I came across the article below and started wondering how many other agents have been fortunate enough to try the REOTrans platform with a short sale? Have you had a Bank of America short sale file assigned to the REOTrans web site? Has it been helpful and made the short sale process go smoother?
I have been privileged enough to have one of my Bank of America short sale file's assigned to the REOTrans Platform and at first glimpse was ecstatic and hopeful that it may actually help speed up the process of the short sale and help eliminate the "missing documents" syndrome. However, my experience hasn't been one to celebrate but rather another file that seems to be locked down. The Bank of America short sale department couldn't answer my questions about the system for weeks and I've been waiting for my next "assignment" for two months...
10/22/2009 By: Carrie Bay, reporter for DS News
California-based Equator (formerly known as REOTrans) says it has launched the industry's first-ever short sale module for a large national lender.
Although Equator declined to name the lender, the San Francisco Chroniclehas reported that Bank of America is the company in question. A representative from BofA recently told the paper that they were using the Equator platform to manage the short sale process. "This is the first time that short sales have been handled through an electronic platform," said Equator CEO Chris Saitta. "With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents."
Short sales, in which a lender and borrower reach an agreement to dispose of a property threatened by foreclosure at a price that is "short" of the amount owed on the mortgage, have become more popular among lenders lately as a viable method for dealing with distressed properties. According to Equator, the number of successful short sales has increased spectacularly across the country in the wake of the foreclosure crisis.
Kevin Kieffer, a Realtor with Keller Williams Realty in Danville, California, told the Chronicle, "A year ago I wouldn't touch a short sale. It would be random prices banks wouldn't agree to, you would be tied up six months hoping to get a property sold. But now we're seeing banks up front negotiating prices and giving us criteria. They're getting creative to make things move."
Equator says the keys to a successful short sale are accessibility, responsiveness, communication, and fulfillment. By adopting its short sale platform, the company says large lenders, such as the unnamed Bank of America, can ensure troubled borrowers have 24/7 access to a portal through which they can provide the necessary information to process a short sale and receive real-time status updates electronically.
"Short sales can be a daunting, complicated, frustrating task for everyone involved," Saitta said. "This fresh approach using our sophisticated platform makes it fast and efficient for all parties involved."
Equator's short sale module also automates decisioning for the lender, handles approvals for faster turnaround, provides quick fulfillment, and assures full compliance with government programs, Saitta said.
I'm often asked by buyers and sellers what a short sale means. This is the shortest and most understanding description I have come across as explained by PAUL D. BOJIC, ESQ.
The Short Sale Process
A "short sale" occurs when a borrower is insolvent and a foreclosure by the lender will cost more than allowing the short sale. There are certain requirements which must exist in order for the lender to allow a Short Sale inclusive of, but not limited to: the property was purchased at the top of the real estate cycle and its value has declined; the property was refinanced at an LTV substantially higher than its present value; the property is located in an area where property values have decreased dramatically; the property's condition has declined and it is not financially feasible to foreclose and remarket the property; the proposed purchase price is more than the lender would be able to sell the property for after foreclosing on the loan; and, the commission the lender would pay is less than they would pay to sell the property after foreclosing on the same.
In addition, there are certain requirements which must exist with the borrower in order for the lender to allow the Short Sale inclusive of, but not limited to: the borrower or family member has an illness that has depleted their savings; the borrower's spouse died or divorce occurred and they have become insolvent; the borrower's employer transferred them and they cannot sell the property; the borrower is on active military duty and cannot make their payments; the borrower has suffered a disabling injury that prevents them from working; the borrower is unemployed and will not find employment in the foreseeable future; the borrower is financially insolvent; and, the borrower has been incarcerated and can no longer make their loan payments.
Without question, short sales are difficult transactions to complete. Sellers will want to use a real estate agent experienced and well qualified to deal with the short sale.
The famous first-time home buyer tax credit has been extended to April 30, 2010 and expanded to many people who already own homes.
Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time home buyers - or people who haven't owned homes in the previous three years - could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1, 2010 and close before July 1, 2010.
The credit, equal to 10 percent of a home's purchase price, remains capped at $8,000 for first-time home buyers, but income limits have been raised.
Congress also approved an expansion of the credit to allow homeowners who have been in a principal residence for at least five of the last eight years to claim a tax credit of up to $6,500 if they sell that home and buy another.
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
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The California Association of Realtors held their annual State of Real Estate this week in Palm Desert. Here are some hot points covered from the past year and looking into 2010 and beyond.
Foreclosures in California over the next 2-3 years will be approximately 15,000-20,000 per month.
Consumers are not spending. The credit impaired younger consumers cannot spend the way they used to. The wealth impaired older affluent consumers will not spend.
A huge amount of commercial debt is coming due in 2012 and at the moment there is no financing available for commercial loans.
Housing starts are lower in the United States than since 1958.
High end homes in California are predicted to decline about 20% in 2010 and low end homes should remain the same or rise only slightly.
In 2009, 84% of the homes sold in California were priced under $500,000.
In August 2009, 80% of home sales in Riverside County were distressed sales.
Over half of the homes sold in 2009 had multiple offers.
47% of buyers in 2009 were first time buyers compared to 38.6% in 2008.
19.6% of sales this year have been cash sales.
58% of buyers say it is very hard to get financing.
30% of sellers are selling because they cannot make the mortgage payments.
February 2010 is the date set for the reform of the Mortgage and Housing Agency.
Interesting thought: If you don't have equity in your home, you are not a homeowner. For more information or for a copy of the full report, please email me at tina@deserthotbuys.com.
La Quinta homeowners considering paying for help with a loan modification should take note that Governor Schwarzenegger signed Senate Bill 94 (Calderon) on October 11, 2009. SB 94 prohibits any person, including real estate licensees and attorneys, from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services affecting I - 4 unit residential dwellings.
Agreements entered into and advance fees collected prior to October 11, 2009 are not affected. Advance fees inadvertently collected after October 11, 2009 must be fully refunded.
This is great news for La Quinta homeowners that have been affected by the economy. SB 94 will help to ensure fewer homeowners become part of a scam or are ripped off by paying fees upfront only to find the services promised haven't been completed.
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Attention La Quinta residents, beginning October 24, 2009 you must dial the area code for all wireless calls. When calling from a landline you will also have to dial the 1+ area code.
A second area code, 442, is being added to our 760 area code and therefore we will have an area code overlay requiring the area code to be dialed with all telephone numbers, including those within the same area code.
After November 21, 2009, new telephone numbers could be assigned the new 442 area code.
What is the difference for a distressed homeowner between walking away from your home, letting it foreclose, or doing a short sale in regards to your credit scores?
A recent Los Angeles Times news article says there is a difference. It suggests that a homeowner with an excellent credit score might see a 120 to 130 point decline after a short sale.
Homeowners who choose to walk away from their home and stop payments altogether should expect their credit scores to fall 140 to 150 points, plus negative marks on their credit bureau files for up to seven years.
People filing for bankruptcy protection covering all their debts will get hit with an average 355- to 365-point drop in their scores. Bankruptcies remain on borrowers' credit bureau files for 10 years.
Get the entire story at www.latimes.com. For more information on Short Sales, please email or call me.
How is everyone feeling about short sales at the moment? Are there any other agents out there working diligently on short sale files? Or are you just walking away from those clients and refusing to show short sale listings?
As a Realtor in La Quinta, I have to admit I was not very thrilled to be calling the bank on a short sale file several times a week, waiting on hold for 30 minutes or longer to find out some minuscule detail on the file and then wait another three weeks before I got more information.
However, after successfully completing dozens of short sales in La Quinta and Indio and learning the particulars of what will work for each bank, I have come to enjoy them. Yes, short sales do take a lot of patience but the end result is that you help someone experience some good out of a bad situation.
As realty may have it, short sales are likely to be in La Quinta's market for the next three, five, or maybe even seven years. We may as well embrace them until this market can live without them.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Tired of the cold weather? Come
visit La Quinta, California and stay in this beautiful vacation home. You will love our mountains and our sunny, blue skies with 80 degree temperatures.
La Quinta homeowners considering paying for help with a loan modification should take note that Governor Schwarzenegger signed Senate Bill 94 (Calderon) on October 11, 2009. SB 94 prohibits any person, including real estate licensees and attorneys, from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services affecting I - 4 unit residential dwellings.
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