Stella Barbour - Real Estate Agent -'s Blog

Anyone with Short Sale or Loan Modification experience with National City Mortgage?

Wed, 03 Jun 2009 11:50:29 -0500

I have had a difficult time getting anything accomplished with National City Mortgage on both my short sale and a loan modification that I am working on. I sit on hold for no less than 45 minutes at a time and then I will get someone rude, not helpful, and tries to rush me off the phone. Curious if anyone else is having this type of response from them?

Loan Modification Scam Strikes Again

Wed, 20 May 2009 13:58:20 -0500

A previous customer of mine came by the office today (the Law Firm I work at) to show me the loan modification paperwork that she had from a Company she hired. They charged her $3,000.00 to retain them, up front, with a balance due of $3,000.00. That was in the agreement. She had high hopes that her loan would be modified especially after the loss of her husband's job.

Today, I tried to call them to get status of her modification, and the number is now disconnected. The company doesn't even exist.

Please inform all of your customers to check with BBB and other goverment agencies or better yet, hire a law firm that they are familiar with and that is LOCAL to them. Report Fraud to Government Agencies. We all have to work together to get these types of organizations off the streets.

Short Sales Getting Easier

Fri, 24 Apr 2009 20:37:57 -0500

I am finding the following improvements while working with short sales:

* Phone numbers for the negotiators for the banks are getting easier to get.

* Wait time on the phone for someone at the bank to help you is getting shorter.

* More service reps are trying harder to help the situation instead of telling me to call back in 5 days

* Banks are becoming more realistic with the prices of homes.

* Banks are asking for less information up front.

I think that we will be able to help our clients succeed in their short sales and prevent future bankruptcies which helps improve our economy for the future.

We all work hard for our clients, but it makes us feel better when we make it all happen.

Is anyone else getting better results?

Please share as it gives others hope.

LEAVING HOMES VACANT WITHOUT WINTERIZING CAN BE COSTLY

Sat, 31 Jan 2009 21:33:55 -0600

My clients ask me to list a rental that a tenant was moving out of. I told them to make sure that they turn the power on after the tenant moves out and keep the heat on or winterize the property. They said no problem. After another agent found a tenant for my listing I met them at the property for a walk through. As we went inside to view the property, the floors were flooded and the ceiling was ready to fall through.

Guess what???? My clients did not do what I asked them to do, pipe froze and burst, and now it will be costly.

Please remind your clients how important it is to keep the pipes from freezing.

Filing Bankruptcy when you have a short sale listing

Wed, 15 Oct 2008 18:48:53 -0500

Since I wear two hats, one as a bankruptcy paralegal and the other as a Real Estate Agent I have clients coming to the office to file bankruptcy who have their home on the market for a potential "short sale". They are being told that you can still sell your home while in Bankruptcy or Bankruptcy will not have anything to do with the sale by their RE Agent. In Virginia, if you file Bankruptcy then the listing agreement as all agreements and contracts are voidable and you cannot continue the sale until motions are filed and orders are signed by a Judge stating that you can continue this sale especially if there is a contract being reviewed by the "third party, BANK". If your seller is considering bankruptcy, you need to refer them to an attorney for the advice and the proper procedures that will need to take place so they can make a more informative decision on "when" or "if" to file their bankruptcy.

*I am not an Attorney and not giving advice but opinion on previous experience.

COUNTRYWIDE SHORT SALE DEPARTMENT- Need Number??

Wed, 18 Jun 2008 08:32:58 -0500

A few of my short sales I am negotiating at this time require Countrywide's approval. From previous experience, they usually expect the Agent to call and check status. They don't call me. One the phone numbers that seem to be the most helpful is

HOME RETENTION DEPARTMENT

800-262-4218

SHORT SALE DEPARTMENT

Hope this helps some with your negotiations.

MORTGAGE FRAUD STORY - SHORT BUT INTERESTING

Thu, 24 Apr 2008 15:43:51 -0500

As some of you know, I work at a law office as a Paralegal/bankruptcy assistant and today was interesting. Potential client came in for a consultation. (By the way, my clients gave me permission to share this with everyone in this blog and encourage others not to be as naïve as they were).

Here is the scenario:

Clients Bought Single Family Home in late 2005 for $650,000.00.

Put 20% down = $130,000.00

Refinance in early 2006 (3 months later) for $680,000.00 to pay back the Realtor who gave them $130,000.00 cash to put in their account sixty days before buying the home (to use as a down payment) without disclosing this to anyone and especially not disclosing this on the HUD 1, not to mention her fee for doing that to qualify them to buy a home.

Apparently the Realtor ® who secretly loaned them the money told them that it was perfectly legal to do business this way and that everyone gets into homes this way.

They Lost home and considering bankruptcy 2008.

Realtor ® received her commission plus whatever else was available and still has her license and is selling homes today.

This is our third case in 2008 with similarities to the story.

HOW MANY AGENTS CALL EXPIRED LISTINGS? Curious to know who does this?

Thu, 24 Apr 2008 12:00:15 -0500

I had a listing expire on Sunday at 2:00 a.m. and I had it back on by Monday 10:00 a.m. as my listing extending the date was returned to me by my clients on Monday at 9:30 a.m. During this time that the listing was expired, which was mostly while we are or should be sleeping, 1 Broker and 2 Agents had already contacted my Sellers and attempted to explain how they are a better Agent than me to my sellers. The Broker told my clients that she sold 30 homes last year. If she did, they were not on the MLS. I checked and no homes had been sold. I felt the same as my sellers felt that if a Broker or an Agent has to stoop that low to bad mouth me behind my back and call expired listings first thing when they get up, then they are pretty desperate for a listing and my clients would not want them selling their home.

Just curious of how others feel about this or if this happens to you that quickly.

Maybe it is just tough times.

Deliberate Foreclosure or Lack of Competence During Short Sale Process????

Tue, 01 Apr 2008 22:25:03 -0500

I know I can't win them all, but I try my best to achieve that.

Here is the scenario:

Property: Single Family Home Purchased in 2003. Never made payments late till November 2007

About 3000 sq. ft. Nice lot, house needs a little cosmetic but mainly a good cleaning.

Behind on Mortgage: Reason is family member (child) w/cancer (provided medical bills as part of financial hardship package)

Mortgage: $540,000.00

Mortgage Company calls my client stating "we are here to help you in your hard time"

Short Sale Attempt: $379,000.00

Offer 1: $310,000.00 rejected

Offer 2: $349,000.00 rejected

Offer 3: $415,000.00 considering then rejected

I also offered to reduce commission on my side to make work.

Foreclosure: Occurred

Back on the Market by bank: $369,000.00

Sold w/seller concessions for less than bank listed price.

Explain that one.

Do we have a contract or not?

Wed, 27 Feb 2008 14:52:32 -0600

Another Real Estate Agent I know had asked me some questions about a deal she was working on because she was unclear of what to do next. I wanted to share this situation with others because in this market this situation may arise with one of your deals.

Lister has property listed for sale. Buyer's agent (person I know) has contract on property with her buyer. During all of this, ratified contract in place, Owner of home files Chapter 7 Bankruptcy and does not inform anyone for some time. During this time, buyer's agent orders home inspection, appraisal being order, the usual process.

Well, guess what? Everything falls apart. Contract is voidable at this point. Bankruptcy puts "automatic stay" in place. Listing Agent's listing agreement is "voidable".

Is there a contract or not? The listing agent says that she still has the listing. The buyers still have a contract. Listing Agent tells Buyer's Agent there is nothing to worry about, everything is fine.

UPDATE: Owner receives a chapter 7 discharge; listing agent still shows listing as active, and buyer's agent still thinks this contract is going to happen. No one has received any legal advice yet.

Always check with an attorney to get the professional advice you need for situations like this. Not being well informed could cost your clients money they don't need to spend.

ANYONE WITH SHORT SALE EXPERIENCE WITH SAXON MORTGAGE

Thu, 21 Feb 2008 20:36:35 -0600

I am checking to see if anyone has had any dealings with Saxon Mortgage. I have had such a hard time with this mortgage company. I have 4 offers in with them on a short sale and foreclosure right around the corner and no response from them. Call after call. Just curious if anyone else has had this experience with this Mortgage company. After I looked up this company on the internet, there were complaints made by homeowners on "Rip off report". Distressed homeowners expressing their feelings about their dealings with them.

DID ANYONE ELSE RECEIVE A CALL FROM A COMPANY WANTING 90% REFERRAL FEE

Thu, 07 Feb 2008 08:55:05 -0600

Has anyone else received a call from someone (THEY DID NOT LEAVE THE COMPANY NAME ON MY PHONE) stating they are looking for someone to refer clients to and their referral fee is 90% . I could not believe that someone would expect me to do all the work for 10% of the offered commission. I thought it was joke. Do people actually do this? The company's number is 925-460-9820. Just curious if anyone else got this strange call.

Is Your Real Estate Agent Honest About What They Really Know?

Wed, 06 Feb 2008 21:07:46 -0600

Someone who called me today at the law firm I work at, was asking for legal advice before pursuing a short sale with a real estate agent. After asking some questions, she stated the following:

The Agent she wanted to represent her interests told her that he is very successful with short sales and very experienced.

He is working some short sales right now that are going well.

That he closed on some short sales and were very successful.

That if the short sale doesn’t work, then you can give the home back to the mortgage company.

After a little research, we found out that the agent has not performed one short sale yet and had no experience at all. When confronted, he told them that they may need someone with even more experience to handle their situation as they withdrew their listing with him.

Please get PROFESSIONAL advice with all questions you have pertaining to your financial hardships. Legal consultation is cheaper than some of these retainers being charged for short sales.

By the way I forgot to tell you this agent charges a non-refundable retainer of $1500 since he is so experienced.

Interesting Story about a “Shady” Appraiser

Tue, 29 Jan 2008 23:07:53 -0600

A friend of mine, who is an Investor, buys homes at the foreclosure auctions (courthouse steps) and sells homes. He called me to ask me if I had any Appraiser’s phone numbers I could give him that he could get a quick appointment with, because the one he normally uses is out of town and the Appraiser that his “friend” gave him was not going to work out.

I asked what the issue was with the Appraiser his friend gave him and he said to me . . .

“I told him that I was looking for an appraisal around $280K for this property; do you think it is worth that?” The Appraiser said to him “For a few thousand, I could appraise it for what ever you want me to appraise it for”.

My investor friend, a great person and savvy investor, not a Real Estate Agent, calls me when he thinks something is “shady" or makes him uncomfortable. I told him to give me the guy’s name and I will take care of it and I gave him the information he needed so he can get a “real appraisal”.

I have in my possession the guy’s card so I will be reporting him.

THE FRAUD CONTINUES.

Foreclosure, Bankruptcy, Short Sales, Which one is right

Mon, 28 Jan 2008 22:45:22 -0600

With so many people losing their homes these days, I wanted to share some information about using to the bankruptcy system to help someone stay in their home instead of doing a short sale or a Foreclosure.

Every situation is different.

Since I work as a bankruptcy consultant/paralegal at a law firm, and I also am a Realtor I am finding that my knowledge in Foreclosure and Bankruptcy has come in play with my real estate business when I normally can keep the two separate. But with all the foreclosures these days and mortgage issues, I am finding myself making decisions for homeowners that require my legal knowledge and my real estate knowledge .

For Example: Homeowner comes to me for possible short sale. Three payments are missed. The family prefers to stay in their home, children already in school, etc. Mortgage changed, job loss, etc. has now made the homeowner unable to afford the home he has. There is negative equity ($90,000) so refinance was out of the question. Homeowner gains employment again and is now able to make the payment but now home is in foreclosure and the cure amount is four months worth of payments, interest, and attorney fees. I then make the decision to prepare a Chapter 13 Bankruptcy Petition, (through the law firm I work at) file it with the court, then called the Attorney handling the Mortgage Co.’s interest and told him that foreclosure cannot go forward because I filed Bankruptcy for our client and ‘automatic stay” goes in place which means that all actions from creditors must stop. Creditors cannot contact our client, now called the “debtor” while he is in Bankruptcy without permission from the Debtor’s Attorney. In the meantime, I prepare the plan which gets approved by the Bankruptcy trustee to include missed mortgage payments called the “cure” amount. Now the debtor/homeowner continues to stay in their home and catches up on their mortgage through the Bankruptcy Court, continues to make their regular payments and their kids don’t have any interruption in their life at this time.

There is a little more that goes on through this process, but I wanted to give everyone an idea of an option that may work instead of a short-sale or a foreclosure which was probably going to be the end result in this situation if this homeowner decided not to seek legal advice.

Before this family came to me, they spoke to their real estate agent who wanted to list their home on the market for a short sale, since that is the way he could have helped them, but he made the suggestion for them to seek advice from an Attorney just see if other options were available to them. He may have lost the listing but gained more from this family then money. I am sure when they are ready to move, they will use that same agent, because he worked with them in helping with their situation.

In the end, the Family was happy and relieved that their hardship was over for now and they could live their lives without worrying about their home going to the auction block.

If there is interest in this blog from everyone, I will post more on this subject and give more examples of scenarios and suggestions on handling them. I have prepared hundreds of bankruptcy petitions of all Chapters and if anyone has questions about them, I will try my best to give you answers that may help in situations you may have with your clients.

Please note, I am not giving legal advice. I am not an Attorney. I am just sharing my experiences.

SOMEONE PURCHASED A HOME WITHOUT ANY I.D. AT ALL

Mon, 28 Jan 2008 21:55:46 -0600

(this is a re-post, was deleted in error)

This was interesting today. I get a lot of people that come through the law firm I work at with the most unusual housing situations to see if they qualify for bankruptcy.

Well, this couple bought a home together in 2005 and now cannot afford the mortgage. (adjustable w/neg am). OK, same with just about everybody that walks through my door.

I explained the bankruptcy process to them and told them that two of mandatory items that were needed are 2 forms of ID, one with picture (license, school ID, etc.) and one that shows SSN# or TIN# and the second thing is tax returns for 2005 and 2006.

Guess what? No ID at all. The entire buying process went through with NO IDENTIFICATION at all.

I had them come back with their closing papers from their purchase to see what took place. Well there are no papers in their folder that show any identification number.

How does this happen??? Unbelievable. This couple has been here for 5 years with no identification. I guess they can foreclose on their home and no one will ever know.

I REALIZED I LOST SOME OF MY POSTS

Mon, 28 Jan 2008 21:52:03 -0600

I just noticed that some of my blogs are missing. I guess I must have deleted them by accident. I am going to try to put them back on but I was just wondering if this has happened to any of you. I don't know how I did that.

Anyway, am I the only one this has happened to. It is really frustrating me.

Losing Your Home, Filing Bankruptcy, Need to Move??? RENT BEFORE FILING BANKRUPTCY

Mon, 28 Jan 2008 10:33:13 -0600

If you are thinking about letting the home go through foreclosure and considering Bankruptcy as an option, and need to rent a home, then RENT before filing bankruptcy. It is more difficult to rent a home after bankruptcy then to buy a home after bankruptcy. My clients have experienced this first hand because they waited until after bankruptcy to rent a home and were unsuccessful. During the time you are in Bankruptcy, you cannot do any business until after discharge if filing a Chapter 7.

If you commented on this before, I am sorry but I deleted by accident. Sorry all.

Beware of Short Sale Fraud

Wed, 23 Jan 2008 18:24:21 -0600

I was just speaking to a neighboring real estate agent who told me that some people she met, who are not well informed of what happens in a short sale, gave $3000 to a Real Estate Company who said they will not lose their home if they listed with them to do a short sale. The owners have not seen any results or have heard from them since. It is cheaper to seek Professional Advice from an attorney first for a quick consultation before doing something this drastic and giving away $3000 for nothing in return.

Look out for this type of fraud. It is growing stronger. I brought it up before, but want everyone to be aware of this in case people you know are considering hiring someone to perform their short sale.

Foreclosure Leads to Judgments Issued.

Sat, 12 Jan 2008 21:50:08 -0600

The more I talk to people who are thinking about letting their home go to Foreclosure, just giving up, the more I realize that they think this decision will end their dilemma and everything stops because they are giving the home back to the bank.

I explain that after a home goes to foreclosure that the financial burden is not lifted and they still may or most likely will receive a “Balance due” after all is said and done. When they cannot pay, then a “Judgment” will be issued. After that, collections will be pursued by possibly garnishing wages, bank accounts, etc. which usually ends up in bankruptcy which does end their hardship.

Please seek legal advice before considering a foreclosure to make sure you understand the entire process of foreclosure and what happens after your home has been foreclosed by the bank.

Getting Professional Legal Advice is the Best Choice.

Sat, 12 Jan 2008 21:30:11 -0600

Yesterday’s market has created problems with property owners paying their mortgage timely or affording their mortgage, which leaves them with difficult decisions to make.

Try to keep the property and continue to be house poor and struggle with the stress of trying to keep up.

Attempt a short sale.

Let the home go to foreclosure.

File for Bankruptcy

In any event, one thing everyone should remember is that there are options. Choosing the best option requires professional advice.

An attorney is worth a consultation fee. When making decisions that will determine how your future may turn out, then it should be taken seriously. When a client calls me regarding concerns that have anything to do with the above scenarios, I always suggest a consultation with an Attorney. Fresh professional ideas dealing with a bad situation may help relieve some of the stress your clients are facing. They will remember you for that.

After checking around I noticed that a lot of Attorneys give free, $50, $75, $100 consultation fees to new clients considering bankruptcy. You get, at the very least, a half hour with someone that may be able to help make your clients feel a little relief and give them new hope during the tough times.

Please be careful in finding someone to do a "Short Sale" for you.

Thu, 20 Dec 2007 21:59:48 -0600

I found out yesterday that a friend's sister went through a company on the internet to perform a short sale and requested $1000 from her. She paid it instead of her mortgage (she was already 3 months past due). Well guess what happened next???? NOTHING. Her home was foreclosed on and she did not know until the bank came knocking on her door. This company stated that they stopped the foreclosure and was pursuing a short sale with a buyer (after the bank came knocking on the door). Hmmmm, I thought that this was very strange. Now that bank owns the home and they have to move immediately. Please educate people that you care about, to check out companies on the internet. They have to be checked out first before sending money. I find this unusual because the company that she sent the check too was in California and her home was in Virginia.

IS SHORT SALE THE ANSWER TO ALL OF THEIR FINANCIAL PROBLEMS?

Fri, 14 Dec 2007 21:30:40 -0600

The answer to this is “NO”. I am still finding that people that call me regarding a possible short sale that Bankruptcy is still the answer.

If the short sale does not accomplish all of someone’s financial distress, because someone may have a ton of other debt, and possibly unemployed, maybe a short sale is not going to work for someone in this situation. There has to be something that benefits the “Seller”. That this will be a road to recovery for the homeowner that may be losing their home.

The seller has no other large amount of debt.

The seller can handle the financial burden of a 1099.

The seller will be financially stable after this is taken care of

The seller has not already received a foreclosure date.

If the seller can say the above four items are “correct” than short sale may work. If they cannot say that these points are correct, then bankruptcy may be a better solution.

WHEN YOU THINK TOO MUCH IS OWED ON THE PROPERTY, A SHORT SALE CAN STILL BE APPROVED

Mon, 26 Nov 2007 13:37:36 -0600

If you think too much is owed on the property and a short sale doesn't look like an option, it may still be an option. I want to share with you one of the most difficult short sales that I have had.

Here is one that I just completed sucessfully.

GMAC 1st Mortgage $465,000.00

GMAC 2nd Mortgage (different branch, with different investors) $120,000.00

plus fees, interest, costs, late mortgage payments, foreclosure sale costs, attorney fees, etc.

Contract for $400,000.00

4 months of negotiation, One foreclosure date put on hold while working with contract

Approved for: $400,000.00

1st Mortgage settled for $373,000.00

2nd Mortgage settled for $3,000.00

Settled and closed.

I thought I would share this one with you since it was one that the sellers had spoke to 2 other agents before me and both told them to foreclose, they have no chance in a short sale.

I guess third agent was a charm.

Call Listing Agent for Appointment . . . NO RETURN CALL FOR OVER A WEEK

Tue, 13 Nov 2007 08:34:23 -0600

I was working with a buyer that noticed a home that was not on our list. I looked it up and it said, showing by appointment only. Call Lister to set up appointment. On the market for 92 days so far.

I left 10 messages, and still no response back. The only phone numbers listed is for the agent.

Why would someone list a house on the market and not take any calls for the property. Very frustrating. I am now determined to view this home.

My buyer is no longer interested in seeing that property and we have put an offer on another property, but I continue to call to see when I get a message back. I have now left a message for their broker. I will see how long that will take.