In our dealings with short sales, we have found an obvious lack of training for real estate agents. Even though we are in "short sale central" here in Florida, at least half of the offers we have come in are asking for seller to make repairs, or missing a short sale addendum, or have some other terms not suitable for a short sale offer.
We created an actual PDF form that we have attached to our MLS listings instructing buyers agents on How to write a short sale offer for Realtors properly. The email address on here actually forwards the offer to myself as well as my head assistant! So far, the form has worked excellent for us! If you like the form, I'll gladly forward a PDF of it.
Short Sale Offer Instructions
Please read these instructions carefully prior to submitting an offer. All offers incorrectly submitted will delay the process and will likely be rejected by the Seller.
1. All short sale properties are to be sold ‘as-is'. Seller is to make no repairs. Please include this statement in your offer.
2. Seller will not pay for a home warranty of any kind.
3. All offers must include a Short Sale Addendum found in the ‘Forms' section of the MLS.
4. All offers must have a Buyer's pre-approval letter or proof of funds.
5. Do NOT put ‘Owner of Record' as the name of the Seller. If after searching the tax records you are still unsure about the name of the Sellers please call.
6. If a MLS listing reads ‘lender approved' or ‘approved at this price' then that is the purchase price the lien holders have communicated to us in either writing or verbally that they will accept. In this instance, if we receive an offer that does not meet the lender's required payoff we will recommend to the Seller that they reject the offer. If you need clarification, feel free to call.
7. When submitting an offer we prefer a scan and emailed copy. Please email us at ‘offers@firstcoastre.com'. If you'd prefer to fax, send it to 904-733-4397.
Thank you for your time and consideration in submitting an offer. We look forward to working with you.
What do you think of our form? Would you add anything to it?
Extension of the $8,000 First Time Home Buyers Tax Credit, and NEW $6,500 Tax Credit!
Senate leaders had reached a tentative agreement on Wednesday, October 28, 2009 but no bill was passed as of yet. The agreement will extend the $8,000 tax credit from its current November 31st expiration to April 2010, for having any contract or settlement by June 30, 2010.
In the bill there is also a proposed NEW $6,500 credit for current homeowners who lived in their primary residence for 5 years or more and have a joint income below $250,000 ($125,000 for singles). As the previous tax credit has pulled first time home buyers out of the woodwork, the extension will pull any remaining ones off the fence. This "NEW" $6,500 tax credit could pull any existing home owners out into the market as well. The positive aspects of this $6,500 will encourage current owners to sell their existing property and purchase another property.
This is excellent news for all Real Estate professionals!
There was no agreement whether to put the bill to vote on its own or or jointly with other proposed legislation. The bill has to be voted in the house and signed off on by the president to become a law. Lets hope it gets approved before the Winter season!
What do you guys think the impact will be on the extension of the First Time Home Buyers Tax Credit, as well as the $6,500 Credit for existing home owners?
Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled
"December 1 - April 30, 2010" become effective when President Obama signs the bill. All changes made
to the current credit become effective on that date, as well!!
Our government estimates by the end of 2009, over 50% of Americans who have a mortgage on their home will owe more than the value of their property. If you are in a difficult financial situation like much of the country, a short sale may be the only alternative to a foreclosure. We do have a saying we use in the business, "a short sale is only for those that HAVE to sell, not for those that WANT to sell". In a short sale, your lender will require you to prove your financial hardship, and the short sale hardship letter is a critical piece of required documentation.
What constitutes a "financial hardship"?
Loss of employment or reduction in income
Death in family or major unexpected medical expenses
Relocation or Job Transfer
Increased bills or expenses
Major repairs needed to property, without resources to pay for them
Divorce
By the time a home owner is considering a short sale, most have already done a "band aid" loan modification, either a forbearance or repayment plan, which is a temporary solution to a long term problem. If you have already written a hardship letter for a loan modification, you will need to write a new one that is more specific to a short sale.
Here are some common things that a short sale hardship letter should and should not contain:
The hardship letter should be signed and dated
Reference the property address and loan number in the header
It should be short and to the point, 5-10 sentences in enough
State your hardship, and the circumstances that led you no longer being able to afford the property
Make a strong case and relay the desperation of your case
Do not blame your lender for your circumstances
Do not write to much, they don't have the time to read it
End the letter with something like "a short sale seems to be our only solution to avoid foreclosure" or "please consider a short sale on our property, we can find no other answer to our circumstances"
While you may be stressed from the financial situation in your life, know that this is only a temporary season in your life. All things come to pass. While the short sale process is anything but "short", you can recover your credit and be ready to purchase a home again in as little as 18 months.
In a short sale, it is important to have an experienced agent to guide you through the short sale process. ALL traditional closing costs are paid for by your lender in a short sale, including your real estate brokerage fees. To find a local short sale Expert who will help you with the process at no cost to you, visit www.short-sale-specialists.com. That site is also a top resource for anything related to short sales including other required documents, and lender specific guidelines and contact information.
SHORT SALE SCAMS EXPOSED - "THE $10 OPTION CONTRACT"
Hopefully that title got your attention!
If you are reading this, you fall into three categories:
You are with me - You are likely an agent who values fiduciary duties and ethics over money, or a consumer who does not tolerate rip off artists.
You are against me - You are likely an investor or agent who disagrees with me, who would likely value money over ethics and fiduciary responsibilities.
Or you have no clue what I'm talking about!
If this blog post is angering you already, I definitely know which category you fall into! Those of you who know me, know that I'm not in the business to make friends with the world. I do have great friends and people I'm close to in my life. But, I am not always the most polite person on the face of the Earth, especially when I see injustice going on or the subject is something I feel passionate about. I say it like it is. I am going to state my case, and then I challenge ANY "short sale home buyers", investors, or Realtors(R) who disagree to a debate, right here, right now!!
For those that don't know what I'm talking about, the option contract seems to be the most common instrument that investors use to try to "buy" short sale homes. There are other ways investors purchase short sale homes, I've heard them all. Pretty much all of which I believe to be unlawful and unethical in some way, but the $10 option contract seems to be the most common scheme I run into.
Here is how it works:
In a nutshell - The investor puts signs up around town saying something like "we buy houses" or "stop foreclosure" or "John Buys Homes - CASH". The investor also may start websites claiming to offer solutions to home owners in hardship. Either way, the investor puts himself out there as a "cash home buyer" ready to buy your home TODAY!!. Unsuspecting home owners who are upside down on their homes and in hardship call the investor looking for some kind of solution to avoid foreclosure. The investor then asks the home owner to sign a $10 option contract, giving them the OPTION to purchase the home for an extended period of time. Once the option is recorded, it is basically another lien on the property! The investor considers this to be "ownership interest" and "equitable title" to the property. Once the home owner is out of the property, the goal of the investor is to basically manipulate the situation in ANY way to get the home approved as a short sale by the home owners lenders as cheaply as possible. Once approved, the investor tries to find a buyer to flip the home to PRIOR to purchasing, then ONLY buys the home (using cash/hard money funding) if they can put the deal together and flip it to a REAL buyer by buying and selling at the same time.
Here is why the $10 option contract is not only unethical, but illegal:
1.) These investors do NOT buy homes like they say they do! They are really "transaction coordinators", not a "short sale home buyer", right?? I mean after all, they ONLY buy the house if they can find somebody to flip it to right away. If they can't find a REAL buyer to buy it, the property goes into foreclosure, destroying the borrowers credit (could still be liable for money owed!). The investor is out a whopping $10. I have talked to MANY sellers who were under the impression that the investor/con artist was the person actually buying their home!
2.) The law has determined that "token consideration" ($10) doesn't constitute a valid contract, period. This means you can't legally say you own a home, and can't make decisions like an owner could when offering token consideration.
3.) What if the lender asks that the short sale deficiency be repaid by the home owner?? This is a very common occurrence. What if, the investor tries to manipulate the lender and steal a home for $150K, instead of the $180K it may fetch if sold in a legitimate transaction. What if, because the home sells for less, the lender asks that the home owner repay $40,000, instead of say $20,000 or nothing if the home had sold for a higher price. Who's best interest is that in? What about agents who agree to hide offers that come from legitimate buyers from the sellers lender, only to present to an investor who is not the REAL seller? Also what about agents who misrepresent the value of the property? I challenge ANY agent who claims to have ethics or values to tell me why they should be allowed to have a real estate license if they approve of this.
I'll save some other reasons for anybody who cares to debate with me!!
Because of my involvement in the short sale industry, I am constantly bombarded by these con artists trying to recruit me into their gangs of schemers. It is people like this in my opinion who are the epitome of "American Greed", and are the reason half the world despises our country. When approached by these people, the first thing they ALWAYS go after with me is, "You'll make 6% on the buying side, and 3% or 6% on the selling side". They come at me very hard, and its always ALL about money with them. Probably heard that statement 100 times. They are an extremely aggressive and manipulative bunch.
I'm not for sale, sorry to disappoint.
Realtors, we must stand for something, or we will fall for anything! Don't let one of these investors talk you into selling your values.
Sellers!! If you are in financial hardship and considering a short sale on your home, beware of short sale scams out there! The $10 option contract is just one method these guys use to tie up properties, rob your lender, and play games with home owners credit and financial future. There are MANY others!
ONLY use an agent who will look out for YOUR best interests, NOT their own! Common sense would likely say that it is impossible for anybody to look out for your best interests, while trying to profit from your misfortune as much as possible!
If you are looking for a good short sale specialist in your area who is pre screened, very experienced, and must agree to the strictest ethical standards and practices, visit www.short-sale-specialists.com.
The clock is ticking! The $8,000 Tax Credit for Jacksonville First Time Home Buyers ends November 30th!
This is a true tax "credit", and you do NOT have to pay back the money!
A "First Time Home Buyer" is defined as somebody who has not owned a home in the last three years.
The tax credit you receive is determined by the purchase price of the house. It is for 10% of the purchase price of the home, up to $8,000.
The credit is applicable for home purchases made on principle residences between January 1st, 2009 and December 1st, 2009.
Here are the best deals we could find on the market right now that will close still in time for the $8,000 tax credit! None are "short sales", and Most are new or have been totally renovated!!
MOST ALL OF THESE HOMES BELOW ARE OFFERED WITH AT LEAST $5,000 IN CLOSING COST ASSISTANCE!!
Click the property description for more information on each home!
I've seen a few of these lists, but I think mine is the best!! You be the judge! You can access this list ANYTIME by going to www.bankphonenumber.com. Below you will find contact numbers for all major financial institutions around the country
If you find any bank and loss mitigation department phone numbers that are incorrect, or have any that are NOT already on this list that we can add, PLEASE fill out the form at the bottom, or email them to ethanfcre@yahoo.com
This is copyrighted content, please don't steal it!
(800) 753-3673 General Info: 866-704-8050 Hmoe Equity Dept: 800-685-0935 & 800-283-7918 1st lien Short Sale Dept: 866-713-4785 1st lien fax: 301-696-4473 2nd lien Short Sale Dept: 866-520-5499 Short Sale Dept fax: 866-675-5772 2nd Mortgage Division: 866-520-5499 Collections Dept: 800-788-4517
Citimortgage (800) 283-7918
Countrywide
(800) 262-4218 Loss Mitigation Dept: 866-880-1232 Short Sale Department Fax: 888-491-4947 Authorization Fax: 805-520-5019 Authorization Fax2: 800-658-0395
Community First Credit Union
General info: 800-342-8416 LM Dept: 904-371-7964 x 1 Fax: 904-371-7938
When many lenders are slow to approve and process short sales for home owners in financial hardship, we have found than Aurora Loan Services, ALS, is one of the best lenders to work short sales with. They seem to have one of the fastest short sale package turn around times among all major lenders, and also one of the highest percentages of approvals as well. Their negotiators and staff seem to be very experienced and educated, and just generally easy to work with.
Their approval time seems to be somewhere around 3-4 weeks on a short sale offer. We just closed a $750,000 on yesterday that was just as smooth as can be. Less than four weeks for an approval letter, over $300,000 of debt forgiven on that deal! Another one in March got approved in just over three weeks start to finish.
We also are very familiar with the Aurora Loan Services Short Sale Policy, and it seems to be very accommodating for home owners.
Need help with a short sale from Aurora Loan Services? You should NEVER pay a penny for short sale services, fees are always paid by your lender! Need help? Ask an expert!
(877)737-4903
We are a licensed real estate brokerage company. We are NOT short sale investors!
Only use a real estate brokerage company to give you short sale help with your Aurora loan services mortgage.
Contact Mike Linkenauger at (904)733-4911 if you are in need of Free Jacksonville Short Sale Help
Obama Administration Announces Financial Incentives and Uniform Process for Short Sales. This is excellent news for home owners across the country, and will help many home owners avoid home foreclosure across the country by working a short sale and streamlining the process.
National Association of REALTORS® Government Affairs Division 500 New Jersey Avenue, NW, Washington DC, 20001 REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics
Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program, the servicer may consider a short sale or, if that is not successful, a deed-in-lieu of foreclosure.
Borrowers (Homeowners).
Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don't qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
Incentives.
Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
Standardized Documents.
The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
Property Valuation by Appraisal or BPO.
Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.
Timeline.
In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood, or short sale specialist. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
Commissions.
The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.
No Borrower Fees.
Servicers may not charge fees to borrowers/homeowners for participating in the FAP.
Program Expiration.
The program is in effect through 2012.
DIL Option.
Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).
This should help the Jacksonville Florida Short Sale Process. We are Jacksonville Short Sale Expert Realtors, and offer Free Short Sales Help and process guidance for property owners in hardship.
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Please note that some price ranges listed on THIS page are slightly out of date. Click the links for ALL new listings in the community you are interested in!
This is section one of our available communities - See section 2 for more condos, including Southside Jacksonville, Ponte Vedra, St. Augustine, St. Johns County and More!! Click Here for those areas.
Questions? Contact the Mike Linkenauger Team with First Coast Realty Associates at (904)733-4911, or visit www.JacksonvilleFloridaCondominiums.com, your #1 resource for Condos for Sale in Jacksonville and Northeast Florida! Not working with a Realtor to buy a condo in Jacksonville, St. Augustine, Ponte Vedra or Orange Park Florida? The services of an agent are FREE to home and condo buyers in Northeast Florida! My team is always at your service! Don't hesitate to contact us!
I am a lifetime Northeast Florida Resident, and have unsurpassed knowledge of all Jacksonville Communities. I am an internet marketing expert and have aggressive seller marketing. I am your short sales and community specialist. (904)635-8822 visit my main website at www.FirstCoastRE.com
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.
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