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I finally closed a Redwood City short sale that started in Sept of 2011. Yes, one year for a short sale. What was the problem? Let me count down just the top 10.

10. The sellers asked another agent in my office to sell this home as a short sale but this wonderful agent had never listed a short sale before. She asked me to help her, but by the time she did they were 2 weeks from the trustee sale date and the sellers were sitting on a perfectly good offer they thought was too low.

9. There was a first and second loan with Chase as well as a large 3rd loan which was a carry back from the previous owner. The seller wanted me to negotiate with Chase but have her lawyer negotiate with the 3rd lender.

8. The seller refused to give me any of her financial documents and said she would provide them to Chase herself.

7. The first approval came in Dec of 2011 at purchase price with 5K going to the second and 11K going to the 3rd. The seller said the 3rd lender was going to take that offer, but then the lawyer for the seller said the 3rd lender rejected the offer.

6. The buyer offered to give the 3rd lender another 10K. No response from 3rd lender. Chase said the buyer could not pay off third.

5. The approval from Chase expired, the negotiator at Chase left the country, the house was put back on the market asking for a large contribution to the 3rd. Chase said buyer could not pay off 3rd.

4. New buyer came in and offered 30K to the third on top of the old price (515K)

3. New BPO said house is worth 540-560K so Chase said offer is not high enough. Lawyer for seller and seller told me I should start negotiating with the 3rd. He said he wanted 80K from the buyer and 7K from Chase. I get him down to 50K, Chase said submit again.

2.Buyer, Chase, 3rd lender, seller all agreed to purchase price of 562K with 50K going to 3rd from the buyer and no contribution from Chase. Chase inexplicably changed their policy and will now allow the buyer to contribute to the 3rd payoff. Chase said close by Aug 31.

1. Lots of delays getting the loan funded. Aug 29th still no loan docs. Chase said after 10 trustee sale postponements they were done. Close on Aug 31 or they take the house back. Seller was in Europe but managed to come to back last week of Aug to get her things and sign off. Buyers agent got lender to fund without loan docs and we somehow managed to get buyers signed and closed on Aug 31.

This was a tough one. Most short sales are not this hard, but the secret here was believing that no does not mean no. Not a lesson I would want to teach to my children, but in the short sale world it is a great one.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com``

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Yesterday I asked “Given the terrible vandalism on the Spokane Valley listing this week, what advice would you give to sellers who have a vacant property (of any kind) listed?”  I was thinking in terms of securing the property against vandals, but you may have thoughts you’d like to share for any seller.  I got a couple of great responses, but I could use a few more to round out my new blog post.  If you have seller advice you’d like to share, simply post a comment below.

4 Unexpected Mortgage Decisions Every Buyer Will Face (and How to Make Them)
Trulia | September 5, 2012
The financial end of home buying is, for many, the most intimidating piece of the entire experience. Why?  Well, most of us don’t sign 30-year financial obligations on a daily basis. Plus, the consequences of poor decision-making in this particular area stand out as particularly disastrous.

94% of Americans Blame Their Computer
Forbes | September 4, 2012
Computers are causing stress.  A lot of stress. In fact, a new survey commissioned by Crucial.com, a seller of memory upgrades, proves it.

Rural Affordable Housing Struggles With Oil and Gas Boom
HousingWire | September 6, 2012
Waves of highly paid oil and gas drilling employees into rural areas is causing strain on local governments to provide affordable housing for locals who can no longer afford skyrocketing rents, according to a government study released Thursday.

Eminent Domain Gambles With Local Mortgage Credit
HousingWire | September 6, 2012
Threats of withdrawn mortgage credit may deter local governments from accepting proposals to seize underwater mortgages through eminent domain, not court rulings, according to one expert on the issue.

When Social Media Marketing Doesn’t Work for You
The New York Times | August 17, 2012
Even once you have connected with someone, social-media-networking takes considerably more time than face-to-face networking. I believe it takes seven quality contacts before you can start talking commerce, but I’ve read industry estimates as high as 21 meaningful contacts before you can close business. Here are the five steps I suggested for Mr. Lacher.

Complaints Against Lenders
The New York Times | September 6, 2012
The new Consumer Financial Protection Bureau received 23,500 complaints about mortgage lenders from last December through this past June, according to a recently released semiannual report. And, not surprisingly, just over half the complaints centered on the problems borrowers encountered when they were unable to make payments.

Housing Crisis Turns Some Ex-Homeowners Into Lifelong Renters
Aol Real Estate | September 6, 2012
You couldn’t pay Mark Williams to own a home again.  “Give me the money for it,” he said. “I’m still not buying a house.”

Five Star Panel Debates Home Rehab Options
DSNews.com | September 6, 2012
“To repair, or not to repair.” That was the question posed to a number of panelists Thursday morning at the Five Star Conference and Expo.

Yesterday we asked you: If you were giving one piece of advice to a buyer of real estate, what would it be?  Your answers are in a blog I posted last night:
Real estate advice to buyers from industry pros
Thanks to all who responded!

Real Estate Agents Say US Homes Selling Faster After Hitting the Market Than a Year Ago
The Washington Post | September 6, 2012
U.S. homes are taking less time to sell than a year ago, reflecting more homebuyer demand and fewer bank-owned homes and other properties available for sale in some markets.

Housing Asking Prices Rise for the Seventh Straight Month
The Hill | September 5, 2012
Asking prices for homes rose for the seventh straight month in August, especially in areas hit hardest by the housing crisis, hitting their highest level since the recession.

Surprise! Some Cities Are Actually Experiencing Housing Shortages
Forbes | September 5, 2012
Contrary to the post-bubble narrative of a buyer-less housing glut, inventory levels in some markets have contracted.

San Bernardino May Not Need Eminent Domain Fix: Report
DSNews | September 5, 2012
With prices gaining in San Bernardino County, Clear Capital found that the solution to the area’s problem of negative equity may be solved with time. San Bernardino County has become the center of debate following the creation of a Joint Powers Authority to explore a controversial use of eminent domain.  (Many experts, perhaps most, would have predicted this would be the case. ~Anthony)

Housing Improves in Hard-hit Swing States
CNN Money | September 5, 2012
At long last, the housing market is improving in Nevada, Florida and other important swing states that were some of the hardest hit during the downturn.

Today’s question: Given the terrible vandalism on the Spokane Valley listing this week, what advice would you give to sellers who have a vacant property (of any kind) listed?

Teens arrested after vacant home sustains $100,000 in vandalism
The Spokesman-Review | September 5, 2012
Two teens were arrested Tuesday in a Spokane Valley vandalism case that caused an estimated $100,000 in damage.

Good news today on the real estate market and home prices, another stern warning on the fiscal cliff, and something we’ve all been waiting for – one more reality TV show.

Pimco CEO shouts in letter to Congress: Focus on fiscal cliff
HousingWire | September 5, 2012
Pimco CEO Mohamed El-Erian urged Congress in a blog post to work on the economy and end partisan bickering to quell a new phase of economic malaise that is spreading throughout the country.

Movers Hold Home Owners’ Items Hostage?
RealtorMag | September 4, 2012
Federal lawmakers are cracking down on moving companies who try to hold home owners’ belongings hostage during a move — a scam that’s more common than many realize. 

FICO dispels myth: Short sale may damage credit score as much as foreclosure
HousingWire | September 4, 2012
Turns out that a short sale doesn’t protect a homeowner’s credit score as much as originally thought.  (I’m guessing most lenders could have told us the same thing since they deal with credit scores on a daily basis, but I doubt the average consumer would have known. ~Anthony)

Foreclosure-Focused Reality TV Show to Debut in October
DSNews.com | September 4, 2012
It’s a short jump from “realty” to “reality.” Next 1 Interactive, Inc., a media company focused on travel and real estate, announced Tuesday that the pilot episode of a new home improvement reality show focused on foreclosure renovation saw some success in a test market in New York.

Here’s More Evidence That Home Prices Have Hit Bottom
The Wall Street Journal | September 4, 2012
In each of the last three years, home prices have increased in the spring and summer, when more people are buying homes, before giving back all of those gains and then some in the fall and winter. But it is beginning to look like that might not happen this year.

US Home Prices Make Biggest Jump in 6 Years
The Los Angeles Times | September 4, 2012
Nationwide home prices shot up 3.8% in July, making their largest year-over-year leap since 2006, according to real estate data provider CoreLogic.

Real Estate is a lot More Complicated These Days as Ownership Keeps Changing
The Washington Post | September 4, 2012
Over the years, I’ve learned the world is more complicated. Yes, development is still driven by people with vision, but ownership is more fractured.

How is National Mortgage Settlement $ Being Spent?
The KCM Blog | September 5, 2012
 (This is a good little graph depicting where the mortgage settlement money is going. ~Anthony)

It seems like we’ve seen some indication lately that the average consumer is making wiser choices with their spending and their money.  Do you feel that’s true? 

I’d like to put together a list of suggestions or advice for consumers who would like to buy a home or real estate and maybe incorporate that into our blog.  If you could offer one piece of advice to today’s consumer who wants to buy a home or investment property in the next year or two, what would that advice be?

~Anthony

Silicon Valley Home Prices are on the rise. Inventory is low, and there are plenty of buyers out there making multiple offers the norm, not the exception. Investors have been a big factor in the market since the crash, but now it may be time for a change if you are an investor.

For the last few years investors were gobbling up foreclosed homes, short sales, and other bargain priced properties. These were often rehabbed and resold quickly. While there was often competition from other investors, it was manageable for many investors.

The landscape has changed. The inventory is so low, and the interest rates are not only low, but loans are a little easier to get than right after the crash. This along with a very high employment rate, and skyrocketing rents, has sent first time home buyers flocking back into the market.

As a result, the chance to buy a home for a low enough price to rehab and resell while making a 30% profit is not working in the investor's favor. It may happen occasionally, but not often.

However, there is still plenty of money to be made investing in real estate. Maybe it is time to look into a buy and hold strategy. It will not make you money overnight, but in the long run will bring in more money than being able to snare the occasional flip.

So if you have $500,000 to spend, why not look for 2-3 homes you can purchase, get a positive cash flow, and sell in 5 years for a great profit if the market has appreciated, or keep holding until your profits are at an acceptable level. With a buy and hold strategy the investor should be looking more at appreciation potential than getting the best price or not buying. It is still number crunching, but the set of numbers being crunched is different.

If you have any questions about buyer or selling investment properties in San Mateo or Santa Clara counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE 01191194

Should Mortgage Rates Vary by State?
The Wall Street Journal | August 31, 2012
Should consumers pay higher mortgage rates if they live in states where it takes a long time to foreclose on a loan?  (What are the pros and cons of the concept?  They’ll be looking for public comment on this issue soon. ~Anthony)

Small-business Tech Security Can Be Had at Lower Costs
USA Today | September 3, 2012
Companies operate more efficiently by employing a range of security measures — from encryption services to cloud-based antivirus solutions.

Even Simple Code Violations Could Prevent Mortgage Closings
HousingWire | August 31, 2012
A new credit scoring system is taking shape that could prevent borrowers from getting a mortgage if government agencies ding credit scores, even for something as simple as not mowing the lawn. (Are they blowing this out of proportion or is it as serious as they suggest? ~Anthony)

Can Unemployment Rate be Reduced?
The Washington Post | September 1, 2012
Two economists say persistently high rate is cyclical, not because of structural changes in labor market.

Breaking Housing’s ’Vicious Cycle’ Key to Recovery: BGOV Insight
BusinessWeek | September 4, 2012
The U.S. economy is searching for the next “virtuous cycle,” a state of self-sustaining growth where one element of the economy — say, jobs — feeds another, such as consumer spending, which prompts businesses to produce more goods and services, which comes back around to spur job growth.

Downsizing the Jumbo Loan
The New York Times | August 30, 2012
With interest rates still low, many homeowners have been saying goodbye to their “jumbo” mortgages and refinancing into conventional loans. They may need to write sizable checks at the closing, but in the end they are likely to reduce their monthly payments while improving their cash flow.

Hotel Property Returns
Jones on Real Estate Blog | September 4, 2012
Hotel property performance, the third installment in the commercial real estate returns series.

Pending Contracts Up Over 12%
The KCM Blog | September 4, 2012
Last week the National Association of Realtors (NAR) released their Pending Home Sales Index. The Index, a forward-looking indicator based on contract signings (not closings), rose 2.4 percent to 101.7 in July up 12.4 percent above July last year. The index is at the highest level since April 2010, which was shortly before the closing deadline for the home buyer tax credit.

Lots of great information brought to you by the humble crew at Stewart Title of Spokane.  The distressed home market is trending down, the apartment boom may be ending, and check out the two good homebuyer articles at the bottom.  Plus today you get bonus reader feedback!  Thanks for reading and feel free to forward to a friend.

Return of the Jumbo Mortgage
The Wall Street Journal | August 27, 2012
For home buyers eager to snap up luxury homes at low interest rates, lenders are bringing back the supersized loan.

Why Home Prices Are Rising: The ‘Distressed Share’
The Wall Street Journal | August 27, 2012
Tuesday’s measure of June home prices from the S&P/Case-Shiller 20-city index is likely to turn positive when compared with one year ago for the first time in two years, according to a forecast by Zillow Inc. (The S&P Case-Shiller did in fact turn positive, see S&P Case-Shiller: Home prices up across the board ~Anthony)

Consolidation of Small Banks on Rise
The Washington Post | August 27, 2012
Shrinking profit margins, tepid loan demand and low interest rates are placing pressure on small and medium-sized banks to merge. (This it true, but sad to see.  We need both the large and the small to serve all sectors.  Consider this quote from the article: “Whereas large national banks have little trouble hiring more accountants and lawyers to manage compliance with new regulations, community banks find it difficult to absorb those costs.” While we are in a recovery, that doesn’t mean it’s a recovery for all.  Still rough seas out there. ~Anthony)

California Enacts Law to Levy Heavy Fines for Blight
HousingWire | August 27, 2012
California Gov. Jerry Brown signed a bill Monday forcing owners of foreclosed and vacant homes to maintain the property or face up to a $1,000 fine per day of violation.

Trulia vs. Zillow: The Battle for Online Real Estate
CNBC | August 27, 2012
Trulia is the latest website daring the public to buy its shares, hoping to raise $75 million in the very competitive world of real estate listings.

As Housing Recovers, Will Apartment Boom End?
CNBC | August 27, 2012
The latest reports on new and existing home sales seem to indicate that the housing market is beginning to find its footing again. While most believe the recovery will be slow, U-shaped, and bumpy, the free fall appears to be over for both sales and prices.

Homebuyers: Do you know what you are buying?
Real Estate Settlement Observer | August 27, 2012
While this would seem to be obvious, purchasers should pay close attention to exactly what they are buying.  I am not referring to inspection issues, I am referring to something that seems obvious, but does occasionally come up as a problem. Here are some real scenarios where an individual bought something that was not exactly what they were expecting. (Worth noting: The author is in the East Coast market and mentions the buyer getting a location survey.  We don’t get many home buyers in Spokane wanting to pay for a location survey but it’s not a bad idea. All solid advice here. ~Anthony)

Top 5 homebuyer regrets
Inman News | August 27, 2012
In life, and in real estate, there are decisions that, if we had them to do over again, we might do x, y or z differently. But all in all, we are not too upset about how things turned out. “C’est la vie,” as they say.

Feedback from a local mortgage broker on yesterday’s edition: 

Survey article about disclosure and privacy – It is IMPOSSIBLE to provide an accurate quote to an online request.  Yes, I know plenty of online lenders keep providing quote forms and replies but that’s solely a marketing gimmick. Consumers demand online and anonymous (the privacy issue) quotes but it’s not possible.  Even with a full loan application and credit report it is sometimes difficult to provide an accurate quote.

The truth? We can provide 100% guarantee on the FEES involved with a transaction because those don’t change (per law) – but there is FULL flexibility in rate and points until such time as the loan is locked. And that doesn’t happen until full application.

So the trouble consumers get themselves into is relying upon the low fee, low rate quote from Zillow or other online lead generator and then the rate changes once the application is submitted and approved.  That rate change often times far outweighs any fee differential between two lenders.

Truth – consumers can’t get a valid and accurate quote unless they have made a full loan application and paid for the credit report. And that’s the law.  And the process of applying is so painful that it’s rare anyone does fully apply at more than one lender.

5 Ways to Spot a Home with Hidden Potential
Trulia | August 23, 2012
Remember metal detectors? When I was a kid, they were all the rage, holding the emotional rush of a game with the a potential real-life treasure chest at the end.

Half of Homeowners Under 40 Are Still Underwater
The New York Times | August 23, 2012
The less time you’ve been in your home, the more likely you’ve accumulated little equity and seen the value of your property fall since 2005.

Short Sales vs Foreclosures: The Banks’ Preference
The KCM Blog | August 23, 2012
For months now, we have been letting everyone know that banks were going to begin shifting their focus when liquidating distressed properties. They would start supporting short sales over foreclosures. There is no longer any doubt this is now the new normal.

New Home Sales Up 3.6% in July, Matching Two-year High
The Los Angeles Times | August 23, 2012
Sales of new single-family homes rose to a seasonally adjusted annual level of 372,000 units in July, matching a more than two-year high for total sales, the Census Bureau said.

US Home Prices Make Big Quarterly Jump
FOX Business | August 23, 2012
Home prices rose 1.8% in the April-June period compared with the first quarter of the year, the Federal Housing Finance Agency said Thursday.

Some States Rank High on ‘Housing Misery’ Index
REALTOR Mag | August 23, 2012
Are some housing markets still suffering from the blues? Trulia’s Housing Misery Index takes into account the percentage of change in home prices from a state’s peak during the last decade compared to today as well as the percentage of mortgages that are either severely delinquent or in foreclosure.

Household Income Drops Sharply
The Washington Post | August 23, 2012
Inflation-adjusted median family income fell to $50,964, below where it stood before the recession.

Lost Decade for Shrinking Middle Class
The Wall Street Journal | August 22, 2012
The middle class — defined as households with between two-thirds and double the nation’s median income — has shrunk considerably over the past few decades, a decline that has been greatly exacerbated by the recession and housing bust.

Blossom Valley is a hot bed of short sales. It is one of the neighborhoods in the Silicon Valley that has not gone back to the values of 2007-2008. So many of the homes for sale right now are being sold as short sales since the owners have negative equity in their homes.

There are currently 196 pending homes listed as short sales.

There are 286 pending sales of all types.

The percentage of total pending sales which are short sales is 68%.

This is pretty impressive, but the big question is how did this happen?

I have a few theories.

Blossom Valley had some remarkable levels of appreciation early in the century, especially between 2005-2007. There are a number of reasons.

1. Easy money

2. Easy access to downtown San Jose which had ambitious plans for redevelopment

3. Good schools. At one point there were sections of Blossom Valley where you could get a home in a school district with a high API for less than any other neighborhood in Silicon Valley.

4. High tech companies close by including IBM right in the neighborhood.

Then the market crashed, credit tightened, San Jose gave up their redevelopment plans, major employment areas kept moving north to Mountain View, Palo Alto, and San Francisco, and Blossom Valley values plummeted in 2008-2009.

We are on the way up again, but many homeowners are still underwater. The inventory is now quite low. There are only 61 homes for sale right now, and 13 are short sales, or 21%.

If you are a seller, your home will sell, and quickly. If you are a buyer, there is a lot of competition, but the values are there.

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

You’ll find some great reading this morning including Ted Jones’ view of real estate investing in college towns, a couple of good articles on the effect of short sales on home prices and the overall market, and a warning on the coming fiscal cliff from the Washington Post.  The article that most surprised me?  Fannie Mae REOs not getting to market. 

LO-Realtor Comments
Mortgage News Daily | August 22, 2012
Statistics can be useful, sometimes not. On the “useful” side, the MBA will release its weekly mortgage applications index for the prior week. But how many of those retail applications actually close?

College Towns for Investing
Ted C. Jones Blog | August 23, 2012
With an estimated 14.4 million college students, University and College towns are fertile rental markets. But with the housing bubble and the lowest interest rates in 50 years, investing in rental housing in these locales can be lucrative.

Well, so far just not impressed with Titanium Solutions and working as an HRC (Home Retention Consultant). For the same money I could do one BPO and not be saddled with:

Initial fear of going to property
Repeated trips to property (they require minimum of 3 attempts and one has to be on a weekend)
Paperwork--since when were Realtors ever good with paperwork?
Trying to communicate with Titanium--often takes many calls and e-mails, and then when they do return, their English skills are sub-par
Majority of the time Bank of America does not validate our jurisdiction (Titanium) and in several cases they actually told borrowers not to work with me!

I originally signed-up because I was told it was a direct avenue to get Short Sale listings--but now Titanium has said they are no longer able to give out any listing assignments.

I know we all want to offer a service to our community, but there HAS to be a better way than working with a company like Titanium!

Thanks for the short sale lead capture ideas. My husband & I are on track to complete 8 short sale sides this year, last year we did 4 sides.

ShortSales are definately a bear. However, one Seller told us that he loved us. That made us feel good.  He's had a bad time of it. Still we did not give up on him (like his parents, x wife, kids and previous employer). We invited him into our kitchen and just listened, numerous times. This sale is scheduled to close next week after being on the market 13 months, through 3 contracts and a foreclosure filing. 

Is it worth it?  Seems like everyone in this situation needs someone that they can trust.  The emotional toll taxes us. We ignore our house, our lawn, our needs, to be available for the lenders who wanted every form yesterday, perfectly uploaded; for the broker who still needs to make a profit on homes that are in inventory one to two years;  to remind the Buyers that a short sale isn't going to close before school starts or that being holed up in their parents basement while they wait on a short sale bargain, probably will not work out.

The jury is out. Currently we are working with a Seller who has received a foreclosure notice. Finally a Buyer came along who was willing to accept the property in it's present condition. He made his offer and waited.  2 months into the escrow the would be Buyer called to say that he was taking a trip into the desert mountains of New Mexico where he would get no phone reception.  He called again, before he climbed into the mountain, to see if there was any news and to tell us that he would be out of touch for 3 days. That afternoon the short sale lender emailed us and gave us 72 hours to respond to their counter offer.  After the Short Sale Buyer did not respond within the alloted 72 hours, the contract was cancelled and kicked out by the Short Sale Lender.  Hopefully the Buyer will submit another offer. Meanwhile, the Sellers wring their hands as the foreclosure timer continues to tick. How frustrating is that?

We are hoping that one day this rollar coaster real estate market will all be part of the past. But not likely very soon.  For now,  we are trying to enjoy the ride.

In today's news you'll read that Zillow shows July real estate sales up, the wealthy are now turning toward investing in real estate funds, things to consider when refinancing a vacation home, applying the serenity prayer to real estate, and more.

'Short Sales' to Get a Boost
The Wall Street Journal | August 21, 2012
Homeowners could soon have an easier time selling their homes for less than what they owe on their mortgages, under new guidelines from a federal housing regulator and mortgage-finance giants Fannie Mae and Freddie Mac. (More on this at the FHFA site: http://www.fhfa.gov/webfiles/24211/ShortSalesPRFactFinal.pdf )

Best Places to Live
CNN Money | August 21, 2012
These terrific small cities offer what American families care about most – strong job opportunities, great schools, low crime, quality health care, and plenty to do.

Zillow: July Sees More Home Value Gains, Market to Cool in Fall
DSNews | August 21, 2012
Zillow released on Tuesday its Real Estate Market Reports for July, revealing that the company’s Home Value Index hit $151,600 for the month, a 0.5 percent gain from June and a 1.2 percent increase year-over-year.

Cities Have Long Been Skeptical of Economic Development Spending
The Wall Street Journal | August 22, 2012
To the long list of policymakers who have debated the wisdom and efficacy of cities and states using grants and tax breaks to attract companies, add Albert Weigel.

Rich Folks Go Where Pensions Dare Not
The Wall Street Journal | August 21, 2012
As big institutional investors pull back from investing in high-risk real-estate funds, these funds are turning to a new source for capital: rich people.

How the Serenity Prayer Applies to Real Estate
The KCM Blog | August 22, 2012
You may be wary of either buying or selling a home in today’s market. You may feel powerless to the process. How could YOU possibly know whether the current good news about housing will continue?

Refinancing a Vacation Home
The New York Times | August 16, 2012
Homeowners who want to take advantage of historically low mortgage rates and refinance a vacation home should be prepared for stricter loan requirements, especially if they rent out the property.

Americans showing better use of credit
The Spokesman Review | August 22, 2012
Americans continue to do a better job paying off their debts, with a leading index of defaults on mortgages, credit cards and auto loans dropping in July for the seventh straight month.

If you read the short sale article above, I'd love to hear what you think: Will the changes they're making on short sale rules help the consumer and the agent get transactions done?  What's the downside to these new short sale rules? ~Anthony

Working with Non-Profits to Generate Short Sale Leads.

After my last two blogs.... (See Links Below)....

http://reopro.ning.com/profiles/blogs/the-liability-of-a-preferred-short-sale-agent

http://reopro.ning.com/profiles/blogs/the-short-sale-tsunami

I had a couple request for some more information on just how I work with non-profits to actually generate a short sale lead. So, this blog will do just that. It will be a longer blog than what my readers are accustomed to but, it's going to be full of good information.

First off, I have to admit, this idea really isn't unique to me. In fact, this method was manifested between myself and a friend of mine who was already working with a home crisis center here in Tennessee. You see, they were having a problem  with helping their homeowners who didn't qualify for any modification or home rescue program they had. Most of these people just ended up going into foreclosure and as many of you know, that wasn't what this non-profit wanted to see happen. In fact, their methodology, ideology and general operating standard was to move non-qualifying persons into short sale. They, themselves saw the benefit of short sale vs foreclosure and as such, elected to move these non-qualifying persons that route. The specific problem they were having was they couldn't find competent Realtors. In fact, it had gotten so bad and they had lost so many homeowners to foreclosure, they almost gave up the entire non-profit or at the very least, was debating to just dramatically reduce the number of people they were willing to help. This is where I came into the picture. To make a long story short, we turned it around and now, it's working very well for us all and in fact, we will be dramatically expanding with the help of a local bank.

So, based on my experience, you have two schools of thought. You can either start your own 501c3 based on rescuing people from foreclosure or, you can partner with a non-profit who is already doing just that. Now, the problem you will run into is, many of these non-profits will tell you that they can't have a preferred agent list or that they can't solely recommend you and that is for the most part, true however, not in all situations.

You see, many Realtors come to these non-profits with their hands out, like little birds waiting to be feed "free" leads and as such, these non-profits get nothing back in return. In essence, they are not willing to enter into an exclusive relationship because they have no benefit ...monetarily speaking. What I ended up doing was figuring out how these people got paid and from everything I saw, the grants they got were based on the actual number of people helped so, instead of coming to them asking for a lead handout and came to them giving them a lead handout. That's right, I flipped the script, which by the way, I am told I am good at.

What I mean by flipping the scrip is, I brought them leads. What I would do is, send out post card direct mailing to at risk neighborhoods...about 1000 - 2000 post cards at a time, so I was spreading a large net and out of those leads I captured, I referred them directly to my partner non-profit. This was great for them because, it ended up bumping up the number of people they helped and in return, increased their grant money. The deal was, every lead I send you....you must send back. Now, granted, I stayed in touch with my lead...I worked it, I emailed them, I called them, asked them how the loan modification was going or how the housing counselor was working with them so, they really didn't have to "send" anything back to me but, none the less, they knew if it was a Jesse G. lead, whenever the question came up about Realtor or real estate matter, the name Jesse G. flowed from their lips like milk and honey. In their mind, they weren't referring a Realtor, because the homeowner was already working with a Realtor (ME) when they sought out their assistance to save their home. So all they were doing was stating the fact back to the client, "Your Realtor, Jesse G. can help you with that." or "We will call your Realtor Jesse G. and let him know you are ready for short sale." etc...etc.... The best part was, they were happy to do that.

Now, the benefits to working with a non-profit that is already established seems pretty obvious to me but, let's go over some of those just to make sure you and I are on the same page.

Benefit # 1: No Cost

I had absolutely no out of pocket expense to get the full benefit of a certified, designated, industry respected home rescue non-profit to help my homeowners.  This was by far the biggest benefit, it cost me nothing.

Benefit # 2: Risk Management

Honestly, short sales will always have risk to the Realtor doing them however, because I am not involved in any of the Loan Modification aspect and hence, the realization on the homeowners part that a short sale is their best option, my risk is dramatically reduced. You see, I don't find myself having conversation with homeowners as to why a short sale is the best option and that is because, they have already exhausted all their other options through the non-profit. In other words, I don't get into sticky conversations or strange situations where the homeowner may feel that I am out to just short sale and make a quick buck. This way, my risk is managed through the use of the non-profit.

Benefit # 3: Ready, Willing and Able to Short Sale

By the time the non-profit is done working with the homeowner and it's come to the fact that they will have to short sale, by this time, the homeowner is ready, willing and able to list the home. In fact, when working with a non-profit, my short sale listing average is about 97%. Yeah, that's right, 97%. This is because the homeowner is much more ready, willing and able once they have spoken to someone who doesn't have a financial interest in the sale of their home and still end up being told, you need to short sale. At this point, many homeowners see it as a no brainer. Now, granted, some just don't get it, about 5% are simply going to stay in the home, not cooperate, get foreclosed on, get an eviction notice and about 3 months later, the Sheriff and the REO Agent move all their stuff to the lawn and lock them out. This is rare but, not so rare that I haven't seen it happen. None the less, 97% of the time, I get the listing.

Benefit # 4: Banks Cooperate

Because the non-profit has already worked through the banks home rescue programs and because most of these banks have policies and procedures that benefit homeowners who work with non-profits to save their homes, these banks cooperate. In fact, most of the time, my homeowners who have worked with the non-profit almost seem to get preferred treatment from these banks in the short sale process. Now, I haven't figured out completely why but, I really think it has a lot to do with the fact that these banks are regulated to "help" homeowners and if the homeowner works with a nationally recognized non-profit, like the one I work with, all of a sudden, they look good. So, when it comes time to short sale, they have all the necessary documents, they have crossed all T's and dotted all the I's. This was by far the biggest surprise to working with a non-profit, banks cooperate with them better than they did me on my own.

Benefit #5: No Additional Commission Splits or Referral Fees or Membership Fees

Because I am generating these leads myself, through my own marketing, I don't pay anyone for being a member of this network or that network, I don't payout a referral fee, I don't additionally split my commission.....all that I make is all mine.

Benefit # 6: Additional Leads Direct from the Non-profit

After a while, the non-profit and I had lunch and we talked about helping out the leads that I didn't bring in but they end up getting on their own marketing. Now, granted, for these leads, I couldn't be their exclusive agent, they had me on a list of 2 other agents but, guess whose name was at the top of that list.......yep, it was mine. Now, granted, I had to go out and win the lead but, it wasn't hard. Now, I can't say that the non-profit talked my up because, I really don't know, I am not a part of those conversations with the homeowner but, that 97% listing ratio includes ALL leads, mine and those exclusive to the non-profit....you following me?

So, that's the jest of how I work with an existing non-profit in my area. Keep in mind, your success still depends on you and the marketing you do. Granted, my marketing is something I keep close to my chest but, if you want to learn a little more about what I use for marketing...and yes, I only use one marketing strategy right now and yes, it works well, email me directly and I will talk to you about it. No, this isn't a solicitation by the way, I will share my strategies for free, if you can do the same.

The Short Sale Tsunami.

If you have been waiting for the REO Tsunami since 2008 - 2009 but have been a little down that no "Tsunami" ever surfaced...well, you're not alone. In fact, many of us (Experienced REO Agents) would say it's not a Tsunami we are waiting for, it's the end of the REO Drought that we are hoping for.

Well, I wrote a blog yesterday about some chatter I have been hearing about banks wanting to create a preferred short sale agent list and don't exactly know how to go about it and this blog is a follow up to the one yesterday.

Banks and other default real estate portfolio holders are burdened with so much government regulation that they are almost completely abandoning REO. Now, I am not saying REO is dead, let's face it, it will always be with us but, it isn't going to look like anything any of us will be able to recognize in early 2013. This is because these banks are being told that if they don't "save" more homes or at least give the impression that they are truly trying to "save" more homes from foreclosure, they can expect more stress testing, more political demonization and possibly a closer look from the FDIC. Now, this may sound like something straight out of cold war Russia or Eastern Germany but, it's a fact and scary enough, it's backed up by law. Now, I won't go much into that at the moment because this blog isn't focused on that but, look it up yourself, study the Community Reinvestment Act and you will get the point.

What we end up with is a stressed, overwhelmed banking industry who is settling multi-million dollar lawsuits, from all over this country, trying to bow to political regulation (Note I didn't say government regulation) while trying to make a profit.

One of the biggest contributors to why REO has dried up is because of the moral hazard this country has been playing with since the housing bubble burst and that is, "how do we save people from foreclosure?" Yes, I called it as I see it and that is a moral hazard. The truth is, you can't "save" someone from foreclosure unless you plan on paying their mortgage for them. Otherwise, the mortgage holder is going to have to have an income, prioritize his debts and start paying them off. If he can't do that because of whatever reason......then foreclosure is the hard, stark reality.

Granted, in a normal market place, foreclosure would be fine, in fact, here in Tennessee, we have laws that specifically protect former owner occupant equity in foreclosure action however, we aren't in a "normal" market in the fact many of us are upside down and thus, no money to be had in foreclosure...only expenses. This is what brings banks to the bargaining table because now they are forced into loss mitigation regardless if they want to or not. Hence, short sales.

What many people just don't get is that a short sale is simply the most cost effective disposition of a non-performing asset in a negative equity market place. For this reason,  and others previously discussed banks are holding back REO.

Now I have painted the picture, you should understand that the REO drought is from...

1. Political Pressure

2. Government Regulation

3. High Unemployment

4. High Cost of Foreclosure

5. Negative Equity Marketplace

6. Loss Mitigation Strategies Implemented by Banks (keeping people in their homes even though they haven't made a payment in 12+ months or better yet, putting them on temporary loan modifications that are supposed to be only 3 months but end up being 24+ months or better yet, holding onto vacant abandoned properties and not proceeding to foreclosure.)

So, what is the solution, how do we get banks and agents together to dispose of these homes? Well, it seems no one really knows...

 (Refer to my earlier blog: http://reopro.ning.com/profiles/blogs/the-liability-of-a-preferred-short-sale-agent?commentId=2122473%3AComment%3A252605&xg_source=msg_com_blogpost)

Now, I do have a suggestion and that is because it's working for me here in my service area.

I work very closely with local non-profit housing crisis centers who sole responsibility is to "save" people's homes. These non-profits are contacted daily by ready, willing and able defaulted owner occupants who need help. These non-profits do all they can to help but, about 73-76% of the time, the people they work with either default off their programs or just can't qualify for help due to lack of income and as such, are sent to me for short sale.

Granted, my cooperating non-profits can't come out and just say, we recommend Jesse but, they do give the struggling homeowner about 3 preferred Realtors and on that sheet of paper, we provide our service areas and then the homeowner gives us a call accordingly. After that, it's on us to make the best impression and win the listing.

From that point, we work very closely with the housing counselor over at the non-profit because most of the time, they have collected all the necessary paperwork I need for the short sale and in fact, have already contacted the bank telling them that the homeowner will be short selling. This way, the bank is informed, knows exactly what is going on, expect to hear from me and by the time I call, it's all good.

Using a non-profit is a great way to reduce agent liability, manage risk, educate the defaulted homeowner and keep in the good graces of the bank. Yes, we have some unique challenges in the area of risk and liability in our cooperation but, nothing we were able to conquer or reduce by disclosing in writing and getting all appropriate signatures.

None the less, this industry does have very specific needs and I truly feel that some companies out there who specialize in default customer contact (if you don't understand what I am hinting at, let me know, I will be more clear in a reply) will likely lead the way but, even these procedures can be umbrellaed under a legitimate non-profit.

All in all, my point is, I really think we are going to start seeing the development of non-profits to truly reach out and initiate short sales. This will be a strange but, positive movement for our industry and I think it will really have a great impact on homeowners. Now, I know some of you are already doing this in your local areas and are seeing a lot of success. In fact, some of you have even created very robust networks of professionals, much like I have done here locally so, when this industry shifts, we are ready. For those of you who didn't see this coming or even now, can't imagine this every happening....I challenge you to keep a very open mind because, it's a great business plan, with or without bank participation, you still end up making really good money, helping out your community and offering a free market solution to a crisis that already has too much government / political regulation.

The Liability of a Preferred Short Sale Agent.

I had a conversation with a friend and colleague today that I want to share with you. As always, all of my conversations are confidential so, the names and vital details will be changed in order to protect the identity of everyone involved....except myself, of course.

So, she calls me up to tell me that she has been speaking with executives from the top banks, GSE's and largest default real estate portfolios holders in the country and as a result of those conversations, she had some questions for me. Flattered of course, I obliged and let her know I would answer any questions she had to the best of my knowledge and experience.

She starts by telling me what she was doing and why she was talking with these executives and as I am following along, I begin to understand why she is calling and realize, flattery is far from her mind and she needs real answers. She begins telling me that out of these conversations she was having, she has gotten the impression that many banks, GSE's and holders of default real estate portfolios are not only have trepidations about developing a "preferred short sale agent" list, much like how they have a "preferred or REO agent" list....they have outright hostility to the idea.

In order to further my understanding and get a better sense of the fear they have, I asked some probing questions and fortunately, I got some good answers...of which, I want to share with you. In no specific order, here is what I go....

Question 1: Why wouldn't the bank want a preferred short sale agent they can recommend to their default occupants / homeowners?

Answer 1: Liability.....too much liability.

Well, as you can imagine this answer wasn't good enough for me so, I had to break it down a little. Now, our conversation was nearly 2 hours long and I didn't record it so, I am going to summarize here for you.

The banks issues of liability revolves around some key problems that they can't seem to correct, fix or better yet, feel that they want to even be involved in fixing, those are...

1. Lack of Quality Agent Training:

From what I took away, I was impressed that many banks (let's use the word "bank" to refer to all of them....banks, GSE's and Default Real estate Holders, alike) know our industry has developed good education however, they have a few problems and they are...

                A. OUTDATED: Current education always seems to be outdated or not updated timely enough to positively impact the quality of the actual work completed by the agents.

                B. NO RETENTION: Even though the education may be good on paper, the retention of the agent is poor and by the time they need to use what they learned...they lost it.

                C. NO QUALITY ASSURANCE: You may have an agent who took the course, passed the exam but, has such poor operating processes and procedures that they fail to implement the best practices they were taught.

2. Severe Inexperience:

Now, for many of us who do short sales regularly, this was a bit of a surprise but, after I really thought about I came to accept that sure, a lot of agents out there just don't know how to do a short sale. What got me thinking was how this breaks down from a banks point of view.

                A. INCREASED PROCESSINGTIME: Due to lack of experience errors like, documents that aren't fully executed or not doing a preliminary title report, it ends up creating increased processing times, waiting for corrections.

                B. UNECESSARY ESCALATIONS: Because the agent hasn't completed enough short sales, they haven't worked through the common practices, procedures and processes of the bank or the short sale in general and end up getting frustrated and escalating which creates a back log for the bank.

                C. LACK OF PROMPT AND OR ACCURATE COMMUNICATION: Agents who don't understand the jargon or worse, set unrealistic expectations due to simply not communicating or not knowing how to effectively communicate cause delays and end up resulting in lost deals.

3. Fraud - Nepotism:

Sometimes it's not what you know or how well you work but, who you know and what they can do for you. Sad but, its true and yes, the banks see this as a problem they want to conquer however, not as easy as you may think.

                A. SAME DAY / SHORT SALE FLIPS: Regardless of how you come down on the same day short sale flip, the reality is the bank know this is happening and consider this a fraudulent act. I am not going to get into the details just why this is fraud however, its a problem for the banks and they are afraid that having a preferred agent list, they may open themselves up to this happening more often.

                B. UNQUALIFIED AGENTS: Have you ever wondered how that agent got that REO when you now beyond a shadow of a doubt they never worked a REO in their life? Well, it's likely because they made a great connection through a friend or at a conference and BAM, fast tracked to becoming a REO agent. This wouldn't be allowed but, not exactly sure how to stop it or prevent it seems to be the issue.

4. Severe Incompetence:

You can be the most trained and you can even be experienced but, we have all met those agents who just simply don't get it, completely, utterly incompetent and we are left scratching our heads and asking ourselves, "Who did they pay off?"

                A. BEST INTERSEST OF THE CLIENT: The banks have found that many agents just don't know what is truly in the best interest of the client or better yet, they don't know the law requirement or risk management strategy that will protect their client from any future liability.

All in all, my conversation was a good one however, it seemed to me to be a little late because for those of us who have been doing short sales for at least 4-5 years now, we have had these issues ourselves dealing with other Realtors or the banks themselves.

I don't really know what has spurred the action by many of these banks to finally look a little closer however, I am all for it. The reality is, this business is all about change and the moment you can't or don't change, you die. Truth is, I thrive in the changing environment because I have built my business around conservative fundamentals that have kept me nimble and flexible while others have retired early or simply gone bankrupt. Granted, I do believe competition is good and in a free market necessary but, I also believe a free market competitive environment gets rid of the wasteful, lazy, and propels the hungry and innovative to the top.....so, let's bring it.

Not sure what the result of my conversation will be but, I have a feeling you may end up seeing a survey from me shortly and if that is the case...please respond, let's us know your thoughts because, we may be able to effect some change.

In this post, I’ll take on the topic of using telemarketing as a channel to reach out to homeowners 30, 60, or 90+ days late on their mortgage payment.

Many marketers prefer to make contact with distressed homeowners over the phone, but in my view, that’s analogous to calling up a stranger and asking them if they have a drinking problem. Would they admit to a total stranger that they have an addiction?

I believe that the phone can be a good follow-up device once a distressed homeowner knows you, or at least knows of you. If you’ve made initial contact with distressed homeowners through other channels, you have more of a licence to call them. Of course, it is not “cold calling” if the homeowner volunteers their phone number through a web-based form you can drive them to in order to download a free report, video, or other snippet of information – more on that later.

First off, when identifying homeowners in pre-foreclosure, phone numbers are in short supply because of two dynamics:

1. Land lines are becoming obsolete, as more and more homeowners – and particularly younger homeowners – are using mobile devices.
2. A staggering amount of homeowners that do have a land line are registered with on the Do Not Call List.

We can only obtain phone numbers from the credit reporting agencies that are compliant with the DNC regulations. They are real legal sticklers when it comes to that. Now, certainly no responsible marketing company would advocate looking up the homeowner without regard to the do not call regulations and we stop short of that. It is, however, noteworthy that most agents and others in the distressed property industry don’t seem to care about the DNC. Their sentiment is, “I’m not really selling anything”, and in fact, they are reaching out to help. It’s not as if they are selling steak knives or peddling a magazine subscription – it’s almost as if they are conducting social work. Says one subscriber of our pre-foreclosure data: “I’m not bothered by the do not call list, because if it wasn’t for me, these families would have their belongings on the curb”.

The appeal of calling distressed homeowners is obvious. There is little cost to getting the conversation rolling on the phone – the biggest cost is the time associated with making the calls. Moreover, there is an immediate response if you can get these homeowners on the phone, right? In my view, there is a fallacy in this thinking.

• For one, financially distressed borrowers are getting deluged with collection calls and so many of these homeowners simply are not coming to the phone or they change numbers.
• Second, many homeowners that are not paying their mortgage are not paying other bills, including their phone bill, and so the phone company disconnects their number.
• Finally, working with distressed homeowners is a process and requires a concerted, multi-pronged approach through multiple channels. It is not going to be a one-call close. While there is a perceived sense of instant gratification in using telemarketing, this is not the case from my experience.

Direct mail needs to be part of any successful short sale acquisition program. Direct mail leads convert a higher rate than telemarketing due to the self-selected nature of the responder. Direct mail leads have consciously made the choice to respond. Unlike a telemarketing lead where the choice to respond may be a concession, the choice to respond to direct mail is based on a genuine interest from the homeowner that wants to explore what their alternatives to foreclosure are.

During an age where marketers are zipping tweets and pulling in fans for Facebook, direct mail can seem decidedly old school. Yet direct mail should not be dismissed as too pricey or passe, and can be combined with online marketing to create synergy. Direct mail and online marketing are not mutually exclusive, but compliment one another.

For instance, you can use direct mail to drive a distressed homeowner to a landing page, where they can get access to a free report such as “10 things you should never do if you fall behind on your mortgage payment”. In order to obtain the snippet of information you are offering, they must fill out a form, including their phone number. Caution is an order, however, in asking the homeowner to fill out too much information. Pry too much and you guarantee that the homeowner will be scared away. A phone number and e-mail address should suffice.

It should go without saying (but it’s said because some agents do this) that if you elect to call distressed homeowners, you should never profess that you have any inside knowledge that they are falling behind on their mortgage payments. This will only alienate them at best, or at worst, lead to a mouthful of expletives.

This blog post is becoming monsterous, so I’ll wrap it up for now and continue this in other posts. I’ve only scratched the surface here, so stay dialed in at facebook.com/ShortSaleLeads, on Twitter @shortsaledata, or better yet, give me a call at 866-490-3459 to bounce some ideas around.

Till next time, A-B-C… Always Be Closing.

Paying for "leads" is ineffective in our view, and not a judicious use of your time or money. That may be a stark statement coming from a leads provider, right? Why would a leads provider tell agents not to pay for leads? The answer is we do not provide leads. We provide data, and there is a huge difference. You can pay a lot of money to a leads provider and leave the results to chance. Or you can shape your own destiny, at a much lower cost by generating your own leads using early and accurate pre-foreclosure data.

Diamonds and cubic zirconium may look the same, but there's a vast difference in worth between the real gem and its fake twin. Agents face the same dilemma in their campaigns when determining whether they are purchasing data or leads. The difference between data and leads isn't as clear cut as it may seem, just like that sparkly diamond may be worth less than a lollipop ring.

A good example is our prescreen credit data. The credit bureaus really don't sell "leads". That has wrong written all over it. Yet our tri-bureau platform can identify homeowners being reported by their lender as 30, 60, 90 or 120+ days delinquent on their mortgage, before the NOD or Lis Pendens is filed. Unlike a "lead", distressed homeowners in our database didn't directly contact your company for help. What we provide is raw data - the building blocks of a marketing campaign that can educate distressed homeowners on their alternatives to foreclosure and get them to work with you. Our data identifies the best prospects for a short sale, which you can convert into a qualified lead. In other words, our data equips you to cost-effectively generate your own leads without relying on outside sources.

In contrast, a leads company provides live or so called "warm leads" and does what you as a real estate professional should do on your own. In turn, they charge an exorbitant cost per lead. Hiring a traditional leads provider can be a very costly endeavor. Costs vary depending on the actual campaign that is being conducted, including SEO, PPC, direct mail, email and telemarketing campaigns, but you can easily pay $10 or more for a so-called warm prospect generated by a lead generation company. These companies factor in their hard costs and a margin of profit to price their lead generation programs.

While leads can be cost prohibitive, data is much more affordable. Rather than paying upwards to $10 per lead, you can obtain highly qualified data much more affordably. In addition to lower cost, prescreen credit data allows you to be more selective in who you target, thereby building a list of the most qualified and lucrative group of homeowners.

You can pay good money for a "lead" of a homeowner who's house is going to auction next week. Or a homeowner who's house is worth $40,000 and not worth the time and aggravation of a short sale. Perhaps the homeowner has four mortgages, requiring you to negotiate with four different banks, or maybe they have been pulling equity out of their home, rendering it nearly impossible for the lender to agree to a short sale. It's possible that the homeowner owns a condo, and you don't want to deal with the HOA. There are several other scenarios you can probably think of that you want to avoid. By using prescreen credit data, you can build a highly targeted list based on the number of days delinquent, loan balance range, number of mortgage trades, dwelling type, and other precise attributes to lower your marketing cost and increase your return on investment through more completed transactions.

By paddling your own canoe and using data to generate your own leads, you are the decider of what "lead" is qualified. You are the real estate expert, not a sales rep in a call center of a leads generation company. You can waste a lot of time and money on a lead that has a zero chance of leading to a completed short sale transaction.

In parting thoughts, I'll use the analogy of the Home Depot, who's motto is, "You can do it. We can help." We give you the tools to build the house, or more appropriately, list the house.

Who's your niche audience? Enter your criteria here and we will provide a free area analysis of how many distressed homeowners need the help of a short sale expert.

With REO's on the decline, or at least reaching a plateau, many agents are migrating to short sales in order to fill their pipeline of listings, and the transition can be challenging. While many agents are loathe to embrace short sales, they are a necessary evil in today's market. As illustrated in the classic "Who Moved My Cheese" tail of Sniff, Scurry, Hem and Haw, when the cheese is scarce, it's incumbent to venture out of your comfort zone and seek cheese elsewhere. With such a staggering amount of homeowners in pre-foreclosure, there's an abundance of cheese to be found with short sale listings, but how do you approach distressed homeowners? 

There is a plethora of pre-foreclosure data sources on the web, but the common thread is that they are public record information which everyone else has access to. These lists are generally compiled once the Notice of Default (NOD) or Lis Pendens (Latin for "suit pending") is filed, the legal instruments the lender files to re-possess the property. While this data is inexpensive or oftentimes free, the drawback is the fierce competition. Once the homeowner's hardship reaches the public domain, they are deluged with solicitations. One agent told me a homeowner on the NOD list showed him three garbage bags full of mail. 

"Soft" credit data provides a distinct, early edge over the competition by targeting homeowners 30, 60, or 90 days past due on their mortgage payment, as reported by the lender to the leading credit reporting agencies. Since this information is not yet public record, you can be the first to reach out to distressed homeowners before your competition knows a property is in distress. You can select distressed homeowners by geography, number of days delinquent, loan balance range, number of mortgage liens, and other precise criteria available through a tri-bureau platform. 

Who's your niche audience? We can go to the drawing board and tell you exactly how many struggling borrowers need the help of a real estate professional. > Request a free count. 

www.lehighvalleyshortsalerealtor.com

Carl SanFilippo

(888) 445-8880

Short sales have been helping homeowners dodging foreclosure since the housing market began taking its fall back in 2007. Short sales are becoming popular because of the minimum impact it has on a homeowner’s credit. A foreclosure makes it almost impossible to be qualified for a loan for seven years, while a short sale can recover in as little as two years. Short sales can be a lengthy procedure, but with a short sale specialist helping you, you won’t have to be concerned about negotiating to constant communication with the lender. The service of a short sale specialist is free to the homeowner and is just another plus to opting for a short sale.

Short sales provide incentives to the qualifying homeowner to help with relocation fees. The Home Affordable Foreclosure Alternative government program will offer $ 3,000 cash back after the short sale. A short sale can also be an advantage to the lender by helping them to avoid a costly foreclosure; the lender understands their loss with a short sale, but also comes to grips with their gain of avoiding foreclosure.

The short sale process can be long and tedious, but upon completion, it will show its true benefits. Depending upon the state, and whether the short sale was a traditional short sale or the HAFA short sale, a homeowner will be relieved of the deficiency after the short sale; meaning you will not be held accountable for paying the difference. With a foreclosure, you will be addressed with fees and many years of “foreclosure” lingering to your credit.

With the housing market still trying bounce back, buyers are still seeking after a good deal and homes being sold as short sales could be the deal they are wanting. Sometimes various buyers can come and go during a seller’s short sale, but that is why it is important to have a competent short sale specialist from the beginning, ensuring that your house is “buyer friendly” and all of the requirements asked by your lender are met.