short sale: How To Keep The Buyer On Board During The Short Sale Process. - 06/04/11 01:28 AM
Hi folks. If you list and sell Short Sales, as I do, then you know there is nothing worse than going through a 4 month Short Sale Approval process only to find out the Buyer has walked from the transaction. It wastes a lot of time and it places our Sellers one step closer to being foreclosed on. So as a Short Sale Listing Agent what can we do? Here are a few things I highly recommend:
Take a large non-refundable deposit. Make sure the buyer and their agent are fully aware of the process. Negotiate enough time in the … (17 comments)

short sale: You Must Be A Deadbeat To Do A Short Sale!! - 05/25/11 12:54 AM
Hi folks. Short Sales. Why do I spend so much of my time messing with these things? Isn’t it true most people are just doing them to avoid honoring their promissory note? They borrowed the money....they should pay the mortgage. Deadbeats! I closed on a Short Sale a few months ago. The Seller had owned the house for 27 years. It was the retirement home for him and his wife of many years. After 30 years of hard work they were finally able to retire and move to Florida, pay cash for a home and enjoy their twilight years together. All … (27 comments)

short sale: Did You Know Asset Companies Are Hiring Agents for Short Sales? - 05/22/11 02:53 AM

Go figure. They don't own the property but still they are hiring listing Brokers. I know this because I was hired last week to list a Kissimmee Florida Short Sale. Now technically the owner is the one hiring me but the reality is the entire transaction is being managed by the asset company.
From what I have been able to gather it seems these asset companies are approaching the lenders and are cutting deals to handle distressed properties before they are even foreclosed on. They agree a NET figure with the lender then contact the delinquent borrower and offer to … (18 comments)

short sale: When The Short Sale Involves A Foreign Seller...... - 05/15/11 02:28 AM
....beware of FIRPTA. Foreign Investment in Real Property Tax Act of 1980
In a nutshell, FIRPTA requires the closing agent or buyer to withhold 10% of the amount realized (usually the purchase price) to ensure that the tax due on the sale is given to the IRS. Basically the IRS doesn't want the money leaving the U.S. until they get theirs.
So how does this affect a Short Sale for a foreign investor? To answer this try submitting a preliminary HUD to a Short Sale lender where 10% of the purchase price is being deducted from the lender's proceeds. Usually what … (32 comments)

short sale: Mortgage Insurance and Short Sales. Is It Cheaper to Foreclose? - 04/25/11 02:13 AM
Possibly. I had a member of Short Sale Superstars wonder why a Mortgage Insurance Company would let a property go to foreclosure instead of agreeing to a Short Sale now. The property is in a non-recourse State so the Seller is protected from any deficiency judgments after a foreclosure. So why wouldn't the MI just settle now and be done with it?
First, let's define what Mortgage Insurance is. There are 2 kinds of Private Mortgage Insurance (MI).
BPMI. Borrower Paid Private Mortgage Insurance  LPMI. Lender Paid Private Mortgage Insurance MI coverage can be for 20% or more of the … (11 comments)

short sale: Tips To Help With Your Short Sales - 04/17/11 03:01 AM

Hi folks. Here's a random list of things that will help Sellers and Agents with their Short Sales.
Be prepared to "participate in the loss" by making a cash contribution and/or signing a promissory note at closing. This is especially true if the property is not your primary residence. You're going to have to move and start paying rent at some point. Start setting that money aside now to use as a cash contribution if needed.  Open every piece of mail from your Lender while going through the Short Sale process. Don't assume it's just a collection attempt. It may … (15 comments)

short sale: What if it Were Illegal for Agents to Negotiate Short Sales? - 03/18/11 09:31 AM
Hi folks. I just read a comment on FaceBook from my friend, Susan Milner, that got me thinking. Susan is a broker who handles Short Sales, as I do, and she was contacted by the Florida Office of Financial Regulations. I guess they were asking her questions about her Short Sale business. They are supposedly cracking down on unlicensed activities.
Not sure why they would contact a Real Estate broker since the OFC does not govern our industry. They do however license and oversee mortgage brokers, mortgage businesses and mortgage lenders.
Anyway, Susan's update got me thinking about what would happen … (22 comments)

short sale: Not All Short Sales Are Pre-foreclosures - 03/04/11 12:36 AM

Did you know that? It seems many folks don't. If they did they wouldn't tell me  "Your Seller needs to accept my low offer because it's better then being foreclosed on".
Pre-foreclosure means a Notice of Default has been filed. Payments haven't been made and the loan is in default. Foreclosure is imminent. There are many Short Sales on the market where this is not the case.
Being in default IS a requirement on some Short Sales but not all. For example:
FHA requires the borrower to be 31 days delinquent at time of closing on the PFS (Pre Foreclosure … (11 comments)

short sale: Negotiating Home Equity Lines During a Short Sale. - 02/19/11 12:49 AM
Hi folks. If you negotiate Short Sales for a living then you know that a HELOC ( Home Equity Line of Credit) can be a real pain in the rear end. They usually want more money than what the 1st lien is willing to give them and they want the Borrower (Seller) to participate in their loss by making a cash contribution and/or signing a promissory note.
The Borrower needs to know this at time of listing. As a Short Sale listing agent you need to ask them at time of listing if their 2nd lien is a purchase money … (59 comments)

short sale: The FTC Ruling That Could Affect Agents And How Short Sales Are Handled. - 02/05/11 12:15 AM
Hi folks. First let me ask you a question. Who has heard of the new FTC ruling related to MARS? More specifically Mortgage Assistance Relief Services Rulemaking Rule No. R911003.
My guess is......not many of you. If you haven't take a minute to read the summary linked to above. This ruling is HUGE for our industry and put's many of us in jeoaprdy of being fined if we are not providing proper disclosures to our short sale sellers.
So where was our association in all of this? This ruling went into affect back in December 2010 and most of us have … (63 comments)

short sale: Why Negotiating Short Sales Is The Best Job I've Ever Had!! - 02/02/11 11:38 PM

Negotiating Florida Short Sales for a living is not easy. Lenders try to control every thing we do and we are pretty much at their mercy as to whether or not a Short Sale will be approved. What makes sense to us may not make sense to them. However, as frustrating as our job can be...we are needed. Real people with real problems need good Short Sale agents to help them. In fact, I feel that in no time during my 17 years in Real Estate have I been needed more. And here's a couple of reasons why...... "Dear Bryant, … (12 comments)

short sale: Is Paying a 3rd Party Negotiator In A Short Sale. Legal? - 01/29/11 12:16 AM


It depends. In Florida you have to have a real estate license to be compensated for a real estate transaction. There are a couple of exceptions (F.S. 475.011) but they do not include negotiators.
Florida Statutes Chapter 475 state:
You must have a real estate license if you are........
...a person who, for another, and for a compensation or valuable consideration directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation or valuable consideration therefor, appraises, auctions, sells, exchanges, buys, rents, or offers, attempts or agrees to appraise, auction, or … (16 comments)

short sale: Tips To Help Handle Junior Liens During A Short Sale Transaction - 01/21/11 11:55 PM
Hi folks. I wrote an article a few weeks ago titled "If You're Going To Work Short Sales.....Know How To Get Paid" It was a simple post basically just giving agents a few ideas on how we can get paid when the lender/investor wants to slash the real estate commission. Pop over and give it a read if you haven't.
In the comments section the conversation made it all the way around to POC (paid outside closing) items on the HUD. There are a couple of folks who seem to be having difficulties with POC items and Short Sales. Specifically when … (26 comments)

short sale: What's The Penalty For Breaking The "Arms Length Transaction Notice"? - 01/13/11 11:51 PM

Hi folks. Last year I had a closing for one of my Orlando Short Sale listings. This particular lender required all parties, including the agents, to sign an Arms Length Transaction Notice. This notice basically states.....well here it is. Read it for yourself.

Of course as an experienced Orlando Short Sale Agent and negotiator I explained this notice to the Seller not only at time of listing but also when it was received and before it was signed. It wasn't an issue as the Sellers were moving anyway and they certainly didn't know the Buyer. All parties agreed to … (205 comments)

short sale: SHORT SALE CONTRACT ADDENDUM FOR 2010 - THE GOOD AND THE UGLY - 01/09/11 01:18 AM
 
Hi folks. Be careful what you sign. The Short Sale Addendum to the Purchase Contract is a VERY impotant document. Most agents in Florida use one of the 2 addenda below.
As Richard points out there are vast differences in the two. As your Florida Short Sale Broker I will make sure that the right addenda are used and that the Short Sale Purchase Contract will protect you.
And since I am NOT an Attorney and cannot give legal advice I will let Richard's explanation below do it for me.
Are you facing foreclosure in Florida?
Do NOT be foreclosed … (5 comments)

short sale: New Chase Short Sale Fast Track. 10 Day Approvals and $20,000 For Moving!! - 12/30/10 02:52 AM

Hi folks. I had a seller call me earlier this week needing a Short Sale agent ASAP!! He hasn't made payments for many months and had actually already moved out of the property expecting to be foreclosed on any day now.
Chase sent him a letter. And fortunately instead of just throwing it away thinking it was another collection attempt he opened it.
Inside was an offer from Chase that he couldn't refuse. Stay in the house, maintain it, bring Chase a contract at FMV (fair market value) and they will approve the short sale within 10 days and … (96 comments)

short sale: Mortgage Insurance… Should I Care? - 12/21/10 01:08 AM

Hi folks. Below is a really good article explaining Mortgage Insurance (MI) and how it relates to Short Sales. More times than not when you as a seller are being asked to sign a promissory note and/or make a cash contribution this request is coming from the MI Company.
They are insurance companies and are in the business of determining risk. If they see that you have the ability to pay then it is their responsibility to ask you to contribute.
Don't let the requirement to sign a small promissory note derail your Short Sale attempt. Usually these notes are … (11 comments)

short sale: If You Are Going To Work Short Sales... Know How To Get Paid. - 12/20/10 08:41 AM

Hi folks. Bob Hertzog started a good conversation earlier this week on his article....
Attn: Short Sale Listing Agents...READ YOUR LENDER APPROVAL LETTERS BEFORE CALLING ME WITH THE "GREAT NEWS"!! Some how the comments made it around to commissions. One of the responders stated:

"...because it is the investor and/or pmi (mortgage insurance) who determines who gets what and how much." And of course since this is dealing with Short Sales and how we get paid I just had to chime in.....
The above statement is not correct. Our listing agreement with the seller determines how much we … (110 comments)

short sale: How To Qualify For HAFA Short Sale - 12/15/10 11:53 PM
 

Hi folks. Here's a very good article outlining how to qualify for a HAFA short sale. In my market, Central Florida, most of the short sales I have done were for investors. So HAFA didn't apply. I am however working on my first one at the time of this posting.
There are a lot of beneifits to the borrower with HAFA with the biggest in my opinion "Waiver of deficiency".
This "waiver of deficiency" basically means that if you are able to complete a HAFA short sale you are done. There will be no future ramifications. The matter is … (3 comments)

short sale: In a Short Sale Transaction the "Arms Length Transaction Notice" means EXACTLY what it states. - 12/08/10 02:23 AM

Hi folks. One of our Sellers over at www.ShortSaleSuperStars.com wants to know how to skirt around the 'Arms Length Transaction" requirement of his lender and continue to live in his house after the short sale by renting it back.
The language in the "Arm's Length Transaction Notice" is as follows:
"Affiant further says that there are no agreements or understandings, written or implied, that will permit Seller to remain in the above mentioned property as a renter or to regain ownership of said property at anytime after the execution of this short sale transaction" The seller thinks thats:
"This is … (26 comments)

 
Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) Rainmaker large

Bryant Tutas

Selling Florida one home at a time

Winter Garden, FL

More about me…

Tutas Towne Realty, Inc and Garden Views Realty, LLC

Address: 628 Grand Canal Dr, Poinciana, Fl, 34759

Office: (407) 870-9003

Mobile: (407) 873-2747

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