Negotiations are KEY to closing your short sale!
Short Sales are made up of many different components. We all know about the stacks of documents, the necessity of an experienced List Agent..and what else? Who exactly do you meet during the process of a Short Sale?
List Agent: Critical. Choose an experienced Agent that CLOSES their short sales. Certified is great, familiar with the different Lenders and their different MO’s is also required.
Buyer’s Agent: I LOVE when my Buyers’ agent understands short sales and can explain it to their Buyers. I keep my buyers’ agents updated, but if they don’t understand the process, it’s often a moot point.
Customer Service Rep: First level of contact for yoru Lender. You can call them, and you can bet I will be!
Equator: The online Customer Service Rep. This system keeps us all honest. It creates an online record of what documents have been asked for and received and any correspondence your List Agent has had with your negotiator.
Negotiator: The person that actually gets your file and starts reviewing it to see if any docs are missing. There are several levels of negotiators. Each level gets you a little closer to the Investor.
Investor: Once the negotiator decides the file is complete, it is passed to the Investors to either counter it or accept it.
Closing Representative: This is your contact that sends your List Agent the Approval Letter. If you need an extension on your close date or a buyer substitution, you hope this person is competent!
Remember that the entity you write your mortgage check to is called your “Servicer.” The entity that actually decides on the net amount they are going to write off in your note is called the “Investor”.
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Short Sales could slow down if principles are reset..a good thing!
I’ve been saying this for the past 3 years or so..why not reset mortgage principles to say…Fair Market Value + 20%? When I ask my underwater homeowners if they’d stay in their homes if THEY could get the Short Sale value I’ve proposed to them, they always respond “Yes!”
This article from New York Times today hits on this idea in San Bernardino County..which has just declared bankruptcy by the way, so might be a good place to test this eminent domain idea.
The stumbling block is always the same…the bankers get their skirts blown up “even thinking about letting the governement step in to take control of our mortgages.” Well..somebody has to! If the Banksters want to continue to set their own mortgages, why not work out a program with the current homeowners to keep them in their homes? Turn a non-performing asset into a performing one??? The reason could be that the Banksters do not want to report the TRUE VALUE of their assets to their prized shareholders until they are good and ready. Hey..a little coloring outside the lines for the Banksters is nothing new, right???
Until Mortgage values are reset, if you are underwater, give me a call for your free Short Sale consultation..760-285-3578.
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La Quinta Cove short sale just CLOSED!
Another Short Sale in La Quinta..CLOSED! This lovely single family home in the La Quinta Cove, was a primary residence. The Seller relocated and is relieved to be out of the high mortgage payments.
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In La Quinta and across the state of California, Bank of America has announced that for a limited time, they are offering enhanced relocation assistance payments to qualified California homeowners who initiate a short sale without an offer. Those who qualify could be eligible to receive anywhere from $2,500 – $30,000 in relocation assistance and owe no more on their mortgage with the short sale of their property.
Many distressed homeowners are not aware of options available to them for avoiding foreclosure. It’s best to be proactive and call your lender before missing a payment. Then the embarassment and credit problems brought on by foreclosing on your home can be avoided. To not call your lender to discuss your options will only hurt your case.
Providing this enhanced Relocation Assistance Payment to distressed homeowners helps them with relocation costs and can also be used to help pay escrow items, such as past due HOA fees (a fee the banks will not pay for in a short sale situation). Banks are now more willing than ever to work with their borrowers to come up with a solution that works for all parties involved.
Remember that the Listing Agent in a Short Sale is your key to success, both for the Short Sale seller as well as the new Short Sale buyer. If you need help with your underwater mortgage, or simply doing your investigative work, give me a call at 760-285-3578. I am
experienced and short sale certified and consultations are FREE! I would be Happy to talk to you.
Well, it’s called fearlessness . . . ‘the quality of mind enabling one to face danger or hardship resolutely.’ That is the dictionary’s definition and that pretty much sums up what my friend Kim Kelly is all about. This is a guest blog and I am writing about Kimberley Joy Kelly – realtor for HK Lane Real Estate in La Quinta AND longtime pro on the polo circuit and trainer of polo ponies.
In this month’s issue (April) of Palm Springs Life, there is an excellent article entitled “Chicks With Sticks,” spotlighting Kim and another local female equestrian and their careers in the male dominated sport of polo. I can’t talk intelligently about the game of polo, as I haven’t spent a lot of time around horses and have only observed the game as a spectator. All I know is that from knowing Kim personally, the fearlessness she displays in her facility as a polo player, a game with obvious risks and dangers, is the same fearlessness she displays when running her real estate business. No challenge is insurmountable to her, short sales don’t daunt her in the least (she’s had five years of experience in short sales with an excellent track record – and she knows how to deal with the banks !!! nuff said). She amazes me, her level of commitment and focus to whatever she puts her sights on.
I know what I’m talking about because I speak from personal experience – Kim represented me and my fiance when we bought our home last year. She was on top of everything, making sure we got the best price and that the confusing whirlwind of escrow, loan procurement, etc. went as easily and smoothly as possible. She took amazing care of us, treating us every bit as well as she treats her horses. And that’s saying something, because she LOVES her horses and intuitively knows and responds to their needs.
Okay, here’s your answer to the question “What does a polo player and a real estate agent have in common?” And the answer is . . . Kimberley Joy Kelly.
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short sales CAN be a beautiful thing..
I’ve been noticing more and more, how many real estate agents are now “Short Sale Specialists.” Hmmm…got me to thinking. What IS a specialist? For a person to specialize in anything, they must do that one thing over and over. This creates experience. Experience teaches us how to handle problems that may arise in our “specialty”. Not until a person has handled MANY transactions and the problems and issues associated with those transactions over a period of several years at minimum, may that person claim to be a “specialist.”
Here’s an example…two agents that work together. In 2011, they take some seminars that claim that “short sales will be the wave of the future in real estate.” Uh-huh. They get certified by a Short Sale Negotiation company, (about 3 hours of instruction about how to hand over your short sale listings to them and they’ll do ALL the work.) Now, they are ready! Two new Short Sale Specialists are born. No ads came out stating such..until they landed a Short Sale Listing and handed it to the Negotiation company, and it closed. Bam! Now, their print ads read, “Short Sale Specialists.” What????
To me this feels fraudulent. I believe we will be seeing law suits over these fraudulent claims in the future. Why not just start working Short Sales, gathering experience and being honest? If you as a Short Sale Seller, are considering listing your home as a Short Sale, I would suggest you find out how many Short Sales your Listing Agent has closed last year? How many years of working Short Sales do they have under their belt? What do they know about your particular Lender? Are they simply taking your listing, then handing it off to a Negotiation Company that the Buyer pays for, thereby reducing the net to your Lender? Do you want a 3rd party negotiation company in the mix, or would you rather have a List Agent that talks to you directly? Get some references from your List Agent. Find out how past clients feel about their experience.
I know that a Short Sale is personal to each person enduring it. I handle my files myself..personally. My Sellers are real human beings to me..not just a commission pay out. Short Sales are long, arduous and require constant nurturing. But..2012 will be my 5th year of Short Sale negotiating with many different Lenders, MI companies, IRS liens, personal lenders..it is a skill. Not one that can easily be labeled a “specialty” by just anyone that takes a couple classes.
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The Short Sale BPO is critical to the Short Sale process. Remember that your Lender and the Investors above your Lender do not know you or your property..it is simply a file # to them. When I submit a Short Sale offer for approval, they order a BPO (many order a full appraisal). A BPO is a Brokers Price Opinion. A BPO Agent is paid very minimally ($50 or so) to create one of these reports..needless to say, they may not spend a ton of time on each home!
There are several problems with BPO’s for Short Sales.
1. The Agent is not a local Realtor and doesn’t understand the area/development of your Short Sale. They may use comps that are NOT comparable and mess up the FMV (Fair Market Value) of your property.
2. The BPO Agent is also an REO Agent (Foreclosure) and may even work for the Same Lender in their Foreclosure division! Conflict of Interest? Yes. The Agent may want the home to go to Foreclosure so he/she can get the Listing!
3. As mentioned above, the BPO Agent doesn’t spend much time on the property..
What to do? Have an experienced List Agent is most important. The List Agent will try to re-submit supporting comps for the offer and other financial documentation to support the Investors accepting the offer. If no success..sometimes, it’s just best to close the file, allow 60 days to expire (BPO’s are good for 60 days), then re-submit a new offer. A different negotiator, a different BPO and you’re in!
Crazy..yes. But sometimes, you just have to go with the system until it is smoother. Every year, Short Sales become smoother-no matter your Lender. Hang in there and trust your List Agent!
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