partner first: Default Industry Update (for the last 14 days) - 06/07/11 11:50 AM
By: PartnerFirst
Things have been a little quiet in the default world for the last few weeks. However, there were some interesting stories and developments that you may find interesting.  I'll give you the Cliff's Notes version...
Imminent Default Regulations for Short Sales
Fannie Mae issued a notice to their servicers detailing changes on how they should determine "imminent default" for short sales and DIL's.  In a nutshell, they are now required to use the same method as is used for determining imminent default with a HAMP modification application.  The borrower cannot have more than $25,000 in cash reserves, and must have … (0 comments)

partner first: Ehhh, who really cares... - 04/06/11 10:16 AM
By: Jacob Swodeck, PartnerFirst - Director of Education
So what is new in the default servicing world?  The Treasury will start to publish a scorecard of the servicers HAMP performance soon, the House voted by a large majority to end Obama's HAMP program altogether Tuesday evening, the shadow inventory is dropping slightly (but still very little non-GSE REO inventory), Wells Fargo is now on the Equator platform, Bank of America launched a revitalized cooperative (HAFA-like) short sale program, and Fannie Mae is participating in the game changing top-down / lender initiated short sale initiative with default servicing giant ServiceLink.

partner first: Foreclosure Moratorium Facts (real time) - 10/15/10 04:23 AM
No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide. What does this mean for the short sale market? Will this delay help short sales or contribute to the already increasing mentality of distressed borrowers to simply wait it out before reaching out to their servicer or a real estate agent for help? While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have. (sourced from N.A.R. - … (1 comments)

partner first: The Truth about Wells Fargo and Wachovia Foreclosures - 10/08/10 04:29 AM
Hi All, As you know, I have been tracking the rumors about Wells Fargo's new policy of not extending short sale approvals and no t postponing foreclosure any more. I sent an email to a default executive at Wells Fargo in response to this article by (link: and received this statement which I think you should find very helpful. Statement from Well Fargo: Jacob, Regardless what the media is saying, the below statement comes from our communications department: Wells Fargo recently issued communications around our short sales that clearly created confusion in the marketplace. We apologize for these misunderstandings … (8 comments)

partner first: National Wells Fargo Short Sale Update - 09/24/10 04:13 AM
Today I had the privilege of attending a local Wells Fargo short sale seminar in my area (Rancho Cucamonga, CA). The presenter was Abel Fregoso, who is the Regional Vice President of REO and Short Sales for Wells Fargo. He has 25+ years in the mortgage industry and is a pleasure to listen to. I will post my actual notes, and then I'll expound towards the end of the post. My notes:Wells Fargo short sale meeting 9/23/10 Wells Fargo services 9 million loan customers (2nd to BofA) 22% are portfolio assets including Wachovia loans (or owned by Wells Fargo) Therefore, 78% … (5 comments)

partner first: Bank of America's New and Improved Short Sale Approval Letter - 09/13/10 04:15 AM
Can it be? Bank of America has a new approval letter? Actually, it is only a change in verbiage. But, this change is monumental and noteworthy. In the past, BofA reserved their right to pursue the borrower/s for the deficiency when applicable. That language scared off many homeowners and real estate professionals. BofA's stance was that they needed to reserve the right to collect on the deficiency in the event of fraud, false information, or misrepresentation. Fair enough. But is that the best way to convey that message in a sue-happy society where everyone is watching their backs? Homeowners feared being … (4 comments)

partner first: Old Republic Mortgage Insurance not Participating in HAFA - 09/07/10 05:18 AM
Let the games begin! The HAFA rejection monster has reared his ugly head. In this email thread, one of our PSC's has shared an email thread where a second mortgage serviced by BofA with MI has rejected the HAFA short sale requirements and sited that they are not participating in general with HAFA. Se thread below: Subject: Equator - Message Alert: HAFALRC Removed; MI (Old Republic) NON-PARTICIPATION Message Inserted (08/31/2010 10:14 AM) On: 3167 CHATWIN AVE, LONG BEACH CA. ORICS does not participate in the short portion of HAFA. I will just decline this as 6% or $6k will not be … (0 comments)

partner first: LPS readies launch of short sale broker/agent network - 08/27/10 07:18 AM
LPS readies launch of short sale broker/agent network
* by Kerry Curry * 2:45 PM August 26, 2010
A Lender Processing Services (LPS) division will go live with its new short sale broker/agent network within 60 to 90 days, company officials told REO Insider. The network is designed to help servicers respond to the increasing volume of short sales, LPS said.
LPS Asset Management Solutions, a division of LPS, began discussing the creation of the network in January as the Home Affordable Foreclosure Alternatives (HAFA) program was getting ready to roll out, said Danielle Washburn, assistant vice president marketing for … (2 comments)

partner first: NAREB Forms Strategic Partnerships to Serve Minority Communities - 08/23/10 12:01 PM


partner first: Freddie Mac HAFA Too Exclusive? - 08/20/10 05:18 AM
As we all should know by now, Fannie and Freddie (GSE) HAFA guidelines were released on June 1st, 2010 and the program launched on August 1st. I haven't personally done a GSE HAFA short sale yet but I have made myself very familiar with the 22 pages of guidelines. There are many distinguishing qualities when compared to the Treasury's version of HAFA, but one has jumped off the page and smacked me in the face. Freddie Mac's HAFA states: Servicers must consider HAMP eligible borrowers for HAFA within 30 calender days after the borrower: 1. Is determined by the servicer they … (1 comments)

partner first: Top Mortgage Default Industry Executive Bill Breeden Announced as Chief Development Officer of... - 08/19/10 06:39 AM
PartnerFirst LLC, announced today that Bill Breeden has been added as a new Principal and Chief Development Officer. PartnerFirst CEO, Mark Comer, says, "We are honored and excited that a default professional of Bill's caliber has joined PartnerFirst. His background and knowledge are unrivaled in the industry." Bill will be helping stakeholders build an effective short sale management and disposition strategy, using the PartnerFirst panel of trained and certified real estate agents. Prior to joining PartnerFirst, Bill was SVP at ServiceLink and AssetLink, LP (both Fidelity National Financial Companies), as well as COO and CFO at Moss Codilis, Stawiarski, Morris, Schneider … (0 comments)

partner first: Default Market Update (you may want to sit for this one) - 08/16/10 10:26 AM
Hey Fellow PSC's, As I sit in front of my computer screen, I am challenged with the task of writing a "value add" blog about the short sale space. Most things I want to write about are negative, depressing, and non-productive. So, as a compromise, here is a quick glimpse of what is going on TODAY. (since statistically we are scanners, not readers in our present day anyway) Default Market Update (highlights) * Est. 7 million homeowners in default (FYI, that is a lot) * Wells (portfolio loans) and Wachovia not postponing foreclosure...EVER! * Fannie and Freddie HAFA disqualifies homeowners that … (0 comments)

partner first: Wachovia Pulls the Trigger on Foreclosures - 08/16/10 10:25 AM
Greetings PSC's, I have some alarming news to report. I cannot reveal my source, however they are VERY reputable. Wachovia (formerly Golden West and World Savings) has been the sweetheart of the short sale space in the past 15-18 months. Diana Stauffer of Wachovia created the "Fast Track" short sale program in early 2009 in order to quickly work through their less than attractive "pick-a-pay" loan portfolio. Homeowners were given $3,000 to $5,000 as an incentive to cooperate, real estate agents received 7-8% commission, deficiency rights were waived, they put local, approachable human representatives (short sale managers) in hard hit areas, … (1 comments)

partner first: Part 2 of "The 3 Toughest Short Sale Objections" - 08/16/10 10:24 AM
Objection #2 - The Taxes Question Homeowner: Will I have to pay taxes on the forgiven amount? Before answering this question, slow down and understand where the homeowner is coming from. They have presumably heard horror stories or read articles about the dangers of the huge tax liability attached to short selling property. Don't come out with guns a'blazing. Absorb the question, identify with them, then give them a great answer. Key: Please make sure to communicate to the homeowner that you are not a tax professional and that you will not attempt to interpret the tax laws, nor will you … (0 comments)

partner first: Part One of "The 3 Toughest Short Sale Objections" - 08/16/10 10:21 AM
There are 3 major objections that every listing agent doing short sales has heard and has had to deal with. These 3 objections are usually questions asked by the seller / prospect. There are several approaches to answering these questions. However, this blog will cover the way I have overcome them successfully in the past. The “Big 3” Objections: 1. Will I be responsible for the remaining balance of the loan after we close escrow? 2. Will I have to pay taxes on the forgiven amount? 3. How will a short sale affect my credit score? The Elephant in the Room … (0 comments)

partner first: My Beef with HAFA - 08/16/10 10:17 AM
Man am I tired.  I've read Supplemental Directive 09-09 7-8 times, the new 21 page Fannie / Freddie  HAFA guidelines, and numerous articles and I'm convinced...HAFA is incomplete.  As my anonymous colleague put it, "They must have gotten so overwhelmed with the process of writing HAFA that they just stopped and left it incomplete".  It's like they passed out 20 yards from the finish line.  Here are my top 2 gripes:1. HAFA is written to servicers and in servicer language.  Ummm, ok, I get that.  But where is the agent friendly version?  And, where is the homeowner friendly version?  Isn't it … (0 comments)

partner first: Short Sales - A Contact Sport (Door Knocking Tips for PSC's) - 07/01/10 11:50 AM
Nine-tenths of working on a short sale transaction involves getting a hold of the seller. When you do, you'll have to make an emotional connection with the homeowner to close that deal. You might just be able to make a connection with the homeowner by approaching them at their home. Before you approach the homeowner you'll want to make sure you look the part.
Making a Good First Impression
Don't wear sunglasses or a hat. When the homeowner sees you on the front porch you'd better look non-threatening. Drop the sunglasses and the baseball cap and don't hide your face.  After … (0 comments)

partner first: The Heat is on 2nd's - 05/06/10 05:59 AM
For those agents working on short sales every day, I’m sure the heat is not high enough. But if you own and/or service second mortgages you are starting to get the message that on top of the financial losses you are facing on second mortgages secured by underwater properties, you can expect to get kicked around pretty good by regulators and in the court of public opinion over the next several months.
For those who have attempted to work with you over the last couple years, only to find that you didn’t seem to care much that there was nowhere to … (0 comments)

partner first: Secretary Geitner, Welcome to our World - 05/05/10 07:45 AM
Secretary Geitner, Welcome to our World
In what might have been his most direct attack on mortgage servicer performance under Treasury sponsored programs designed to help American homeowners avoid foreclosure, Treasury Secretary Timothy Geitner  stated flatly that "we do not believe servicers are doing enough" when testifying in front of a senate subcommittee on financial services last Thursday.
According to DSNews, Secretary Geitner provided some details. "We are troubled by reports that servicers have foreclosed on potentially eligible homeowners, or that they have steered these borrowers away from HAMP and into the bank's own modification program," Geithner said. "That they have … (0 comments)

partner first: Marketing, Short Sales, and Social Media - A Winning Combination! - 04/30/10 01:52 AM
“The highest level of human connection is when we can see the world through another’s eyes and set aside our own motives in order to fulfill the needs of another”. – Anonymous.
This statement is true now more than ever in the world of marketing and connecting with distressed homeowners. Our future clients do not care how much we sold in 2009, or how many awards we won. The concerns on distressed homeowner’s minds are:
·         Does this person have the answers I seek?
·         Can I trust this agent?
·         How is he/she different than all the rest?