When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps.
"Confucius "
So many times in life we get attached to people, places and things and when the ball suddenly drops we become fearful. We reach and grab for these things as if they define who we are. What will I be if I am not a husband, a wife, friend, business owner, homeowner. The list goes on and on. We ask ourselves "what did I (we) do wrong? How can I fix this? How can I hold on and stop the bleeding? We jump from one possible solution to the next. Desperate. Finally, all possible solutions seem to fail and we realize our back is against the wall. We become tired and feel like we have given up as faith and hope in ourselves and others feels lost and long forgotten along with the goal that seems to have gotten buried under the murky water it feels we are swimming in.
The goal? When we start out in life with a plan it usually consists of four basic human needs:
1. Peace
2. Love
3. Prosperity
4. Happiness
We get jobs, we get married, buy a house, nice cars and have children. We accumulate "The stuff". The belief that the house and cars, money and even a husband or wife is the key ingredients to achieving the four basic human needs I feel has become backwards in the minds of society. When the "STUFF " goes away we become bitter and disappointed and feel we have failed or people have failed us. Did we really have the four basic needs with all the STUFF if within a matter of minutes they fade with the loss of material things? In my opinion and my experience; its all a shift in perception. What if we could tell ourselves; if the GOAL is to be peaceful, loving and happy THEN prosperity follows because it comes from within you; WITHOUT all the STUFF and nothing is truly lost and nothing has failed. It is not a matter of our plan failing, its a matter of maintaining the only goal that counts which is personal fulfillment and all else will follow. Its magnetic. When our current plans (not the goal) come to an end as all things do; we simply make a new plan.
I hear it in the voices of distressed property owners. I see it in their faces. I understand how hard it is to watch your life spiral out of control. Unfortunately, this happens to be something I know alot about. I can only speak from my experience and one of the things I have learned in many hardships I have had in my life is I have to dust myself off and try again however; at the same time realize I have not failed. I am rich because I GET the blessing of another day at life, another day to swing.
REALTORS, It is my hope when you are sitting down with a homeowner who is losing "STUFF" that means the world to them; that you listen. Really listen. They are scared and truly need someone to relate to what they are going through. I guarantee you it will mean the world to them. Also, walking them through step by step, play by play will gain their trust and respect. I think we can all agree that is important to us as Real Estate professionals. Its not about the transaction its about relationships we build.
"LOTUS REALTY GROUP IS HIRING REALTORS" PLEASE CONTACT US TODAY FOR MORE DETAILS"
REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close 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...
Wednesday, November 30, 2011
Thursday, November 17, 2011
Recap of obstacles in a short sale transaction
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 2012, 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 2011:
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 TIPS FOR THE MONTH:
1. 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.
2. Chase will be switching to Equator mid 2012..
3. Foreclosure filings are on the rise and there are going to be many opportunities for you to help someone in this situation ( See attached article on CNNMoney) http://money.cnn.com/2011/11/17/real_estate/home_foreclosures/index.htm
(Quote) Unless someone like you cares a whole awful lot, nothing is going to get better. It's not. ~Dr. Seuss
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.
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close 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...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
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 2012, 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 2011:
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 TIPS FOR THE MONTH:
1. 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.
2. Chase will be switching to Equator mid 2012..
3. Foreclosure filings are on the rise and there are going to be many opportunities for you to help someone in this situation ( See attached article on CNNMoney) http://money.cnn.com/2011/11/17/real_estate/home_foreclosures/index.htm
(Quote) Unless someone like you cares a whole awful lot, nothing is going to get better. It's not. ~Dr. Seuss
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.
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close 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...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
Saturday, November 5, 2011
Crack down on short sale approval extension requests
Bank of America is now cracking down on extension requests. There are over 500 different investors and each has their own set of guidelines. I have mentioned before that the banks are going to be more aggressive on NOD filings; they are also going to be stricter with extension requests. From the investors stand point; if we have to keep requesting extensions then we do not have a qualified buyer. The investors faith that the buyer can perform grows thin. The investor will let the home go to foreclosure.
The investors are fully aware that most buyers lenders do not treat short sale transaction time lines seriously. The investors are going to be paying extra attention to this and are going to be firm on closing on or before the approval date.
Citi Mortgage is also cracking down. I just had a negotiator tell me if I do not close on time and have to request an extension there will be a $5000 dollar fine. Who do you think will be responsible for that? The buyer.
Please note: If the homeowner is 12 months plus delinquent and you have already had 1 or more extension requests then you have most likely exhausted all of your extensions and are at HIGH RISK of being denied.
The goal is to minimize our risk and avoid foreclosure. The way to do that is to follow procedure and once the approval is given; the buyers lender needs to be on top of the transaction to ensure we close on time. Paying attention to all of the deadlines as all of them are very time sensitive. We just do not have room for error anymore. We are going to see alot more short sales come on the market but the success rate will be low if organization and follow through are thrown to the waste side.
Anytime I have had a major issue with a transaction it was always involving a buyer not able to perform. I had a transaction recently I was negotiating for a REALTOR. There was a sale date on the property and we were told we had to close by the date given. The buyers had plenty of time to close but the the buyers lender was not making the file a priority. I had to call the supervisor and underwriter myself to push for docs so we could make our close date. My file was at the BOTTOM of the pile. I had to fight my way to the top of the pile with attitudes from all different directions. I was successful in closing the deal but was all of this really necessary? We have to ask that question.
The bottom line is there is going to come a time ( it is already starting to happen) where negligence will not be rewarded with extension requests. It is imperative that we all do our part. What ever key roll we play in this transaction; to follow through to the best of our ability. If we are all fulfilling our own roles then there is no reason we can not close these deals on time.
Here are some tips to help you avoid this pitfall:
1. Have all buyers get Desk Underwriting approval.
2. Put a call in to the buyers loan officer and make sure they are aware of all pertinent information in regards to sale dates, approval dates and investor guidelines.
3. Set expectations with buyer and their lender that " NO EXTENSIONS WILL BE GIVEN"
Remember, you may get lucky once or twice; but its that one time that you lose, the home goes to foreclosure and you are faced with the awful task of telling your client. Not to mention all of the time and effort it takes to put a short sale together that was lost. How much is your time worth? How much is your client worth. I can almost bet I know the answer to both of those questions as both are equally important. Let's do our best to avoid these pitfalls UPFRONT so we can have the outcome we all desire.
( Quote ) “Do more than is required. What is the distance between someone who achieves their goals consistently and those who spend their lives and careers merely following? The extra mile.” Gary Ryan Blair
REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close 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...
400 S. Sierra Ave. Ste.102 Solana Beach, CA 92075
858-764-7300
http://www.lotusrealtygroup.com
The investors are fully aware that most buyers lenders do not treat short sale transaction time lines seriously. The investors are going to be paying extra attention to this and are going to be firm on closing on or before the approval date.
Citi Mortgage is also cracking down. I just had a negotiator tell me if I do not close on time and have to request an extension there will be a $5000 dollar fine. Who do you think will be responsible for that? The buyer.
Please note: If the homeowner is 12 months plus delinquent and you have already had 1 or more extension requests then you have most likely exhausted all of your extensions and are at HIGH RISK of being denied.
The goal is to minimize our risk and avoid foreclosure. The way to do that is to follow procedure and once the approval is given; the buyers lender needs to be on top of the transaction to ensure we close on time. Paying attention to all of the deadlines as all of them are very time sensitive. We just do not have room for error anymore. We are going to see alot more short sales come on the market but the success rate will be low if organization and follow through are thrown to the waste side.
Anytime I have had a major issue with a transaction it was always involving a buyer not able to perform. I had a transaction recently I was negotiating for a REALTOR. There was a sale date on the property and we were told we had to close by the date given. The buyers had plenty of time to close but the the buyers lender was not making the file a priority. I had to call the supervisor and underwriter myself to push for docs so we could make our close date. My file was at the BOTTOM of the pile. I had to fight my way to the top of the pile with attitudes from all different directions. I was successful in closing the deal but was all of this really necessary? We have to ask that question.
The bottom line is there is going to come a time ( it is already starting to happen) where negligence will not be rewarded with extension requests. It is imperative that we all do our part. What ever key roll we play in this transaction; to follow through to the best of our ability. If we are all fulfilling our own roles then there is no reason we can not close these deals on time.
Here are some tips to help you avoid this pitfall:
1. Have all buyers get Desk Underwriting approval.
2. Put a call in to the buyers loan officer and make sure they are aware of all pertinent information in regards to sale dates, approval dates and investor guidelines.
3. Set expectations with buyer and their lender that " NO EXTENSIONS WILL BE GIVEN"
Remember, you may get lucky once or twice; but its that one time that you lose, the home goes to foreclosure and you are faced with the awful task of telling your client. Not to mention all of the time and effort it takes to put a short sale together that was lost. How much is your time worth? How much is your client worth. I can almost bet I know the answer to both of those questions as both are equally important. Let's do our best to avoid these pitfalls UPFRONT so we can have the outcome we all desire.
( Quote ) “Do more than is required. What is the distance between someone who achieves their goals consistently and those who spend their lives and careers merely following? The extra mile.” Gary Ryan Blair
REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close 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...
400 S. Sierra Ave. Ste.102 Solana Beach, CA 92075
858-764-7300
http://www.lotusrealtygroup.com
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