Posted by Mykel Martin on January 20, 2010 at 7:06am
Just read a Press Release from DS News that should give us all hope. California, Florida and Arizona can't be far behind!This Just Released According to DSNews - - -Bank of America Paces Release of Shadow Inventory in NevadaBank of America expects to release about 6,000 foreclosed properties into the Nevada housing market in 2010, about 500 a month, according to a local Las Vegas newspaper. The pent-up supply is part of that looming shadow inventory - a stock of distressed properties that have yet to hit the market because of banks' voluntary foreclosure moratoriums prior to the administration's Making Home Affordable program, complex modification evaluations, and lengthy short sale negotiations.
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Posted by Howard Bell on January 19, 2010 at 1:33pm
FHA Press releaseIn an effort to stabilize home values, HUD Secretary Donovan announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties.HUD will allow FHA financing for buyers of REO property. This is a temporary waiver of policy, good for one year. The hope is that it will help soak up supply and stabilize the markets. The waiver takes effect February 1, 2010 for one year.To avoid speculation or flipping of property, HUD has set down some stringent rules. They are certainly not looking to reignite the kind of speculation that was partly responsible for the collapse.No Speculators Allowed1. The transactions must be at arms-length.2. No entity of interest between the buyer and seller3. If the sales price of the property is 20% or more above the sellers acquisition cost, the waiver will only apply if the lender meets certain requirements.4. The waiver only applies to forward mortgages but not to the Home Equity Conversion Mortgages.5. FHA currently does not insure a seller owned mortgage, owned less than 90 days. The waiver may give offer borrowers access to FHA temporarily.The policy allows buyers buyers access to FHA-insured financing to buy HUD-owned properties, bank-owned properties, or properties resold through private sales.REsourced from www.yourpropertypath.comYou may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.comRelated ArticlesMortgage Lock-Ins - What are theyMortgage Fees - What are they?Mortgage GlossaryRead more…
I completely understand you wanting to “get a little extra,” especially now that some of these AMC’s are taking such a big cut, but when it comes at the expense of my time and energy it really pisses me off.I am working with a company right now (which will remain nameless) that has completely revamped their property preservation guidelines.Here is a small example of what I’m talking about. This is direct from the preservation team:*ALL BIDS MUST BE SUBMITTED IN THE FOLLOWING FORMAT OR THEY WILL BE REJECTED IMMEDIATELY:*NO HANDWRITTEN BIDS WILL BE ACCEPTED.*ALL BIDS MUST BE TYPED ON THE CONTRACTOR’S OFFICIAL LETTERHEAD WITH THE CONTRACTOR’S CONTACT INFORMATION (NAME, ADDRESS, CITY, STATE, AND PHONE NUMBER), LICENSE NUMBER AND SIGNATURE.Seems simple enough, right? Keep reading…….**Vendors must send me proof of Workman's Comp or Liability Insurance and their Business License & ALL bids must be signed by Vendor****There can be no conflict of interest with vendors supplying bids for the listing broker/agent. Vendors who are owned by, or related in any way to broker/agent or cannot be used****PLEASE NOTE: All bids must be itemized by job description and price.Copy of workman’s comp? Copy of a business license? Must be signed? I don’t know about you guys but this is new to me........or was new. But honestly can you blame them? There is so much fraud, strong arming, agent kickbacking and good ‘ol boy crap going on out there that these banks had to do something!So now I have to find contractors that are willing to send in all their personal information, go do a free bid and send it in perfectly every time……and after all that, still only have a 1 in 3 shot of getting the work! All because a select few agents out there wanted to make a few extra bucks.Yes I’m complaining! Isn’t that what blogging is for???? But it’s a damn good complaint when what once took me a few hours is now taking me a day or two. And that costs me money!!!
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Posted by Vaughn Parry on January 14, 2010 at 5:00am
Okay kid’s here’s the skinny. 2010 What will it bring? If you are looking to make a move in Real Estate in the Portland Metro Market you are probably in what I would consider your perfect window. Price’s are going to continue to creep down as Seller’s compete against REO and Short Sales for Buyer’s.Interest Rates today are amazing. Under 5%, with good credit! Rates are probably as low as they are going to get because it wouldn’t be profitable to the lender’s to go any cheaper. Looking around I see the price of gas going up and we should be at $3 a gallon shortly. To me, that says inflation. Inflation says to the FED that they need to raise the Prime Rate in order to control it. It’s not their only tool but at some point lending at 1/4 % will end. Now, this is something that they do not want to do, but at some point in 2010 they will have to. Once this occurs and your rates go up, the buying power that is available today will decrease. There’s really only one reaction that can occur; prices will get pushed down again.I know that no one wants to hear that housing values are going to continue to fall, but unless people get pay raises in conjunction with the upcoming interest rate increases, the Buyer’s buying power will decrease. For example; if you can afford a $1,500 mortgage PITI, and the rates go up, you can’t afford more you just have to buy a cheaper house. For example at 5% interest $10,000 borrowed will cost you approximately 5.02. If interest rates are at 6% and now that $10,000 cost you $6.27. You still make what you make so your buying power is weakened. If you’re a Seller and the Buyer’s have been pushed out of your price range what are you going to do? Lower the price down to where the Buyer’s can again afford your home. So, I think that prices will continue to get pushed down some more. I just don’t see a different solution, but nothing would please me more than to be wrong.I’ve said a mouthful let's get some feedback and help us all have a better 2010. How hard could that be? ;0P
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All REO Brokers, for that matter all Real Estate Professionals should watch the panel questions to learn about the financial crisis. It is available for viewing at www.c-span.org In the on-going blame game that has been in effect since the beginning of the crisis, this is the most fair and balanced of each parties viewpoint, without media bias one would find on politically motivated networks. Most people have an opinion on the root cause of the meltdown. Some think it rests on a residential real estate housing bubble. I have never been in agreement with that viewpoint. Real Estate is unlike a dot com, it cannot truly be a complete bubble. By definition when a bubble bursts, nothing is left, in real estate, the underlying asset remains, although at a reduced value, it still retains some value.Others believe that the cause is Wall Street greed. Many others believe it was the push for increased homeownership rates.These thoughts are over-simplication, although there is plenty of blame to go around, it is a combination of many factors that created the perfect storm. The purpose of learning where the system went wrong is to prevent repeating the behaviors that brought us here.It's my opinion that there was a whole circle of responsibilty. An environment of appreciating real estate values, and low interest rates had Main St wanting to invest in stocks & real estate rather than put their cash in safe low return savings accounts, or T bills & the like. Wall St under pressure to out perform year over year, as the bar is set higher and compensation tied to investment returns to the firm looked for new investment vehicles to sell. Mortgage loan brokers. some of which didn't even need a license depending on which state they did business in were looking for new loans. Institutional investors looked to maximize returns on their portfolios and pension funds. Enter new products; mortgage backed securities and credit default swaps. CDS were basically a bet that a package of loans would fail, sort of like shorting a stock. In order to sell these new products they needed to be rated, so Credit Rating Agencies such as Moody's & Standard & Poors evaluated these new products. They developed sophisticated models based on extrapolating real estate appreciation. Real estate purchasers counted on rising values and incomes to sustain their mortgages. Relaxed qualifying opened the market to more borrowers, it was now possible to purchase with no money down, lower credit scores and low documentation of income.There were some mortgage fraud where borrowers or originators lied on applications. Some borrowers decided to cash in on their equity to purchase home improvements, vacations, toys or anything else they wanted now. Homeownership rates went up and helped to fuel the economy, So the circle went- until it broke down.Here's why I think it broke-1. Real Estate values are not constant, they fluctuate up and down.2. New sub-prime loans were more profitable than conforming loans, so too many were written.3. MBS & Credit Default Swaps needed an increased amount of loans to package, Wall St wanted more.4. Mortgage applications were taken by inexperienced unlicensed people, including some real estate agents.5. The riskier the loan, the higher the profit to the mortgage broker, and demand for the loans increased.6. Mortgage Companies solicited home owners to refinance, and spend their equity now, rather than build it up.7. Credit Rating Agencies formulas of taking B & C paper, repackaging and rating AAA, (which I liken to taking B & C student and puting them on the Honor Roll) led to global institutional investors purchasing the MBS & CDO's, thinking they were safe.8. Government watch dogs that started to raise red flags were squashed.9. Banking regulations did not apply to Investment Companies.10. The Fed kept long term interest rates low.11. The new finacial products were complex, and some buyers did not understand them, and relied on their ratings.12. No transparency in capital reserves and product mix at major lenders.13. Consumers take loans which they don't understand have pre-payment penalties, balloon payments, negative amortization etc. This one gets alot of bad press, as in "they should have know better" but I know that I have signed documents to purchase a car without reading it, and have many times checked the box on a website that states I have read & understand the terms & conditions without reading them.- and I deal with legally binding contracts everyday.14. Economic conditions weaken, Real Estate values decline,Foreclosure rates increase placing downward pressure on values, Market liquidity tightens, Panic starts. I am not sure which fueled which, but the combination led us here.
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Posted by Dawn Barrier on January 13, 2010 at 6:57am
Those of that know this company have all been waiting for this news and now it official!Titanium Launches New REO company Excellen REOFor another company to launch into the REO market indicates to me that the "shadow inventory" we have all been hearing about, is real and it is just a matter of time as to when it will hit the market and if it will be in drips or not. How and when this release of inventory comes to market is a heated topic I'm sure.I know here in Las Vegas we could use a some more under $300,000 homes to come on the market as I am working with several buyers now and the competition to win a bid can be difficult for some right now.Titanium Solutions- Titanium Holdings Enters the REO market with its Launch of Excellen REOIt is all over the news here is one place at the DSNEWS to read about itIt is on Housingwire.com too and/or just Google Excellen REO.Titanium Holdings, Inc., the parent company of loss mitigation specialist Titanium Solutions, Inc., is jumping into the property disposition arena with the official launch of a new business unit, Excellen REO.Excellen REO is headquartered in Fort Mills, South Carolina, along with its sister company Titanium Solutions and parent Titanium Holdings.Cary Sternberg is the president of Excellen REO a few of his former titles were, he was formerly with American Home Loan Servicing, VP of Loan services for Indy Mac and REO manager for Ocwen.
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From DS News- Author: Brittany DunnFannie Mae Adopts New REO Policy01/06/2010 By: Brittany DunnIn an effort to expedite REO sales, Fannie Mae has adopted a new policy. As part of this policy, Fannie Mae may accept offers to purchase homes it has repossessed withoutnotifying loan servicers, and loan servicers may be required to reimburse Fannie Mae for a loss if it turns out the original mortgage on the home did not meet its eligibility or underwriting requirements, Inman News said Wednesday.Previously, if there was a question over whether a mortgage on a repossessed property met Fannie Mae’s requirements, servicers were given 15 days to turn over loan files for review. Rather than reimburse Fannie Mae for an incurred loss, loan servicers had the opportunity to try and find a better offer for the property or buy it themselves.The rules have changed, though. In a recent announcement to loan servicers, Fannie Mae said it has implemented a change regarding assurance reviews. When the company is notified that a property has beenacquired, it will begin the disposition process by obtaining opinions on the market value of a repossessed home and list it with a real estate broker.“When Fannie Mae receives an offer to purchase a property that is also subject to an underwriting or servicing review, Fannie Mae may accept the purchase offer without first notifying the servicer, whether or not a final decision has been reached with respect to the review,” Fannie Mae said in its announcement. “If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the lender will be required to fully reimburse Fannie Mae for its loss.”These changes come after recent reports from Fannie Mae showing an increase in the acquisition of foreclosed properties and an escalating rate of seriously delinquent single-family home loans.According to its most recent quarterly report, Fannie Mae acquired 98,428 homes through foreclosure during the first nine months of last year and sold 89,691 REO properties during the same period. However, at the end of September Fannie Mae still had 72,275 REO properties on its books, marking a 7 percent increase year-over-year.Furthermore, Fannie Mae’s monthly summary for November showed notable growth in seriously delinquent single-family home loans held or guaranteed by the company. Up from 1.89 percent in November 2008, loans three or more months behind in payments or in the foreclosure process soared to 4.98 percent in November 2009.
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I'm really excited about 2010. With all of the new technology, education and ways to network I'm looking forward to experiencing more growth in my business.Last year I was so busy with BPO's, Home Retention Consulting and networking to get more listings. Guess what? It's starting to payoff! Quite a few people in my office took noticed of how busy I was and made comments about how "crazy" I was/am and how they "don't think it's worth it" to do so many BPO's. Sad to say many people think BPO's are a waste of time and money. Wow! I mean....really? Are you kidding me?Since I put more time and effort into BPO's and networking my confidence level has gone to an all new high and I've grown even more in love with my business. I know my market area(s) and thoroughly enjoy listing properties. Granted, I don't list them all but that's okay. If it means helping someone keep their home instead of it going into foreclosure then to me that's productive and worth my time too. If they end up listing with someone else then okay. I don't take it personal but do reflect on it to see if and how/what are the best ways to improve, realizing that at times it's not me that's the issue.Many times we hear people quote "It's a numbers game". Do you believe that? If so, hopefully you're not building your business on that standpoint. Going round and round, spinning your wheels, hoping to get that 1 out of 20 or 50 or whatever number you think it is. Don't get me wrong...yes, the more listing appointments you go on, the more leads you have, the more networking you do the better. But make sure it's going in the right direction. Make sure it's productive in some way and not just about money. Learn new technology. Network with more people in AND out of our industry. Help and educate others. Don't forget to set goals no matter how long you've been in the business. Make money and Grow!My business is not "a numbers game". It's a business based on ethics, integrity, growing while working diligently with follow through and putting others first. One of my goals (like many others) for 2010 is to break into REO's and I will. That's how my business will continue to grow in 2010.How do you see your 2010?
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According to a recent article in Managing REO-With the passage of the Protecting Tenant at Foreclosure Act, the expansion-minded TenantAccess is increasing its capacity to service all of the United States.The company, a subsidiary of FirstService Corp., recently hired 348 property managers to be in charge of maintaining buildings, paying bills, collecting rents and communicating with tenants. As a vendor to property owners, including government agencies, TA’s forte is rehabilitating, leasing and managing homes.“We originally started with 5,000 potential managers and have selected 7% from this group,” said Paul Hayman, president of Austin, Texas-based firm.“Although we have selected the bulk of our property managers, we anticipate a continuous process of selection as we meet the expanding needs of our clients to provide rental and property management services throughout the U.S.”Just completed second assignment from them, and have been told they just secured a new client, and will hit the ground running in January. Still not sure of all the in's & out's. So far tenants have been Section 8 subsidized.Assignment #1, meet with the tenant and she tells me "Oh by the way I was already offered $3500 to move, and I'll be out by January 10th" She also wanted to know if she could get more. First of all her portion of the rent is $135/month, secondly the other unit is still occupied by the previous owner. I'm thinking $3500 CFK's??? It's a bonanza for someone paying $135. I would've offered $900. Sec 8 would've relocated her & paid expenses anyway.Anyone else receiving assignments yet?
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Posted by MeLisa Minter on December 15, 2009 at 2:16pm
Ok Gang,I listened to the Blog Radio on 12/18 and even punched in to ask Jesse a question about signing up with all the Asset Management Companies. After listening to the show, I took Jesse's advice about utilizing Linked In and Facebook to our advantage.I was already doing something similar, which is how I found this group. Anyway, I typed in the name of a Mortgage Servicing Company that I've done Short Sales through. I proceeded to pull up their Linked In Employees and low and behold, I see two employees,(one an Asset Manager the other an REO Attorney), that I am connected to by the second degree. It seems that one of my good friends is the first connection with one person and the other person is connected to me by a group that I joined on Linked In.So naturally, I email these two contacts by using the "Request and Introduction" Method. I included an attention grabbing subject line, and introduced myself and informed them how we were connected. I proceeded to let them know that I am a member of Realty Pilot, the most innovative BPO/REO Traffic Controller, and that it is free to Mortgage Companies/Mortgage Servicing Companies Asset Managers.I then explain to them how they can be of assistance in helping me connect with some of the Asset Managers in their organization and introduce them to Realty Pilot and my REO Services.After I completed the mesage, I clicked on the "Notify Friend Button, so I could send "1st connected firend" a courtesy notice stating that I contacted one of her linked in connections.I know what they say about the Six degrees of Separation, and it seems that it can definitely be beneficial if you work it right.It's going to be interesting to see the type of results that we will get from this.
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Posted by Dan Waterman on December 8, 2009 at 12:09pm
In a recent post on Mortgage Servicing News the latest and greatest in the world of default servicing is electronic (on-line) loan modification. Ironically, I'm reading a book right now by Mark Zandi (Financial Shock - I recommend it to everyone in our REO network btw) and he talks about online lending. Albeit, they aren't the same, but I can only imagine some of the fraud and future complications that will be the result of consumers jumping online to apply for a loan modification which, in turn is automatically run through underwriting by a series of codes that do verification based on the honor system.Call my pessimistic, but I don't see this being the salvation to our situation. Don't get me wrong, I'm glad that there are solutions being recommended, however; when's the last time that we, the people (and more importantly the REO professionals) were consulted about potential realistic solutions?Read the article here....it's actually very informative. I don't mean to sound like the write-up is bad. It's not.
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Ok, first off….I am not going to share this agents information with you. If he wants to speak up…he can. In other words, don’t ask….lol.
I just got an email from Christian Broadwell with Realty Pilot alerting me to the fact that one of our members got a BPO and in return the REO. Now, so that we are clear, this isn’t a “REOPro” assignment so much it was a bank who has been using the Realty Pilot for some time and noticed their coverage is growing…ie, REOPro members and happened to release a BPO to that Zip Code where this member snatched it up, completed it and in return that bank asked him if he wanted the REO.
My point is, Realty Pilot is working for our members and yes, it wasn’t a “REOPro” assignment however, the way the system is set up, you as a member could get any assignment for any of the partner banks that Realty Pilot is already working with. Yes, REOPro will be assigning BPOs, REOs and Short Sales soon but, in the meantime, you could potentially get assignments from other cooperating servicers, asset management companies and lender who have their own Asset Management divisions.
Don’t forget, on December 16, Realty Pilot will be launching their “Activity Counter” so you as agents can also see where assignments are and how much business is going out per zip code. This is a revolutionary concept in this industry and really puts more power in the decisions making process back into the agents hand.
Good luck guys and if you’re not signed up yet, I highly, strongly encourage you to do so. I fully expect REOPro ourselves will be sending out business soon. I know soon is such an ambiguous term but, that is all I can say now without spilling too many beans. Just know, I am completely confident this is going to happen and it’s just a matter of hammering down technology, which Realty Pilot is working very hard at doing.
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It is all about the market, we will have fewer of frustrated buyers and buyer’s agents if there were 10 properties for each buyer not one property for 10 buyer’s. In that situation, REO agents will bend backwards to get all the paperwork on one or two offers they get, asset managers will accept buyer’s demands even on AS IS property. When fewer buyers out there one can get away with closing cost and other items but not in current market in 4th Quarter of 2009, when slightly lower priced or at the market priced properties are getting 10-20 offers.Price is but it is not the only determining factor. I have asset managers declined the higher priced offers for a better-financed offer. Also had the agents get upset why their offer was not accepted. Some even get more upset when they saw the property closed at lower than their offer price. They do not know the details what happened during the transaction, why it closed at the lower price, may be appraisal, may be some other issues with the property, may be first offer fell out then next available best one, who can close quickly was picked, instead of putting property back on the market.I am not saying that there are not agents out there who play the system. To buy property for my own self I had to write 5 different offers, offered the full price and over and got beaten up by other offers many times before I could get one accepted. It all matters, financing, FICO score, what buyer have in the bank and under whose name. If the proof of buyer's funds is not under buyer's name, then forget about it. I have seen those transactions fall out because of the donor issues. Being an REO agent, I screen all the offers and drawbacks of the offer, are written into my notes to the asset manager. I even call the lender to make sure it is legitimate pre approval. I had noticed fake pre-approval letters, written under the name of big banks.I had agents who will not listen what is being said, I had agents call and ask bunch of questions and will politely ask, if they read the private remarks in the MLS. Sadly, one answer that I still remember was “what private remarks, oh! you mean at the bottom, let me read those”.I have set up an offer submission system through www.eBrokerHouse.com so everyone gets a confirmation of the submission. Not only that, if their offer is deficient I could communicate with the agent as their contact information is right there and I don’t have to look on page 8 try to read fax of a fax or search my email to locate it. I have agents call me and ask that they do not know how to upload the file, that they do not have a scanner. In REO world, the whole transaction is done by scanning and uploading the documents. Who would want to deal with that agent for next 45 days? Does that go in the remarks, yes it does.Not all agents are alike, there are some very savvy buyer’s agents and I wish everyone to be that way. However, there is so much bash about REO agents, that one have to be on the other side to see what REO Agents go through, especially the ones who deal with their transactions first hand. At the end, in grand scheme of things, it is about: would it close and would it close on time?http://www.namneet.comREO Specialist Orange County CARead more…
Posted by Rick Fine on November 29, 2009 at 9:40pm
Of late, I find that the markets I work in, (Phoenix, AZ and Sacramento, CA), have slowed to all but a screeching halt as far as receiving REO assignments go.As everyone knows in the business right now, if your selling for Fannie or Freddie, you're a lot busier than the rest of us...I could bemoan the unfairness of the favor Fannie & Freddie REO agents in my office of 300+ enjoy, but what's the point, they got in and I did not.Despite having the trust and regard of my asset managers, their pipelines have also slowed to the point where assignments have all but ceased. They insist that I am rated highly and considered an agent who is one of their preferred choices for assignments.YET none are forthcoming!So now I'm told to hang on because the business is going to pick up after the holidays.In the meantime, this begs the question "Now What???"I am busier than ever doing Titanium assignments, BPO's, and working with buyers to keep afloat.What are you, the other reo agents, doing to survive these lean times?Working at WalMart? Taco Bell? Or worse yet; a CAR LOT!One thing is very apparent, I work harder than ever, earn less than ever and are happy to do so.I will also add this, I know more about what a property is really worth in any given market and have a better idea about what it takes to get an offer accepted than 98% of the agents working today because of all of the extra work I do to survive. To me, that's a good thing. What are the rest of you doing to survive and hopefully grow?My teams are transitioning over to shortsales.Any ideas out there on best practices for finding the not-so-elusive shortsale clients?Times may be tough but Distressed Property Specialists are tougher!
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Posted by Robin Whitt on November 24, 2009 at 3:40pm
From the Blogs and Forums I read and the Agents I talk to, it seems most Realtors consider themselves either a Listing Agent or Buyer's Agent. Of course that isn't any different than it has been in decades of Real Estate Markets. BUT today's Agents seem to narrow their category down even further to a REO Buyer's Agent or a REO Listing Agent. That is the Market. There are hardly any Vanilla Sales out there to be had, so we are REO Agents.If you sit down with a group of "REO Buyer's Agents" you will hear a plethora of gripes about "REO Listing Agents"; they are selling everything 'in-house', they are purposely trying to drive up the offers, they make the requirements for submitting an offer 'too hard', they NEVER answer their phones....And the list goes on and on.On the other hand you have an entire set of complaints from the "REO Listing Agents" about the "REO Buyer's Agents"; these dumb Agents can't follow directions, how dare they call me on the phone as busy as I am....You know you've heard these things...you may have even said them! LOLPersonally, I guess I can see each side as my Partner and I have tried to stay diversified. I spend the majority of my time focusing on REO's, my Partner is a great Networker and works with Investors, we have a wonderful Buyer's Agent, a terriffic short sale negotiator and of course our Transaction Coordinator who none of us could live without.Maybe I'm just being sappy with the holiday this week, but we should all be thankful for eachother. If there were no Buyer's Agents, the Listing Agents wouldn't have multiple offers on all their properties. If there were no Listing Agents, I guess the Buyer's Agents would be looking for a new career.So as you give thanks on Thursday, remember to be thankful for that REO Buyer's Agent who just can't seem to get an escrow check made out in the right Title Company's name, be thankful for that REO Listing Agent who you aren't quite sure exists because no one has ever actually talked to him on the phone or seen him in person. Without them, we'd all be working some boring job.Happy Thanksgiving!
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Man, I get a bit crazy sometimes when a buyer agent refuses to control his clients and "keep them in the deal". REO process is slighlty different than straight residential and we give all the clues we're allowed to give by law and I'm amazed how a buyer's rep, maybe not experienced in REO, will disregard the "keys to the kingdom". We have experience and besides we represent the asset! I think my kids listen better (most of the time) :) I hope that agents representing those intending to buy/invest in REO will take the cue, and take the time, to please listen to the agent representing the REO asset. We can make the transaction smooth, get it done, and please our asset managers at the same time. That's the ultimate. Well this is today's rant, it's over, but I'm sure I'll have a new one tomorow!
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According to the Indiana Association of Realtors (IAR Advocate 11/06/09), it is now Indiana state law that lenders must acknowledge short sale offers within 10 days. Under the 2008 law, lenders then have 30 days from receipt of the offer to accept or reject the offer.There is an on-line complaint form that can be filed with the Indiana Department of Financial Institutions (DFI). The DFI uses the complaints to track and establish patterns with certain lenders and use regulatory authority to investigate.Additionally, the Homeowner Protection Unit of the Indiana Attorney General has enforcement authority over the complaints. The complaints should continue to be filed with the DFI, with the field that the Homeowner Protection Unit should investigate marked (Field #18 on the Indiana complaint).We repeatedly hear from agents that the reason short sales do not move to closing is that it sometimes takes the sellers months to respond to offers.I strongly suggest that every agent check and see if their state has a similar law on the books and let the lender know you know about it when submitting a short sale offer. I know somewhere on our future short sale offers will be a sentence requesting a response by a certain date “per Indiana Statute” as a reminder to the lender that there are statute imposed time limits in place. This would also do to notify the lender of the time limits if they were not aware of them.Perhaps we can use our state laws to move our short sales along and keep them from becoming “long sales”.I also strongly suggest that agents working with lenders as short sale reps make their clients aware of any local or state laws of this nature. Be aware that just like a like a REO AM, the short sale AM is most likely dealing with properties in multiple states and jurisdictions and it is our job to protect them and make sure our clients are within the local laws.
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When the REOs started hitting the market 2 years ago, the supply on the listing side was overwhelming REOs. This caused agents being solicited by companies offering the secret road to obtain REO. Not only that but some REO companies also saw an opportunity to have extra revenue to their bottom line by charging a fee to be in their list. Now that the lenders are realizing that the best way to maximize their profits is short sale, the REO inventory has decreased. And believe it or not, due to increase in short sale supply, there are already companies charging a fee in exchange for short sale business. Do you think it is worth?
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It must seem that I am a buyer's agent if you've read my earlier posts, but I do have listings. I currently have three short sales and a standard. I want more listings, not because I don't love my buyers but because I do. It's frustrating to them and me to fine the perfect home only to find out it already has 15 offers.I have been making offers on REOs and short sales for two years now and I believe I write winning offers. I sure have written enough to realize what is a good offer and what will fail. But what do you do when the listing agent already has a buyer and they are double ending the deal?I lost an offer for my client who offered all cash and $10,000 above list price. I thought it was a slam dunk. No! I was told that an investor came in at the last minute with a large amount of reserves and went a little above my client's offer. A little above? How would he know to do that?A few weeks later I saw that the property actually sold for UNDER my client's offer, and that the selling agent was in the same office as the listing agent.I feel especially bad for the buyer's who "get it" and offer above list and better terms. And it's hard running around showing 15 homes, writing offers until midnight because you have to get them in before someone else grabs it. I'm done with it. Until more homes are released, I think I'll pursue listings. Hey banks! Just show me the listings!
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Have you spent 30 minutes on hold only to find out that a paperwork is missing? Then after you fax, sometimes may take 72 hours to be uploaded to the file. And sometimes after 30 days or more, they advise you to refax as the file has "disappeared". Hopefully this will be over as short sales are becoming a normal practice instead of REOs. We can all agree that approvals have increased dramatically over the past year. However the wait has not...Today, something happened that went unnoticed. Equator, former aka REOTrans, announced the launch of first ever short sale module used by a large lender. Although the article mentions Bank of America, it has not been officially disclosed. However, no matter who the lender is, this is a big step that we hope become standard. No more missing documents or excuses not to approve/disapprove a file. No more files sitting on a desk waiting to be worked. Most importantly, this will bring a peace of mind for the homeowners who will know where they stand. What say you?
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