short sales: Notes From the Short Sale Trenches - 11/29/11 03:51 PM
Athletes speak of a "good tired" and a "bad tired" after a game, good after a win and bad after a loss. Tonight I am the good kind of tired. 13 months ago I met with a very nice lady in White Plains who called me after a Realtor she was interviewing proposed that since she was a short sale, she should deposit an amount equal to the commission in escrow with the broker to ensure their fee payment. That didn't strike her as terribly kosher, she got on the Internet to research short sales in Westchester County, and she found … (18 comments)

short sales: "I Will Not Let You Down." - 10/27/11 11:38 AM
People are hurting in this economy. Many good folks who did nothing wrong are caught in the undertow of the recession and can't find a soft spot to land. Upon occasion, I run into people in those circumstance. If they had been born at any other time in history, they wouldn't face foreclosure. They'd have equity, probably their job, and even if they were in a pinch they could sell and realize respectable proceeds. But not in this day and age. 
The worst part of owning distressed property is not financial. It is emotional. Most people that face bankruptcy or foreclosure … (108 comments)

short sales: Rethinking How We Advertise Short Sales - 09/27/11 04:39 PM
Recognizing that not all markets are the same and that we as brokers have an obligation to disclose material facts, my thoughts are centered on practices here in my home market of Westchester and the Hudson Valley. Simply put, I am not sure that marketing listings that are short sales as short sales first and foremost is the best approach. I have actually stopped the practice almost entirely, especially in cases where the home is still occupied. 
Our MLS has a Yes/No option for the disclosure of a short sale. We can say that the sale is subject to 3rd party … (67 comments)

short sales: For Those of You Who Aren't Facing Foreclosure - 09/24/11 09:09 AM
Something I read on Facebook earlier made me just a little sad. Chris Somers asked for opinions on the banks' role in the downturn versus the borrowers, and one of the comments was just callous. This isn't the first time I've heard it. I just wish it were the last. Rather than get into a flame war on Chris's Facebook, I thought I'd take the classier safer route and preach from my own soap box. 
If you are fortunate enough to not be in financial difficulty, are current on your mortgage, and view the recession from the sidelines, it is incredibly … (32 comments)

short sales: Lenders LOVE Paperwork - 06/28/11 03:47 AM
A quick perusal of my inbox confirms the fetish-like obsession that lenders have with paperwork. They just love it when a tree dies. 
Case 1: An active short sale file with a 2nd lender is about to go under contract with a buyer, thank goodness. For the past few weeks, a lady at that lender has been sending me emails for a 12 point checklist of things like the seller's bank statements and a showing log every Friday. The bank doesn't own the house. My client owns it. Yet the bank lady is acting like an asset manager, threatening to close … (8 comments)

short sales: Short Sales to Blame on Housing Market Decline? Gimme a Break - 06/03/11 02:50 PM
A client forwarded me the link on Inman News to this broker in Nevada who blames short sale agents and sellers for the mess. 
Prices keep falling because the short-sale agents are listing at 5 to 10 percent below comps in order to try to get an offer, and often are accepting offers at even less. The banks come back at a higher price, and then the buyer walks. The downward momentum has been coming from the short sales, not from the REO listings.
All real estate is local, and perhaps there are many under-priced short sales in Nevada, but isn't … (23 comments)

short sales: Short Sale Seller: Everyone is Getting Paid But Me. - 03/25/11 04:41 PM
Just about every home sale is stressful on the seller. A short sale, given the higher stakes and financial ramifications, often has even more stress for the seller than a typical transaction. On a few occasions, I have had a short sale client lament that they are "left out" in a way, in that everyone is going to walk away from the closing with money except them. Short sale sellers realize no proceeds at closing. 
I recall the first instance where this occurred; the seller didn't really want to sell, and was dismayed at what her perceived as a feeding frenzy … (18 comments)

short sales: OK, It's a Wrap: the 1400 Day Short Sale is CLOSED - 03/11/11 03:55 PM
Last year I blogged about the 1,096 day short sale I had in Putnam County getting a "final approval." The thought entered my mind that blogging about such a snake-bitten file prior to closing might jinx it, but with a final approval and a solid buyer I thought "what could go wrong?"
I won't bore you with the details, but when we failed to close by the deadline the lender rather callously re-set the timer and made us start from scratch. They ordered a new Broker Price Opinion (BPO) and that came in $100,000 higher. The buyer's mortgage commitment expired. We … (77 comments)

short sales: The Joys of Dewinterization - 03/10/11 02:17 PM
It is a rare thing for me to have to reconnect and heat up a winterized home, especially as a listing agent, but I did just that today for a short sale scheduled to close Monday. The interior temperature when we started at around 1pm was 39 degrees, and it was cold and rainy today. Shivering in the basement as I watched my plumber work, I really looked forward to that furnace firing up and getting some warmth.
It was a slow process due to the age of the home and the type of system. De-winterizing a home can only take … (12 comments)

short sales: Please Take Off Your Clothes - 03/03/11 04:03 PM

I just finished my first day of CDPE (Certified Distressed Property Expert) class, and am reflecting on one of the more profound insights given by the instructor, Mark Boyland. Mark, who is an excellent presenter, compared the difficult issues we have to sort out with distressed homeowners with the rather matter of fact way a doctor handles another rather touchy thing:“Please take off your clothes. “At my last physical, the doctor hardly looked up from his clipboard when he said that. But he was pretty comfortable about the request- so comfortable, that it seemed as mundane as asking his secretary if anyone called … (27 comments)

short sales: How Much of a Loss Will a Lender Take in a Short Sale? - 02/06/11 03:26 PM
I am, from time to time, asked by buyer agents how much is owed on a listing that is being sold as a short sale. We always disclose when a property is being sold subject to lender approval, and I understand the rationale for asking about the numbers, but the underpinnings of the question are based on a misconception.
I'll explain, but first, a question. 
Which home has a better chance of having the short sale being approved:
A $500,000 home with a $550,000 mortgage A $500,000 home with a $650,000 mortgage
 Many people assume that the house with the $50,000 shortfall … (7 comments)

short sales: Short Sales: Market Value, Not Fantasyland - 02/02/11 09:16 AM
As short sales have become more common and are even showing up in new markets in Westchester, I find myself educating my colleagues on what can and cannot be done in order to have a successful closing. Lately, we've received offers that are unrealistically low; essentially, what the buyers do not understand is that the lender is going to evaluate their offer based on comparable market activity, not their speculative attempts to get a bargain. 
I don't blame buyers for wanting to get a good deal. I want the same thing for my own buyers- who doesn't? But the lender in a short sale … (14 comments)

short sales: "How's the Short Sale Going?" - 11/27/10 01:00 AM
Upon occasion I get a call from a cooperating agent who is calling to show one of my short sale listings. I welcome these calls- anything I can do to equip the buyer's agent with data to help the sale is something I am eager to do. They might have questions on the layout, condition, showing instructions, and even parking, which is a big deal in many parts of New York. The one thing I can't answer on a home with no offers is the status of the short sale.
Have you contacted the bank?
Have you started the process … (58 comments)

short sales: How Do You Price a Short Sale? - 11/14/10 02:14 PM

After two similar discussions the past week, it would be wise to address how a short sale should be priced. After all, if the offer submitted to the lender is subject to approval and therefore not a certainty, all the more that the asking price is also a hypothesis.
It is. But, as educated guesses go, a good short sale broker’s list price is pretty educated. It takes into account comparable sales, competing listings, and, sometimes, the gut sense of a seasoned professional. You have to skate a nuanced line in some cases between what will get the phone to ring … (6 comments)

short sales: Everyone Wants Foreclosure Prices. Nobody Wants Foreclosures. - 11/06/10 08:08 AM
I got the following email today: 
we are withdrawing our offer of purchase on XX Rd.  The reason is the mold problem.  He is hearing that the mold goes right through to the studs and even the beams and he doesn't want to subject his family to that. I thought this was a good buy and I told him so but...
These people insisted that my client turn on all the utilities and de-winterize the house. They didn't need all that done to know that there is mold. 
This isn't an isolated example. Thanks to the media and basic groupthink of the current market, … (48 comments)

short sales: Uh-Oh - 11/05/10 01:03 PM
After putting a short sale into contract just a few weeks ago, I was pleased to get a call for the broker price opinion just yesterday. For the uninitiated, a broker price opinion is part of the short sale approval process and I have waited months in some cases for one to be ordered. It is the banks way of ensuring that they are getting fair market value for the home in exchange for a lower payoff than the mortgage balance. 
Good news, right? 
The agent doing the BPO had a familiar name, so after meeting her, I looked her up. She … (78 comments)

short sales: Can an Owner Reject an Offer in a Short Sale? - 10/29/10 12:58 AM
Contrary to what some may think, an owner is not obligated to submit every offer to the lender for approval in order to do a short sale. As a matter of fact, there are offers that an owner should never submit to the lender. That is the owner’s right, as they still hold title and ownership of the property, and the bank’s decision in a short payoff is simply the amount they’ll take to release the lien and settle the debt.
In Westchester and the surrounding areas of New York, offers are not submitted to the lender for approval, contracts of sale are. And those … (58 comments)

short sales: Who Should Negotiate a Short Sale? - 10/22/10 10:32 PM
Recently, a listing brokerage instructed one of my agents to include a HUD-1 as part of our client's offer on that brokerage's short sale listing. To say that it was a peculiar request is an understatement; The HUD-1, which is a mandatory form in any transaction involving a mortgage financing, itemizes and documents all expenses for both buyer and seller. In New York, especially Westchester and the Metropolitan area, it is prepared by the seller's attorney in a short sale, with approval from the bank approving the short sale, the  buyer's attorney, their bank attorney, and the title company. Aside from the real estate … (79 comments)

short sales: Short Sales are the Answer - 10/17/10 04:57 PM

I am going to bang a drum I have been banging since the sub prime crisis in 2007 began to erode the equity of so many people, and it is simple: if the housing market is going to recover, we have to have to do better than a 20th century solution to our 21st century problem. We are facing the largest liquidation of property in the history of the republic, yet banks are doing nothing differently to dispense with their toxic assets than they were in the 1930's, which is to foreclose, repossess, and dump. 
I would strongly assert, having worked … (99 comments)

short sales: Do You Want a $30,000 Problem or a $350,000 Problem? Part 2 - 08/13/10 11:48 AM
I have blogged before that not all short sales get a seller 100% absolved of their debt. New York is not  a non- recourse state.  Sometimes, the bank wants cash at closing or proposes a small installement note after closing. It is rare, but it happens, and it is often linked to the seller's hardship. If the seller does not have a compelling hardship, the bank might take this position. It is the lesser of two evils, because as small post closing debt is better than a foreclosure. 
We had a short sale seller balk at owing any money after the closing … (10 comments)

J. Philip Faranda, Associate Broker / Office Manager (Howard Hanna Rand Realty)

J. Philip Faranda

Associate Broker / Office Manager

Yorktown Heights, NY

More about me…

Howard Hanna Rand Realty

Address: 522 North State Road , Suite 100, Briarcliff Manor, NY, 10510

Office: (914) 762-2500

Mobile: (914) 450-8883

Phil Faranda is broker and owner of J. Philip Real Estate LLC in Briarcliff Manor, NY. Since founding the firm as a sole practitioner in late 2005, the team has grown to over 80 agents & closed 1000+ transactions valued at over $1 billion. He was 2014 President of the HGMLS and a 2017 Inman Influencer. This blog commentary is geared toward consumers and industry colleagues alike. You can reach him at (914) 723-8900.
Warning: *Sarcasm and irony advisory at all times.*

There is no doubt in my mind that the house would still be on the market if it wasn't for Phil's proactive efforts.
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Phil was very responsive to our requests; he was very professional and respectful; he always gave us his honest opinion on the questions we asked. ... more
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Phil is a very honorable and respectful realtor. He has gone way above and beyond the call of duty for me not only once, but twice. He helped sell ... more
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