short sale blog: Come on In...The Water's Fine! - 11/04/13 06:41 AM
So there is an impression among some of the populace that our economic troubles are over, the real estate market is back on track and all of the distressed properties have been taken care of. We all know that none of these assumptions are true.The Federal Reserve is still pumping money into the economy to keep it up, the real estate market is limping along and there are still an enormous amount of distressed properties that must be dealt with.
The interesting thing that I have observed is that there are a growing number of agents that are saying they stay completely away from short … (0 comments)

short sale blog: Government Backed Loans May Be Delayed - 11/04/13 06:33 AM
So you have your approval letter and now you are running into problems with the Buyer’s government backed loan.  Whenever you take on a short sale an important consideration is the Buyer and the Buyer’s loan.  For example, if the property is in unfit condition and requires some repairs prior to making it livable, the Seller may have to complete the repairs prior to closing or put money in escrow if it is a government backed loan such as USDA, HUD, VA or FHA.  This is probably not going to happen in many short sale situations.  This would be important to … (0 comments)

short sale blog: More on Stopping a Foreclosure - 05/06/13 03:06 AM
I know that we have talked about this before but since this is the “Year of Foreclosure,” it warrants an update and reminder.
First of all we should remember that there is no right to a short sale and, by extension, no right to a postponement of the foreclosure sale.  We are essentially asking the bank or servicer to do us a favor and consider this short sale offer instead of selling the property on the upcoming foreclosure date.  We should understand that the bank and the foreclosing attorney have already spent time and money getting into the position to be … (2 comments)

short sale blog: Short Sales are “Ugly” Law - 05/06/13 03:00 AM
I have heard real estate law described as “happy law.”  That actually makes sense because in a normal real estate closing there may be some bickering over curtains but in the end the buyer is getting the house and the seller is receiving money.
In a short sale, however, it is important to understand that the attorney definitely has one foot over the line into ugly law.  The Seller is losing their house and usually not receiving any money at closing.  Additionally, the Seller may or may not have to pay back the deficiencies.  Yes, the Buyer is getting the house … (0 comments)

short sale blog: If You Get a BB&T Buyout Offer...Take It! - 03/25/13 12:26 AM
BB&T will usually not waive the deficiencies in a short sale if they own the loan (if they are servicing the loan then there is a chance that the deficiencies will be forgiven). Like most smaller or regional banks and credit unions, they simply cannot afford to forgive all of the deficiency in a short sale.  After all, they are not Fannie Mae.
On a loan owned by BB&T they usually give you three choices, the best of which requires a cash contribution of half the deficient amount.  The other options involve a cash contribution and a promissory note.  There are … (1 comments)

short sale blog: What Happens if the Loan is "Service Released?" - 03/25/13 12:24 AM
As we have discussed before there are new players coming into the loan servicing business.
Additionally, because of new rules and guidelines for banks, some are getting out of the loan
servicing business. When one bank/servicer sells its loan servicing rights to another servicer the
loan is “service released” to the new servicer.
When negotiating a short sale with a bank/servicer, the loan may be service released to another
servicer in the middle of the process. Most of the time this means that you will have to start over
with the new servicer from the beginning….including getting a new BPO. … (4 comments)

short sale blog: Hey, Who is this NationStar and do I Really have to get a Title Opinion Up Front? - 11/11/12 12:05 PM
I first ran into NationStar a couple of months ago when all of our Aurora loans were serviced- released to NationStar. That is a fancy way of saying that the files were sent to another servicer and we now have to start over with them. Well, not only did we have to start over but we had to supply them with a Title Opinion from an attorney and a BPO (not CMA) from the listing agent.
We had four files that went from Aurora to NationStar at that time. Two of those files were also in foreclosure. Normally when we have … (1 comments)

short sale blog: How Short Sales will Save the World! - 03/19/12 09:22 AM
Ok, maybe short sales won't save the planet (does that mean that I don't really need to finish designing my superhero outfit for Captain Short Sale, or maybe The Mighty Short Sale Warrior?  I was kind of digging the yellow cape). Anyway, short sales may not stop a speeding train or fix our banking system but they will certainly play an important and growing role in restoring the housing market to a balance. Let's look at the present situation:  Millions of properties are in the foreclosure pipeline and millions more are poised on the brink.  Properties are underwater to the … (4 comments)

short sale blog: Oh Those Pesky 2nd’s - 01/31/12 04:18 AM
10% of the amount owed:   As we all know the land of short sales is anything but settled.  Even after three years of doing this full time there always seems to be something new coming or going…like unsecured promissory notes or confession of judgments.  Over the summer all of the investors and servicers for the 2nd mortgages must have gone to the same seminar.  2nds used to take $3,000 (begrudgingly) to release their secured interest on the property and let the property be sold in a short sale.  Now they all seem to want 10% of the amount owed to … (2 comments)

short sale blog: HERE IS A NEW ONE….FLOPPING - 12/06/11 03:07 AM
There is a new game in town and it goes by the intimidating name of “Flopping.”  Freddie Mac and Fannie Mae also use another name…Mortgage Fraud.  Did that get your attention?  It should.  The real estate agent will encounter this in a number of ways but most ways will be a variation of the following example:
A real estate investor will come into your office and want to see your short sale properties.  They will want to put a “low ball” offer on a property and will insist that, because they are under contract with the homeowner, all future offers must … (10 comments)

short sale blog: Home Owner Associations and Short Sales - 10/05/11 12:58 PM
If you have not had to negotiate with a Home Owner Association (HOA) regarding past HOA dues in order to get a short sale closed, well you haven’t lived.  It is, seriously, one of the more frustrating tasks that we have to handle.  It seems that more than half of the HOAs have some hard and fast stance on not accepting anything but a full payoff of the past due amount.  I have had a situation where we were racing to get a short sale approved in time to beat the foreclosure sale.  We got it approved but had to … (58 comments)

The mantra for a Buyer should be WHAT IS THE FASTEST WAY TO GET MY OFFER APPROVED AND THIS SHORT SALE CLOSED.  There is a long track of hurdles to get over between the offer and closing.  That list includes: 1) document collection; 2) package compilation and submission (sometimes multiple times); 3) document review and additional document request; 4) valuation; 5) follow up and escalation; 6) negotiations with the bank for the short sale…better known as horse trading; 7) negotiations with the bank regarding the deficiencies; 8) Investor approval; 9) final HUD approval; 10) closing.
There is a misconception … (0 comments)

In North Carolina we now have a Due Diligence Period that can be negotiated and put in the Offer to Purchase and Contract (Offer to Purchase).  We could have done it with the old contract but it is now a prominent part of the new Offer to Purchase.  In a short sale situation, however, the best thing to put into this section is N/A.  Why?
1.  The Seller can’t make anything on a short sale.  Unless this is a short sale under the HAFA guidelines, the Seller is not allowed to make any money on a short sale.  If … (1 comments)

The simple answer is as soon as possible.  I know that the Buyers don’t want to spend $350 for a home inspection before they know if the short sale will get approved.  I get that, but lets analyze why it is better to get it done sooner rather than later:
1.      Think “AS IS” contract.  As you know, a short sale needs to be treated as an “as is” contract.  The old game of negotiating an offer price, get the home inspection and then use the results to lower the price even further does not work in a short sale.   If … (0 comments)

Steve  Wilde (Wilde Law Firm, PLLC)

Steve Wilde

Asheville, NC

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Wilde Law Firm, PLLC

Address: 45 Wall Street, Suite 105, Asheville, NC, 28801

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