INVESTOR NEEDED!

$8,000,000 Loan or Partnership Investment for HUD APPROVED Assisted Living Facility in Fort Lauderdale, FL.

The purposed square footage is 182,000 square feet, it is a thirteen story building which will allow for 135 ALF rooms.  The building will be three blocks from downtown Fort Lauderdale, one and a half miles from Broward Medical Trauma Center and two and a half miles from the Atlantic Ocean.

At the present time we have hired an architect, a city planner, a market study consultant, a financial consultant and we are in the process of hiring a processor and a management company.

This Project is HUD Approved: HUD Insured Loan for $27,246,000 (45-year amortization at 6.5% / Non-Recourse)

CONTACT: Maria Sabio at (954) 636-5903

Some of the nation's top lenders have established separate emotional counseling departments and have assigned loan modification and short sale negotiators to help counsel emotionally distressed borrowers.  The negotiators are trained to assess the level of distress in each borrower, have compassion for the borrower, and decide the new terms of the loan or approve or deny the short sale based on the level of distress.  The more emotional distress the borrower expresses the more favorable the terms of the new loan or short sale.

If this sounds absurd to you, well that's because it is!  I'll tell you this much, the banks aren't crying.  There is no Vice President of Sympathy & Pity at Bank of America.  The banks' job is to please themselves and their stockholders...and lately, just themselves.  This fiasco has become a one-way rollercoaster for borrowers who are looking for compassion and sympathy from lenders.  Why?  I don't know.  But, someone needs to wake them up and tell them to GET A GRIP!

CREDIT BABBLE!

Am I the only one that can't bear to watch another sob news story about the housing market?  I don't know a single person that has not been affected one way or another by this crisis, and I don't need to hear someone else's emotional babble about how it will affect their credit.  THEIR CREDIT?  Are you kidding me?  Who cares about their credit when they can barely feed their family?  I have clients with exceptional credit and they can't buy anything with it, anyway.

Financial institutions have done a fantastic job over the years to make sure borrowers feel emotionally committed to everything they sign.  They've spent billions on marketing and educating us on the importance of good credit and paying bills on time.  "You'll be winner if you do and a loser if you don't!"  It's how they keep us in line.  It has been a one-way business deal for them because they don't want you making business decisions.  They want you making emotional decisions!

ARE WE BECOMING A NATION OF FREE-MARKET WIMPS?

Sure, I'm a strong believer of capitalism and free markets and whatever else you want to call it.  I believe government intervention should be minimal, at best.  In and out, if they're going to intervene at all.  With that said, you can try and justify SHARING the blame for this fiasco we're swimming in.  However, the blame should be placed squarely on the banks and financial institutions and their so-called experts.

If you believe in a free market economy, as I do, then you need to stand up and point the finger at the free-wheeling geniuses that put us in this mess...the same financial "experts" that were paid not just millions of dollars, but BILLIONS of dollars to tell us that the unfettered lending was safe and good, and that overpriced homes were not going to explode in our hands.  The big and small investors that bought the now worthless paper believed them, the countries and governments that bought it believed them, and the homeowners believed them.  It was their loan programs, it was their financial gurus, but they still want to blame the homeowner for this disaster.

"RING, RING!"

I receive a lot of calls from clients that are scared, frustrated and very confused about the daily collection calls they receive from their lenders regarding their under-valued, over-mortgaged sticks and bricks they call a house.  Of course they are going to call...you owe them money!  The lenders are very aware that they lent you more than the property is worth.  They know their lending guidelines were too lax.  And, they know that if you don't pay up, they're going to be out a lot more money.  So, they're going to do everything they can to make you believe that the RIGHT and MORAL thing to do is to keep paying on that overpriced shed for which they lent you money.  But, they're not crying on the other side of the phone.  They made a lot of money during the unrealistic housing boom, but now they don't want to give up any of that gain they already spent on their overpriced Wall Street experts.

"STRATEGIC DEFAULT"

So you may have heard of the newest housing crisis term, strategic default.  This is when a borrower with otherwise good credit, whether a principal residence or investment, decides to default on a loan and walk away from the property.  You may want to moralize the issue all you want, but I see this as a prudent business decision on the part of the borrower. 

Again, there is no emotional or moral issue in contracts.  There are consequences for breaking a contract and if EITHER party decides to do so then the other may pursue remedy as the law provides.  Corporations make these types of decisions every day.

WILL IT EVER END?

The problem with the housing crisis is not how to stop it, but how to finish it.  Bailouts and workouts simply prolong the inevitable.  They're just band aids for a really bad infection.  You can prop up the false value of a property all you want, but the market will eventually bring it down anyway. 

The banks knew all along that the housing market was over-priced, not just a little but at historical levels.  Famed economist Dr. Robert J. Shiller of Yale University even warned us (check out his History of Home Values chart http://graphics8.nytimes.com/images/2006/08/26/weekinreview/27leon_graph2.large.gif).  Shiller's now famous chart and findings were well known and frequently used throughout the financial industry.  But, if you're making a lot of money, you ignore the obvious.  LET'S MAKE MORE MONEY...FAST!

IT AIN'T OVER TILL IT'S OVER!

No matter how you feel about Glen Beck (I'm no fan), you need to check out the following video.  We are nowhere near the end of this mess...http://www.youtube.com/watch?v=a3g6Yr5S7cg.

Short Sale Horror Story!

Halloween is just around the corner.  What better way to celebrate than to share a short sale horror story and bank debacle.

This, of course, is a TRUE story.  I have decided to name the lenders/bank, but not the representatives or agents.  I have no problem holding the lenders/servicers accountable for their foolishness and absurdity with regard to the short sale process, which they continue to complicate further and further.

So many words come to mind when describing the short sale process, rules and guidelines they create.  Some words I cannot express in this article, but you know what they are.

“Lost in Short Sale Hell”

Lender/Servicer:  Countrywide / Bank of America

Investor/Owner of Note:  Fannie Mae

Loan Balance: Approx. $161,976

Current Market Values:  $20K - $30K

Time Frame:  7 months and still going

Current Offer:  $30,000

Location: Desolated townhomes of Palm Beach County, Florida

This short sale takes place in a community with approximately 140 townhomes.  Of course a large portion of them are foreclosed, in foreclosure, or behind in payments.  As of April 2009, there was only one (1) sale since July 2007.  It sold for $30,000. 

The development’s HOA is broke and no longer in operation.  Therefore, it is currently in receivership and a local attorney is assigned as the receiver.  The receiver has no interest in getting these properties sold.  He gets paid every month he has to service them.  He’s actually telling buyers they’d be crazy to purchase in the community.

This short sale file was submitted to Countrywide/Bank of America on March 18^th of this year when files were being processed slightly quicker than they are now.  Since this is a Fannie Mae loan, two (2) BPO’s/Appraisals were required.  By May 19^th the negotiator contacted me to inform me that the offer was too low and we would have to counter at a higher amount.  At which time I asked how much and he replied, “$35,000.”

That’s correct!  Our offer was for $30,000 and property values would continue to decline.  They were willing to forgive over $100,000 of the original note without a second thought, but the file died on the last $5,000!

There have now been two new foreclosure sales for LESS THAN OUR $30,000 offer…one for $29,750 and the other for $21,000.  These sales were to an investor looking for properties to rent.

A new offer was submitted to Bank of America on June 29^th, but to this date they can’t find the new appraisals that had to be completed and new ones have been ordered.  The file has been escalated to upper management at least four times. 

I have yet to figure out was “escalated” means at Countrywide/Bank of America.  I was actually told during a recent call that the “escalation” team now has to reply to the escalation request after the first notice and their response is monitored.  Now, who is doing the monitoring is still in question.  They still haven’t replied to any of the escalation requests.  The file is lost in SHORT SALE HELL!  We are still waiting on the appraisers’ calls.

I’ll have another Horror Story shortly.  There are sooooo many juicy ones from which to choose!

Share your Short Sale Horror Story with us!

     My last post opened up a flood of comments!  I also received numerous calls and emails from many of you.  Therefore, I am expanding on the subject with this second part.

     Now, I know some of my comments are going to get readers all riled up.  Some lenders and their representatives have been secretly reading Active Rain and this post. 

     Please note that I do not sugarcoat the short sale process.  Our firm represents the homeowner in the negotiation process and therefore has their best interest in mind.  This process should be treated as a business decision and not a personal one.  The lender certainly has no personal attachment to your client or the property.

5) Prepare Your Clients for the Long Haul!  I ask all my new short sale clients, "are you in a hurry?"  If they are, our firm is not a good fit for them.  Please note that there is a difference between working quickly and efficiently and being in a hurry.  The lenders are in no hurry to process your short sale file.  Plus, if the homeowner is basically living for free in the home, what hurry is there to move out and start paying rent?  The process provides them a good opportunity to stabilize themselves financially.  And always remind them: A HOUSE DOES NOT A HOME MAKE!  Home is your family and friends, not brick and mortar.  Home will go wherever they go.  The lender, on the other hand, will take every opportunity to attach an emotional response to that building, even if it is unsalable collateral.  Don't let your clients fall in to that trap.

6) Every Lender Has Issues!  As I mentioned in Part 1 of this post, never assume that the lenders have their short sale process down to a science.  It's a work in progress for them.  This is still their worst nightmare and they are just hoping it will go away when they wake up.  They still think this housing mess will end tomorrow.   Their loss mitigation staff is a temporary solution to the problem and there is a heavy turnover of employees along with a huge backlog of files.  The same underwriter that approved your loan was offered a job as a so-called "negotiator."  And, he/she is still working with the same mentality... "the bank is in control!"  Unfortunately, you have to let them believe that.  REMEMBER, YOU HAVE THE BUYERS FOR THEIR HUGE MESS!

7) Make a Buck Not a Friend!  We've all heard the saying, "the squeaky wheel gets the oil."  With the current state of the loss mitigation industry you need to be as squeaky as possible.  You need to be noticed; otherwise, your short sale file will be delayed time and time again.  One of the worst culprits right now is Countrywide/Bank of America (and that's a whole other post or two).  They are a real mess and overwhelmed with files.  Turn-time on newly received faxes is taking at least ten days, and that's assuming they find your fax.  Send your fax two or three times if necessary!  Yes, that may only add to the backlog of faxes, but if it means they will find YOUR fax and YOUR file nearly two weeks later you've accomplished your goal.  If you are calling and don't like the answer or attitude of the short sale representative, hang up and call again!  Trust me, the answer will change every time you phone.

8) The BPO Is EVERYTHING...For Now!  It amazes me that lenders depend on a half-assed appraisal called the BPO (Broker Price Opinion) to make their biggest investment decision on your file.  To put it bluntly, your BPO can be sabotaged by any green-eyed, angry broker with an attitude.  Always be sure to meet with the evaluator at the property if at all possible.  And, be sure he/she receives a copy of your contract.  The lender certainly didn't provide them a copy.  You already have a good idea for what the property should sell.  Be sure you convey your thoughts and opinion to that person.  Remember, the BPO is simply a range in value.  The negotiator or bank representative will usually try to trap you with the highest value in the range.  Let them know that you will NOT pay the top of the price range.

9) Tough Love...Credit Means NOTHING!  I'm still amazed how many borrowers ask me how badly their credit will be impacted by a short sale.  The answer...SIGNIFICANTLY!  Your short sale client should not be worried about how his/her credit will be impacted by their current financial and housing situation.  It should be the last thing on their minds.  I'm astounded that there is always some expert trying to put foreclosure vs short sale into tidy perspective for someone that is finding themselves in the worst financial crisis of their lives.  There is really no difference.  A 450 score or a 500 score is still a lousy score.  For the most part your client must be in a foreclosure status with the lender before they will even consider a short sale.  And, whoever tells you different is flat out lying.  Credit reporting agencies and the lenders that use them have been telling us for years that our credit rating is the most important thing in our lives.  They've spent millions of dollars on campaigns to remind us of that.  This has simply been a scare tactic and it has worked magnificently...until now.  I've seen clients scrape and borrow money, or completely eat away at all their retirement savings just to keep up with a worthless investment property.  All because they fear how it will affect their credit rating, even at the expense of really important matters like food, utilities, and medical necessities.  Your credit will always bounce back.  Plus, the lenders will need all those who are suffering from this crisis back into the fold in a few years when they are ready to really lend again and we are ready to borrow.

Be sure to read Part 1 of the Post: http://activerain.com/blogsview/1171787/what-the-lenders-won-t-tell-you-about-your-short-sale-

My next post... "SHORT SALE HORROR STORIES!"  I hope you'll share your short sale nightmares, too.  And, I won't shy away from naming lenders.  Stay tuned!

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We offer the LOWEST TRANSACTIONAL FUNDING FEES for all your FLORIDA SHORT SALE DOUBLE CLOSINGS & FLIPS!!  Plus, our knowledgeable title partners understand your needs and process.

VERY SIMPLE:  1.75% per transaction or $1,850 minimum!  Both closings must take place with our preferred title partners.

Contact Me: (561) 337-5789

     Not a day goes by that I don't hear the same question from an agent, "Why would the bank do that to my short sale?"  It's really quite simple...BECAUSE THEY CAN!

     I could write a book about everything the lenders won't tell you about the short sale process.  However, it would be worthless the moment it is published.  The business changes every day, every hour, every minute.  The lenders, investors, collections agencies, government agencies and everyone involved in this mess are still trying to figure out what happened, let alone what is happening right now.

   ANYONE THAT TELLS YOU THEY KNOW THE SECRETS OF DOING SHORT SALES, RUN FROM THEM AS FAST AS YOU CAN!  AND HERE ARE THE REASONS WHY...

1)  The lenders still are not sure that what they are doing is right FOR THEM.  They are constantly changing their short sale and loss mitigation process to figure out what will make the most return on the loss.  It will change at the whim of those assigned to review the pipeline disaster that is their loss mitigation.  And, time and time again, the changes usually are not for the best.  They only further complicate the process.  The banks are in the business to lend money.  The whole loss mitigation and short sale business is still a blur to them.  Think about how absurd this business is...they will forgive $300,000 on the property without blinking, but will kill a short sale for the remaining $5,000.

2) The property is ONLY A WIDGET!  The lender will never see or visit the home.  The only one that cares about how the home looks is the homeowner.  The lenders and their investors DO NOT CARE ABOUT THE FEELINGS OF THE BORROWERS/HOMEOWNERS.  They have NO emotional attachment to the property.  However, they want to assure that the borrower absolutely HAS an emotional attachment.  Remember, those lovely photos in the appraisal are only seen by an underwriter that initially approved the loan.  The actual lender does not care for photos and will never see them.  THE PROPERTY IS SIMPLY A WIDGET.

3) Lenders and investors make secret deals for billions of dollars every day behind your back!  Many agents remain shortsighted on the housing industry, alltogether.  They only want to see and believe that their real estate transaction is the only way the lender can move the property.  In fact, this is not by any means the principal manner of unloading their inventory.  REO's, performing and non-performing notes account for the majority of their swaps.  However, those sales are never recorded in public records.  Most of them are sold for pennies on the dollar.

4) The housing crisis is NOWHERE NEAR A BOTTOM!  The biggest reason for this is the tremendous amount of inventory.  And I'm not simply talking about the inventory in the lender's hands.  I'm talking about inventory yet to be taken back.  There are millions of homeowners living in their homes for free.  I have clients going on 2 and 3 years without a mortgage payment.  The lenders and their investors are simply overwhelmed by this crisis and they would rather see someone in the property taking care of it.  Once they foreclose, they are responsible for all the bills on the house.  Only 30% of the lender inventory is even available for sale.  Nearly three times the current inventory is pending foreclosure.  And unless everyone behind on their payments gets back to work and starts paying their mortgage, the crisis will not be going away any time soon.

Be sure to read Part 2: http://activerain.com/blogsview/1183207/what-the-lenders-won-t-tell-you-about-your-short-sale-part-2

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We offer the LOWEST TRANSACTIONAL FUNDING FEES for all your FLORIDA SHORT SALE DOUBLE CLOSINGS & FLIPS!!  Plus, our knowledgable Title staff understands your needs and process.

VERY SIMPLE:  1.75% per transaction or $1,850 minimum!

Contact Me: (561) 337-5789

We offer the LOWEST TRANSACTIONAL FUNDING FEES for all your FLORIDA SHORT SALE DOUBLE CLOSINGS & FLIPS!!  Plus, our knowledgable Title staff understands your needs and process.

There are many real estate investors working the Short Sale market, some of them with great success.  If you are need of TRANSACTIONAL FUNDING for your short sale or flip, our firm offers the LOWEST RATES/FEES for your double closing.

Our JOINT Title and Transactional Funding works brilliantly.  We provide you with KNOWLEDGABLE, PROFESSIONAL Title Services, and WE FUND YOUR DOUBLE CLOSING!

Very Simple:  1.75% per transaction or $1,850 minimum!

Tired of searching or dealing with a title company that does not understand or is not willing to process your double closing?  SEARCH NO MORE!  Our title partners process numerous short sale double closings and flips every month.  Plus we offer the transactional funding you need to get it closed right!

Do you need expert advice on your short sale and your double closing?  Contact me.  Don't let the so-called experts ruin your deal.  We have the funds and the title experience others only talk about!