short sale: Vacant Short Sale Listing - Who is Responsible? - 02/28/12 03:30 PM
I have several short sale listings.  A majority of them are occupied by the homeowner.  Occassionally I have sellers who are fed up with the process and wind up moving out prior to the short sale completion but they typically remain in the area and continue to check on the status of the property as we also do.  However, I currently have a short sale listing where the homeowner has moved on and out of the state completely.  After the home had been vacant for about a month the lender slapped a vacancy sticker on the window and changed the locks.  … (3 comments)

short sale: How to Deal with a Difficult Junior Loan in a Short Sale - 11/12/11 06:46 PM
We all know that the passage of California’s SB458 on July 15th changed how we process short sales.  It’s most important aspect is barring junior lenders from having recourse against the borrower/seller or asking them for a monetary contribution or promissory note.  Although the decline of short sale approvals has not occurred as severely as expected, real estate agents have been struggling to get junior lenders to cooperate in needed negotiations to successfully complete the short sale transaction.  Instead a number of “work-arounds” have been created to get the junior lender’s full participation in final negotiations.
I define a “work-around” … (3 comments)

short sale: Bank of America Did it Again - 09/11/11 06:51 PM
Well Bank of America did it again.  They foreclosed on a home owned by a single mother of five children, one a newborn last Monday after we were told numerous times that her short sale was approved.
This hard working mother of five commutes to work every day from Victorville to Manhattan Beach, a 103 mile one-way trip in order to keep a roof over her family’s head.  With the job market in such a slump she cannot afford to risk her current employment and has been making this commute for nearly 4 years now.  Until now.
She attempted a … (4 comments)

short sale: If you are considering walking away from your mortgage, you must read this first! - 09/04/11 06:25 PM
I’m not sure if you have heard about or experienced the “bank walk away”.  If not, it’s coming to a neighborhood near you.  A bank walk away is generally a property in one of the following situations:
1. The bank begins foreclosure, the occupants move out, and the bank figures out they don’t want the expense of foreclosing on the property for whatever reason, so it sits empty.  The borrower assumes that the foreclosure took place and moves somewhere else not realizing they still own it as the title continues to show.
2. The bank begins foreclosure, the borrower files for … (1 comments)

short sale: What’s so Short about a Short Sale? - 04/21/11 06:04 AM
I find many homeowners who are afraid to ask what a short sale is.  They are afraid to ask because by now you would think that everyone would know what a short sale is.  But until now, they never wanted or needed to know.  Let’s try to bring them up to speed.
It’s no surprise that the real estate market has hit an extraordinary low under the most extraordinary circumstances.  We have never experienced anything like this before.  We heard all the talk back in 2005 and 2006 of a real estate bubble.  An overinflated real estate market that was … (1 comments)

short sale: Short Sale Lender's Definition of an Arm's Length Transaction - 08/13/10 08:00 PM
I recently received an affidavit from the seller's bank, Ocwen, requiring both agents and both seller and buyer's signatures. 
The affidavit contained these 4 affirmations:
•1.        This is an "Arm's Length Transaction" and that no party to this contract is a family member, business associate, or share a business interest with the mortgagor.
•2.        Further, there are no hidden terms or special understandings between the Seller or Buyer or their Agents or Mortgagor.
•3.       That neither the Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as … (3 comments)

short sale: Real Estate Professionals - Stand up and Look into the Mirror - 05/23/10 07:40 PM
I certainly do not mean to offend my fellow Real Estate Professionals, but sometimes I can't help but wonder.   Recently at a continuing education class, I met a colleague who is new to the business and is now trying to acquire some investment property with her husband.  After a brief conversation we had with other licensees in the class, she pulled me aside to ask some questions.  She told me about some concerns she had regarding her current transaction.
It turns out that she had being trying to purchase property with the help of her broker.   She sent out several … (3 comments)

short sale: B of A requests $54k more than payoff on HELOC short sale - 04/17/10 04:12 PM
I'm just sick and can't seem to find my way.   My client has a first and a HELOC with Bank of America.  The first is not short, only the HELOC by about $35,000.  Within 2 months we received our approval!  Buyers signed docs and put their remaining funds into escrow to close.  Bank of America declines our final estimated HUD-1 and the deal falls flat.
B of A remarks that they cannot approve the net.  They are insisting on a payoff for the first for $244,000 when the principle balance is only $190,000 with only $12,000 going towards the HELOC.  B … (12 comments)

short sale: DID BofA MAKE AN ERROR ON THE SHORT SALE APPROVAL? - 04/11/10 08:01 PM
I represent a seller who has a first and a second with B of A.  The second is a HELOC.  The file is hardly short but just short enough that we needed to request a debt relief on the HELOC.
This file went very smoothly through Equator since we started it on January 19th.  By March 18th we had a counter offer and on March 23rd we had an approval letter for escrow to begin closing the file.  Very cool!
The buyers completed all of their inspections, new loan contingencies are completed, seller vacates the home for possession by April 1st, … (2 comments)

I wanted to follow up on my recent post regarding Promissory Notes required in order to facilitate short sale approvals.
I took a short sale listing in February 2009 on a condo with one purchase money loan at a 97% LTV.  The condo was purchased for $325,000 in 2007.  I have a transaction going with the lender, buyer and seller for $189,000 with $5,000 allowance to the buyer, FHA.
In June 2009 I received a conditional approval from Aurora Home Loans.  The terms of the original offer were acceptable to Aurora but not to Guaranty Mortgage Insurance Co.  They made a … (5 comments)

short sale: NEED HELP WITH US BANK SHORT SALE - 03/22/10 06:06 PM

I need some help with this one.  I have a new client looking to short sale his home.  I've dealt with many, many different banks and have some good contacts with most of them.  However, U.S. Bank is one that I have not dealt with yet and cannot find a local colleague who has either. 
My client attempted a loan mod with U.S. Bank last spring 2009.  Long story short, he was denied.  U.S. Bank is holding the second trust deed on his home with a Bank of America first of $250,000 that he is current on and this … (3 comments)

short sale: Short Sale Commissions - Cut or uncut? - 03/13/10 04:42 PM
I have been closing several short sales the past few months (finally).  In every single transaction the commission is reduced to 5%.  I've been successful in my negotiations for my clients on every deal (so far) but I am not making any progress on securing the commission to what the seller agreed to pay in my listing contracts.
I have an in-house loss mitigation team that works with me to facilitate these closings.  As you are well aware they take A LOT of time and patience.  If I were to calculate a dollar per hour wage on some of them, … (9 comments)

short sale: Recourse or Non-Recourse ? - 03/04/10 10:06 AM

Question:  I checked my refinance loan application (I refinanced to consolidate both mortgages into one when the house price was high), trying to find "The Note" to see whether it's a recourse or non-recourse, but I don't seem able to find any term that I can relate to recourse or non-recourse.  Can you help?
Diane Wheatley's Answer - Well your question pretty much gives us the answer right out of the gate. As a non-recourse loan is defined as debt incurred that was used to buy, build, or improve your principal residence ONLY. Recourse debt is defined as debt incurred … (1 comments)

short sale: IS HAFA’S PROGRAM A BREACH OF HUD’S FAIR HOUSING ACT?? - 02/27/10 08:59 AM
According to HAFA (Home Affordable Foreclosure Alternatives) program slated to take effect April 5, 2010, lenders MUST first evaluate/advise homeowners on HAMP (Home Affordable Modification Program) loan modification programs prior to any consideration of eligibility of the HAFA short sale option.
 One of the goals of the new HAFA program is to simplify and streamline the use of the short sale option by incorporating the following unique features:
Uses borrower financial and hardship information already collected in connection with consideration of loan modification. Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds). … (22 comments)

short sale: PROMISSORY NOTE ON SHORT SALE - SIGN OR NOT? - 02/05/10 11:58 AM
Here is a true copy of a promissory note I received from Aurora Home Loans in exchange for a short sale approval for my client.  She did not sign it and that negotiation fell through.  We are up for another approval any day and Aurora has sent the file to the MI company again for final approval.  I'm afraid I will receive another promissory note although her hardship is MUCH greater than it was last summer. 
Can you give your thoughts on the verbiage of this note.  I found it very odd and a bit ambiguous.  Are other agents receiving these … (10 comments)

short sale: Short Sale vs. Foreclosure - 01/24/10 05:22 AM
Question: Should You Choose a Short Sale Over a Foreclosure?  Sample Question: My husband and I have been making our mortgage payments every month even though our home is underwater. We owe a lot more than our home is worth. Now, my husband has lost his job. We're thinking about walking away from our home and letting it go to foreclosure, but my parents are telling us that we may qualify for a short sale. Which is better for us? A short sale or a foreclosure?"   Answer: Whether you should do a short sale or let the home go to … (2 comments)

short sale: CNBC News Story on Short Sale Fraud - HOT TOPIC - 01/16/10 05:41 PM
Hi Diane -
I would like to thank ALL the real estate professionals who worked with us to document this fraud by banks regarding the short sale process and off-HUD kickbacks -- together we can help change this industry for the better!
Here is the full CNBC Story on Short Sale Fraud:
Jeremy Brandt
Founder, CEO

Diane Wheatley, Broker, SoCal Real Estate Expert (909) 815-4499 (Move Up Properties) Rainmaker large

Diane Wheatley

Broker, SoCal Real Estate Expert (909) 815-4499

Rancho Cucamonga, CA

More about me…

Move Up Properties

Address: 2335 Foothill Blvd., Suite 5, Upland, CA, 91786

Office: (909) 981-5400

Mobile: (909) 815-4499

Email Me

Survived the mortgage meltdown and live to teach others how to buy and sell in the "move up" market in California.




RSS 2.0 Feed for this blog