short sales: This is Why Bank of America is So Bad...It start with the letter P
- 08/14/09 08:09 AM
I wrote a blog not too long ago about how Lenders are profiting from the non-approval of Short Sales and I used BofA as an example. Well, it’s worse than I thought. It seems BofA saw this profit potential a long time ago and even used the TARP money to pave their way to future riches at the expense of the unsuspecting public.
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BofA bought out Countrywide, the largest mortgage lender in the country. We all know that BofA is a huge institution in itself and they are now humongous after that union. At the time they … (2 comments)
short sales: Are You a Real Estate News Zombie?
- 08/13/09 10:39 AM
So I wake up a few days ago and the big headlines is that the Housing Recovery has hit us and we are about to experience a renaissance. The simple fact that a report, the Case Schiller Price Index, seems to indicate that they see an uptick in home prices, does not make a recovery real. Well, just a few days later there was another report which, to me, would indicate the complete opposite of what was reported just days earlier. Foreclosures rose 7% from June to July . Now, these reports came from the SAME newspaper just days apart. How … (2 comments)
So here I am with a great listing, for a great family in a bad situation. I was able to answer all their questions and make them feel comfortable with the Short Sale process. They even let out a loud, SIGH. I list the home Take great pictures Price it right on the bulls eye and the calls started as soon as I hit the send button after inputting the information in the MLS. Non-stop traffic…we even got 6 offers within four days, at asking price and giving us all the customary requests (90 day … (4 comments)
short sales: So Why Are Lenders Not Approving...
- 07/30/09 04:02 AM
It seems there are certain lenders that do not want to rush an approval because they are profiting from the stagnation. Let's remember that most of these loans are not on the Lenders book, but they are "servicing" the mortgage for the investor/owner of the note. For those services these Lenders are getting a nice fee, whether the mortgage is being paid or not. Think of it. They gave out really bad mortgages, sold it to someone else and now they charge those same people a nice fee to "service" a loan they created to fail. That's a pretty good business … (4 comments)
short sales: Promissory Notes are Here to Stay
- 07/26/09 03:39 AM
Not too long ago it was very clear that negotiating the removal of a Promissory Note was not quite the battle it is today. As a matter of fact it seems Lenders have started to draw bigger lines in the sand. Why is this happening? In my opinion, as Lenders have started to report profits recently (mostly due to accounting tricks) it seems evident that the flow of credit or even cash is starting to flow, for some. Who are those that are seeing and benefitting from this new found capital? Collection agencies...and that's never good. They now have the Capital … (3 comments)
short sales: What's with the Promissory Notes!
- 07/23/09 05:02 AM
Not too long ago it was a simple task to negotiate the removal of a Defeciency Clause in the Approval Letters. It was also rather simple to minimize or even eliminate the amounts in a requested Promissory Note. Today, it seems that has become an impossible task. Why? M-O-N-E-Y It seems like a simple answer but there's a twist. I've seen many pages on AR of agents ranting, spewing and just flat out venting on the lenders unwillingness to remove these, seemingly, meaningless requirements. Well, the lenders will take your Promissory Note and sell it for some hard cash, albeit for … (2 comments)
short sales: For The Lenders, It Pays Not To Get It Right!
- 03/11/09 04:01 AM
We all know the fact that most loans are being serviced by most lenders. That is to say, that they don't usually own the mortgage but are paid by an investor to process and maintain the mortgages. So, these lenders created ways to give everyone who asked a mortgage. They then repackaged and sold the mortgages to investors all over the world AND charged them a monthly fee to service those loans. Brilliant! The longer they maintain the loans on the books, the longer they get paid from the owners of the mortgages, as they lose their shirts. The homeowner might … (3 comments)
short sales: Are You Still Submitting Multiple Offers?
- 03/01/09 07:39 AM
I recently read a great post from one of the regular bloggers on Active Rain. (Thanks Wendy!) That post brought up another fact of the mistake being committed by all the agents that insist on submitting multiple offers. I know the arguments, you need to protect your clients, you need to give the lender the choice of "picking" the offer they like the best. Those arguments have been addressed, but there's another reason why submitting multiple offers is not the way to go. The ironic thing is that this will affect the multiple submitters the most. It seems that there are … (10 comments)
short sales: Doing Short Sales? Remember, the lender is your "client"**
- 02/27/09 05:00 AM
Too often many agents reach the frustration level where I can hear their screams from across the country. The most common complaint? It's a good offer the lender should take it. That pretty much sums up their argument for an approval. The reality is that it is irrelevant if you believe the offer is good. The one entity that needs to believe that, is the lender. Yet most agents take that fact for granted. I think we should all act and prepare as if the lender is our true client and prepare the best package we can to convince them that … (14 comments)
short sales: Obama's plan is great, if the year was 2007...Part 1
- 02/19/09 06:30 AM
It might be a little to early to make a judgment on the new foreclosure prevention plan announced by the Obama administration but the little I was able to read doesn't give me much hope. The fact that the refinance part of this plan would cover those mortgages that were, at a maximum, 5% over the homes value is troubling. That would have been a great plan if this were the beginning of the crisis and not two years into it. There are communities where the values have dropped so quickly that people are 30%, 40%, 50%, and in some condo … (0 comments)
short sales: Short Sale Etiquette
- 02/15/09 04:33 AM
Why does it seem most agents forget about how to practice real estate when a Short Sale is involved? I had a conversation with an agent, here is Florida, where she told me that she accepts multiple CONTRACTS (not offers, because she gets them all signed and with no stipulation of them being back ups) because it is different than "regular" sales. I almost dropped my phone! There is no difference, except that it has an extra contingency. She told me I was crazy and that she has been practicing real estate for 30 years and I should learn my trade before calling … (21 comments)
short sales: Don't Shy Away From Short Sales
- 02/12/09 03:51 AM
I've been reading other posts in ActiveRain and elsewhere and what I see if pure fear and frustration over handling Short Sales. Just like most other challenges in life, success is found in education and perseverance. Don't follow they crowd in fear in staying away from Short Sales. The last few years real estate agents were seen in the same light as used car salesmen, insurance salesmen...not in a good light. Today, we can show what professionals we truly are. We can help so many families that seem to be taken advantaged of by more and more scams and tricks. I … (13 comments)
short sales: How to Prospect for Short Sales
- 01/27/09 03:03 AM
I've received many inquiries from other agents in my office as to how I can get so many Short Sale leads. The answer to that is quite simple. I don't prospect for Short Sales, I don't target that group. By the time most people are in default they have probably contacted a lawyer or one of those foreclosure rescue companies. My method is to just target an area, a farm, where there seems to be a newer construction. The key to that strategy relies on the likelihood that area has a high percentage of the types of mortgages that caused this … (16 comments)
short sales: My Bailout Plan--A Realtors' Perspective
- 09/24/08 08:49 AM
MY BAILOUT PLAN: 1) Give the homeowners who are distressed the opportunity to “re-purchase” their home, at market value, if they can afford it. It that is still too expensive, assist that family with a down payment as in order to give them a chance to purchase another home within their bracket. This technique will help keep down inventory from coming onto the market, save the lenders expenses associated with a short sale or foreclosure and give relief to the family. a) This would keep more homes under ownership and not on the open market. If the homeowner cannot afford … (1 comments)
short sales: Fannie Mae...You're killing me!
- 08/30/08 04:05 AM
In a recent blog, I mentioned how I was told by a lender that we needed to lower our contract price for our short sale because it was higher than what their BPO came back for (How Much?). We lowered the contract price and received out approval from the lender. The file then needed to go to Fannie Mae to get her final approval. Well, I bet you can see where this is going. Fannie Mae came back and told us that their "state of the art" system that determines value is having a problem with the value of the contract … (2 comments)
short sales: The Predators are Coming
- 08/09/08 03:41 PM
It is a sad truth of the market we are living. This is a great country and we are all privileged to be here but it is also a predatory country. It seems to be in the genes that the strong will prey on the weak. This market has shown the need to help a vast amount of families. What has gathered against these families are the slick talkers that will seemingly fix all their ills, for a small upfront fee. You can't go from one corner to the next without running into a street sign, business card, flyer and even … (2 comments)
short sales: Successfully Close Your Short Sales
- 08/08/08 12:09 AM
There seems to be hundreds of Short Sale classes all over the country charging incredible fees to let you in on the "secrets" of doing thses files. How can anyone be sure the system works before you take course? How do we safely navigate through the mindfield of instruction? Well, it's simple! Just ask the graduates of the course. Here is a link to another Active Rain posting where the graduates of the Certified Distressed Property Institute (CDPE) tell their story. Contact them and really find out how to successfully close your Short Sales. This educational seminar is endorsed by Howard … (0 comments)
short sales: It's CRIMINAL
- 08/02/08 02:51 PM
I went to local Foreclosure Seminar that was advertised as a city event. When I get there it turns out that is was being held by a private organization. They had representatives from lenders, real estate firms and lawyers. I immediately gravitated towards the real estate table and started asking questions. I was instantly appalled by the misinformation these people were giving the public. After a few more questions it became painfully clear the scam that being played before my eyes. It goes something like this. Someone would go to the table and ask about how to sell their home if … (5 comments)
I wrote a blog not too long ago about how Lenders are profiting from the non-approval of Short Sales and I used BofA as an example. Well, it’s worse than I thought. It seems BofA saw this profit potential a long time ago and even used the TARP money to pave their way to future riches at the expense of the unsuspecting public.
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