partnerfirst: 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)

partnerfirst: 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)

partnerfirst: 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)

partnerfirst: 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)

partnerfirst: HAFA Treasury Answers pt 1 - 05/21/10 12:44 PM
Working with both the National Association of Realtors and the U.S. Treasury Department on some of the issues that are not directly, or specifically covered in the Supplemental Directive 09-09 (HAFA) continues to be an interesting experience.
NAR has taken the point on HAFA issues and pushes hard at every turn to protect the legitimate interests of agents working on short sale transactions. Treasury wants HAFA to work well in the worst way, but as with most large government institutions is just not set up to respond quickly.
I have several more questions pending with Treasury and Fannie Mae as the … (2 comments)

partnerfirst: 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)

partnerfirst: 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)

partnerfirst: 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?
·         … (1 comments)

partnerfirst: 4 Reasons Pre-Foreclosures Mean More Business For REALTORS® - 04/22/10 03:58 PM

For the last year or so, the foreclosure prevention programs (moratoriums, etc.) have created a huge backlog (shadow inventory) of seriously delinquent loans for many of the national mortgage servicers to deal with. 
As the dust starts to settle, RealtyTrac recently reported nearly one million properties experienced a foreclosure filing in the first quarter of 2010.  That is up 16% Q1 2009, and equates to a foreclosure filing for about 1 in every 138 US households.
So what does this mean for the “pre-foreclosure” industry? 
A few intelligent conclusions can be drawn from these statistics:
Conclusion #1: … (4 comments)

partnerfirst: Bank of America, IndyMac, and others look to component servicers for solutions: - 04/14/10 09:59 AM
"The REO network of yesterday, is now the PartnerFirst network of today" - Son Nguyen (PartnerFirst) 
I have created a special report for the Active Rain Community. I have to warn you that it is rather long for a traditional blog, however, below are a few sampled points from my special report titled "The Shifting Default Industry".
If you would like to download the report in it's entirety please visit www.partnerfirst.org/connect  There you can also get more information on PartnerFirst and/or register for a free informational webinar on the PartnerFirst Agent Network.
Special Report: "The Shifting Default Industry"  The Phantom Foreclosure Inventory:  Most … (9 comments)

partnerfirst: Short Sale Odds and Ends - 04/13/10 05:23 AM
Short Sale Odds and Ends -
Watch Those 2nds and Be Your Own "Economist"
Getting second mortgages settled so your short sales can close is a problem with a hundred different faces.  As much as you try to identify what obstacle the 2nd is going to present, they throw a new twist to an old theme and you are back to the drawing board looking for a solution.
Don't let your frustration cause you to lose focus.  Keep in mind that you have responsibility to your homeowner/borrower/seller to give them the information and the guidance they need to make informed decisions … (0 comments)

partnerfirst: The Default Market - 04/13/10 05:02 AM
The Default Market -
Still where the Action is, and where the Action will be
For Real Estate Agents:
For those agents who are trying to figure out where they should put forth effort to build their business to get the best return on their time, the data continues to point to the default market.  While it may be too late to go out and get a bunch of REO accounts, it's not to late to position yourself to benefit from the growing push by lenders, servicers and mortgage investors to resolve delinquent mortgages ahead of foreclosure.
As reported by mortgage … (1 comments)

partnerfirst: No More Faxing to Bank of America - 04/12/10 08:04 AM
No More Faxing to Bank of America
  For those that did not receive a message directly from Bank of America, they announced that effective immediately, they will no longer accept faxed short sale documents.  All documents will need to be scanned and uploaded into Equator.  There were no qualifiers in the announcement, so we are concluding that this applies to all Bank of America short sale transactions, regardless of the investor involved, the location of the property, or the status of the transaction.
 All agents with an active short sale with Bank of America should verify that this applies to their … (1 comments)

partnerfirst: First "Agent Network" emerges to satisfy HAFA requirements: - 04/08/10 01:45 PM
With the first to market agent network emerging to satisfy the demands of HAFA, component mortgage servicers may now with confidence refer distressed homeowners to pre-foreclosure specialist as part of a massive call to action to bring solutions to the short sale market.
Component servicers will now be handling a lot of the heavy lifting and streamlining the short sale process for some of the nations largest banks.
 
Question: What does that mean to an agent who is working on a short sale that is shifted to a component servicer?   Answer: Your short sale file is now in the hands … (3 comments)

partnerfirst: HAFA Could be a Game Changer - 04/06/10 06:55 AM
 
HAFA Could be a Game Changer
But, Be Realistic and Patient Early
For agents doing short sales in numbers, we will likely look back on this week as the blast-off that wasn't - for a rocket ship that did eventually make it into space.  In other words, as well constructed as the HAFA is (with a few faults that we feel will be corrected in time), the servicing industry is not fully prepared to process HAFA short sales in numbers.......yet.
There are headlines everywhere suggesting that HAFA has launched and the rocket boosters are catapulting the program forward:
DSNews - … (4 comments)

partnerfirst: Short Sales Raging Ahead - 03/29/10 08:29 AM
Short Sale Daily News reports:
Short Sale Daily News posted an article recently on the increase of Short Sales from last year to January of this year and some important benefits for banks and homeowners in doing a Short Sale.
     
For full story visit:
http://shortsaledailynews.com/short-sales-raging-ahead/
  
Short Sales Raging Ahead
According to a recently released Campbell/Inside survey, short sales are leading the pack in distressed property sales. Short sale transactions jumped from 10% of home purchases in 2009 to nearly 15.9% of the home purchases last January.
In January, according to the monthly survey of real estate market conditions … (0 comments)

partnerfirst: Bank of America and FHA Financed Flips - 03/26/10 04:33 AM
Bank of America and FHA Financed Flips
Bank of America, in an effort to reduce the chances of abusive short sale flipping activity, has announced that they will allow FHA financing on properties owned for less than 90 days as long as the sales price is not more than 20% higher than the seller's acquisition cost.  An arbitrary number that will potentially jeopardize necessary and legitimate rehab and sell transactions, and why?  Because Bank of America believes it's necessary to have a policy that will limit the number of abusive short sale transactions getting done.  Bank of America's policy is understandable, … (1 comments)

partnerfirst: Short Sales Changes? - 03/25/10 07:15 AM
Short Sales Changes?
What's Really Going to Change on April 5th With HAFA?
For those expecting short sale transactions to get significantly easier when HAFA goes live on April 5th, well, prepare for disappointment.  The key change called for by Supplemental Directive 09-09 on April 5th is that all HAMP servicers are required to have a written policy in place that "is consistent with investor guidelines, that describes the basis on which the servicer will offer the HAFA program to borrowers."  And no, you are not entitled to have a look at the written policy according to Treasury.
As April unfolds … (1 comments)

partnerfirst: Loan Mods, Short Sale and....Lawsuits - 03/24/10 03:53 AM
Loan Mods, Short Sale and....Lawsuits
It was reported in DSNews this morning that a Washington State couple has filed suit against Bank of America for "intentionally" and "systematically" foiling borrower attempts to resolve their mortgage difficulties and avoid foreclosure.  The suit has been filed in federal court in Seattle, and the law firm that has taken the case is seeking class action status.
It was only a matter of time before the class action cash register got rolling on "lender-as-bad-guy" litigation.  The class action lawsuit business is expensive, but for those firms that are good at it, the class action game … (1 comments)

partnerfirst: Government to push lenders to do short sales - 03/22/10 05:55 AM
Below is yet another article regarding the HAFA program and the various opinions as to whether or not it will be successful. The end result of the program will not be known for years and the quick fix many are looking for is most likely not going to occur. Notice, I said "quick fix", but I do believe that the guidelines that are set forth by HAFA will be an excellent guide in dealing with and "assisting" with a solution in regard to a monster of a problem.
Much is mentioned in articles pertaining to HAFA about the lack of resources … (0 comments)