Fellow Short Sale Enthusiasts,
I want to preface this response by stating that one of our successful coaching group members and I had a conversation just the other day about Chase and many of their loss mitigation representatives not being familiar with HUD guidelines, as they pertain to Short Sales. This actually applies to most lenders. During the course of her conversation about the HUD guidelines with a new rep at Chase, and ONLY after building a solid rapport with the rep, she finally stated that their supervisor never taught them about specific HUD guidelines and that all loans are treated the same. The rep very quickly came to recognize the difference, as a result of some guidance from our CDRS Member. Please understand that most customer service and loss mitigation representatives, especially within Chase, are completely unaware of the fact that they can't accept an offer (or contract) until the borrower (your client) has been accepted and approved to participate in HUD's pre-foreclosure sale program, as evidenced by HUD Form 90045. To them, like most lenders, they insist on wanting an offer, not knowing that the offer is not necessary on an FHA Short Sale in order to order an appraisal, which is required by HUD for the sole purpose of the approval and acceptance of the homeowner into the program. This is why the lender is required by HUD to send to the borrower and the listing broker HUD Form 90045 within 7 days of the borrower's acceptance into the program. HUD Form 90045 establishes what the lender can and cannot take in the Short Sale, in terms of a net figure (88%, 86%, and 84% CMV), and it also discloses the appraisal value. On the HUD guidelines, they even specifically state the number of days for which the bank must net, based on how many days the property has been marketed from day 1 of the acceptance. Why would there be time frames established by HUD, post program acceptance, if the lenders required you to have a purchase contract before proceeding forward? Folks, an offer is not required first on an FHA Short Sale. You can go active in MLS any day and every day if you would like to, but procuring an offer or contract can be premature, unless the Seller has already been accepted into the program, as evidence by HUD Form 90045. After tons of Short Sales, we finally learned that we were going active way too soon in MLS and procuring offers that could never be accepted in the first place so soon in the process. When we switched our approach, 80% of our frustration, stress, and anxiety went away in our Short Sales. Trust me, the loss mitigation reps will NEVER understand why you're holding off on going active in MLS and procuring a contract, before the Seller is accepted into the program. This is your strategy, not theirs. Ultimately, if it seems you're stuck because they don't know the guidelines, then call HUD and get them to call the lender. Usually, the lender will order the appraisal not too long after wards. Have a great one!
Want to become a master of the Short Sale transaction? Get your CDRS Certification asap. Most obstacles and frustrations are caused by an inexperienced and uneducated real estate agent, unknowingly, and not primarily the lender.
www.CDRSCertified.com
Check out what a recent fan had to say.
"You guys are truly fantastic teachers. I have been in real estate for 23 years and it's rare that we have the opportunity to be taught by a true expert. Keep up the hall of fame type work!"
Thanks
Jim D.
Re/Max Associates
Comments(6)