LOTUS REALTYGROUP
We have received several inquiries in regards to working with Chase bank in a short sale transaction. I can tell you that Chase has become one of the toughest lenders to negotiate with. They have also become overbearing in getting what they want, not to mention unrealistic. They are notorious for harassing the homeowner. Chase representatives will call your clients at work and at home until they get the home owner to answer the phone and they utilize manipulative techniques in order to sway the homeowner to come current on their mortgage. This is very humiliating for your client especially while they are going through one of the most financially stressful periods of their life.
Once the sellers signed authorization gets faxed over to Chase (giving you permission to negotiate on their behalf), you may get LUCKY and have a representative call and ask you before you have a complete short sale package submitted, what the value of the offer is? They will inform you that if it is not in line with what they want to net, then don’t bother sending the package over. They are very aggressive in this approach. I never tell them what my offer is as I have the right to have my short sale reviewed and I let the representative know this upfront and I tell them to expect my full package shortly.
Here are some helpful tips when negotiating with Chase: (These tips should be considered when dealing with any lender):
1. Set the expectation with your client. Explain that they will receive many calls from Chase, however, advise them not to answer the phone and forward all correspondence from the lender to you.
2. If a representative calls you and demands to know what the amount of the offer is, inform them that you have an offer in line with the current value, a complete short sale package with a listing history to support your offer and you will be exercising your right to submit a short sale package for review. Do not tell them what your offer is. The goal is to get it to a negotiator.
3. If the homeowner is 12 months plus delinquent and has a sale date within 3 weeks, Chase may not extend the sale date. Remember to prequalify your clients thoroughly. I would not take on a short sale listing with a sale date 2-3 weeks away. 2 to 3 months out are best.
4. Create a listing history for the lender. They will always want to net an amount that does not make sense in the current market place but if you can show the bank where you started and what is realistic (by actively marketing the property with periodic price reductions) you can build a case for yourself when they argue about their NET amount. Always include a comparative market analysis, with 3 active, 3 pending and 3 sold listings. In some instances I will order an appraisal to submit with my package if I feel I need to.
The goal is to be effective and efficient in putting the deal together. First knowing the right deal to take and then having enough time to get it done.
Keep in mind that if you take on a short sale listing with a sale date in three weeks you are not able to create the listing history. ADD a 12 month homeowner delinquency, and a low offer with no data to back it up and you will not be successful with CHASE. If there is not a true hardship this adds to your problems. Again, pre qualify your clients.
Lenders are not going to be compassionate to your client’s situation. Their job is to get the highest offer possible to minimize their loss and they are trained to be tough negotiators so you have to be just as tough and know what their objections are going to be so you know how to handle them and are prepared to fight on your client’s behalf. If you are not armed with the right deal and the right information, you are setting yourself and your client up for a huge disappointment. Knowing that you have the right deal in place will give you the confidence you need to fight harder. It brings a sort of passion to the cause. When you BELIEVE in something, then you will put all you have into it. Never give up until you have the outcome you desire to make it a win for all parties involved. Never Surrender!!
Quote: Battles are won by slaughter and maneuver. The greater the general, the more he contributes in maneuver, the less he demands in slaughter.
( Winston Churchill )
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions.
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are ...
Tuesday, December 28, 2010
Tuesday, December 21, 2010
INDYMAC/ONE WEST BANK
LOTUS REALTYGROUP
It is becoming harder and harder to get loan modifications these days. One of the most disturbing things to watch is a homeowner with the number one goal of staying in their property. The homeowner genuinely has a hardship due to unforeseen circumstances and the current state of our economy and asks their lender for help through a loan modification. The lender has the homeowner fill out the paperwork while the home is in active foreclosure status.
Weeks go by. The homeowner repeatedly calls their representative and is told that the file is in review. In some instances there is no communication, a sale date appears in the public records and a REALTOR knocks on the homeowner’s door and says “I can help you”. Of course, the homeowner does not want your help because he or she thinks their lender is actively and aggressively working on their loan modification package which will STOP the sale date and they will be able to stay in their home.
The homeowner continues to remain hopeful until they realize that the lender is not going to help and there is no other choice but to short sale their home or simply turn in their keys and give the home back to the bank. Sound familiar?
Why is it so hard to get a loan modification?
I used to feel that the number one reason it was hard for a homeowner to get a loan modification was simply because most people did not qualify. The government program “HAMP” was originally created to help homeowners stay in their homes by modifying their loan. This has ultimately failed due to lenders not qualifying the homeowners properly. It was a foreclosure waiting to happen. This has lead to the new “HAFA” program which will allow the homeowners who previously went through the “HAMP” program but have again defaulted on their mortgage to short sale their home and avoid foreclosure.
However, after receiving this “You Tube” video from a client of mine, it has really made me think about it in more detail. The following link is to a video on one of the hardest lenders to work with “INDYMAC”. Please take the time to listen to view this short video clip:
http://www.youtube.com/user/fiercefreeleancer
For those who are not aware, INDYMAC was seized by the FDIC in July of 2008. The FDIC then sold the bank to One West Bank in March of 2009. In the sale, the FDIC agreed to sell the assets of INDYMAC to One West Bank for:
1st mortgages were purchased for 70% of the value.
HELOCS were purchased for 58% of the value.
In addition the FDIC agreed to step in and cover 80-95% of the losses that might occur in short sales and foreclosures. The loss is calculated using the “Original” loan balance “NOT what One West Bank paid for it.
After listening to an actual scenario in this “youtube” video it was apparent to me that this particular lender cannot lose on short sale and foreclosure transactions. Therefore why is it so hard to get a loan modification with INDYMAC/One West Bank? The reason is simple, there is too much money to be made in short sales and foreclosures with the deal the government has made with them.
I truly hope that we do not hear of this with other lenders in the future.
Tip when working with INDYMAC/One West Bank:
It is always frustrating working with this lender knowing about the government deal and fighting with them on the value of the property based on a legitimate offer. The tip of knowing that they cannot lose on these deals means that as long as I have a complete short sale package, an offer with a listing history and a qualified homeowner with a true hardship there is no reason why they should not accept my proposal. It is for this reason that while others may struggle to get a deal done with this institution I am able to close deals with the bank.
(Quote for the day) There is an ongoing battle between conscience and self-interest in which, at some point we have to take sides. ~Robert Brault
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are ...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
It is becoming harder and harder to get loan modifications these days. One of the most disturbing things to watch is a homeowner with the number one goal of staying in their property. The homeowner genuinely has a hardship due to unforeseen circumstances and the current state of our economy and asks their lender for help through a loan modification. The lender has the homeowner fill out the paperwork while the home is in active foreclosure status.
Weeks go by. The homeowner repeatedly calls their representative and is told that the file is in review. In some instances there is no communication, a sale date appears in the public records and a REALTOR knocks on the homeowner’s door and says “I can help you”. Of course, the homeowner does not want your help because he or she thinks their lender is actively and aggressively working on their loan modification package which will STOP the sale date and they will be able to stay in their home.
The homeowner continues to remain hopeful until they realize that the lender is not going to help and there is no other choice but to short sale their home or simply turn in their keys and give the home back to the bank. Sound familiar?
Why is it so hard to get a loan modification?
I used to feel that the number one reason it was hard for a homeowner to get a loan modification was simply because most people did not qualify. The government program “HAMP” was originally created to help homeowners stay in their homes by modifying their loan. This has ultimately failed due to lenders not qualifying the homeowners properly. It was a foreclosure waiting to happen. This has lead to the new “HAFA” program which will allow the homeowners who previously went through the “HAMP” program but have again defaulted on their mortgage to short sale their home and avoid foreclosure.
However, after receiving this “You Tube” video from a client of mine, it has really made me think about it in more detail. The following link is to a video on one of the hardest lenders to work with “INDYMAC”. Please take the time to listen to view this short video clip:
http://www.youtube.com/user/fiercefreeleancer
For those who are not aware, INDYMAC was seized by the FDIC in July of 2008. The FDIC then sold the bank to One West Bank in March of 2009. In the sale, the FDIC agreed to sell the assets of INDYMAC to One West Bank for:
1st mortgages were purchased for 70% of the value.
HELOCS were purchased for 58% of the value.
In addition the FDIC agreed to step in and cover 80-95% of the losses that might occur in short sales and foreclosures. The loss is calculated using the “Original” loan balance “NOT what One West Bank paid for it.
After listening to an actual scenario in this “youtube” video it was apparent to me that this particular lender cannot lose on short sale and foreclosure transactions. Therefore why is it so hard to get a loan modification with INDYMAC/One West Bank? The reason is simple, there is too much money to be made in short sales and foreclosures with the deal the government has made with them.
I truly hope that we do not hear of this with other lenders in the future.
Tip when working with INDYMAC/One West Bank:
It is always frustrating working with this lender knowing about the government deal and fighting with them on the value of the property based on a legitimate offer. The tip of knowing that they cannot lose on these deals means that as long as I have a complete short sale package, an offer with a listing history and a qualified homeowner with a true hardship there is no reason why they should not accept my proposal. It is for this reason that while others may struggle to get a deal done with this institution I am able to close deals with the bank.
(Quote for the day) There is an ongoing battle between conscience and self-interest in which, at some point we have to take sides. ~Robert Brault
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are ...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
Monday, December 20, 2010
Setting Expectation with a Buyer in a Short Sale
LOTUS REALTY GROUP
Buyers who are putting offers on short sale listings have been a revolving door now more than ever. This is not good for all parties involved. When a lender issues an approval they want to close in 30 days and extensions are harder and harder to get approved. I recently had a short sale transaction that I had been negotiating for a REALTOR for 3 months. I obtained an approval within a month of submitting the package. A 6% commission and a credit to the buyer were also approved. However, while I was negotiating these terms the REALTOR had already lost the first buyer and buyer #3 was withdrawing their offer. The short sale negotiator was so frustrated with amount of times she had to change the numbers, fax over a new approval and postpone the sale date that she informed me that there will be no more extensions given regardless if there is another offer or not and she was firm on this. Where we stand as of now is we are forced to try and get another committed buyer and try not let a perfectly good approval go to waste. TBD….
How frustrating. After putting together a perfect deal the deal is now in jeopardy because of a lack of commitment from the buyer. We cannot afford this kind of turnover. Lenders are tightening their standards and they are just looking for a reason to reject a file. We are not doing a good service for the homeowner in default if we can’t hold on to a buyer and we are wasting our time. I understand there are certain circumstances that are out of our control but there are things that we can do to minimize the risk of losing a buyer.
My goal is to help you succeed with the right tools so that everyone wins with the least amount of unnecessary stress and frustration. It has been my experience that if we set the proper expectation up front and then stand firm on those expectations, we have a better chance of minimizing our risk. Following are some tips to bear in mind when accepting an offer on a short sale listing. I am hopeful that these will help you become more effective and efficient, offering the highest level of customer service for all parties involved.
Tips to getting a committed buyer:
1. The moment you get an offer submitted, send a counter and addendum explaining the following:
Counter:
a) Buyer agrees to keep offer active for a minimum of 60 days from seller acceptance and that credits from seller to the buyer may not be approved by lender.
b) Property to be sold strictly as is with no repairs or termite clearance to be provided by seller or lender.
c) Seller to select all services except for termite and home inspection companies.
d) Buyer to provide DU approval from their lender and proof of funds immediately.
e) All parties to agree to extend original offer dated ( enter date)
Addendum:
a) Buyer shall deposit a minimum of $1,000 into escrow within 17 days of seller acceptance. If buyer decides to exit this contract prior to the 60 day commitment period, buyer to forfeit $500 of good faith deposit.
b) Buyer to remove all inspection contingencies within 17 days of seller acceptance.
c) Seller shall deliver property disclosures and any reports in seller’s possession within 7 days of seller acceptance of this offer.
d) All parties understand that this is a short sale. All terms and conditions are subject to lender approval, including but not limited to price, commissions and cost.
e) Property being sold as is and buyer to pay for any third party fees incurred by seller but not paid by seller/short sale lender including but not limited to property taxes, title fees, liens, HOA fees, for a total amount not to exceed ( enter amount).
f) Buyer agrees to close escrow 30 days after receipt of lender’s final approval of short sale. Buyer understands that the lender may charge per diem penalties to buyer should buyer fail to close within the 30 day time frame.
2. Have a conversation with the buyer in addition to getting these signed. Should the lender not approve seller credits is the buyer able to still proceed with the transaction?
3. Once the offer has been accepted lines of communication need to remain open at least once a week informing the buyer and the buyer’s agent of any new break through. Even if there is no new news to report, still communicate with them so they know you are actively working on the file.
If we can set the expectation up front and lay it all out on the line for the buyer and they still sign the contract and follow our procedure, we have increased our chances by more than half of having a committed buyer in place.
Buyers have been this deals number one killer. In short sales we must do all we can to find a solution. Though buyers may still remain a revolving door, I believe if we do our part we will minimize the chance of the deal falling through due to a weak buyer. If the old way is not working then we have nothing to lose so it may be time to try something different.
(Quote) Don't tell people how to do things, tell them what to do and let them surprise you with their results.
George S. Patton
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are ...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
Buyers who are putting offers on short sale listings have been a revolving door now more than ever. This is not good for all parties involved. When a lender issues an approval they want to close in 30 days and extensions are harder and harder to get approved. I recently had a short sale transaction that I had been negotiating for a REALTOR for 3 months. I obtained an approval within a month of submitting the package. A 6% commission and a credit to the buyer were also approved. However, while I was negotiating these terms the REALTOR had already lost the first buyer and buyer #3 was withdrawing their offer. The short sale negotiator was so frustrated with amount of times she had to change the numbers, fax over a new approval and postpone the sale date that she informed me that there will be no more extensions given regardless if there is another offer or not and she was firm on this. Where we stand as of now is we are forced to try and get another committed buyer and try not let a perfectly good approval go to waste. TBD….
How frustrating. After putting together a perfect deal the deal is now in jeopardy because of a lack of commitment from the buyer. We cannot afford this kind of turnover. Lenders are tightening their standards and they are just looking for a reason to reject a file. We are not doing a good service for the homeowner in default if we can’t hold on to a buyer and we are wasting our time. I understand there are certain circumstances that are out of our control but there are things that we can do to minimize the risk of losing a buyer.
My goal is to help you succeed with the right tools so that everyone wins with the least amount of unnecessary stress and frustration. It has been my experience that if we set the proper expectation up front and then stand firm on those expectations, we have a better chance of minimizing our risk. Following are some tips to bear in mind when accepting an offer on a short sale listing. I am hopeful that these will help you become more effective and efficient, offering the highest level of customer service for all parties involved.
Tips to getting a committed buyer:
1. The moment you get an offer submitted, send a counter and addendum explaining the following:
Counter:
a) Buyer agrees to keep offer active for a minimum of 60 days from seller acceptance and that credits from seller to the buyer may not be approved by lender.
b) Property to be sold strictly as is with no repairs or termite clearance to be provided by seller or lender.
c) Seller to select all services except for termite and home inspection companies.
d) Buyer to provide DU approval from their lender and proof of funds immediately.
e) All parties to agree to extend original offer dated ( enter date)
Addendum:
a) Buyer shall deposit a minimum of $1,000 into escrow within 17 days of seller acceptance. If buyer decides to exit this contract prior to the 60 day commitment period, buyer to forfeit $500 of good faith deposit.
b) Buyer to remove all inspection contingencies within 17 days of seller acceptance.
c) Seller shall deliver property disclosures and any reports in seller’s possession within 7 days of seller acceptance of this offer.
d) All parties understand that this is a short sale. All terms and conditions are subject to lender approval, including but not limited to price, commissions and cost.
e) Property being sold as is and buyer to pay for any third party fees incurred by seller but not paid by seller/short sale lender including but not limited to property taxes, title fees, liens, HOA fees, for a total amount not to exceed ( enter amount).
f) Buyer agrees to close escrow 30 days after receipt of lender’s final approval of short sale. Buyer understands that the lender may charge per diem penalties to buyer should buyer fail to close within the 30 day time frame.
2. Have a conversation with the buyer in addition to getting these signed. Should the lender not approve seller credits is the buyer able to still proceed with the transaction?
3. Once the offer has been accepted lines of communication need to remain open at least once a week informing the buyer and the buyer’s agent of any new break through. Even if there is no new news to report, still communicate with them so they know you are actively working on the file.
If we can set the expectation up front and lay it all out on the line for the buyer and they still sign the contract and follow our procedure, we have increased our chances by more than half of having a committed buyer in place.
Buyers have been this deals number one killer. In short sales we must do all we can to find a solution. Though buyers may still remain a revolving door, I believe if we do our part we will minimize the chance of the deal falling through due to a weak buyer. If the old way is not working then we have nothing to lose so it may be time to try something different.
(Quote) Don't tell people how to do things, tell them what to do and let them surprise you with their results.
George S. Patton
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are ...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
Friday, December 17, 2010
Seller Contributions in a short sale
LOTUS REALTY GROUP
It has been my experience that setting the proper expectations upfront at the listing appointment with a client will ensure that most problems are manageable. A thoroughly qualified client and your know how should allow you to rationally deal with the issues at hand. Whether it is good or bad news they will be prepared and you will know upfront whether the homeowner’s offer is realistically going to satisfy the lender.
How does the lender decide what the contribution will be?
Can this be negotiated down?
It depends on the situation. If you take on a client where the hardship is not that strong, there is money in the bank and assets showing an ability to contribute then there is a high probability that the homeowner will have to contribute something to show good faith and close the deal.
If you have a client who is right on the edge then it may be negotiable. We have successfully reduced the amount requested by the bank in both of these cases however banks are getting tougher with their guidelines. To ensure fewer complications in the short sale process, again, set expectations up front with your client.
The times we do not see contributions countered by lenders is when we have a traditional short sale with a a true hardship a) insolvency b) change in income and c) financials are showing NO ability to contribute.
The other key is to have the right offer.
Rule of the thumb to decrease your chances of a contribution counter from the lender:
a) Qualify your client (ask the right questions) and make sure they qualify.
b) Set expectations. They may or may not have the ability to contribute however, make sure that your client understands that a contribution is a possibility and find out how much they can give to show good faith and if they would be willing to sign a new promissory note. Calculate the loss the lender will take and multiply this number by 30%. This will give you an idea of what the bank may request. Tell your client about this up front and start educating them so that when the time comes they are prepared to work with you. The closer their offer is to that number the more likely it is that your deal will close.
c) Whatever offer you bring to the table, if you can keep it between 90-95% of what’s owed on the property it may lessen the chance that the lender will ask for a contribution.
How does it help my client to contribute?
If a homeowner has the ability to show some good faith it gives them more of a chance to be released from the full liability of the note. In other words they will not be pursued for deficiency judgment. It will also give them a far higher chance for success.
How do I stop paying fees out of my commissions?
Tip of the week:
It is not our job to make our clients happy. I see REALTORS make the mistake due to wanting a listing so badly or wanting to impress the homeowner that they will only tell the homeowner what they feel the homeowner wants to hear. The homeowner doesn’t think it’s our job to make them happy. We are the only ones that feel it is our job to make everyone happy. They feel it is our job to tell them the truth and help them sell their house. Don’t tell them what they want to hear, tell them what they need to hear. Come from an authentic place. Make sure they know exactly what will happen next or what could happen next (play by play) and you will only gain their trust and confidence.
(Quote) The very essence of leadership is its purpose. And the purpose of leadership is to accomplish a task. That is what leadership does–and what it does is more important than what it is or how it works.
~Colonel Dandridge M. Malone
LOTUS REALTY GROUP
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
Thursday, December 16, 2010
Recap of obstacles to closing your short sale transactions
LOTUS REALTY GROUP
Recap of obstacles to closing your short sale transactions
REALTORS, with the holidays just around the corner and the year coming to an end, I have been reflecting on all of the short sale transactions we at Lotus Realty Group have closed this year and the progress we have made in our systems and organization. These improvements have enabled us to close deals more effectively and efficiently helping REALTORS grow their businesses by expediting their short sales and freeing them up to do what they do best, PROSPECTING!!
I believe in helping homeowners in default who truly have a hardship and the only way to ensure that we are successful in doing so is to:
a) Take the right deal.
b) Have an organized, structured system in place to ensure nothing falls through the cracks.
c) Have experience with the banks and know what they want.
d) Be tenacious and follow through.
e) Be a master negotiator.
f) Have a Real Estate attorney that can educate you and keep you abreast of the ever changing legal issues.
This year has been a learning curve for all of us. Lender guidelines are constantly changing, market values are dropping rapidly and more and more homes are going into default not to mention all of the legal issues attached to short sales. As we move into the 2011, I want you all to be armed with the right tools to go out and help as many people as you can.
All short sales have obstacles to closing, some that are out of our control, but mostly ones we can control. Throughout the year I have written newsletters to assist you in a market that has become inundated with short sales. An archive of these can be found on my website at WWW.LOTUSREALTYGROUP.COM.
Here is a recap of the top 10 obstacles to closing short sales that we have learned in 2010:
1. Home owner not being qualified and expectations not being properly set.
2. Non-cooperative clients.
3. Incomplete short sale package.
4. No listing history.
5. Low ball offers.
6. Homeowners not continuing to pay the HOA throughout the short sale (I would start telling clients to continue to make their payments if they can otherwise it turns into another lien we have to negotiate.)
7. Buyer’s lenders not cooperating and forcing us to file unnecessary extensions and putting us at risk of losing approvals.
8. Sellers not forwarding updated financials on a monthly basis for us to send to their lender.
9. Preliminary reports and statements of information not being looked at for other liens attached to the property.
10. REALTORS…DON’T TAKE A LISTING THAT HAS A SALE DATE IN TWO WEEKS.
I believe if we can pay extra attention to these obstacles and do our best to handle these issues up front we will save time, money and be much more effective and efficient together.
EXTRA TIP FOR THE MONTH:
Some lenders have their own short sale financial packets that they require to be filled out. I have had several homeowners frustrated because they feel they are filling paperwork out twice. It would be helpful to know who the lenders are upfront. Once you know this call me and I will let you know what that particular lender will require. It will save a lot of time and effort on your seller’s part if we can get them the right paperwork from the beginning.
We at Lotus Realty Group want to thank all of you who out source your short sales to us. We truly enjoy working with all of you and guiding you and your clients through this frustrating time.
--------------------------------------------------------------------------------
(Quote) Leaders must be tough enough to fight,
tender enough to cry,
human enough to make mistakes,
humble enough to admit them,
strong enough to absorb the pain,
and resilient enough to bounce back and keep on moving.
-Jesse Jackson
Merry Christmas and Happy New Year!!!
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
--------------------------------------------------------------------------------
Recap of obstacles to closing your short sale transactions
REALTORS, with the holidays just around the corner and the year coming to an end, I have been reflecting on all of the short sale transactions we at Lotus Realty Group have closed this year and the progress we have made in our systems and organization. These improvements have enabled us to close deals more effectively and efficiently helping REALTORS grow their businesses by expediting their short sales and freeing them up to do what they do best, PROSPECTING!!
I believe in helping homeowners in default who truly have a hardship and the only way to ensure that we are successful in doing so is to:
a) Take the right deal.
b) Have an organized, structured system in place to ensure nothing falls through the cracks.
c) Have experience with the banks and know what they want.
d) Be tenacious and follow through.
e) Be a master negotiator.
f) Have a Real Estate attorney that can educate you and keep you abreast of the ever changing legal issues.
This year has been a learning curve for all of us. Lender guidelines are constantly changing, market values are dropping rapidly and more and more homes are going into default not to mention all of the legal issues attached to short sales. As we move into the 2011, I want you all to be armed with the right tools to go out and help as many people as you can.
All short sales have obstacles to closing, some that are out of our control, but mostly ones we can control. Throughout the year I have written newsletters to assist you in a market that has become inundated with short sales. An archive of these can be found on my website at WWW.LOTUSREALTYGROUP.COM.
Here is a recap of the top 10 obstacles to closing short sales that we have learned in 2010:
1. Home owner not being qualified and expectations not being properly set.
2. Non-cooperative clients.
3. Incomplete short sale package.
4. No listing history.
5. Low ball offers.
6. Homeowners not continuing to pay the HOA throughout the short sale (I would start telling clients to continue to make their payments if they can otherwise it turns into another lien we have to negotiate.)
7. Buyer’s lenders not cooperating and forcing us to file unnecessary extensions and putting us at risk of losing approvals.
8. Sellers not forwarding updated financials on a monthly basis for us to send to their lender.
9. Preliminary reports and statements of information not being looked at for other liens attached to the property.
10. REALTORS…DON’T TAKE A LISTING THAT HAS A SALE DATE IN TWO WEEKS.
I believe if we can pay extra attention to these obstacles and do our best to handle these issues up front we will save time, money and be much more effective and efficient together.
EXTRA TIP FOR THE MONTH:
Some lenders have their own short sale financial packets that they require to be filled out. I have had several homeowners frustrated because they feel they are filling paperwork out twice. It would be helpful to know who the lenders are upfront. Once you know this call me and I will let you know what that particular lender will require. It will save a lot of time and effort on your seller’s part if we can get them the right paperwork from the beginning.
We at Lotus Realty Group want to thank all of you who out source your short sales to us. We truly enjoy working with all of you and guiding you and your clients through this frustrating time.
--------------------------------------------------------------------------------
(Quote) Leaders must be tough enough to fight,
tender enough to cry,
human enough to make mistakes,
humble enough to admit them,
strong enough to absorb the pain,
and resilient enough to bounce back and keep on moving.
-Jesse Jackson
Merry Christmas and Happy New Year!!!
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
--------------------------------------------------------------------------------
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