Mother & Daughter Blog

Need more information on avoid a foreclosure? ....Take in a Local Workshop

Sat, 07 Nov 2009 18:40:41 -0600

How to avoid Foreclosure Workshops - connect with your local community services and learn as much as you can about how to avoid foreclosure. Make sure it is FREE and that you do not pay out of pocket for a FREE service!

There are still so many homeowners/borrowers that do not know what to do now that they are about to be in or are in pre-foreclosure. My suggestion is to take advantage of all the FREE services that are out there that may be to offer you a solution to your situation. Look for institutions that offer a FREE service and that have a good track record of doing it right way.

Here is a list of places that are sponsoring a FREE Foreclosure Workshop within the next couple of months. ** these are ones for Northern California, but they are nationwide - look in your area.

Citrus Heights
- Sponsored By: Mayor James Shelby and NID Housing Counseling Agency - Event Details [PDF]
  Date: 11/13 & 11/14
Modesto
- Sponsored By: El Concilio-Modesto and The Alliance - Bilingual - Event Details [PDF]
  Dates: 04-24-10 · 10-23-10
Oakland
- Sponsored By: City of Oakland Mayor Ronald V. Dellums and NID HCA - Event Details [PDF]
  Date: 11-07-09
- Sponsored By: NID Housing Counseling Agency - Event Details [PDF]
  Dates: 11-04-09 · 11-07-09 · 11-11-09 · 11-18-09 · 11-21-09 · 11-25-09 · 12-02-09 · 12-05-09 · 12-09-09 · 12-16-09 · 12-19-09 · 12-23-09 · 12-30-09
- Sponsored By: The Unity Council - Event Details [PDF]
  Dates: 11-11-09 · 11-18-09 · 12-02-09

There are many other resources that you can use (check with your local resources - community centers, etc). Do a web search under Foreclosure, Short Sales, Loan Modification, Pre-foreclosure, Making Homes Affordable, HUD and your local city should have resources on their sites.

Need an agent? Need a short sale? Give us a call!

Call us at 866-543-0461

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Late Paying Borrowers ~ get your documents together FIRST... message from Freddie Mae (youTube style) .. click in

Sat, 07 Nov 2009 17:37:00 -0600

Isn't it funny how we didn't hear much from Fannie Mae, Freddie Mac and even HUD during the 2004-early 2007 - and now they are in the headlines almost daily! Folks, they are here to stay this time.....youTube style! Click in on it and see how the information can be useful.

Well Freddie Mac has some valuable information that can help the "underwater" borrower/homeowner find their way to communicate better with their mortgage servicer when they make that call in an attempt to save their home from foreclosure:

If you are or you know someone that is a Late-Pay Borrower, Underwater, pre-foreclosure procedure tell them about this quick little video that can be of benefit to them. Key documents that borrowers should have on hand to help reduce the frustration of having to reduce repeated call, delays and possibly missing the opportunity to take advantage of the options that could be possible for them. The new Freddie Mac video, "Stop Foreclosure: Documents Your Lender Needs to Help You," Click here. It shows step-by-step which documents borrowers should have on hand when they call their servicer. These documents can cut the time a servicer will need to understand the borrower's situation, determine his or her eligibility for a workout, and process the application.

This video will point out that the following documents/information will be necessary for your Mortgage servicer to have - so get them ready and them on hand when you are talking to them:

Their most recent monthly mortgage statement

Pay stubs or other documents showing their household's monthly pre-tax income

Most recent tax return

Second loan or home equity line of credit statements

Account balances and minimum monthly payments on credit cards, car loans, student loans or other debt.

A short, concise description of the financial hardship that is causing - or leading to - a mortgage delinquency.

These documents are also required if you are planning on doing a short sale.

Here are some handy links:Making Home Affordable Program (En Espanol)
HUD-Approved Counseling Agencies (En Espanol)
Avoiding Foreclosure (En Espanol)
Freddie Mac Supports the Housing Recovery

Call us at 866-543-0461

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Buyer's Choice .... another improvement in the REO world!

Sat, 07 Nov 2009 16:29:33 -0600

Finally! Buyers have the choice of using a local escrow office to handle the transaction, thanks to the California Assembly Bill 957 - "The Buyers Choice Act". This bill was signed on October 12, 2009 and is now a law in the state of California (only).

I believe we will need to put our choice on the original contract just to be sure we get it for our buyer. When the seller (bank) choses they usually chose a company that is located either back East or in Southern California.

If you don't ask..... you probably will not get the escrow office that you want.

UPDATE!

Updated news: As it turns out this Bill may have holes in where the seller can still get it back to them getting the escrow company of their choice instead of the buyers, but either:

1. Not choosing offers that ask for the choice of local escrow company or

2. Bank countering back (on bank's addendum) with the name of their choice of escrow company - which means the buyer will either return the addendum signed and agree to all the terms or they may find that they will not get the property!

Either way, its a loop hole that may not be to the advantage of the buyer. This is a "stay tuned" possible improvement. As it turns out.....The judgement/advantage is still out on this one....

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All Buyers.... now is the time to make a move!

Sat, 07 Nov 2009 16:28:31 -0600

Did you know?

K12 Teachers, School Employees, Educators, Members of State Public Employee Pension System, Judges Pension System and Legislators Pension System are eligible for down payment assistance for the purchase of a new home.

And now with the Tax Credit getting the extension approved as well enhanced credit for all new buyers, plus the market situation -- it is well worth the above groups as well as non public service buyers to get up and get a move on in purchasing a new home.

Need an agent? Give us a call!

Call us at 866-543-0461

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Helping you Avoid Foreclosure: Fannie Mae adds another Avenue/Option for homeowners

Fri, 06 Nov 2009 16:43:12 -0600

Fannie Mae offers - Deed for Lease Program instead of immediate foreclosure. this is another option rather than foreclosure or Short Sale.

If you do not qualify for a loan modification or have failed a loan modification plan you may be in luck to get in this Fannie Mae Deed for Lease Program. If your property is a Fannie Mae property you may qualify for the Deed for Lease Program that Fannie Mae just announced. This program can prove to be very useful and a stress reliever for homeowners that need more time to get their finances in order before completely moving out of their home. It beats a foreclosure no matter how you look at it.

Borrower must be willing to transfer their property to the lender by completing a deed in lieu of foreclosure and then lease back the house at a market rate.

There are some guidelines that you must meet - here they are in a nutshell: In order to qualify you must meet these basic requirements: If you answer yes to the questions below, contact your Fannie Mae representative to see if you can get started with this program to avoid foreclosure and evictions.

1. Is this a Fannie Mae property - Don't know? Go to: http://loanlookup.fanniemae.com/loanlookup/

2. Are you living in your property and is it your primary resident? ** TENANTS may qualify for this program as well

3. Can you afford to pay a monthly rental that is no more than 31% of your gross income. Also, that you are willing to take the commitment to pay the rental - on time.

4. Do you have a second lien and are you able to get them to release you from any obligation of that loan?

Need more information on this program? Go to www.efanniemae.com. This is another avenue/option of options to avoid foreclosure?

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Attention All Wachovia World Savings and Golden West Home Owners Get Paid $5000 To List and Sell Your Home

Fri, 06 Nov 2009 15:11:41 -0600

This is the best news for Short Sales that I've heard in a while. I am researching to see if I can get a list of other banks/lenders that are doing the same or similar programs.

Homeowners: please check with your agent to see this program is something your bank/lender is willing to do.

Stay tuned and Thank you Mike.

Via Mike Jackson Realtor Pleasanton Homes For Sale (Realty World Global):

Wachovia has increased their incentive for you to short sale your home this month of October 2009. If you can't afford to make your payments and your equity is upside down, see if you can apply for a loan modification by calling 888-308-3964. If you don't have a job or can't prove your income you will not qualify for the loan modification and the short sale will be your next best option. Wachovia will pay up to $5000 for you to list and short sale your home and they have a very quick turn around time for approvals here in the Bay Area. The vice president of the Wachovia short sale department here in Livermore told us they can have an approval within a week since they currently don't require income documentation or a hardship. You don't have to be late to short sale your home and ti can be your owner occupied property, second home or investment property. If anyone decides to walk and think that's their best option the lender will 1099 you for the full amount. Call me today to go over your options.
Mike Jackson, CNE

SEARCH THE MLS HOME VALUES GET PREQUALIFIED

Attention All Wachovia World Savings and Golden West Home Owners Get Paid $5000 To List and Sell Your Home

Fri, 06 Nov 2009 15:11:39 -0600

This is the best news for Short Sales that I've heard in a while. I am researching to see if I can get a list of other banks/lenders that are doing the same or similar programs.

Homeowners: please check with your agent to see this program is something your bank/lender is willing to do.

Stay tuned and Thank you Mike.

Via Mike Jackson Realtor Pleasanton Homes For Sale (Realty World Global):

Wachovia has increased their incentive for you to short sale your home this month of October 2009. If you can't afford to make your payments and your equity is upside down, see if you can apply for a loan modification by calling 888-308-3964. If you don't have a job or can't prove your income you will not qualify for the loan modification and the short sale will be your next best option. Wachovia will pay up to $5000 for you to list and short sale your home and they have a very quick turn around time for approvals here in the Bay Area. The vice president of the Wachovia short sale department here in Livermore told us they can have an approval within a week since they currently don't require income documentation or a hardship. You don't have to be late to short sale your home and ti can be your owner occupied property, second home or investment property. If anyone decides to walk and think that's their best option the lender will 1099 you for the full amount. Call me today to go over your options.
Mike Jackson, CNE

SEARCH THE MLS HOME VALUES GET PREQUALIFIED

Bank Owned Properties/REOs: Multiple Pre-Approvals... ~ Buyers you may have to get pre-approved by more than one lender - after all!

Fri, 06 Nov 2009 13:08:06 -0600

I've been so busy working on the listing side, I have not been noticing the variety of Agent Confidential remarks that are popping up on the listings these days.

This one is one that is becoming more popular and annoying:

Buyer must be pre-approved with the "seller's sponsored mortgage company" - not required to use this lender, can use your own. This requirement can delay a buyer from putting in an offer in time to be considered, the way properties are moving into Pending these days! While the buyer is trying to get in touch with the bank's sponsored Mortgage consultant, the property is now in Pending!!!

It works better or faster when the seller require that the buyer is pre-approved by a direct lender -- doesn't it??? And I wonder when this will catch on with short sales too - or will it?

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Bank Owned / REO & Earnest Money ~ new twist!

Fri, 06 Nov 2009 13:02:40 -0600

Dear Listing agents:

Can one of you please explain to me why it is necessary to have the buyer bring the earnest money deposit to you PRIOR to placing the offer? Is this a way to tie up the buyer's money, with a strong probility that their offer will not be accepted by the seller in the first place and this can delay them from being able to accept another offer and have their earnest money handy to send in to escrow and get the transaction moving on something their offer was accepted???

And will this catch on with Short Sales later on?

Is this fair to buyers that don't even know if their offer is going to be accepted?

Please advise.

Signed concerned agent.

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How to get rid of a promissory note after a short sale

Fri, 06 Nov 2009 12:41:35 -0600

This is a really good post, well worth re-blog. Thanks, Ken!

Via Ken Lawson JD, Short Sale Coach (TheLawsonGroup Mediation Svcs www.LawsonGroupMediation.com):

A lot of people have been required to sign a promissory note as a condition to the lender approving a short sale.

The promissory notes are usually for a small to moderate percentage of the deficiency balance, paid over ten (10) years, with no interest. The promissory note requirement is usually a good deal, and see my other articles on this subject concerning predicting when a promissory note will be required.

However, many homeowners are in severe financial distress, and the thought of having another payment following the short sale is not a happy one!

Most borrowers after a short sale need to find a place to rent, and another payment on top of rent might often push the borrowers over the edge. It is often the case that a short sale falls through simply because the borrower rejects the idea of a promissory note.

However, do not despair! There is a way out of it.

Your seller may only have to make the promissory note payments for a year, or even less.

Why? Because after the file is closed and the new loan (promissory note) has been set up for collections, a short time is required for the lender to see that the borrower makes faithful payments. If so, then about a year out (often as soon as immediately, depending upon the lender), the borrower can seek to settle the debt for a fraction of what is owed.

"But for how much?" you might ask. Almost any lender will settle a promissory note for 80%, without hesitation. 60% takes some discussion and effort to convince them, but many will do it. To settle the debt for 50% may require financial distress on the part of the borrower, with low income and difficult circumstances.

The best way is to go to a lawyer and have the lawyer draft a letter and fax it to the lender's customer service department (collections), with a copy to the lender's bankruptcy department. The lawyer can state that the borrowers have come to him to discuss the promissory note obligation, and their difficulty paying it. They are considering bankruptcy, but this promissory note is the only issue causing that consideration. The lawyer then makes an offer for 10%-30% depending upon the borrowers' financial condition.

In my law practice, we often contacted various creditors when the clients did not really need a bankruptcy, but did need relief. 10%-30% was often the amount for which the lenders would settle. However, it was often the case that my being an attorney was the instrument that got them to agree. Why? Because the lenders know we are serious.

Best wishes,

Ken Lawson, JD

TheLawsonGroup Mediation Services

CIT and Bankruptcy are now in a relationship! or... another one bits the dust!

Mon, 02 Nov 2009 01:38:33 -0600

News release: CIT has filed for bankruptcy. OK this might not be a surprise, but has anyone figured out what they did with the $$$$ Millions they got just a few months ago. Did they too get bonuses all distributed and spent and then went into bankruptcy?

Now what about all the homeowners are caught up in this bank and where are all the mortgage loans going or are they already sold away.... and if yes - where did that money go? What role did this bank play in the foreclosure/Mortgage crisis? How many short sale requests did they deny?

These and many many more questions, we will probably never get the answers to. And now all we can do is wonder which bank will be the next to fall? And how long will it take it rise it head again?

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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Halloween or Not.... They can still "Haunt" you later!

Fri, 30 Oct 2009 08:06:56 -0500

Just some quick reminders that there are few basic behaviors that us agents need to continue to do - no matter what the situation is. In real estate... Haunting time is not just at Halloween if you get too loose with your procedures.

Buyer Repair Bills - Remember Buyers are quick to agree to purchase AS IS - WHERE IS: But after purchase and the repair bills start to kick in, they forget the AS IS WHERE IS and start looking to blame someone for all the problems they are having with the property! So to protect your buyers and all others...

Recommend that the buyer request from the seller or they GET A HOME PROTECTION PLAN

* Old Republic Home Protection Plan is a good one.

Buyers not getting a Home Inspection??? Remember buyers tend to forget that you "bugged" them about getting an inspection after the purchase. So to protect your buyers and all others involved....

Recommend, recommend the buyer to get an inspection FIRST.. if they refuse (have them sign a waiver)

Buyers would not get a Termite Inspection?? Remember buyers say it doesn't matter, but it will later on!

Recommend, recommend the buyer to get an inspection FIRST.. if they refuse (have them sign a waiver)

Buyers not asking for more from the seller... ie. 1/2 escrow fees, transfer fees (escrow & closing fees): When its time to close, the buyer begain to feel they are paying too much to close??? That the seller should make more repairs - or all repairs even costmetics????

Recommend that they ask for what they want upfront in the initial offer submitted. Do not try to ask for less in order to get the offer and then bumbard the seller with addendums to increase the concessions. MIGHT NOT work - then you run the risk of loosing your deposit if you do not go through with the sale.

These are just a few of the "Haunting" situations that buyers find themselves in after they have submitted the offer, purchased the property and have no place to turn or no one to blame.... but they will!

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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Short Sales: Borrower(s) Are you ready? .....Answers/items to have for your agent

Thu, 29 Oct 2009 19:43:11 -0500

If you feel you may be in need of a short sale, you should do your homework on what you will need to have to provide to the agent. ADVICE: Choose an agent that knows how Short Sales work, have experience with short sales and is willing to do a short sale. In addition it is always a good idea to show your identification to the agent to be sure they know that you have the right to sign to list and sell the property.

First thing to do: Contact your lender and request a loan modification or other options.

Here are some items, questions that you will need to know the answers to:

Name, Address of all borrowers on the property......
Are you in current hardship......?
Have you contacted your lender to ask for a loan modification or other options? If yes, what did they tell you....?
What do you owe on your mortgage.....?
Are you in default....? If yes, when did you go into default and do you have the paperwork?
How Many Lenders or Lienholders do you have?
Who are the lenders? 1^st and 2^nd Lienholders?
Are you serious about doing a short sale?
The agent should tell you that you will the following: Do you a problem getting any of the following

Current pay checks stubs (last 2 at least)

W2s for last year

Tax forms for last year

Hardship letter in your own words

Financial statement * you can use the one you used to request the loan modification

Is this your primary resident?
Do you have other properties that are/are not in trouble?
When can you meet?

Your agent may have other questions but will be really relieved if you have these questions already answered for them. It will save time.

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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Short Sale Approvals: Wiliness, Procedures, Attitude, Customer Service Varies - bottomline... it is still better for the borrower

Thu, 29 Oct 2009 18:27:39 -0500

The majority of the bank/lenders have pre-determined criteria for submitting a short sale. I am still not convenience that they all have pre-determined criteria for short sale approval. Most are willing to entertain a short sale approval or at least will take the time to make it seem that the file is being reviewed ** some take months!

However, there is still a large number of foreclosures still going on and a great deal of those properties were short sale listed prior to foreclosure - had offers into the bank/lender and did not get an approval or in some case not even a sign of negotiation

Here is some of the information that I believe most banks/lenders have in common:

Require the borrower to be in HARDSHIP LETTER and to submit it in writing (see Hardship Sample Letter:
Require a Financial Statement, Income Statement, W2s, Current paycheck stubs, some will ask for last year's income tax statement, retirement information, bank accounts (it varies what they will ask for).
They all require a signed by borrower and buyer offer
They will need a Short Sale package from the agent to include all the items that they tell the agent they need
Short Sale - incurs a smaller financial less than foreclosure or non-payment of mortgage
Short Sale is typically faster, less expensive than a foreclosure
Most bank/lenders have a loss mitigation/foreclosure department
Majority of the bank/lenders will not take the listing agent evaluation and will get their own (either an Appraisal or Broker Price Opinion (BPO)
Times are changing and short sales can be approved even if the loan is not in default (but most will not entertain if there no obvious hardship) ** please note: Hardship must be true information
Most are willing to entertain a short sale approval or at least will take the time to make it seem that the file is being reviewed ** some take months! Agent must be aggressive about requesting that Trustee Sales date be postpond if it is approaching because bank/lender will not automatically do it - they will just let it go to the sale
Bank approved short sale does not guarantee acceptance! ** EVERYTHING must be in writing. Without a written agreement .... you have nothing
First Lien holder does not have the power to approve a junior lien ** agent must negotiate with both lienholders (all lienholders)
Regardless of the bank/lender if a short sale is approved and completed, it will remain on the borrower's credit for seven (7) years
When bank/lenders approve short sale it allows the borrowers to feel good that they made a decision to be brave and request the short sale instead of just leaving the property. In the long run.. it will be better for the borrower.
There is no uniform Short Sale package -- it all depends on the individual bank/lender requirements

Still and all... no bank is the same and really no negotiator within the same bank/lender is the same! Do not anticipate what a bank will or will not do --- be like Nike and JUST DO IT and see!

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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Short Sale Approvals: Are we moving forward?

Thu, 29 Oct 2009 17:23:42 -0500

This may be a good time to take a review of where short sales are now, with only 2 more months left in 2009.

The Short Sale is still the most economical solution to avoid a possible foreclosure. This does not mean it is the easiest. It does not mean that you will not endure some stress while going through this process and it surely does not mean you will not need to have a barrel of patience in order to complete this process.

The market is loaded with Short Sale listings. Some listings are new, but most have been on the market for over 30-45 days and holding. There are plenty of the short sale listings that are now in short sale contingent status. Short Sale Contingent means that the agent has received and presented at least 1 offer to the bank/lender for short sale approval. In most cases, when the status of the listing is Short Sale Contingent you can still submit offers to the agent. It will depend on where the agent feels the negotiations are if that agent will submit your offer right away or if it will be presented later on -if the offers that the bank/lender have before them not making them happy enough to approve the sale.

So while there are deals out there, when making an offer for a Short Sale listing keep in mind that the bank is probably not going to approve an offer that is way below the market value of the property. Some agents will list the property at least 10% below the low end of the market value, but that does not mean the bank/lender will accept an offer with that strategy. You can bet the bank/lender will be looking more at the higher offers.

The bank will not rely on the listing agent's evaluation of the property. They will hire their own appraiser or agent to do a Broker Price Opinion. So if your offer is lower than either, the bank/lender may counter your offer or simply deny it. Rarely will they approve it if it is far lower than the evaluations they have obtained.

I have received calls asking which bank I think is the hardest to get a short sale. I cannot answer that question because it depends on not just bank - it's the negotiator and how much of a workload, concern, knowledge, care, or time they have to put in on the file. GMAC does have tricks that they use (at least in my experience), they take forever to review the file, claim that they did not get documents that you know that you faxed or sent to them a couple of times, then they will not contact you personally until the time is almost up for the trustee sale and ask you for all these documents that will probably take you longer than what time is left. But... hold on! Bank of America, Wells Fargo, National City, etc will do the same!

So in summary... where are the short sales here at the end of October 2009? They are increasing and we will see more and more short sales coming on the market -- the big question still WHEN WILL THE BANKS Stream-line their short sale process and treat these requests seriously?

For more information... Check out our Website and our Blog...

- Website: http://www.motheranddaughterrealtyteam.com

- Blog: http://activerain.com/brooksrm2042

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Short Sale: Homeowner's be accessible to your agent!

Tue, 20 Oct 2009 07:53:05 -0500

If you want me to Short Sale your property... please be accessible! Don't get lost where even I can't find you!

Homeowners, we know that being up side down with your property is stressful. We are sensitive to what you and your family is going through. We are here to help. But we need a little help from you.

We need you to be available to us when we try to get in touch with you - especially if you are still living in the home and we need to show the property or have questions from the lender in order to continue negotiating the short sale request.

Nothing worst than to have the lender call with a questions during negotiating and the agent cannot find the buyer! Nothing worst... unless you consider agent getting the short sale approved and in writing and then the agent cannot locate the homeowner in a timely manner!!!

Not good.

Communication is very important in the short sale process. Don't let your agent down. Be available.

Need a short sale specialist?

Rosemary Brooks

866-543-0461.

Website: motheranddaughterrealtyteam.com

Email: rosemary2042@gmail.com

Buyer: Serious... but undecisive !

Tue, 20 Oct 2009 07:38:43 -0500

Ok we're told you about the buyers that may not be serious about buying! But what about the buyer that cannot make up their mind to put in an offer on a property that they like? What about the buyer that seem to like to have you drive them around, look at properties and never can decide if they really like the property or if they should put in an offer.

I am all for a buyer being sure, but with the market as it is ... they really need to make up their minds quicker. Once you see the property you really like... you'd better go on and put that offer in or the property will be gone to the next buyer that could make up their mind.

The process of buying is:

Get qualified
Make a list of area *location, features you are looking for and find yourself a good real estate agent
Give the agent the specs for your new home
Go out and view the property, take your list and if you like, slightly like or think it is the home for you -- put in an offer! Do not wait for a long time and then tell the agent to put in an offer... because the property is probably in pending by then

** some agents urge their buyers to put in an offer as soon as they figure out they like the property so that they can have a chance at purchasing the property

This is one of the main steps of making an offer: Be real in your offered price. Low balling is almost a think of the past. Nowadays offers are coming in at least (at least)... 3% over the list price. That is "at least". Being competitive is the way to go.

Buyers you have to get a move on.... if you really want the property!

Our Website: motheranddaughterrealtyteam.com

Short Sale - Hardship letter (sample)

Tue, 20 Oct 2009 07:23:21 -0500

THIS IS A SAMPLE HARDSHIP LETTER: There are several hardships that homeowners are running into. Probably no two homeowners have the very same hardship or events leading up to that hardship. Hopefully this sample will fit your needs as a sample and a way to get started writing your hardship letter. Although Short Sales are changed a little, this hardship letter is still very important to getting your short sale approved.

Agents: Your seller should be able to tell you why they are in a critical condition and why they need to short sell their home. I always ask the homeowner first, to be sure they have a hardship. It will make the short sale process run smoothier if this is the case.

*******************************************************************************

Lender Name Lender Address Lender's fax number

Today's Date

RE: Hardship Letter - Short Sale for _____________________ address

To whom it may concern:

I purchased my home at _____________ in ___________. At that time I was employed by _______and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Unfortunately, a downturn in the market caused my company to reduce its workforce and I was laid off.

After searching for a comparable job, I finally got a temporary position as an office assistant as I continuing seeking other work. I struggled for several months to make my mortgage payment, and was also hit with some medical payments that I did not expect (the COBRA payment was more than twice what I was paying when employed). I knew I would have to sell my home to protect my credit rating and possibly have enough cash left over for moving expenses and some savings. I put my home up for sale by owner in _________, but there were several problems that I did not have enough money to fix, such as the broken fence in the back yard and some pretty severe leaks in the roof which indicated a new one was needed. Over the next three months I lowered the price three times but still had no takers. I am now working with a real estate agent and I believe she will be able to help me sell quickly.

I really love my house, but I know that I cannot afford it. I am a single parent, working as a temporary employee with few benefits and no savings. My financial situation cannot sustain a home mortgage of nearly $2200 per month. I want to sell the home, avoid foreclosure and salvage my credit. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist me in avoiding this.

Please accept this offer as payment in full. My attorney has advised me to file bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on and start over.

I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further from me, please contact my agent or me personally.

Sincerely, Home Owner Name Address and Contact Information

Our Website: motheranddaughterrealtyteam.com

So anyway... the agent sat down at the Seller's table ... and wrote her buyer's offer!

Tue, 20 Oct 2009 07:04:20 -0500

That is right! Right in front of other agents, the seller and of course the other potential buyers -- right there at the open house! Let me tell you the story and you tell me if you feel this is a good tactic or just bad ethics.

Seller agreed to hold open house for a couple of hours on given days. She just asked that the potential buyers come with an agent, not alone - for her safety. Property is located in a popular and highly competitive area. So there was several agents there with their buyers.

To the Seller's great surprise... while she was in the back showing an agent and her buyer the back of the house and other agents were either coming in the front door or walking around the property... this agent that did not come with her buyer... just sat down and finished up the offer and when the Seller came back into the room -- handed her the offer and asked "what do we have to do to purchase this property?" This was a traditional sale.

Seller did not know what to say and told her that she should give that offer to her agent, gave her my information and then as soon as she could gave me a call.

This was the same agent that had called me and I had personally advised her that she would need to follow the instructions on the MLS for submitting her offer! She did not listen to me.

What would you have done in this situation and how would you view this agent?

Aggressive ... but that is what is needed in this business
Too pushy and would not have accepted her offer?
Disrespectful of other agents?
Just doing her job?

Please let me know your opinion.

Rosemary Brooks, Short Sale/REO Specialist - The Mother and Daughter Realtly Team

Illusion/Mirage/Common Sense or Just Talk?

Tue, 20 Oct 2009 06:47:59 -0500

Here is some of the buz talk that is still going on and probably will be around for a long while. What do you think? Illusion, Mirage, Common Sense or Just Talk?

Low Inventory due to moratoriums in order to get the Market back on track

Seasonal buying

Worst is over!

Reached the bottom

Looking up!

Buyers demand is most important

Option ARMS's flood is coming next year - they have not peaked yet.... Stay tuned.

ALT A's Adjustments are coming Soon!

Negative Amoritization Loans was a bust .. and are going to cause even more foreclosures next year!

Great Credit Scores are almost a thing of the past

Negative Equity situations are not yet over... not by a long shot

Hardships still count to get a short sale approved

Teaser rates... are just that - a tease

Falling home values are still coming

Follow the Pied piper - it won't hurt ya

Market is turning around

You can see the light... from the tunnel!

Is it smarter for many to remain a renter?

A great investment time... buy those properties and rent them out!

There is a new flood of defaults coming soon!!??

There is also a new flood of Short Sales out on the market now and lookout for more to rush in.... soon!

Location, location, location doesn't matter as much anymore

Add to the list. ....

Rosemary Brooks, Short Sale / REO Specialist - the Mother and Daughter Realtly Team

Buyers: are they serious or just curious? or Serious Buyers vs Time Wasters... and how do you tell the difference?

Mon, 19 Oct 2009 16:37:03 -0500

In order to work with buyers, I believe that it is wise to decide right upfront that there is a strong possibility that you are not a mind reader and cannot figure out when a buyer is really serious about buyer now, later or never. Sometimes it appears the person you are talking to, sharing information, driving around, numerous phone calls and emails is just wasting your time. But you being in the business to make money don't want to assume this person is just gathering information and is not serious about buyer a home now or ever.

You do not want to waste your time or spend time on someone that you could have been spending time with another that was actually serious about buying.

So after you make sure this person is qualified to purchase a home and for how much... I suggest you not assume this person is not serious --> even if they seem to taking way too long to find a home that they are ready to put an offer on. You must sharpen your patience skills. Learn how to work with this person as well as do other tasks in order to get other clients - so it will not seem to be a waste of time.

Treat your leads, phone calls, and those that seem to be just site seerers" as read possinbilities. So get your car all gased up, put together the information this client has asked for, study your neighborhood data, put on your smile and get a going....! You may turn out to be pleasantly surprised!

To the question of how do you know if a buyer is serious? Answer is: You don't. Not until the transaction closes. And always keep in mind... your timeline is not what matters, its that potential buyer's timeline that you should be working with.

You are so attractive to a Seller!

Sat, 22 Aug 2009 22:43:28 -0500

Sellers are attracted to the good looking offers. The good looking offers get accepted. Take a good look at your offer before you submit it -- try to make it look good to the seller if you want the property. Get that thumbs up!!!!!!!!!!

1. Large down payments

2. Conventional loans look better with those large down payments

3. Cash offers - that are reasonable, (hint: low balls are ULGY to a seller...just so you know)! ALso, cash offers that can do a quick close... but be reasonable and ask for at least 21 days (you don't have to use it, but it better than extension requests).

4. 30 day close (but be careful not just say 30 day and then take 45)!

5. Those full figured Earnest Money Deposits (2% and higher)

6. Contingencies that less than 17 days

7. Inspection 10 days or less - I mean get in there and get it inspected and keep the transaction moving!

8. Back away from asking Seller to pay for inspections fees. This is something you need and want to do, why not pay for them yourself?

9. OK and you should ask the seller to provide the Natural Hazard Report (NHD) that's $99 bucks or less.

10. OK to expect the seller to make the property; smoke detector and hot water heater compliance (strapped and installed).

11. Back away from asking the seller to pay for repairs (especially those that are not in the catagory of safety concerns). Especially when the sale is an "as is" sale.

12. Let the seller chose the escrow company

There are other attractives to the seller but this is a good start. Get those 2 thumbs up!

How good is the communication?

Sat, 22 Aug 2009 22:10:36 -0500

Agent completed the hard part of the short sale: getting the property listed and aggressive marketing to obtain offers. Submitted the offer to the homeowner/seller, did your report and included all the information and documents required plus your own twist to the presentation. Now you fax it in or fed exp it or both... now what do you do?

The worst thing you can do is nothing but sit and wait for the bank to contact you. here is what I suggest:

YOU HAVE PHONE USE IT!

1. Call and make sure your request made it to the Short Sale department. If it is did not - don't be shy... resend it!

2. Give it about 1 week and then call to check again.

3. Once you get confirmation that they have the full packet. You still do not get to just sit on it.

4. Time it right and call back to get an update. Don't be insulted if you do not get to talk to the short negotiator -- just speak with the customer service rep and ask them what is the status. Ask if the negotiator has been assigned, if yes - get the name and try for email and direct line. Get as much as you. Ask them to put a note in the file that you called and asked for status and confirmed that all documents were received.

5. Can you sit now? Nope, not for long.... call back and get another status and you keep doing this until you either get to talk to the negotiator or get an email or phone number and then follow up direct with that negotiator.

6. Keep your eye on the trustee sale date ----> don't let it get by you! Call and ask for a postpond date. Be sure the customer service rep email the negotiator and ask for this date. It is not the negotiator's job to have your back on the sales date .... and they won't!

7. Call back to be sure they have a new sale date set.

This is simple communication and basically it is as much as you can do until the bank is ready to talk or email converse with you. But for the record, you have followed up.

Remember there are numerous pre-foreclosure properties with short sale requests -- so the banks have numerous files to deal with.

Short Sale Communication 101 - Communicate often!

Short Sale Offer is too low......it is the agent's job to round file it or present it?

Sat, 22 Aug 2009 21:43:35 -0500

Nothing new about getting low ball offers. After all that is the nature of beast -- to get a deal - right? But the big question here is what is right for the agent to do? Should the agent treat this offer as an insult and not present it to the owner/seller and definitely not to the bank/lender?

Ethically speaking and procedure is to the present all offers. Agents, we are not the judge and jury here... our job is obtain an offer and present it to the seller. In the case of a short sale the seller is the owner. If that owner decides they do not want to present that offer, that is their decision -- isn't it?

However, if that owner/seller signs the offer..... agent you are to present it. Do it the same detail as you would of a higher offer. After all it could turn out to help you know the following:

1. where the bank is coming from as far as what they are looking for -- who knows they may just counter back - countering back has always helped me to see where the bank stands on approving the request. So if it is still time, you go out and aggressively get another offer for the amount the bank has countered. If you run out of time, well that is not good especially if you took the property off the market for this low ball offer.

** Make sure you keep up with the sales date and keep on accepting other offers. If you get one that is higher than the low ball ------> send it in! You may just get an acceptance.

In summary: Let the bank be the decider of what is too low for them to approve. In my opinion, agent do not have the right to put offers in the round file! Not your job.

Tell it like it is! Short Sale --does not always mean SHORT! or is 60+ days plus SHORT?

Sat, 22 Aug 2009 20:29:09 -0500

This is for buyer agents - please tell your buyers how short sale are. Ask them if they have the time to wait on the bank to decide if they are going to either approve, counter or deny a short sale request. If they tell you they are looking for something with the next 30-60 days, advise them that a short sale just might be a little longer than that. Now if it turns out that this bank works faster --- all should be happy. But do not assume this will be the case.

Banks are taking and will tell you if you ask they are not getting to their short sale for 45 - 60 and sometimes over days. Do not leave this information out and have the buyers waiting until they get tired and walk! This is a set up for all invovled: the buyer, the agents and most of all the owners.

And that buyer should not assume that they can get extensions on a short sale! Banks/sellers do not like extensions at any rate, but a short sale agreement will usually come with a clause that says they want their funds within 5 days of the scheduled close date. Those 5 days are not free.... buyers will be charged! And if the agreement does not close on schedule after those 5 days the agreement will be null and void. Plus the bank will charge the buyer a per diem on the those 5 days!

Buyers stand a chance of losing their deposit if the transaction does not close. Agents go over that short sale agreement with all parties involved.

(if this is not in Short Sale 101...... it should be!)