One of my goals has always been to help REALTORS maneuver through the pitfalls that can occur in a short sale transaction. There are more than a few however; one in particular has been a reoccurring issue and has become one of the top 10 most crucial points in short sales today; BUYERS LENDERS.
When a buyer chooses a loan officer to work with it is usually a family member, a friend or a referral from a friend. Have you ever been in a situation where you were in need of a particular service; you had a friend in the business applicable to your situation; so with a sense of obligation you entrusted this person to handle the details but in the end you didn’t get the service necessary to accomplish what you needed to accomplish?
I have negotiated over 100 transactions and a majority of them were for REALTORS where I was not in control of what vendors were used. In my experience I have seen short sale transactions nearly blow up at the end due to a buyers lender of choice not following through in a timely manner and ignoring the following;
1. Is this buyer truly qualified?
2. Deadlines
3. Short sale approval dates
4. Foreclosure sale dates
5. Getting docs out in a timely manner to fund and record on the approved date from the short sale lender.
Yesterday I had an experience with one of my own listings. More than 2 months ago I had set expectation with the buyer’s agent before accepting her offer. I explained the special circumstances in which my sellers were in. They are elderly people. Not in the best of health and had moved out of state. They do not have access to technology. All document collection and signing has to be done by mail and the sellers turn time is 3-4 weeks. We have a close date of 10/03/2011. The home is in active foreclosure status. I explained there could be no room for error on this and the buyer’s lender truly needed to be on top of the loan to ensure we can get docs in an appropriate time frame to fund and record on time. If we requested an extension we would run the risk of the short sale lender asking for updated financials and then they would have to resubmit for approval. With my sellers turn time of 3-4 weeks I would not be able to coordinate all parties and deadlines to close this deal. We would all be chasing our tails.
I received a call from the buyer’s agent and her broker that we would need an extension due to the buyer’s lender WAITING ON APPROVAL FROM THE UNDERWRITING DEPARTMENT.
Unacceptable! I called the loan officer and she said there was nothing she could do. I requested the number to the underwriting department and called to speak with the supervisor. He informed me they had a 3 day turn around. They had the file since 9/23/2011. We had already went over there so called 3 day turn time. The supervisor was kind enough to look a little deeper and sure enough our file was at the bottom. With ONE CALL I was able to get that file moved to the top and should have docs out by Friday to make our close date.
I have realized after running into this issue repeatedly that no one else is going to treat my file with the respect and attention that it needs and it is my responsibility to be on top of all parties involved in the transaction ICLUDING the buyer’s lender. The reality of situation is as follows:
1. Extensions are not raining out of the sky these days. Short sale lenders want to close in the time frames they allow. Some files have already had their max allowable extensions. One more can cause the deal to blow up.
2. Short sales are time sensitive. When there is a foreclosure sale date on a property and we continuously ask for extensions are luck is wearing thin. It is imperative that the buyer’s lender is working the file from the beginning to the end paying attention to crucial dates and putting the files in HIGH PRIORITY STATUS that have these important deadlines and special circumstances listed above.
3. We as agents cannot sit and accept when a loan officer says there is nothing they can do. That statement cannot be further from the truth. There is always a solution. The bottom line is a loan officer has to be willing to go the extra mile to make it happen and if they are not then there is a lack of taking responsibility on their part and treating each file as a high priority.
Is the goal not to close deals so that EVERYONE WINS?
Experience has taught me that there takes a certain level of aggressiveness and tenacity to complete short sales. We have to be willing to take it to the next level if necessary and not accept anything less than an excellent performance in all parties involved in the transaction to get the results we need and if we cannot find it in others, well, and then we must do it ourselves.
Tips of the day:
a) Have a trusted lender to get DU (Desk underwriting) approval for any buyer on your property.
b) Set proper expectations with all buyers’ agents; they need to be on top of the buyer’s lenders to make sure they are doing everything in their power to ensure a smooth transaction and treating all deadlines with care and concern.
c) When a loan officer tells you “There is nothing else I can do” DO NOT ACCEPT THAT. I have seen mountains move miraculously at the last minute when a fire is lit.
(Quote) “Working together, ordinary people can perform extraordinary feats. They can push things that come into their hands a little higher up, a little further on towards the heights of excellence.”
The location for our Event with David Bright on 10/6/2011 between 11:00 am and 1:00 pm has been moved to the Cardiff Library. At 2081 New Castle Ave , Cardiff, Ca 92007. We will send out reminders to all that have R.S.V.P
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...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
"Lotus
Wednesday, September 28, 2011
Tuesday, September 13, 2011
Obama’s score card on programs to help the troubled housing market
CNN Money released an article discussing a recap of all of the programs Obama has initiated to help rescue the troubled housing market over the years. As you all know there have been several. Each has had their pros and cons but have not been 100% effective; or they have not yet come full circle on the benefits to the home owners experiencing difficulty. Please click on the link below for more information.
I have worked with alot of home owners over the years and have had the opportunity to see many different hardships. One commonality I have observed by most home owners experiencing difficulty paying their mortgage and facing the reality of losing their homes is that they want to hold on as long as they can. They will try anything to hold on to their homes where their memories were made; where their children grew up, or simply because they are comfortable with the lifestyle they have built for themselves over the years.
When these programs are born to help home owners hang on what I have seen is alot of false hopes being made and ultimately the home owner loses anyway due to the programs not being executed properly; or it is too late as the home owner is too deep in the process for anything to be done, or they simply do not qualify for these programs.
I have been reflecting over the last week about our market and life in general. I am seeing the true nature of the human condition. In my own life I have recently experienced alot of changes. As a business owner and a woman who is very passionate about what I do and the people, places and things that I love I can tell you that I do not let go of anything without claw marks. I pro longed the inevitable changes even with an awareness they would have to one day because I was not prepared to handle the discomfort that I knew the detachment would cause. I reached a place where I had to choose; to either continue the way things were or surrender, allow and trust that the situation would heal and be replaced with something better. As painful as it was, with faith in my heart, I had to let go of the outcomes. Sometimes I have to do this hour to hour and sometimes minute to minute daily.
I had to do some searching within myself to see if the attachments I had were serving me anymore. Was it worth the stress, the pain, the worry and the sleepless nights or did I want to be whole? I had to accept the choices that I made. Not judge them anymore but accept them and realize that something’s just cannot be controlled or fixed. It is not that those things I let go of are no longer special to me or that I have lost the memories. The memories are really the only thing that lasts forever.
Change is frightening for alot of people if not all people. The fear of what is on the other side and what life will look like without these so called things we just cannot live without. The true definition of fear is being afraid that we will lose something we already have or not get what we want and desire. I have found in my own life experience that anytime there is fear it is because I have created it. Sometimes the only way we can rebuild a solid foundation is to tear down the one that is swaying back and forth and knocking us off balance. I heard someone say once “What a beautiful mess". It does not feel so beautiful at the time but I do know that once the dust has settled things are clearer to move forward on a positive note with lessons learned and a future full of possibility.
Even though my experience is different in nature the energy behind it is the same. We are all trying to get to the same place we are just following different maps. REALTORS, you are going to run into many homeowners who are holding on for dear life and not ready to make a decision on what to do. It is my hope that you may be able to relate your human experiences with theirs to help you to connect with your clients and also here the undertone of what they are saying to you. I can almost bet 99.9% of the time; their hesitancy is based out of fear.
Ask them the following questions:
1. Can you afford to make your payments?
2. Even if the bank modified your loan, do you see your financial picture improving in the next year to continue payments for the life of the loan?
If the answer is NO to both of those questions then most likely these programs are not going to be very helpful.
http://money.cnn.com/2011/08/31/real_estate/obama_housing_scorecard/ ( Obviously it is still important to make sure you go over all options possible to get to the right one for your clients situation. )
I believe if we are able to relate to our clients from the human condition and human experience we will be able to help them move through the agony of prolonging the inevitable faster.
(Quote) "The greatest test of courage on earth is to bear defeat without losing heart."
"Lotus Realty Group is hiring REALTORS. For more information please give me a call."
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...
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 have worked with alot of home owners over the years and have had the opportunity to see many different hardships. One commonality I have observed by most home owners experiencing difficulty paying their mortgage and facing the reality of losing their homes is that they want to hold on as long as they can. They will try anything to hold on to their homes where their memories were made; where their children grew up, or simply because they are comfortable with the lifestyle they have built for themselves over the years.
When these programs are born to help home owners hang on what I have seen is alot of false hopes being made and ultimately the home owner loses anyway due to the programs not being executed properly; or it is too late as the home owner is too deep in the process for anything to be done, or they simply do not qualify for these programs.
I have been reflecting over the last week about our market and life in general. I am seeing the true nature of the human condition. In my own life I have recently experienced alot of changes. As a business owner and a woman who is very passionate about what I do and the people, places and things that I love I can tell you that I do not let go of anything without claw marks. I pro longed the inevitable changes even with an awareness they would have to one day because I was not prepared to handle the discomfort that I knew the detachment would cause. I reached a place where I had to choose; to either continue the way things were or surrender, allow and trust that the situation would heal and be replaced with something better. As painful as it was, with faith in my heart, I had to let go of the outcomes. Sometimes I have to do this hour to hour and sometimes minute to minute daily.
I had to do some searching within myself to see if the attachments I had were serving me anymore. Was it worth the stress, the pain, the worry and the sleepless nights or did I want to be whole? I had to accept the choices that I made. Not judge them anymore but accept them and realize that something’s just cannot be controlled or fixed. It is not that those things I let go of are no longer special to me or that I have lost the memories. The memories are really the only thing that lasts forever.
Change is frightening for alot of people if not all people. The fear of what is on the other side and what life will look like without these so called things we just cannot live without. The true definition of fear is being afraid that we will lose something we already have or not get what we want and desire. I have found in my own life experience that anytime there is fear it is because I have created it. Sometimes the only way we can rebuild a solid foundation is to tear down the one that is swaying back and forth and knocking us off balance. I heard someone say once “What a beautiful mess". It does not feel so beautiful at the time but I do know that once the dust has settled things are clearer to move forward on a positive note with lessons learned and a future full of possibility.
Even though my experience is different in nature the energy behind it is the same. We are all trying to get to the same place we are just following different maps. REALTORS, you are going to run into many homeowners who are holding on for dear life and not ready to make a decision on what to do. It is my hope that you may be able to relate your human experiences with theirs to help you to connect with your clients and also here the undertone of what they are saying to you. I can almost bet 99.9% of the time; their hesitancy is based out of fear.
Ask them the following questions:
1. Can you afford to make your payments?
2. Even if the bank modified your loan, do you see your financial picture improving in the next year to continue payments for the life of the loan?
If the answer is NO to both of those questions then most likely these programs are not going to be very helpful.
http://money.cnn.com/2011/08/31/real_estate/obama_housing_scorecard/ ( Obviously it is still important to make sure you go over all options possible to get to the right one for your clients situation. )
I believe if we are able to relate to our clients from the human condition and human experience we will be able to help them move through the agony of prolonging the inevitable faster.
(Quote) "The greatest test of courage on earth is to bear defeat without losing heart."
"Lotus Realty Group is hiring REALTORS. For more information please give me a call."
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...
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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