Dameon's Short-Sale & Real Estate Blog

The 3 Must Have Qualifications for Short-Sale

Dameon V. Russell (Century 21 Landmark Network - TMG) — Fri, 23 Oct 2009 15:34:06 -0500

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Dameon V. Russell
Administrative Partner, TMG
Century 21 Landmark Network
Direct: 916.266.4840
Office: 916.266.4848
Facsimile: 916.266.4830
Dameon.Russell@c21LN.com

"Working for our Clients diligently in tandem with Lenders to achieve mutual resolution!"

7 Dangerous Myths About Short-Sales

Dameon V. Russell (Century 21 Landmark Network - TMG) — Fri, 23 Oct 2009 15:30:15 -0500

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Prospecting for the Long-Term, in Today's Environment

Dameon V. Russell (Century 21 Landmark Network - TMG) — Tue, 20 Oct 2009 16:05:13 -0500

I want to thank all of you who have purchased and benefited from my book, The ABCs of Prospecting. I recently hit a sales benchmark and it seems that my system for prospecting, leads generation, and effective CRM is paying off for a lot of sales professionals!

If you are a real estate or mortgage sales professional in this market time, you MUST have this book. Its all about increasing productivity by converting leads to prospects, then to closings!

Thank you all!

MHA, New Guidelines May Radically Change How Short-Sales Get Done

Dameon V. Russell (Century 21 Landmark Network - TMG) — Tue, 20 Oct 2009 15:49:31 -0500

We've been successfully specializing in short-sales since mid 2005 and have been as much a part of the evolution of how these things get done as we have been a witness to the evolution.

We've seen first hand how lenders have buckled under the deluge, and struggled to create, adapt, and adopt systems, & new personnel to handle it all; it hasn't been pretty.

All in all, I think these newest guidelines under the MHA program will generate significant improvements to the process, and remove substantial "waste" from it. Two thumbs up!

I am a realist however. As such, I realize that since this all began, every single short-sale processing problem has been about only one thing: volume, and the inability to deal with it. Nothing else, only volume. Lenders and servicers have thrown money at the issue of volume, they've thrown significant human resource increases at it, they've attempted, and re-attempted modification of their protocols, expanded coverage, added whole depts, fax numbers, e-faxing, imaging, more new or expanded depts, with support depts to support those depts....etc.

Too date, NOTHING has resolved the overall, and underlying problem of, volume. Frankly, I do not hold out hope that ANYTHING ever will, except a decrease in.... you guessed it.... volume.

If I am an optimistic realist, I can hope that eventually a more streamlined process from the new MHA guidelines can have a possitive impact, but for now, its the status quo.

Anyone wanting to get the full scope of the new MHA guidelines, simply email me and I will reply with the PDF attached for you; its good info. we all should read.

Dameon V. Russell
Administrative Partner, TMG
Century 21 Landmark Network
Direct: 916.266.4840
Office: 916.266.4848
Facsimile: 916.266.4830
Dameon.Russell@c21LN.com

"Working for our Clients diligently in tandem with Lenders to achieve mutual resolution!"

The New MHA Guidelines Regarding Short-Sales... Thoughts?

Dameon V. Russell (Century 21 Landmark Network - TMG) — Sat, 17 Oct 2009 16:19:27 -0500

We've been successfully specializing in short-sales since mid 2005 and have been as much a part of the evolution of how these things get done as we have been a witness to the evolution.

We've seen first hand how lenders have buckled under the deluge, and struggled to create, adapt, and adopt systems, & new personnel to handle it all; it hasn't been pretty.

All in all, I think these newest guidelines under the MHA program will generate significant improvements to the process, and remove substantial "waste" from it. Two thumbs up!

I am a realist however. As such, I realize that since this all began, every single short-sale processing problem has been about only one thing: volume, and the inability to deal with it. Nothing else, only volume. Lenders and servicers have thrown money at the issue of volume, they've thrown significant human resource increases at it, they've attempted, and re-attempted modification of their protocols, expanded coverage, added whole depts, fax numbers, e-faxing, imaging, more new or expanded depts, with support depts to support those depts....etc.

Too date, NOTHING has resolved the overall, and underlying problem of, volume. Frankly, I do not hold out hope that ANYTHING ever will, except a decrease in.... you guessed it.... volume.

If I am an optimistic realist, I can hope that eventually a more streamlined process from the new MHA guidelines can have a possitive impact, but for now, its the status quo.

WARNING: To Anyone Possibly Conducting Short-Sale Business With First Federal Bank in L.A.

Dameon V. Russell (Century 21 Landmark Network - TMG) — Fri, 25 Sep 2009 13:33:49 -0500

WARNING: To Anyone Possibly Conducting Short-Sale Business With First Federal Bank in L.A.

I feel obligated somewhat to warn ALL of my colleagues about attempting to work toward mutual resolution with First Federal Bank; DO NOT DO IT!

This bank's short-sale policies and protocol are such that one can only summize that they do not truly wish to do them. First Federal Bank is a portfolio lender out of southern Cal, (Los Angeles). I've recently had two nightmarish encounters with them. I will not drudge on relaying every awful detail of those two stories; instead I will simply bullet point a few of their more troublesome policies and allow YOUR imagination to work:

- Faxing & emailing not permitted; ALL docs, and submissions must be mailed.

- They absolutely DO NOT pay credit backs to Buyer, NOT even for FHA, no exceptions.

- 2/3 of the HUD items "normally" paid by lenders, First Fed will NOT pay.

- Commissions may begin at 5%. If the agent is double-ending the deal, its 2.5% TOTAL commission, no exceptions.

- They offer little or NO assistance toward Jr. lien payoff; & further, will NOT allow anyone else to contribute to Jr. lien release. If they see it on the HUD, they will take it, applying it to their net proceeds.

- Regardless of the probable outlook of any short-sale review, First Federal DOES NOT, ever postpone Trustee Sales.

- Check that (above); they WILL postpone Trustee Sale action IF they have a FULLY approved short-sale, and IF... the Buyer wires $10k, thats right, $10 grand to them for a one-time 30 day postponement. The $10k is not refundable if you do not close. If you do, it goes toward the net payoff.

I could go on, but do I really need to? This bank is REDICULOUS!! I have an agent that worked with a Buyer for 8 weeks, showed them 2 dozen homes. Just so happens that the home she finally got the family to settle on was her own short-sale listing. Because it was her own listing, because it was First Federal Bank, she gets a total commission of 2.5%. So, after 8 weeks she simply does not get compensated for the representation of this Buyer because she hooked them up with one of her own listings?? Really?

Now, I am aware of, and respect the fact that the short-sale alternative is not something the banks are even obligated to entertain; I do. However; if you are going to accept these proposals for review, then do it seriously. We have determined that First Federal Bank is NOT serious about considering short-sale proposals and have therefore concluded to refuse these files with liens from First Federal.

We strongly, strongly urge our colleagues to do the same... don't waste your valuable time.

Countrywide, "BAC", is Killing Me! How About You? Their most recent Short-Sale processing timeframes are just ridiculous!

Dameon V. Russell (Century 21 Landmark Network - TMG) — Thu, 27 Aug 2009 15:15:24 -0500

1). Fax in your initial submission: 35 to 55 pages, must be broken down into individual 10 page faxes. Allow 12 to 15 business days for these items to be imaged and processed as "received".

2). Once imaged & received, allow 20 business days for the new short-sale file to be assigned to an initial Phase I personnel. (Just to get assigned).

3). Once assigned to Phase I, the assigned personnel now has up to 30 business days to do their part and advance the file to Phase II.

4). The time in the cue between Phase I & II is typically 3 to 5 business days. Once assigned to Phase II Negotiator, this person now has 20 business days to do their thing; package the file to present upward to the Investor.

5). If that Investor is Fannie, or Freddie, allow at least 6 weeks for the response to come back to BAC where the file is then assigned to your BAC Closing agent.

Where the real chaos begins is when the Phase I, or II, negotiator initially assigned to your file is overwhelmed with a file load deluge, and as a result, 3/4 of the way through their allowed time, the file is re-assigned to a new negotiator who then has the normal 20 or 30 business day time frame. The re-assignment essentially resets the clock at that Phase!

This absolutely pathetic system is no doubt the result of the tremendous volume. Well.... then fix it! Adjust for the deluge. Listen I used to have empathy; now I'm just frustrated with it due primarily to several recent occurrences.

Most notable: After 5 months of processing a particular file, 3 buyers later, a Phase II negotiator, Felicia Young, contacted me, with attitude demanding a couple of updated items, and a few minor HUD revisions, permitting me 48 hours to comply under threat of "closing out" the file. I complied that very same business day within 3 hours!! UNFORTUNATELY, as noted in item # 1 hereinabove, it took 14 calendar days to be imaged!! You guessed it, Ms. Young closed out the file!

Upon being re-opened at my formal request, the file languished for about 10 days and was re-assigned to.....wait for it...... Felicia Young!

No kidding, 26 days later during which there were NO NEW NOTES, NO contact from Ms. Young, she called again to request updated pay stubs in a voicemail in which she again gave me 48 hours to comply. Again I responded towards the end of that day by fax. Not wanting a repeat, I tried to contact her to inform her that I had faxed in the requested items and to please not close the file again. I attempted to get her email address (this was back when everything but the first name of a negotiator was a state secret!), couldn't get it. Best I could do was have the Short-Sale Support rep. leave an internal message for Felicia.

You guessed it..... I phoned in again to follow-up on the next business day, a Monday, only to find that Felicia Young had in fact closed out the file again for non-compliance!!!

That's just ONE nightmare, I could fill volumes with other instances. Where does this end.... when does the process actually improve?? Not looking for it to be easy, just ..... sane!

By the way, the case referenced above dates back to January, '09 and has not yet been sent up to the Investor. Really?!

To forward your BAC Countrywide/BofA horror stories to someone who can actually do something... send to:

Kimberly Dawson
Bank of America Home Loans
Vice President - Group Operations Manager
Short-Sales
7105 Corporate Dr., Bldg C
Plano, TX 75024
Tel: 972-526-6970
Kimberly.dawson@bankofamerica.com

Contact her.

Reitterating the New BofA Home Retention Team Short-sale Protocol

Dameon V. Russell (Century 21 Landmark Network - TMG) — Wed, 03 Sep 2008 15:46:59 -0500

Reitterating the New BofA Home Retention Team Short-sale Protocol

Supplemental NEW info. regarding this lender's short-sale protocol for Jr. liens/HELOCs.

Recall in my previous post I conveyed the new BofA protocol for everyone's benefit. Well... there's more; just one additional bit of info.

The 10% minimum recovery comes with an equalizer. Whereas, the actual protocol calls for "10%, or $5k, which ever is GREATER". So if you've got a balance under $50k, the 10% sum will be rejected; in such cases BofA will accept no less than $5k.

NEW BofA Protocol for Short-Sale Processing.....

Dameon V. Russell (Century 21 Landmark Network - TMG) — Wed, 20 Aug 2008 13:23:25 -0500

At Century 21 Landmark, TMG we specialize in short-sales. In fact, we have processed over 100 YTD. In doing so we've become very good resources for up to date info on the process at a multitude of lending institutions.

This update regarding BofA's process pertains particularly to their Jr. lien / HELOC processing dept. within Loss Mitigation, the Home Retention Team. What I noticed as a pattern developing a while ago was that all our offers for release of lien were being declined, and I do mean ALL OF THEM. Frustrated, I reached out to a BofA V.P. I know within Loss Mit. She was able to confirm for me what I had suspected; a policy shift occurring about 1.5 months ago whereas all short-pay offers for release of lien are to be declined unless the offer is equal to or greater than 10% of the remaining balance.

That's right, BofA is seeking no less than 10% CASH recovery. Its important to note the key word (CASH) is not negotiable; and that's cash at closing. They are not interested in offers dividing the sum into partial cash, and promissory note. They now clearly state that they fully intend to pursue the balance anyway. Important also to note that the 10% figure is not automatic, meaning this is a MINIMUM starting point. They are now also requiring the verbiage on the HUD, line # 505, to not include the word "settlement"; it must say offer.

Apparently, using the word "settlement" potentially curtails their ability to pursue the balance of the debt in the future. Whereas, if an offer of 10% is accepted by them, they want to be absolutely certain it is understood that the remaining balance is NOT forgiveable and that they reserve all available recourse to collect that debt from your client after C.O.E.

IF, the cash offer to BofA for release of lien is equal to or greater than 85%, they will consider that a "settlement" and the balance forgiveable.

Now, as I stated, our team, TMG specializes in short-sales, we are without doubt, experts in the field getting started with them in January of 2007, well before it was the status-quo. On average, in our market these Jr. liens / HELOCs range from $50k to $180k. That translates to a cash at closing necessity from your client of $5k to $18k to satisfy BofA and secure release of lien. Its kind of an oxy-moron because most clients in this position simply do not have that cash sitting around.

You might ask; do they realize that in the Jr. lien holder position, they will achieve $0.00 cash recovery at C.O.E. if the Sr. forecloses? The answer is yes, of course they do. I suppose for them its "risk vs. reward". Whereas they are banking on their ability to collect on the debt down the road as their primary means of loss mitigation. Additionally, prior to foreclosure, they can sell these non-performing assets for typically .10c to .20c on the dollar on the secondary market. This equates to a higher recovery than the industry standard $1k to $3k short-sale offering to Jr. lien holders.

At this point, we will no longer accept short-sale listings with a BofA Jr., and that's pretty much, that. What are your thoughts? - DameonV. Russell.

NEW BofA Protocol for Short-Sale Processing

Dameon V. Russell (Century 21 Landmark Network - TMG) — Wed, 20 Aug 2008 13:21:24 -0500

NEW BofA Protocol for Short-Sale Processing (edit/delete)

IF, the cash offer to BofA for release of lien is equal to or greater than 85%, they will consider that a "settlement" and the balance forgiveable.

At this point, we will no longer accept short-sale listings with a BofA Jr., and that's pretty much, that. What are your thoughts? - DameonV. Russell.

NEW BofA Protocol for Short-Sale Processing

Dameon V. Russell (Century 21 Landmark Network - TMG) — Tue, 19 Aug 2008 17:14:23 -0500

IF, the cash offer to BofA for release of lien is equal to or greater than 85%, they will consider that a "settlement" and the balance forgiveable.

At this point, we will no longer accept short-sale listings with a BofA Jr., and that's pretty much, that. What are your thoughts? - DameonV. Russell.

NEW BofA Protocol for Short-Sale Processing

Dameon V. Russell (Century 21 Landmark Network - TMG) — Tue, 19 Aug 2008 17:12:52 -0500

IF, the cash offer to BofA for release of lien is equal to or greater than 85%, they will consider that a "settlement" and the balance forgiveable.

At this point, we will no longer accept short-sale listings with a BofA Jr., and that's pretty much, that. What are your thoughts? - DameonV. Russell.

The Senate Housing Bill:S.2636 Foreclosure Prevention Act of 2008

Dameon V. Russell (Century 21 Landmark Network - TMG) — Tue, 05 Aug 2008 15:39:08 -0500

The Senate Housing Bill:S.2636 Foreclosure Prevention Act of 2008; this Bill has essentially incentivized the short-sale process for lenders servicing Freddie & Fannie loans. As a realtor handling short-sales what do you think the impact, (positive or negative), will be?

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We specialize in short-sales, we have closed 15 YTD. They take so long and the lenders processing protocols are getting so sloppy due to the deluge of files. I say if the incentives, ($2,200 cash to the servicing bank for each short-sale they close), help the process, then GREAT!

If this cash incentive helps by motivating these servicing institutions to close these transactions then we will see shorter processing times, higher close ratios, etc. If they feel the incentives will afford them increased mitigation they will higher more processors, admin., and negotiators. For us, this would be a thing of beauty!

The Senate Housing Bill:S.2636 Foreclosure Prevention Act of 2008; this Bill has essentially incentivized the short-sale process for lenders servicing Freddie & Fannie loans. As a realtor handling short-sales what do you think the impact, (positive or ne

Dameon V. Russell (Century 21 Landmark Network - TMG) — Tue, 05 Aug 2008 15:37:56 -0500

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Whats making you thrive in a down market?

Dameon V. Russell (Century 21 Landmark Network - TMG) — Thu, 31 Jul 2008 02:39:43 -0500

What is your understanding of those key components necessary to profit, indeed thrive, in a down market as a real estate sales professional? How are YOU doing, and how are you surviving?

As a 20 year veteran, a well known trainer and author, I am insatiably curious about the components of true success for fellow real estate pros. I invite you to share your thoughts; is it back to basics that works for you? Is it consolidation time? Are finding yourself working harder to produce less?

I find that in a down market, the ranks of real estate pros diminish, (not everyone can weather it all), and those who accept that they are playing a very real numbers game with very real consequences are the ones who thrive in the down market.

The national news media inaccurately impacts local markets!

Dameon V. Russell (Century 21 Landmark Network - TMG) — Thu, 31 Jul 2008 02:34:15 -0500

As professionals, how do you feel about the impact of national news media on your local market, your clients' confidence levels and their perception of the market, & you as an expert?

Recently, I sent a response to an email distributed by an agent whom I respect. She sent an eArticle from CNN that I felt was in error.

Here was my response:

You must be careful when interpreting this type of data. This is OUR market, it is it's own micro-economy, geographically, demographically, and litterally. National broadcast jurnalism sources prepare reports utilizing data collected from a national, or macro-economic perspective.

The sum of their data is ALWAYS either aggregate, averaged, a ratio, or algebraic; ESPECIALLY when they attempt to apply their interpretations to micro-economic situational circumstance. Whereas, in the reverse, or from the perspective of the actual micro-economy they are applying their analyses to, the conclusions and assumptions they ultimately arrive at are most often skewed, disconnected, and/or plain wrong as is clearly the case with this CNN Money report you've distributed.

Not all, but most micro-economies, such as ours, have far too many unique variables to fit into a national average. One of the times that I was interviewed for the Sacramento Business Journal, the local reporter asked me how such nationally based broadcasts impacted the retail real estate business here in our markets. In a few words I told him that frankly they make our job harder; that is our job of educating our clients. Clients expect us to be the experts, all of us. Yet when the reality of our market as we detail it, conflicts with network, and national broadcasts.... hey, people believe what they hear on TV!

Its truly a shame when local reporters unwilling to do their own homework in THEIR backyard, rely upon, and indeed repeat the skewed nationalized data on local TV.

Anyway, just a thought or two.

Dameon V. Russell