Cultural Shift In Todays Market Place

(Quote) “The first step towards getting somewhere is to decide that you are not going to stay where you are.”

When the housing crisis first hit in 2007/2008 and short sales and foreclosures began flooding the market place at such an alarming rate there is no doubt that it took us all by surprise. I do not think any of us were prepared for the onslaught of distressed properties and value declines. No one has ever seen this type of market to have the ability to manage it. When I think of the mess in its infancy I always think of the "Titanic". The unsinkable ship. One minute you are having tea and cookies on deck looking out at an endless sea. The future is bright and full of possibility and then suddenly the ship is sinking. You are in the water kicking your feet and trying to hold on to any debris available to stay afloat.

Some homeowners wanted to modify their loan in hopes to stay in the property while others wanted out from underneath their property that was continuing to depreciate by attempting to do a short sale or simply walk away and allow the home to go to foreclosure. Financial institutions were equally scrambling to untangle the mess however; they did not have a successful methodology at the time to handle such transactions properly. Only 10% of short sales were closing with a 9 month turn time.

I have been negotiating short sales for homeowners and other REALTORS for over 4 years since the very beginning and I have to say how awesome it is to see the change that has taken place with the financial institutions and their willingness to improve the short sale process and help those who truly need it. The reality is in order for things to change and improve we all must be willing to do the same. A problem cannot be fixed with the same consciousness that created it.

After nearly 5 years of trial and error; the financial institutions have finally pulled together their resources and implemented programs that will give home owner’s incentives to short sale their property in lieu of foreclosure. I feel that there is a level of mutual understanding between organizations and communities that there has to be a meeting in the middle for cooperation to take place.

In addition they have also created systems that will allow a short sale transaction to run smoothly and close quickly. The average turn time to date is now 2-4 months with an average close rate of 80% and climbing. Both lenders and real estate professionals coming together towards a common goal’ to help homeowners avoid foreclosure by streamlining the process will allow a quicker housing recovery and instill trust back into the community.

Here are some of the incentives for homeowners facing foreclosure:

Bank of America holds nearly 70% of the distressed property inventory and has worked extremely hard to ensure nothing falls through the cracks by implementing a smoother internal process through their equator system. Please note: due to the changes they are making; current files may be delayed as the transition takes place.

In addition, BofA is offering homeowners incentives up to $30,000 to short sale their property. Keep in mind that not everyone will qualify for these incentives. It is important to set proper expectations with your clients.

Finally, BofA is making the process easier for ACTIVE DUTY MILITARY. If you are a REALTOR qualifying a short sale candidate you will want to ask your client if they are in the military. If we know this upfront your short sale request will be re- directed to Bank of Americas "Military Short Sale Team" which will allow fewer delays and push the process along faster. For more information go to the BofA website.

Chase, Wells Fargo and Citi have also improved their process and are offering large incentives. All four of these financial institutions participate in the HAFA program which offers $3000 in relocation assistance.

If you are a seller and you are experiencing a hardship due to a change in income, divorce or job relocation and you can no longer afford to make your mortgage payments then NOW would be the perfect time to take action and see if you qualify for these programs.

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

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