then she pipes up and ask, "are you still there?"

I replied, "yes, I was waiting for your question." Ok.....maybe it was a smart ass response but, I knew what she was wanting to know and, to be honest, I didn't and will not provide that information so, unless you specifically ask, I am not going to volunteer it. Anyways, she asked, "Is this with Bank of America". I honestly replied with a "I don't know" because at that specific time, I didn't. You see, I have over 25 listings currently, all in different stages of sale and it's not practical or even within my ability to know details on every single file just off the top of my head.....that's why I have files.

So, she huffed...just like a little girl who has been told she can't have another cookie from the cookie jar...she actually huffed, I heard her huff. Well, this action on her part almost caused me to go into a death spiral of laughter but, I held back...with a tear in my eye, it was hilarious.

She then asked me how it was possible that I didn't know. Ok.....well, the thought crossed my brow like a news ticker in times square, "WHO THE HELL DO YOU THINK YOU ARE?" but, I didn't say that because, I am sooo above that...right?

Anyways, I answered her question, "I have 25 listings at the moment and my buyer's team is handling over 100 leads so, for me to keep track of every file off the top of my head isn't practical." Yes, I was a bit snobby when I replied but, who the hell does she think she is to ask such a question?

She then replies with an arrogant and condescending, "Well that must be nice?" Not sure if that was a statement or a question, I replied, "It is."

After this point, her tone changed and she started talking in some weird alien language that i couldn't understand. It's that same tone your mother or wife uses when they are just about to hit their stride with nagging you about everything you didn't get done over the weekend. Women, just a word of advice, when working or dealing with a man, if you manage to hit that magical, nerve wrecking, skin crawling, hateful thought evoking tone, we men....even us "non-traditional" men.....SHUT DOWN! At that point, nothing you say is being heard or even understood so, go...take a nape, wax your upper lip, shave your pits....do whatever it is you do and then come back when you can talk more reasonably. Just a thought.

Now, I can't really recall what she was saying but, I did hear some key words. They were,"don't like Bank of America, takes too long, my clients don't have a year to wait" so, i got the idea and I interrupted her and informed her that even if the property was with Bank of America, with Equator and the new style of customer service in Bank of America's Short Sale Department, no reason why we couldn't get a deal done in 60 days or even less.

She then seems to have ignored everything I said, I guess women have a tone threshold as well, and started telling me that she knows all about Equator and that Bank of America called her once to offer her to be a agent for them and she turned them down.

Ok, for those of you REO agents who are experienced...or maybe not even ever sold a REO, if Bank of America calls you to offer you a job to list their assets and you turn them down either you are an absolute fool or you are just an absolute idiot.

At this point, I knew this woman had no clue, she just wanted to waste my time with her stories of how she knows all about short sales and I realized that she had no clue who she was talking to.

Yes, I had to brag a bit at the end....did you catch that?

Stay Safe, Stay Funny and don't forget to be Fabuloustastic!

Well, first off, I bet your wondering why I would be writing about Wal-Mart in a real estate blog….right? I guess you first have to understand Wal-Mart’s role in our economy. Regardless if you agree or disagree with the Wal-Mart philosophy, the reality is, Wal-Mart has a unique ability to predict cost and peer into the future because of their role as the nation’s …..hell, the world’s largest retailer. Without sounding too nerdy let me break down like this.

Wal-Mart can predict cost because they make huge purchases. If those purchases are costing Wal-Mart more and more, they have to push that cost to the end consumer, you and I. It really is that smiple.

So, knowing how this works, when Bill Simon, President and CEO of Wal-Mart predicts that inflation is “going to be serious” in a recent meeting with USA Today, you really should listen.

Ultimately, no one can really predict inflation with any proven accuracy but, what we can do is compare the current cost of commodities and goods with previous cost and determine a rate of increase. For example, strictly hypothetically speaking, if every Monday I buy 5 bundles of cotton, because I am in the business of making t-shirts and my cost for the past 30 purchases has been $5.00 a bundle, my regular purchase cost would be $25.00 a week.

Now, let’s say I am putting my order in for this weeks cotton purchase of 5 bundles and I notice the cost has gone up to $6.00 a bundle, that’s a 20% increase. Granted, that’s a bit dramatic but, that is a perfect example of hyperinflation. You see, the supplier had to up his fee because the farmer had to up his fee and that was because fertilizer went up, seed went up, cost went up and cost went up primarily because of fuel cost. Or better yet, the value of the dollar dropped and that $1.00 bought less but, the farmer still needed the same amount of supplies. In other words, demand didn’t change but, cost went up, dollar value fell and I saw an increase of 20% over one week.

Guess what I am going to do….I can’t eat that cost so, I have to increase the retail sales price of my t-shirts to 20% or, maybe I increase it 30% because I know that the dollar isn’t getting stronger, gas isn’t getting cheaper and tension in the Middle East, isn’t getting better, the Governments taxing more to cover their losses, the Fed isn’t putting into place policies that make it easier for me to make money, in fact the EPA has stepped in and said cotton has to be grown a specific way which causes the farmer to incur more cost, etc….etc…..etc……

Are you getting the picture? I hope so because now let’s talk about how this effects the housing industry. When John Smith home buyer wants to buy a home, he has to sit down and determine how much he can afford. Part of this determination is something called, Debt to Income. He has to determine if at the end of the Month, he still has enough money to live on and pay his mortgage. Well, if prices keep rising and, no one really knows by how much however, he sees all the uncertainty in the world that I described above, not to mention, he knows last week when he filled his tank it was only 2.59 a gallon but this week it was 2.86 a gallon, what does he do? He starts looking at a smaller house with a smaller monthly mortgage or, maybe he doesn’t look at all. Let’s not forget, the Fed isn’t making getting a home loan easier, credit is tightening, high housing inventories already exist, prices are falling almost everywhere yet, John Smith can’t or won’t buy a home because, he isn’t sure how much that home is going to be worth in 3 months.

All said and done, if Wal-Mart is warning the us that they are seeing steep, fast increases in prices of commodities and everyday goods, that leads them to believe we are starting to see the beginning of hyper-inflation….or inflation at the least. If Wal-Mart sees it coming……….the stock market is warning of it…….energy prices aren’t dropping………Middle East is on fire and looking to cool down any time soon…….the Government seems to be making things worse with out of control spending………the Federal Reserve is printing Benjamins like no tomorrow………the Dollar is loosing value……..demand isn’t slowing…………it’s a perfect storm against a housing recovery.

My sister in law as executor of the estate just sold my mother and father in law’s house. She chose a realtor who lived in the neighborhood who also was an reo realtor without a lot of reo inventory right now. (Not an unusual situation) She turned out to be the perfect agent for the job because of her REO background. She took a home that was filled to the brim with things that no one in the family wanted, had it cleaned out, trashed out, secured, on the market at an aggressive price, and sold in 2 weeks. I couldn’t have done better myself, except I would have staged it, but that is a separate story.

Getting a probate or trust sale ready for market is very similar to an REO. When a homeowner dies his or her personal property must be disposed. Things of value need to be appraised for tax purposes and are distributed accorded to the terms of the will, or in the case of no will sold and the money distributed according to state law. There is often much left over that is not of value and someone needs to trash the home out, much the same way as an REO home is trashed out. This job is often left to the realtor. The home will almost always be vacant, and again the realtor will need to make sure it is secure.

While probates and trusts do have some differences in the technicalities of sale from an REO, many of the disclosure exemptions are the same. The executor is exempt from the transfer disclosure, the seller’s questionnaire, the smoke detector requirement, and signature on the natural hazard report, but not exempt from providing the report. If the realtor knows anything about the property he or she does have a duty to disclose anything that is material.

Homes that are sold through probates or trusts are very often not perfect. There may have been a death on the property or there could have been many years of deferred maintenance when the owners got older. They may even have been left empty for a period of time while the owner was in assisted living or a nursing home. Like an REO property the realtor must make adjustments to the suggested price based on these issues which are common to both kinds of sales. (Generally the death on the property is not found in REO properties, but it can happen.)

The other big similarity is that both REO homes and trust or probate homes have to be sold. They are not owned by people who have the luxury to test the market and sell if they get the price they want. They need to be sold, either to settle an estate or in the case of an REO to mitigate a loss. As a result they are a wonderful opportunity for a buyer to get a home at a great price or a realtor to get an assured sale. Both sides win in these types of sales.

So why the comparison? If you are an REO realtor and add probates and trusts to your repertoire then many of the skills you have learned are very useful. If you are an investor it is a good place to look when REO inventory is not getting you everything you want. If you are an end user buyer these homes are worth exploring because of the motivation of most of the sellers.

Re-blogged by 1 agent

• I posted this blog on some public websites and ws surprised at how many people were unaware of this option for distressed homeowners that is quick, clean, and relatively hassle free.

An Interesting Alternative to Foreclosure: A Deed in Lieu of Foreclosure (edit/delete)

I think this is a good option for banks and homeowners. Wouldn't you enjoy not having to kick someone out of their home?

New proposal would extend the CLOSING time until September 30th, 2010.

This is for those ALREADY under contract. The current tax credit has to close on the home by the end of this month - June 30th.

We all know what a mad dash it was to get the homes under contract for the buyers now getting them all closed by the end of this month is a monumental task and there are a lot of buyers that are going to miss the deadline. Lenders and title companies are swamped.

There are so many buyers here tied up with Las Vegas Short Sales, (as I'm sure it is across the country) that are waiting for the banks to approve these short sales that it just isn't going to happen by the end of the month for so many.

This in turn could lead to a lot of homes being dumped back on the market because if you had a buyer only buying a home to get the tax credit, they may walk away from the deal now.

I know for several of my buyers that are hanging in there, they now are crossing their fingers even more!

I’m curious how other agents see short sales and REOs mixing.

If you are an REO agent and are assigned a listing, you are happy. If you then find out that one of your associates in your brokerage has had it listed as a short sale within the past 6 months, your happiness might turn into a sense of loss. You need to tell your seller that the property has been listed with your brokerage and let them decide if there is a conflict of interest. In fact, the seller probably is already aware that the property was previously listed with your brokerage, in which case they may not have assigned it to you at all depending on their policies.

Do you, REO agents, consider this scenario potentially damaging to your business? One reason I was motivated to build my own brokerage was I could control what listings we handled and avoid sellers in distress since potentially we have a better chance of selling their home as an REO listing than selling their over-priced, underwater short sale home. When I worked at a franchise brokerage I had to turn down pre-listing bpos because another agent in my office currently had the properties listed. This happened a few times and I decided that it was up to me to solve the problem by leaving.

Now, the whole game is changing and short sales are becoming part of the mix with management companies that previously only managed REOs. I have heard some short sale agents claim that they get REO listings by being the short sale agent for the owner in default but I have yet to see any proof to back up this claim. Usually the short sale agent gets a call from the REO agent instructing them to remove their short sale listing from the MLS because the property has a new owner. These are uncharted waters so my question is:
Will a short sale assigned by a management company be more likely to be kept by a listing agent if it fails to sell and becomes an REO?

“Can you tell me the benefit of attending all these conferences?”

Networking

The sad fact of the REO Industry is, if you don’t know someone, you most likely aren’t going to make it in this business. It’s a fact and sadly enough, the vast majority of you out there trying to succeed in REO know this because you are struggling to get just your first REO but, YOU HAVEN’T DONE A DAMN THING ABOUT IT!

Instead, you send me silly questions like, “Can you tell me the benefit of attending all these conferences?”. COME ON, do I really? Seriously?

Ok, in the spirit of giving, let me give you a golden nugget. If you are paying your expensive conference ticket, expensive plane ticket, expensive hotel ticket, expensive rental car fee, food and whatever else but all you did was attend the conference………..it most likely was a waste of your time! I know this may come as a surprise to you but, let me share a golden nugget with you. Ready?

Most of the business done at a conference isn’t done at the conference. It’s almost all done at the after parties. In fact, I know this to be true because most of the business I have ever received came directly from the parties afterwards that I was lucky enough to attend. In fact, ask any major player and they have at some point attended a party that allowed them to network with some decision makers who ended up liking them and catapulting their careers. To explain to you just how important the parties are, I know people who are coming in for just the VIP Poker Party RealtyPilot / REOPro is hosting and for nothing more. To further my point, how many times, at a conference have you been walking around and happened to bump into the VP of Fannie Mae………..NEVER! Why is that? Because she isn’t attending the conference so much that she has breakfast appointments, lunch appointments, dinner appointments and parties to attend to do nothing more than N.E.T.W.O.R.K! Yeah, you might see her on a panel speaking or walking through the hall very quickly with an entourage rushing her to the next speaking engagement but, when she is done speaking….she is out of there to her networking events. It’s your job to do all you can to be at the same events she is at or, you are going to miss out on an opportunity of a life time!

It’s at these networking luncheons, dinners and parties where these VIP’s let loose. They get a couple drinks in them, they are around others that they know or have heard of and they get comfortable. They don’t have to worry about reporters, lookie lous, wannabes so, they let down their guard and if you made it in the party, they consider you a part of the club. It reminds me of that scene in Titanic when Jack Dawson, played by Leonardo Di Caprio gets invited to dinner by Rose’s finance, whom I can never remember his name. Jack goes and gets himself a tux from the unsinkable Molly Brown and off to dinner he goes. The movie makes it a point to showcase that he was graciously accepted into the elite club even though he was a 3^rd class ticket holder. This is the pinnacle of networking, getting accepted or invited into a ultra exclusive club or party and then making the most of it. Using your Nerve, Charm, Charisma, and Wit to showcase who you are and what you can do for them.

People, the clue phone is ringing so answer it will ya?

I have been using ebrokerhouse for about a year now based on my husband attending a CREOBA conference. He really liked the option of managing our offers since agents were sending them left and right to my email, his email, office offers email, fax, efax. They were coming out of everywhere and some were not even found. So we decided to go to an offer management system and the low cost of ebrokerhouse seemed attractive over the REOMaestro prices.

It worked well in our offer management system, we could view and respond to all agents, have our assistants notify the rejected offers quickly and input additional lender required information. We could now locate where all offers went. Locating lockbox combonations was made easier. And my bookkeeper had a great time managing the PGE and other billing. The customer service wasn't bad because they would call us to find out about our input. (I don't know if they ever applied it. )

BUT we found a few flaws: 1. You could not sort the property page. So if you entered a property 20 properties ago, you had to slowly go through all pages to locate it. 2. The weblink we listed on our mls for agents to submit offers often times was too lengthy that agents cut and pasted not enough of the link and took them to wrong pages and they would call and not know what to do. 3. Agents seemed to not understand the way to upload offers (this was most part on the other party for their passive approach to new technology) but that caused agents to call and be frustrated and send offers to all our emails or fax- again diminishing the point of having this offer management system.

Although the system helped us manage our pipeline, I really felt that it seemed archaic and lacked the 2010 technology to it. They definitely need to update the functions. But I am still an ebrokerhouse user - I think it's due to my passive approach to change too.

Thought I'd put this question out there because in the past 6 months, I have shown at least 3 houses that I believe were Meth Labs. None of these homes were my listings and in bringing the topic up to the listing agents, I got a reaction like "okay thanks for telling me" and I had the feeling that these agents did not have a clue as to: 1. The fact that a "meth lab" can be located in any neighborhood, within any class and income level; 2. What the signs and symptoms were 3. The possible serious effects of being exposed to a past or present Meth Lab;

5 Signs Your Listing May Have Once Been a Meth Lab

http://styledstagedsold.blogs.realtor.org/2009/07/16/5-signs-your-listing-may-have-once-been-a-meth-lab/

Are you living in a former meth lab?

http://methnews.blogspot.com/2009/07/are-you-living-in-former-meth-lab.html

This is a gray area as far as disclosure, because an agent may have no clue they are even showing a current or former Meth Lab and as you have heard recently, there are horror stories of buyers purchasing homes which have been used as Meth Labs that have caused them to become sick; Some have even had to "walk away" from their house because of the sometimes very expensive remedies for correcting a house with traces of meth throughout. Before you say, "how could an agent not know they are showing a Meth Lab", read the following fact:

Meth Labs can be setup in a small space such as a closet, a box, garage and any small area of a house; How many of us have showed our buyers a house that has that one locked room where the Sellers say they have valuables or "weapons" and will not allow access; As an agent, I have gotten into the habit of scanning a room before I enter it and also reading the body language of Sellers. That is why on a recent showing, when me and the buyers were about to enter a home where Sellers were present, the first thing I noticed was a "pantry" near the entrance to the kitchen that had 3 hinges on each side of the door with a pad lock on each hinge; VERY STRANGE; My antennae went up that they this was possibly a Meth Lab based on the fact that the husband made sure we did not get anywhere near this "pantry"; The husband had physical symptoms: rotted teeth, an emaciated appearance, and a sunken face, however, these could be symptoms of some other illnesses or problems, so I don't solely rely on a person's looks; The convincing point came when me and the buyer walked a few steps into the kitchen and the smell of rotten eggs and ammonia overwhelmed both of us; In addition, our eyes starting burning; I quickly asked my buyer to come outside with me and on the way out noticed the blue discoloration around the fire extinguishers; I explained to her that I believed the home had dangerous fumes that I did not want her or myself to be exposed to and kindly informed the Sellers we were leaving; As I am not a "Meth Expert" and only rely on information and previous experiences to determine whether a house was or currently is a Meth Lab, I did not pass this opinion onto the Buyer or Seller.

A question I pose to other agents on this forum is: Have you been in this situation and would you disclose to a potential buyer or seller that you believe a property is a "Meth Lab"? I'd love your feedback.