Blog

realtor (98)

I See Dead People or Why Is A Probate or Trust Sale Like An REO?

Posted by Marcy Moyer on September 9, 2010 at 2:00pm

MP+Cavendish+Law+Wills+and+Probate.jpg

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.

Read more…

Why Don't Banks Act Rationally in a Short Sale?

Posted by Marcy Moyer on August 26, 2010 at 1:30pm

Why do some short sales get approved, and others rejected?
 
Why do some short sales with loans from the same bank get approved while others don’t?
 
Why do some short sales with loans by the same bank in the same developments get approved while others are denied?

 

Keep your short sale from derailing with these tips.

 
The world of the short sale is changing on a daily basis, and what you know today will be different tomorrow. The rules change, the players change, the documentation changes every minute.  There is, however, one constant: you do not always know whether a short sale will close or not.
 
Two years ago only about 5% were closing, now that number is more like 50%. Still, it's quite risky for buyers and sellers to get their hopes invested in a successful short sale when the odds are 50/50.  There are some things you can do to help insure the process has the best chance of closing.
 
In general if the following are true then the chances are better:
 
1.     The realtors on both ends know what they are doing and have the time, energy, and resources to follow up to set expectations appropriately.  The buyer can not be in a hurry!
 
2.     The fewer the liens the better. One loan is best, two loans with the same bank is second, two loans with two banks third, two loans with other liens such as taxes are probably not going to work out.
 
3.     The short sale process was started before a notice of default was filed.
 
4.     The buyer is well qualified.
 
5.     The home is owner occupied.
 
 
None of these things will guarantee a positive result, but they help.  The biggest problem in the short sale process comes from third parties who are not the bank, but either investors that purchased the loans like hedge funds, or insurance companies who insure the loans for the banks (not mortgage insurance for the borrower).
 
These entities can derail a short sale, and it is not possible to know if they exist, or what they will say before the process begins, unless of course you are dealing with a bank approved short sale--but that is a different story.  So the lender may appear to be Bank of America or Chase, but the investor who put up the money maybe someone else and if so they have to agree to the price and terms.  Or sometimes the second lender will get more money in a foreclosure and will not agree to release the lien.  When this happens, what appears to be an irrational move by the bank, may have nothing to do with them.
 
These are a few of the reasons why seemingly illogical things often happen in the world of short sales.
 
Marcy Moyer
Keller Williams Realty
DRE  01191914
Read more…

Do You Want to Buy a New Car?

Posted by Marcy Moyer on July 16, 2010 at 1:30pm

OR: What Hurts More, A Short Sale or One Where There's Still Equity But You Have Lost A Lot
 
This morning my husband opened up an envelope with information about his stock options. He looked at me and said, “Do you want to buy a new car?”
 
My answer was of “Of course not.” He then explained we'd just lost $50,000 in value from his stock options.
 
My response? “Don’t be so greedy.” 
 
We are both working, our mortgages are almost paid off on the house and rental properties, and the stock options are like dessert, nice but not essential. However, it was painful to him to lose that much money on paper.
 
It made me think of my latest clients.  Some have lost all equity and if they have to sell it will be a short sale. By the time they get to me it is gone, and they do not seem to be concerned about the price as much as the process.  Others who are losing equity when they sell seem to fall into 2 categories: those who are grateful to be able to sell and those who are fighting for every penny and do not seem to see the value in taking an offer to make a sale if it means losing a little more money.
 
If you are a buyer then your life will be much easier if you can find one of the former sellers. If you are working with a seller who is emotionally invested in every penny they are losing it will be a much more difficult sale.
 
If you are a seller it is important to clearly understand your goals when putting a home on the market. If you only want to sell at your price, then if your price is market value, you may get it. But if your price is above market, it won’t sell. Period. 
 
The most difficult part once you understand your financial choices is overcoming the emotional ties to a particular number.  If you want 1.5 million and you only get 1.4 million and life can go on, can you let go of your emotional attachment to to 1.5? If not, this may not be the best time for you to sell.
 
It is no different if you want 400K and you can only get 380K.  If your life can go on with a lower price and you need to sell, you may have to eat the emotions.  If you are just testing the market, don’t bother. In this environment you will fail. If you focus on your need and not your want you will get to your goal of selling a house much quicker and easier.
 
Marcy Moyer
Keller Williams
650-619-9285
Read more…

A Better Way to Do a Short Sale

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

A Better Way to Do a Short Sale

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

A Better Way to Do a Short Sale

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

The FACTS About Palo Alto Short Sales and Foreclosures

Posted by Marcy Moyer on June 8, 2010 at 8:00am
There's a lot of chatter on real estate blogs about the steep increase in foreclosures and short sales in Palo Alto.Unfortunately many sites post stats from a company called Realty Trac which tracts everything from a Notice of Default through a listed bank owned property.  Many things can happen before a home with a Notice of Default actually gets to be sold by the bank, but unless you read the fine print carefully it is easy to confuse a house that is behind a few months in payments with an actual bank owned property on the market for sale.
 
Most bank owned homes as well as short sales (where the seller owes more than the home is worth and the lender/lenders have agreed to accept less than the amount of the mortgage to release the debt) are sold through the MLS.  So to see how many of these distressed sales have hit the market in the last year I went to the MLS and looked.  
 
Here is what I found for single family homes:
 
Bank owned properties sold in last year:             4
Current Pending sales of Bank owned:                2
Short Sales sold in last year:                             3
Current Pending Short Sales                              1
Current Active Short Sales                                 1
For condo/townhomes the numbers are:
Bank owned sold:                                             2
Bank owned pending sales:                               1
Short Sales sold:                                              3
Short sales pending:                                         4
Short sales active:                                            2
As you can see this is not a huge number, especially since the total number of homes sold in Palo Alto in the last year is 369, making distressed sales account for less than 2%.  There have been 97 condo/townhomes sold in the same period making the distressed sales about 5% of that market.  These numbers are not enough to have any impact on the price of homes in Palo Alto at this point.  The percentage would have to increase several fold before Palo Alto prices are affected by distressed properties.  I am not saying that this is or is not going to happen, that is a discussion for a future post, just that it has not happened yet.
Marcy Moyer
Keller Williams Realty
D.R.E.  01191194

 

Read more…

Realtor Friendly? What's in it for REO broker? And why don't (some) selling brokers just follow the directions??

Posted by Byron Blackburn on May 14, 2010 at 6:00am

As an REO broker how can I be more Realtor Friendly?

The REO broker does indeed experience a lot of pressure from the asset managers & companies. It seems that new REO assignments come at times in 'herds' with short-tough deadlines. Yup...been there, done that. So why would I consider taking the time to be 'Realtor Friendly'?

From my self-interest & perspective, being Realtor Friendly saves me time. The most important time I have is the DOM time. My REO listings seem to get shown & promoted first by selling brokers. They have experienced a cooperative list agent, full compensation regardless of list agent referral fees, and most importantly (to me anyway) a 'no war' transaction, which can be exhausting. I believe that being Realtor Friendly negotiates my seller client right-in-to a fast closing! Happy days are here again!

Yes, some selling brokers are hard to work with and need more time than others. Yes, this is a true experience of mine as I'm sure it has been with everyone out there. What I know to be true is that we are dealing with people. Realizing after 10 dedicated years of trying to teach my cat to bark, I no longer argue with the reality that cats don't bark, don't want to bark and cats are happy with a meow. I gave up arguing with the reality that all selling agents (people) should be equally competent, follow directions and have no need of my communication. It is simply NOT the way of it....and never will be.

Being Realtor Friendly is actually quite easy to do. It starts with the understanding that selling agents are a vital part of the transaction equation. They are the finishing 1/2 of the deal. They influence YOUR reputation with your asset manager. If a buyer's agent learns of issues regarding the transaction, they are more likely to keep you informed so you can pass the info on. In my experience, asset managers like and tend to favor a 'no surprise' REO broker. Realtor Friendly means having all of the needed docs and information uploaded on the MLS along with good pictures. Perhaps in the public remarks put "Check this one out with your favorite Realtor!" and in agent remarks might add, " Realtor" friendly listing agent. Questions? Call! Closings are more fun than listings! Do you agree? Let's close this one soon". The open receptiveness coupled with down-home people respect is ultimately your asset managers BEST FRIEND.

Selling agents don't seem to mind or be upset that my genuine motivation is powered by my own self-interest. Short & fast DOMs without struggle seems to earn me more money, which I tend to like.

Read more…

REOPRO- Fantastic Buyer and Seller Referral Source!

Posted by MARK MCINTYRE on April 27, 2010 at 9:21am
REOPro is a great networking tool that is FREE and has some of thefinest REO/Short Sale Agents around! The founder Jesse Gonzales hasplaced a tremendous amount of time and substantial energy into creating areputable forum to share information. Recently our Team was contactedby a fellow REOPro member to refer us a very good friend of his who islooking to buy a home in AZ and is a cash buyer. If it would not havebeen for REOpro we would not have been able to connect and help hisfriend purchase a home, and create a fantastic dual referral partner!

Thank You REOPro and all your members!


MVP Realty Team- "Always Your Home Team"
Direct 480.603.3462
Office 480.449.6641
Fax 480.768.9444
Email: Info@mvprealtyteam.com
Web: www.mvprealtyteam.com


Servicing: 85323,85392,85326,85396,85377,85327,85331,85224,85225,85226,85244,85246,85248,85249,85286,

85335,85268,85269,85233,85234,85295,85296,85297,85298,85299,85301,85302,85303,85304,85305,

85306,85307,85308,85310,85311,85312,85313,85318,85338,85339,85340,85201,85202,85203,85204,

85205,85206,85207,85208,85209,85210,85211,85212,85213,85214,85215,85216,85274,85275,85277,

85087,85253,85345,85380,85381,85382,85383,85385,85001,85002,85003,85004,85005,85006,85007,

85008,85009,85010,85011,85012,85013,85014,85015,85016,85017,85018,85019,85020,85022,85023,

85024,85025,85026,85031,85032,85033,85034,85035,85036,85038,85040,85041,85042,85043,85044,

85045,85046,85048,85050,85051,85053,85060,85061,85062,85063,85064,85065,85066,85067,85068,

85069,85070,85071,85072,85073,85074,85075,85076,85077,85078,85079,85080,85082,85083,85085,

85086,85098,85099,85240,85242,85263,85250,85251,85252,85254,85255,85256,85257,85258,85259,

85260,85261,85262,85266,85267,85271,85351,85372,85373,85374,85378,85379,85388,85280,85281,

85282,85283,85284,85285,85287,85289,85353,85363


Maricopa County

Pinal County

Gila County

Read more…

Certified HAFA Specialist from California Association of Realtors

Posted by Johnny Huang on April 26, 2010 at 6:36am

Special prices applicable till April 30, 2010. CAR members please use promotion code “APCAR005” and non-CAR members please use “APUSA005” on the order form.


HAFA is the first Short Sale program to set nationwide Short Sale standards and financial incentives and it went ‘live’ in the non-GSE market on April 5, 2010. Don’t miss the opportunity to become a Certified HAFA specialist today!

With almost 8 million US families currently behind on their mortgage and continuing high unemployment rates, HAFA will be critically important in helping millions of distressed borrowers achieve a respectful and supported pre-foreclosure home and life transition. HAFA represents an unprecedented opportunity for real estate professionals to make a positive impact and drive transaction and revenue growth.

This 2 to 3 hour program provides a high level overview of the current US distressed housing market and an in depth review of Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program per Treasury Supplemental Directive 09-09. HAFA was revised by Treasury on March 26, 2010 and the program is fully updated to reflect those changes.

The training can be completed on the web anytime and from any location, and is brought to you in partnership with the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R) in California.

Training and Certification Content (2-3 hours)


The training session is organized into the following modules

  • Section I – Foreclosure Alternatives Market Background
  • Section II – HAFA Overview
  • Section III – Implications of HAFA
  • Section IV – HAFA Roles and Responsibilities
  • Section V – HAFA Process and Documents
  • Section VI – HAFA Opportunities and Challenges

HAFA Certification Quiz

Each of the above modules ends with a short multiple choice test. Upon the successful completion of all 6 modules and tests registered clients will:

  • Become a ‘Certified HAFA Specialist’, enhancing your HAFA credibility in the marketplace
  • Have the opportunity to participate in AssetPlanUSA’s Certified HAFA Real Estate Professional Network for Servicer and AssetPlanUSA HAFA referrals
  • Receive HAFA program and Servicer updates for 1 year
  • Be able to print and keep a desk reference ‘HAFA Summary’, as well as 4 key HAFA example contracts
    • HAFA Short Sale Agreement (SSA)
    • HAFA Deed-In-Lieu Agreement (DIL)
    • HAFA Request for Approval of Short Sale (RASS)
    • HAFA Alternate Request for Approval of Short Sale (ARASS)

http://shop.assetplanusa.com/training.html

Read more…

The Short Sale Dilemma - Understanding Fiduciary Responsibility

Posted by Allan S Glass on January 24, 2010 at 10:00am
In the most simple of terms a real estate agent serves a fiduciary responsibility to the client. This legal and ethical relationship of confidence and trust bonds the client to the agent in reliance of protection and aid during the transactional process. For the real estate broker and agent, the fiduciary responsibility is a clearly defined relationship requiring specialized knowledge, dutiful care, and pragmatic repose.Traditionally, the mechanics of a real estate transaction allow for a seller to financially gain by selling their asset to the highest bidder. In these cases the broker/agents role includes advising on how to best position the property for sale, qualifying the potential buyers, negotiating for the highest price, and maneuvering through the logistics of escrow. But what happens when profit is removed from the equation?What is a Realtor’s® fiduciary responsibility in a short sale?First and foremost, a real estate professional should understand how the term is defined. According to the 2004 edition of California Real Estate Practice by Lowell Anderson, Daniel S. Otto, and William H. Pivar, a fiduciary duty is one of good faith and trust. “The agent must be loyal to his or her principal, placing the principals interest above those of the agent. An agent’s actions, therefore, cannot be inconsistent with the principals interests. The agent cannot act in a self-serving manner to the detriment of his or her principal.”According to the National Association of Realtors a fiduciary responsibility is like an OLD CAR. the acronym used to account for the six duties outlined by NAR. These responsibilities include:1. Obedience - the duty to promptly obey and follow all legal instructions of the principal2. Loyalty - the duty to act in the best interest of the client, putting their interests above others, including your own3. Disclosure - the duty to disclose all relevant facts affecting decisions of the principal during the transaction4. Confidentiality - the duty to safeguard a principals secrets, unless doing so violates disclosure laws5. Accounting - the duty to account for all funds and proceeds entrusted to you by the principal6. Reasonable Care and Diligence - the duty to use all of your real estate skills in pursuit of the principals affairs, including the responsibility of knowing when you are beyond your scope of knowledgeTwo TransactionsShort sales actually involve two separate transactions that occur simultaneously. The first is a real estate transaction, where the defaulted seller enlists a Realtor® to find a ready, willing, and able buyer to purchase real property. Most agents are very qualified to handle this part of the equation as it falls squarely within the scope of expertise shared by all. Like most other non-short sale transactions the agents and brokers are paid for this work by way of a real estate commission earned upon the successful completion of a sale.The second transaction in the short sale process is a financial transaction. This occurs between the principal and the one or more lien-holders with financial claim against the real estate in question, over and above the net purchase price offered by a buyer in the first transaction mentioned above. Unfortunately many Realtors® attempting to handle this transaction do not have the technical expertise nor the experience to dutifully represent the principal in this matter. This transaction has legal ramifications, tax consequences, and can carry significant financial impacts. Additionally, unless an agent imposes a negotiation fee, paid by the lender on the HUD-1, they do not get paid for the work on this second transaction.Understanding Who is the ClientIn a world of REO’s it’s sometimes lost on the listing broker that his or her client is not the bank during a short sale. Quite the contrary. If you were to ask a loss mitigation representative at your local bank how they view a defaulted seller requesting a short payoff you might be surprised to find that the relationship is considered adversarial. Anything and everything collected by the banks representatives can and will be used against the defaulted seller when negotiating a settlement.Effective customer representatives, asset managers, and loss mitigation specialists while sometimes warm and pleasant are building the banks case against your client with each and every financial document you share. You are not working together to find a solution. They are looking for ever last possible dime they can extract from your client before writing off the balance as a loss. Agents would be well advised to understand the dynamics of this relationship and exercise the utmost care with their approach in negotiating debts.What Constitutes the Best Offer?As I mentioned above, a defaulted seller walks away from a completed short sale with the same amount of money in their pocket regardless of the purchase price. Zero, zilch, nada. The short lender in the transaction will, as condition of their approval, specifically address this point and strictly prohibit the defaulted seller from any form of financial gain. As is the case in most distressed sales, the best deal is often not the highest priced offer, rather it is the offer that presents the greatest “surety of closing” to both the distressed seller and bank accepting the loss. My point here is not to contend that price is completely irrelevant; rather i’d suggest when reviewing multiple offers, consider how much staying power the potential buyers possess along with other intangible assets like buying / investing experience, and patience.I’ve seen short sales completed in less than 90 days and I’ve heard of short sales that have taken longer than a year to complete. In most cases, the difficulty in closing a short sale is keeping an interested buyer motivated to close. It is not uncommon for retail buyers to submit offers on several short sale listings hoping at least one in the group will be approved by the lender absorbing the loss. The unfortunate reality is that many families cannot wait for months to make a housing decision. Parents need to accommodate work needs, kids have school schedules, and families, especially in this market, have other options.How to Get the Ball Rolling - Offer TacticsThe short lender has no interest in discussing a short sale transaction unless a qualified offer is in hand. To address this issue, temptation sometimes drives a distressed seller and their agent to submit an offer, any offer, to the bank even if the buyer isn’t real. The use of “straw buyers” is a dangerous practice and walks an agent and their client down a slippery slope. Even if the principal suggests or demands the use of these tactics, the agent has a fiduciary duty to be obedient along the letter of the law. It is the agents responsibility to be aware of both legal and illegal practices and inform the client when such lines are crossed.Only substantiated offers from real buyers should be accepted and/or submitted to the lender with a completed short sale package. If a home is languishing on the market, an agent has a responsibility to investigate and inform the seller what may be causing the problem, why buyers have not written offers, or why agents are avoiding showing their property. If a defaulted seller has waited too long into the foreclosure process to allow for normal marketing time, the agent has a responsibility to price the listing appropriately to allow for maximum interest from the buying community.Putting it All TogetherFiduciary responsibilities require a broker / agent to enact a responsible business plan incorporating a full awareness of the real estate process. Understanding what can be done legally, determining who exactly is the client, discerning the clients objectives, protecting client interests, and diligently advocating on their behalf are primary to the agent / client relationship. Although the agents expertise and experience are relied upon for guidance through the real estate transaction, the agents fiduciary duty is to put the clients interest and desires above their own.Short sales present a unique set of circumstances that likely contradict common practice due to the absence of profit for the principal, and the cumbersome financial transaction that accompanies the real estate sale. Broker / agents taking short sale listings bear the burden of responsibility to their clients to know when they are in over their heads. It’s not enough to simply declare yourself a short sale expert because distressed assets are the only properties selling in your marketplace.Brokers and agents must understand the primary objective of the seller in a short sale is to avoid foreclosure. This objective is met only if and when a bonafide offer from a real buyer is submitted and approved by the lender modifying a debt. If you take a short sale listing, the bank is not your client and is not working in tandem with your principal to accomplish their goal. It is incumbent upon the broker / agent to understand this adversarial relationship, protect the interests of their client, and maintain a modicum of confidentiality on their behalf. A broker / agent who accepts a short sale listing must be willing to put subjective viewpoints aside and present all potential options objectively to the client. Finally, a broker / agent must understand from both the buyer and seller’s perspective the correct legal procedures necessary to complete the sale of property in imminent default.The responsibility is great, but the reward of helping a client avoid foreclosure is even greater. If you educate yourself, understand the process, remain objective, and focus on the client’s goals your fiduciary duty can easily be maintained.Allan S. Glass is a real estate broker in Los Angeles, California specializing in REO and Short Sale transactions. Allan is also a featured blogger on Realtor.com. The ASG Real Group has over $1 billion and 17+ years of transaction experience.
Read more…

Motivated Buyer

Posted by Linda Landry on October 9, 2009 at 3:15pm
No doubt this has happened to you more than once but it is my first experience.I have been networking with several lenders doing funding expo's and first timehome buyer workshops. I was pleasantly surprised this week when I was givena lead from one of them. Her LSR was complete and she was searching for arealtor being dissatisfied with her prior agent. She'd been shown the only propertyshe wanted and needed to see it again and most likely make an offer.Her prior agent said it was not worth either her or the agent's time to write an offeras it would be a back up offer and it was a short sale 'possibility' (ie: not yet lenderapproved). Naturally I was willling to assist her and I asked her if she'd signed aBuyer/Broker agreement and she said she had not. I wanted to ensure she hadn'tas if the transaction did go through there was no reason to ask for trouble. At anyrate we saw the property and we did write an offer for her. She also signed aBuyer/Broker agreement to work with me exclusively through the end March 2010.Why is this important? She is obviously a motivated buyer and there is a greatpossibility she will not obtain the property she has her eye on. However, if shedoesn't I am the agent ready, willling, able and signed on to work with her. BTW,she is renting and her lease expires the end of November and she can only gomonth to month for 90 days. Sweet!
Read more…

It never REALLY belonged to you!

Posted by Linda Landry on September 13, 2009 at 7:28am
I am astounded at the destruction and mutilation discovered in properties abandoned after foreclosure! Where did the current mentality of homeowners/renters come from in thinking it is their prerogative/privilege to destroy/steal or damage property they vacate? Everyone is aware that renters are 'leasing' property from the owner and that owners require security/cleaning deposits. However, I have spoken to landlords who've had their property damaged or destroyed beyond the limit of the deposit to include arson! Additionally, homeowners who become thieves of destruction to the property they have lost to foreclosure abound. They apparently do not realize they are actually tenants of the bank who holds their loan. They do not yet own this property until the loan is paid in full. Their down payment was just that: a payment they put down towards the repayment of the ENTIRE loan in the amount to which they agreed to pay to purchase the property. Lest we forget, this agreement was in the form of a legally binding contract. Perhaps more defaultees should be prosecuted for default or destruction. If people keep defrauding and defacing it may result in the banks requiring we pay for a loan for thirty years PRIOR to taking possession! Wouldn't that be a kick in the you know what!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
Read more…

Time is of the essence!

Posted by Linda Landry on August 16, 2009 at 4:41am
I truly like this phrase! It speaks for itself doesn't it? I think so and it is so very pertinent when it comes to the current first time home buyers tax credit which expires at the end of November. In order to take advantage of this credit the transaction has to close/record before December 1, 2009. Since escrow dealings can take 30-45 days that means the transaction needs to be negotiated/accepted within the next sixty days. Not only is finding the right property time consuming but keep in mind you need to find the right real estate professional to assist you, the right lender and property inspectors. You will need to research details of the property; the inspections should include at the very least a termite and property inspector. If you or anyone you know is planning to take advantage of this opportunity the time to act is now!
Read more…

Working Harder: Tenacity Equates to Success in This Market!

Posted by Laura Leigh Wood on June 21, 2009 at 3:24pm
"Dictionary is the only place that success comes before work. Hard work is the price we must pay for success. I think you can accomplish anything if you're willing to pay the price." - Vince LombardiIt is no secret that we all are working harder than ever, and the question remains: Is it Worth it?Of course, and throughout this re-invention periord to some degree, we will all learn how to plant our gardens and do more than survive, but to succede and flourish!There are many buyers that are jumping on the train, and realizing it is time to find their home before the whistle blows here in Central Florida. Albeit, not all short-sales and foreclosures are on the track, but when our buyers are educated, they grow to understand the process and the time that is expected. The end result at the closing table is an amazing purchase price and a great home to serve their family for many of their celebrations.I have been welcoming the oncoming challenges, but have equally began realizing my need to celebrate time away with my family!Needless to say, we are all counting our many blessings on a daily basis - and that is not all so bad!-Laura-Leigh Wood, GRI / ABRSpecializing in Central FL Residential Real Estate
Read more…

WOW - First Blog!

Posted by Bob Bjurstrom on April 22, 2009 at 4:12am
I feel compelled to write after reading the "Ask the Expert" article. It mirrors my feelings about many things, but mostly the big WHY of why I went into Real Estate in the first place, and the WHY of who I currently work with.But it leaves me with a question as well.........If you are not honest about why you work you only deceive yourself. We work to make money to take care of and protect those we love. As a lifelong entrepreneur who has been in construction and sales - I work to help people. For the most part I work professions that allow me to express myself, help people, and yes make money. I know deep down I can become rich if I help enough people. I can square that with myself and my God all day long. I celabrate my 1 year anniversary with Keller Williams today after working with what used to be a bigger company for 5 years. Keller Williams has been life changing for me in that they believe in having the best of the best - teach the rest. They share, they know there is enough for all and no one person or company will ever take over the market and keep it all to themselves.So I have built relationships in and out of my office. I have a buyers agent, a transaction manager, and many vendors who all have the same goal, service. We get paid when the job is complete. It is a fact that I now make less money per transaction because of the group concept. But it is also true that I am now freed up to do what I do best. I trust each of them and we work on an asset by asset basis - we are independent agents who have banded together to enhance our areas of competence. In all of that - I find I now do a much better job for our clients because I can focus more on their needs instead of paperwork.I am going to a REO/BPO convention soon in Texas and am looking forward to the experience bigtime. I am not a wall flower or shy person but wonder... I am going to network(impress and get more business). I know they have needs I can meet and exceed(compared to what I see being done currently). I know that what I/WE do gets homes sold quicker. I know there are few AM's compared to the many Vendors(me) who want more business- I also know tackling and shoving my card in their pocket will not get the results I want. I am a bit concerned as to how I can be different than my competition at the convention, be noticed, get business - with a servant mindset not violating my principles. More later....
Read more…

Floggin' them BPOs

Posted by Seb Frey on June 28, 2008 at 4:48am
Sorry I haven't posted in a little while, I have been busy. I got another REO or two, but I have been consumed with doing BPOs lately. I view BPOs as kind of a loss leader, but I think they are an excellent way to stay on top of the market and to keep your name in front of the eyeballs of some unknown person or persons who may well one day stoke you out by sending you that fattie REO...I've also been busy workin' a few buyers. Oy vey, that's a hard way to make a living. Still, though, I'm excited to work with buyers because, as we all know, nobody ever got rich selling real estate. You get rich by buying it, and is sure a good time to buy it.So here's something funny. I wrote up a couple of offers yesterday. One of them was for a short sale, being sold by an agent - not his primary residence. Looks like we might put that one together. And today, I'm doing a BPO, and I'm researching away...nice house, estate-type property, acreage, ocean views...owned by the same Realtor who is selling the property I just put an offer in on.I make a little trip over to Realquest.com, and I see a notice of default was filed on this lovely property back in May 2008. D'oh.You see a lot of that - many Realtors are losing their homes to foreclosure. I expect the same is true of mortgage lenders. I expect appraisers, though, for the most part, are still happily ensconced in their abodes, they probably have plenty of work these days.So keep muchin' them BPOs, the taste of irony is bittersweet.
Read more…

REOPro – How Can We All Benefit?

Posted by John Occhi on June 1, 2008 at 4:35am
REOPRO is a new site that is focused on REO Agent education. At the time of this writing, there are about 150 members. From a very rough review of the site, my guess is about half of us have little or no REO experience and want to break into the niche du jour while the other half has been doing this long enough to think they know what they are doing. I like to think I fall into the later category.As with any new site, our success depends on one another. I hope that we do not fall into two different camps – those in the know and those wanting to know. We are all here, I assume, to grow and better perfect our trade.MY METHOD - BLOGA method that I have been very successful with in my own personal growth is to teach. When I teach, I am forced to research and know the answers before I share them. Now, I don’t teach in a traditional classroom or even with traditional students. Rather I write.That’s right, I will find a topic of interest to me – typically one that I know enough about to be dangerous – but not an expert. What usually prompts me is I question something that I think I know, but am not sure of. So, I research and I document my research. Other times, I write about my experiences as I go through a certain aspect of my business / life.If you are a seasoned REO Agent, then you have something to share. I know you are busy, but this is an effort that will come back and reward you many times over – if you do it right.If you were to Google my name, you’d find that I have over 400 articles published – most on my primary blog – HemetRealEstateBlog.Com. I do have 4 or 5 other blogs that I write to on occasion, plus I am a guest author on another handful of blogs. When you Google me, make sure you check out Video as a search option and you’ll find that I have nearly 200 videos published as well – all of them from the very early days of video on the internet – March to June 2006. I quit, because I was not satisfied with my editing capabilities and I thought I looked goofy. However, there is not a month that goes by when I still don’t receive a phone call or email asking a specific question about the content of one of my videos.I share this because a public forum like REOPro can give you instant credibility and it helps everyone else who participates.MAKE THE MOST OF REOPRONow, this is a site that is dedicated to REO real estate and not all aspects of real estate. So, I for one truly hope that we will not see a bunch of articles that are off topic – you know what I mean…no one cares bout new home sales, FSBO’s, or any other real estate topic that cannot be tied to REO’s.OK, so if you are new, what can you write about? Well that’s easy…document your journey. Write a diary of what you go through to build your business. When you see something that someone in your market is doing good, let us know…then again if you see something that someone in your agent is doing that gives REO’s a bad name, let us know that too.Being new to the niche will mean you have the most questions. Instead of asking the same questions over and over again in different blogs, why not turn your question into your won blog post and solicit help from readers. I would suggest a format where you ask the question and give your best idea of what the answer is – and ask for clarification and further input.GOOGLE AND SEOBy generating your own blog, you are now generating your own credibility – both here in the REOPro community as well as in your own market. The good news, the more article that are written the more Google and the other search engines will respect this site and give us higher search engines in our own market. I’ll add some article here about blogging and the search engines – but believe me when I say, the more the merrier for everyone.The second step you can take to make REOPro a more productive networking platform is to add comments to others blogs. If you read something that makes sense to you – or maybe it doesn’t….leave a comment for the author. As a blog writer I can tell you that comments on my blog validate me which encourage me to write more. Maybe you missed Stacie Cunninghams blog article about me - well, I've got to tell you it motivated me to start contributing here.Way to network Stacie!Another task you can take on yourself is to invite others to REOPro - remember, the Team spirit - Together Everyone Achieves More!Finally, the way I see it, REOPro is so new that we are on the ground floor. This can get as big and as important in our industry as we make it. Can you imagine the clout the agents who started NRBA or REOMAC have in those organizations today?So, to all of those REO REALTORS and those who want to be, welcome to this site and I hope you will make it your own.John Occhi, REO REALTOR®Century 21 Crest – CrestREOJohn Occhi is a REO REALTOR® thatspecializes in the sale of bankowned homes in the Inland Empireregion of Southern California. Hehas helped many buyers acquiregreat deals on these REO homes.His company, CrestREO, the REODivision of Century 21 Crest – the77th largest C21 in the Nation, hasSold Over $1Billion in REO Sales.

Read more…
Liberty House Realty | Online Montessori Preschool | Digital Marketing Agency