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
Tuesday, September 13, 2011
Monday, August 29, 2011
California Tops in Short Sale Fraud
LOTUS REALTY GROUP
I was sent an interesting article last week in San Diego Life style magazine from a client of mine and I wanted to share it with you. The synopsis of the story is that the FBI has announced a crackdown in short sale fraud and then Freddie Mac announced they will be teaming up to go after agents who are not operating properly. Freddie Mac short sales have increased from 4% of completed workouts in 2000 to nearly 14% in 2010. The California Department of Real Estate has also issued a consumer alert.
California has become one of the target markets for short sale fraud. Since there are one or more Real Estate professionals involved in a short sale transaction, the goal is to reach out to Realtor Associations in target markets to educate on the top issues in short sales today in hopes to help Realtors avoid short sale fraud. http://www.sandiegolifestyle.info/2011/08/short-sale-fraud/
There were a lot of comments from other REALTORS stating that the information in the article is misleading. Let’s go over some of the possible short sale fraud scenarios.
(Scenario 1)
Falsely indicating on a new short sale listing that there is an offer on a property in order to discourage legitimate offers and protect an accomplice's planned low bid.
Well, we all know that happens a lot in the industry. It is not a big surprise. Here is the bottom line; as a listing agent your fiduciary duty is to your seller and the short sale lender, not the buyer. The lender has a certain amount they want to net that may or may not be realistic but if you have your clients best interest in mind and want to be successful in the short sale then you will market that listing properly. Showing the bank you have had it on the market for a substantial amount of time. Go a step further and show the bank actual data of home sales; how fast they are moving and where prices are going. You can only work with one offer at a time so make sure you can prove it is the highest and best.
Value disputes on properties have become one of the biggest hold ups in short sales. What is even more interesting to me is that there are all of these Real Estate surveys stating that the lenders are holding up short sales. When short sales first came on the market there was a 10% close rate and a 9 month turn time. We are down to 2-4 months. 6 months max. It has been my experience that the top reasons short sales take longer to close are for the following reasons:
a. Home owner not prepared to show documents or hardship.
b. Negotiating HELOCS
C. Lost documents
d. Value issues
e. Non communication between all parties.
It is my opinion that all of these issues are in our control. The only situation out of our control is if a loan gets sold to another lender. Here are some tips to help you to work with the lender:
1. Have your client and the lenders best interest in mind.
2. Pre Qualify your client and make sure they are short sale candidates and are prepared to submit all documentation to show their hardship.
3. Create a listing history with extensive market data.
4. Submit a complete short sale package.
5. Set proper expectations with all parties.
6. Rule of thumb; the higher the offer the more gracious first lean holders will contribute to second lien holders.
(Scenario 2)
Manipulating the short sale listing price by making the house look more distressed than it really is (reverse staging), inflating repair estimates.
I honestly think that anyone who is doing this ruins valuations for those of us trying to do it right. Again, another reason that the short sale process is SLOWER than what REALTORS would like the time frames to be. The answer is quite simple in my opinion. Make sure the repairs you are documenting are VISIBLE. Roof leaks for instance create mold. Unstable foundations may require structural reports from certified professionals and some cases there are termite damages. The short sale lender is not going to cover these repairs. Typically if you have these reports and pictures up front and let a buyer know about them in hopes they will commit to the deal and offer a fair amount they feel good about, I do not feel that is short sale manipulation. I believe that is working smart. Preventing a buyer from backing out after we get approval due to non disclosure or a lender not covering damages.
(Scenario 3)
Flipping Schemes. A buyer buys a house at a short sale without putting down any of his own money and sells it a few hours later to a legitimate buyer at a much higher price.
(Scenario 4)
Manipulating the HUD-1 settlement statements so a flipper can skim away net proceeds from the sale for himself or other parties in the transaction without seller or investor knowledge.
Those of you who follow my events with my Real Estate attorney David Bright and read my newsletters I am sure you can guess my position on scenarios 3 and 4. That is short sale fraud at its finest.
In all of this I want to drive home one key point; the more people try to manipulate the system to make a quick buck the SLOWER short sales will take to close. Due to all of these legal issues it has forced lenders to investigate deeper, create new forms such as the NO FLIP AFFIDAVIT from GMAC and fight values.
I have seen record breaking turn times and in those transactions proper procedure was followed to a T. If we want a successful outcome we need to remember that we have to work with the lender. Not against them. As we move forward into this short sale market there are so many people that need our help. We as agents need to support our families as well. Intention is everything. Are we going into this transaction only for ourselves? Or do we really want to help?
One thing I have seen in this market is a lot of emotional stress and pain. If we are only trying to take from people that are already losing that does not keep clients coming back. I don’t know about you but I would like to set up my revenues for the future. Do right by my clients and build long lasting relationships with them to ensure repeating customers and referrals. And of course, stay under the radar with the FBI.
(Quote) Character is doing the right thing when nobody's looking. There are too many people who think that the only thing that's right is to get by, and the only thing that's wrong is to get caught. ~J.C. Watts
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
Monday, August 22, 2011
Job relocation and how it is impacting selling homes in today’s market
I was reading an article in Market Watch the other day in regards to job seekers deciding to pack their bags and move for a new position, according to a report released at the end of July by Challenger, Gray and Christmas. At the first half of the year, about 9.4% of job seekers relocated for a job, up from 7.6% within the same window of time in 2010, according to the outplacement consultancy firm. That is from a survey of about 3000 job seekers; many of the respondents are Managers and Executives.
Since there has been little improvement in the housing market in 2011, one might say the increased relocation in the first half of the year is due to the fact that prolonged unemployment is compelling more job seekers to relocate DESPITE the challenges of selling a home in this market. At some point, the job seeker may decide that it is worth taking a loss on their home sale to be employed again.
What about the seller that has a home that has depreciated in value significantly due to the housing crisis and CANNOT be sold traditionally? Not all homes in today’s market are equity sales and I am sure you would all agree that there may be more homes out there in pre-foreclosure and underwater than there are equity sales and the numbers are rising at an increasingly high rate.
I had clients recently in a similar position. One of the seller's company had went bankrupt and she was forced to take a position in Los Angeles . Not only did she take a pay cut but now she had to drive back and forth every day with gas prices at its highest level. The couple realized that they would not be able to continue the way they were. They needed to relocate to Los Angeles. They could not afford to pay rent there and a mortgage here. They had no choice but to sell their home.
Here is the challenge; this home is in San Elijo Hills. As you all know that is one of the highest depreciating areas in San Diego and one of the largest default areas as well. This home would never be able to be sold as a traditional sale. I was able to negotiate this hardship with the bank and they accepted a short sale.
I wanted to remind everyone that job relocation is a hardship in this market. A home owner has to be able to take care of their family. If they are forced to take a position somewhere else and there is no equity in the home a short sale is possible.
Lenders are adamant more than ever to keep foreclosures off their books and a short sale would be the best option for all parties involved. I am not confident that all homeowners going through this type of hardship understand what all of their options are. We have an opportunity to help families who are about to make some difficult decisions to make the right one.
Some families may decide that walking away would be the best option. As a Real Estate professional, we can explain the importance of trying to short sale verses walking away. Clearly a foreclosure on their record will impact their credit much worse than a short sale would. Also, if a homeowner is trying to seek employment elsewhere and a foreclosure is on their record that may impact the employer’s decision to hire. Some companies run credit checks and foreclosure may be a determining factor in either termination or not hiring at all.
I believe with the high unemployment rate and the downturn in the market we are going to continue to see this type of hardship. I would be on the lookout for families you can help to make the right choices giving them all possibilities to help accomplish their goals. This is also a great way to market you as a Real Estate Professional in the short sale market targeting families that need to relocate for a job position but cannot sell their home traditionally.
(Quote) We are the creative force of our life, and through our own decisions rather than our conditions, if we carefully learn to do certain things, we can accomplish those goals.
Stephen Covey
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
Wednesday, August 3, 2011
Why pay a short sale negotiator fee?
Dear REALTORS,
I wanted to thank those of you who came to my event last Thursday with David Bright. It was so nice to see you. We covered some very important topics in the short sale market. For those of you we had to turn away due to full capacity we apologize. Lotus Realty Group and David Bright will be having educational events every 3 months. We will be sure you are able to attend the next one.
One topic in particular I would like to go over in this news letter is all issues pertaining to a negotiator fee. I know that most of you do not want to pay a negotiator and parting with a 1% fee is painful for most of you. One of the questions for David Bright was; can the buyer pay the negotiator fee or is it the listing agent’s responsibility?
For those of you who have followed my events with my attorney David Bright understand that he feels very strongly on this matter. His reply was simply “The listing agent’s responsibility. Having a buyer pay a negotiator fee has a lot of dark ally’s in this industry today. As a business owner and having built my company to where it is today with a lot of sacrifices I cannot afford to go down any of those dark ally’s and one of my goals has always been to protect my clients as well. Homeowners and the REALTORS I negotiate for. I take pride in the fact that our company has a strong reputation of ethics and integrity along with our success rate in closing short sale transactions.
I was reflecting on the situation that drove us into this type of market in the first place. The lending industry liked to call it creative financing. Now, there are companies out there trying to do creative short sales and charge less money for their services to drive in the business. I am in my third year of business and I have seen these companies come and go.
I know how long short sales take to close. I also know how many you have to have in your pipeline to stay afloat. Not to mention the right team to handle the short sales from start to finish and how many deals that need to close on a monthly basis to make the numbers work to keep business doors open. But most importantly, from a legal stand Pointe, short sales have become a liability with all of the CREATIVE short sales taking place. Lenders and the DRE have extra eyes on short sale negotiators. Is it worth the headache and the risk to try to save some money or does it make more sense to hire a team of professionals who has your best interest in mind. A company who will protect you and your client.
I would like you to consider this; there are so many sides to a short sale transaction. As a negotiator I am negotiating the hardship, contributions and values. If a company is willing to give up their worth and accept less for their services, how hard do you think they will fight when negotiating your file? That saying, you get what you pay for is exactly right.
I wanted to share with you exactly what the 1% negotiator fee covers when you outsource your short sales to Lotus Realty Group.
Why use Lotus?
1. Qualified, experienced and professional staff. I was very mindful when hiring people for my company to assist me in executing my strategic, streamlined process to allow Lotus Realty Group to run like a well oiled machine and at the same time; people that would be a good reflection of who we really are and what we have to offer. Every person employed at Lotus Realty are licensed REALTORS.
Our staff:
Cari Drolet- Founder/CEO- 14 years in the industry from Lending to Real Estate. Licensed REALTOR, CDPE.
Stephen Bick- Broker of record/Business partner. Charter Financial Analyst. (CFA, CMA, CIRA.) Business Management and compliance.
Lana Boyle- Director of Operations- Bachelors Degree in business management. Licensed Broker, CDPE.
Jennifer Talasazan- Sales partner/Loan modification/Debt relief. Licensed REALTOR with back ground in the lending industry.
Donna Rommano- Transaction Coordinator- Licensed REALOR.
2. # 1 Real Estate Attorney, David Bright. David Bright is my attorney at Lotus Realty Group. My short sale package has all of the disclosures to protect all parties in the transaction. All disclosures were either co-created with David or approved by David. David is a huge asset to have on our team and he is always available for my clients.
3. Experienced negotiators with all of the large financial institutions and are able to handle all of the banks requests and requirements before the file hits their desk.
4. We have a stream lined process that allows our company to handle all files with ease. Our organizational skills are like no other. Nothing falls through the cracks.
5. In addition to negotiating your file Lotus Realty Group offers the following assistance to REALTORS:
A) Prospecting
B) Prequalifying
C) Full short sale package readily available to hand off to your clients to get started.
D) Pricing and listing
E) Marketing
6. Lotus Realty Group will only take qualified short sale transactions. We will only take deals we know we can close and not waste time on deals that do not make sense. This allows us to maintain our excellent track record of closing short sales.
7. Weekly updates
The goal is to build your pipeline with the right deals. If you have thirty in your pipeline on a regular basis you will be closing 2-3 monthly.
The questions to ask your self are:
A) Can you do the negotiating yourself and build your pipeline to where it needs to be?
B) Does it make more sense to hire a company for less than the 1% fee for negotiating your file where there is a lack of service and legal protection to save a little money and in return lose sleep at night?
Here a couple suggestions to help you with the 1% negotiator fee:
1. Ask the buyer’s agent to split the fee with you. If the buyer’s agent understands what it is he or she is paying for to ensure the deal closes it has been my experience that they are willing to contribute.
2. Offer 2.5 % to the cooperating broker in the MLS and 3.5% to the listing agent if you have to carry the full 1%.
REALTORS, we have truly created a system that works. Where do you see your business headed? What number do you need to make this year and next year? Have you thought about it? Have you written it down? What do you need to do to execute your business plan? Where is your time best spent?
I would like to end with a short story. When I first started my business I had my hands in several cookie jars. I was door knocking and taking listings, working with buyers, looking into a property management service as an addition to my business, and becoming my own broker to build a brokerage. It was EXHAUSTING!
When I changed my business model and decided to focus ONLY on negotiating for other REALTORS and perfecting that system all of the sudden I looked up and everything had come full circle. I get 3-5 of my own listings monthly by referral only. 6-10 new transactions from other REALTORS monthly. I have created this on a $500.00 monthly marketing budget. Sign calls come in and I hand it over to one of the agents on my team and just recently our company became our own broker of record. We are still in the process with the paperwork at the DRE but it happened. And it happened by laser focus on one particular part of the business.
I would like to encourage you to evaluate your current status and consider allowing Lotus Realty Group to help you achieve your goals.
(Quote) "Persistence is the ability to maintain actions regardless of your feelings. You press on even when you feel like quitting. When you work on any big goal your motivation will wax and wane like the waves hitting the shore. Sometimes you’ll feel motivated, sometimes you won’t. But it’s not your motivation that creates results - it’s your action.
Persistence allows you to keep taking action even when you don’t feel motivated to do so, and therefore you keep accumulating results. Persistence will ultimately provide its own motivation. If you simply keep taking action, you’ll eventually get results, and results can be very motivating." – Zig Ziglar
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 wanted to thank those of you who came to my event last Thursday with David Bright. It was so nice to see you. We covered some very important topics in the short sale market. For those of you we had to turn away due to full capacity we apologize. Lotus Realty Group and David Bright will be having educational events every 3 months. We will be sure you are able to attend the next one.
One topic in particular I would like to go over in this news letter is all issues pertaining to a negotiator fee. I know that most of you do not want to pay a negotiator and parting with a 1% fee is painful for most of you. One of the questions for David Bright was; can the buyer pay the negotiator fee or is it the listing agent’s responsibility?
For those of you who have followed my events with my attorney David Bright understand that he feels very strongly on this matter. His reply was simply “The listing agent’s responsibility. Having a buyer pay a negotiator fee has a lot of dark ally’s in this industry today. As a business owner and having built my company to where it is today with a lot of sacrifices I cannot afford to go down any of those dark ally’s and one of my goals has always been to protect my clients as well. Homeowners and the REALTORS I negotiate for. I take pride in the fact that our company has a strong reputation of ethics and integrity along with our success rate in closing short sale transactions.
I was reflecting on the situation that drove us into this type of market in the first place. The lending industry liked to call it creative financing. Now, there are companies out there trying to do creative short sales and charge less money for their services to drive in the business. I am in my third year of business and I have seen these companies come and go.
I know how long short sales take to close. I also know how many you have to have in your pipeline to stay afloat. Not to mention the right team to handle the short sales from start to finish and how many deals that need to close on a monthly basis to make the numbers work to keep business doors open. But most importantly, from a legal stand Pointe, short sales have become a liability with all of the CREATIVE short sales taking place. Lenders and the DRE have extra eyes on short sale negotiators. Is it worth the headache and the risk to try to save some money or does it make more sense to hire a team of professionals who has your best interest in mind. A company who will protect you and your client.
I would like you to consider this; there are so many sides to a short sale transaction. As a negotiator I am negotiating the hardship, contributions and values. If a company is willing to give up their worth and accept less for their services, how hard do you think they will fight when negotiating your file? That saying, you get what you pay for is exactly right.
I wanted to share with you exactly what the 1% negotiator fee covers when you outsource your short sales to Lotus Realty Group.
Why use Lotus?
1. Qualified, experienced and professional staff. I was very mindful when hiring people for my company to assist me in executing my strategic, streamlined process to allow Lotus Realty Group to run like a well oiled machine and at the same time; people that would be a good reflection of who we really are and what we have to offer. Every person employed at Lotus Realty are licensed REALTORS.
Our staff:
Cari Drolet- Founder/CEO- 14 years in the industry from Lending to Real Estate. Licensed REALTOR, CDPE.
Stephen Bick- Broker of record/Business partner. Charter Financial Analyst. (CFA, CMA, CIRA.) Business Management and compliance.
Lana Boyle- Director of Operations- Bachelors Degree in business management. Licensed Broker, CDPE.
Jennifer Talasazan- Sales partner/Loan modification/Debt relief. Licensed REALTOR with back ground in the lending industry.
Donna Rommano- Transaction Coordinator- Licensed REALOR.
2. # 1 Real Estate Attorney, David Bright. David Bright is my attorney at Lotus Realty Group. My short sale package has all of the disclosures to protect all parties in the transaction. All disclosures were either co-created with David or approved by David. David is a huge asset to have on our team and he is always available for my clients.
3. Experienced negotiators with all of the large financial institutions and are able to handle all of the banks requests and requirements before the file hits their desk.
4. We have a stream lined process that allows our company to handle all files with ease. Our organizational skills are like no other. Nothing falls through the cracks.
5. In addition to negotiating your file Lotus Realty Group offers the following assistance to REALTORS:
A) Prospecting
B) Prequalifying
C) Full short sale package readily available to hand off to your clients to get started.
D) Pricing and listing
E) Marketing
6. Lotus Realty Group will only take qualified short sale transactions. We will only take deals we know we can close and not waste time on deals that do not make sense. This allows us to maintain our excellent track record of closing short sales.
7. Weekly updates
The goal is to build your pipeline with the right deals. If you have thirty in your pipeline on a regular basis you will be closing 2-3 monthly.
The questions to ask your self are:
A) Can you do the negotiating yourself and build your pipeline to where it needs to be?
B) Does it make more sense to hire a company for less than the 1% fee for negotiating your file where there is a lack of service and legal protection to save a little money and in return lose sleep at night?
Here a couple suggestions to help you with the 1% negotiator fee:
1. Ask the buyer’s agent to split the fee with you. If the buyer’s agent understands what it is he or she is paying for to ensure the deal closes it has been my experience that they are willing to contribute.
2. Offer 2.5 % to the cooperating broker in the MLS and 3.5% to the listing agent if you have to carry the full 1%.
REALTORS, we have truly created a system that works. Where do you see your business headed? What number do you need to make this year and next year? Have you thought about it? Have you written it down? What do you need to do to execute your business plan? Where is your time best spent?
I would like to end with a short story. When I first started my business I had my hands in several cookie jars. I was door knocking and taking listings, working with buyers, looking into a property management service as an addition to my business, and becoming my own broker to build a brokerage. It was EXHAUSTING!
When I changed my business model and decided to focus ONLY on negotiating for other REALTORS and perfecting that system all of the sudden I looked up and everything had come full circle. I get 3-5 of my own listings monthly by referral only. 6-10 new transactions from other REALTORS monthly. I have created this on a $500.00 monthly marketing budget. Sign calls come in and I hand it over to one of the agents on my team and just recently our company became our own broker of record. We are still in the process with the paperwork at the DRE but it happened. And it happened by laser focus on one particular part of the business.
I would like to encourage you to evaluate your current status and consider allowing Lotus Realty Group to help you achieve your goals.
(Quote) "Persistence is the ability to maintain actions regardless of your feelings. You press on even when you feel like quitting. When you work on any big goal your motivation will wax and wane like the waves hitting the shore. Sometimes you’ll feel motivated, sometimes you won’t. But it’s not your motivation that creates results - it’s your action.
Persistence allows you to keep taking action even when you don’t feel motivated to do so, and therefore you keep accumulating results. Persistence will ultimately provide its own motivation. If you simply keep taking action, you’ll eventually get results, and results can be very motivating." – Zig Ziglar
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
Monday, July 25, 2011
: Law against short sale deficiencies expanded to Junior Liens
I know most of you are aware of the great news in regards to the expansion of the deficiency law to junior lien holders. There is no doubt this is a huge improvement that will make negotiating with seconds much easier and much more successful. However, there have been some misunderstandings on these new rules and I wanted to clarify a few things so that moving forward you are able to set proper expectations with your clients.
SB-458
1. As of 7/15/2011 Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or JUNIOR LIEN holder.
2. Effectively immediately on all transactions closing escrow.
3. A lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval.
4. The law does state that this does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.
5. A lender is permitted under the new law to negotiate for a contribution from someone OTHER than the borrower, such as other lenders, agents, relatives, and the like.
When we receive great news like this it is easy to overlook some key points or not read between the lines and think it through. I have had several calls on items 2-5 so here are the Q&A in order:
Q. If my client completed a previous short sale or the home was foreclosed on does this law apply?
A. No, this law only applies to transactions in escrow from the date the bill was passed and all new short sales moving forward.
Q. Since the lender is no longer able to require a borrower to pay additional compensation in exchange for a short sale approval, does the lender have the right to reject the short sale?
A. Look at numbers 3 and 4. In number 4 it states that the law does NOT PROHIBIT a borrower from voluntarily offering a contribution in HOPES of obtaining a short sale. How I interpret this is the lender can reject the short sale in order to see if they can obtain a contribution where the hardship is not strong and the homeowner does not offer anything in good faith.
We still need to make sure our clients are true candidates for a short sale. If the homeowner clearly shows in his financials that he has money to contribute and it is therefore not a traditional hardship you will want to have an upfront conversation with the homeowner to lay the groundwork. The lender may or may not accept your short sale so a contribution may be in your client’s best interest.
If the homeowner can clearly show in their financials there is nothing to give they have a better shot at getting it approved. There are no guarantees so the best you can do is pre-qualify all clients and set proper expectations.
Q. Does this mean that the lender will no longer expect other parties to contribute?
A. This is one that really needs to be read all the way through. The lender can still ask for a contribution from agents and possibly relatives. Wells Fargo seconds almost always do this. Again, I would make sure that you set proper expectations with your clients in regards to voluntarily contributing depending on their circumstances to minimize your risk of coming out of pocket.
First lien holders are getting better at contributing 10% to the seconds but it is hard to say what their number will be until we get the approval in hand. Remember when they would only contribute 6%. Well I can tell you from experience that seconds are getting smarter and tougher and that they will try to pull dollars from as many places as possible to squeeze as much as they can. Remember that they are taking the biggest loss.
We still need to do our due diligence in the beginning to have a smooth closing in the end.
Please join # 1 Real Estate Attorney “ David Bright” and myself on 7/28/2011, at the Tamarack Beach Resort between 11am and 1pm for an educational event. We will be discussing important topics in the short sale market including this new senate bill, Equator and MARS rules. Please RSVP as there is limited seating at 858-764-7300 or email Lana@lotusrealtygroup.com.
(Quote) The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet.
Theodore M. Hesburgh
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
SB-458
1. As of 7/15/2011 Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or JUNIOR LIEN holder.
2. Effectively immediately on all transactions closing escrow.
3. A lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval.
4. The law does state that this does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.
5. A lender is permitted under the new law to negotiate for a contribution from someone OTHER than the borrower, such as other lenders, agents, relatives, and the like.
When we receive great news like this it is easy to overlook some key points or not read between the lines and think it through. I have had several calls on items 2-5 so here are the Q&A in order:
Q. If my client completed a previous short sale or the home was foreclosed on does this law apply?
A. No, this law only applies to transactions in escrow from the date the bill was passed and all new short sales moving forward.
Q. Since the lender is no longer able to require a borrower to pay additional compensation in exchange for a short sale approval, does the lender have the right to reject the short sale?
A. Look at numbers 3 and 4. In number 4 it states that the law does NOT PROHIBIT a borrower from voluntarily offering a contribution in HOPES of obtaining a short sale. How I interpret this is the lender can reject the short sale in order to see if they can obtain a contribution where the hardship is not strong and the homeowner does not offer anything in good faith.
We still need to make sure our clients are true candidates for a short sale. If the homeowner clearly shows in his financials that he has money to contribute and it is therefore not a traditional hardship you will want to have an upfront conversation with the homeowner to lay the groundwork. The lender may or may not accept your short sale so a contribution may be in your client’s best interest.
If the homeowner can clearly show in their financials there is nothing to give they have a better shot at getting it approved. There are no guarantees so the best you can do is pre-qualify all clients and set proper expectations.
Q. Does this mean that the lender will no longer expect other parties to contribute?
A. This is one that really needs to be read all the way through. The lender can still ask for a contribution from agents and possibly relatives. Wells Fargo seconds almost always do this. Again, I would make sure that you set proper expectations with your clients in regards to voluntarily contributing depending on their circumstances to minimize your risk of coming out of pocket.
First lien holders are getting better at contributing 10% to the seconds but it is hard to say what their number will be until we get the approval in hand. Remember when they would only contribute 6%. Well I can tell you from experience that seconds are getting smarter and tougher and that they will try to pull dollars from as many places as possible to squeeze as much as they can. Remember that they are taking the biggest loss.
We still need to do our due diligence in the beginning to have a smooth closing in the end.
Please join # 1 Real Estate Attorney “ David Bright” and myself on 7/28/2011, at the Tamarack Beach Resort between 11am and 1pm for an educational event. We will be discussing important topics in the short sale market including this new senate bill, Equator and MARS rules. Please RSVP as there is limited seating at 858-764-7300 or email Lana@lotusrealtygroup.com.
(Quote) The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet.
Theodore M. Hesburgh
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
Wednesday, July 13, 2011
Substitute a new buyer without restart in Bank of Americas Equator
LOTUS REALTY GROUP
I received the below email from Bank of America yesterday. I am sure some of you may have received the same but just in case I wanted to make sure you were all up to date on the latest news and programs and as usual give my advice on how to utilize this information to your benefit.
Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.
When a Backup Offer is ready
you should send a message to your short sale specialist via Equator when the original buyer is no longer interested in the property. Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit. If you have another buyer prepared to make an offer, the short sale can proceed without having to repeat the short sale initiation steps. The short sale status in Equator will change to "Marketing," and you will be directed to complete the following tasks within 14 business days:
· Complete the "Listing Data" task.
· Provide the marketing description.
· Review the marketing plan.
· Upload the offer. (To do this in Equator, locate "My Properties," then "Offers" and select "Place New Offer.")
If the "Listing Data" task is not completed and the new offer is not uploaded within 14 business days, the file will be closed.
When No Backup Offer Is Ready
This new process applies only if there's an available backup offer when a buyer walks. If you do not have a backup offer ready to be submitted, the short sale will be declined. In that case, you should return to marketing the property and initiate a new short sale in Equator once you receive another offer.
We work with many Equator transactions and obviously one of the biggest frustrations when we lose a buyer is starting all over as Equator typically works one offer at a time. This new system is great however, I wanted to remind everyone to pay attention to the last paragraph. If there is not a back up offer to replace the one you lost, you will have to start over and re initiate the short sale.
I would make sure that you have a couple back up offers on standby to avoid this issue. Time lines are much longer when we have to start all over and this only frustrates buyers therefore, we run the risk of creating a revolving door. If there are sale dates that we have to postpone, starting over will definitely pose a problem.
Setting expectations with the buyers is another way to keep them on the line. Knowing the time frame is key and sharing that with them. Every transaction is different and some will take longer than others so do not over promise and under deliver. I would also make sure all buyers are pre qualified and are not putting in offers all over San Diego County. We need to create a level of commitment which can only be accomplished by setting proper expectations and due diligence.
General Time Line: (These are subject to change with every deal)
1. File submitted
2. 7-10 days to upload into the system
3. 2-3 weeks processing time
4. Order BPO
5. 7-10 days for BPO to be submitted and assigned to a negotiator
6. Negotiator can take anywhere from 2-4 weeks to negotiate the file
7. Submit to the investor for final approval
8. Investor can take anywhere from 1-3 weeks (plus or minus)
It has been my experience when I slow down and do things properly in the beginning my transactions go much more smoothly in the end.
(Quote) Efficiency is doing things right; effectiveness is doing the right things.
"Peter Drucker"
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 received the below email from Bank of America yesterday. I am sure some of you may have received the same but just in case I wanted to make sure you were all up to date on the latest news and programs and as usual give my advice on how to utilize this information to your benefit.
Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.
When a Backup Offer is ready
you should send a message to your short sale specialist via Equator when the original buyer is no longer interested in the property. Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit. If you have another buyer prepared to make an offer, the short sale can proceed without having to repeat the short sale initiation steps. The short sale status in Equator will change to "Marketing," and you will be directed to complete the following tasks within 14 business days:
· Complete the "Listing Data" task.
· Provide the marketing description.
· Review the marketing plan.
· Upload the offer. (To do this in Equator, locate "My Properties," then "Offers" and select "Place New Offer.")
If the "Listing Data" task is not completed and the new offer is not uploaded within 14 business days, the file will be closed.
When No Backup Offer Is Ready
This new process applies only if there's an available backup offer when a buyer walks. If you do not have a backup offer ready to be submitted, the short sale will be declined. In that case, you should return to marketing the property and initiate a new short sale in Equator once you receive another offer.
We work with many Equator transactions and obviously one of the biggest frustrations when we lose a buyer is starting all over as Equator typically works one offer at a time. This new system is great however, I wanted to remind everyone to pay attention to the last paragraph. If there is not a back up offer to replace the one you lost, you will have to start over and re initiate the short sale.
I would make sure that you have a couple back up offers on standby to avoid this issue. Time lines are much longer when we have to start all over and this only frustrates buyers therefore, we run the risk of creating a revolving door. If there are sale dates that we have to postpone, starting over will definitely pose a problem.
Setting expectations with the buyers is another way to keep them on the line. Knowing the time frame is key and sharing that with them. Every transaction is different and some will take longer than others so do not over promise and under deliver. I would also make sure all buyers are pre qualified and are not putting in offers all over San Diego County. We need to create a level of commitment which can only be accomplished by setting proper expectations and due diligence.
General Time Line: (These are subject to change with every deal)
1. File submitted
2. 7-10 days to upload into the system
3. 2-3 weeks processing time
4. Order BPO
5. 7-10 days for BPO to be submitted and assigned to a negotiator
6. Negotiator can take anywhere from 2-4 weeks to negotiate the file
7. Submit to the investor for final approval
8. Investor can take anywhere from 1-3 weeks (plus or minus)
It has been my experience when I slow down and do things properly in the beginning my transactions go much more smoothly in the end.
(Quote) Efficiency is doing things right; effectiveness is doing the right things.
"Peter Drucker"
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
Wednesday, July 6, 2011
This real-estate scam can land you in jail......
This real-estate scam can land you in jail
In some cases, ‘flopping’ is a crime with serious consequences
http://www.marketwatch.com/Story/story/print?guid=1B883062-A0CE-11E0-9F46-002128049AD6
Dear friends and colleagues,
I wanted to share this article with you I read on Market Watch. Those of you who have attended one of my events with my Real Estate Attorney “David Bright" know how passionate we are about education in the short sale market to ensure we are all operating above board and in the same return protecting all parties involved in the transaction. Please take time to read it.
I found this very interesting. As a listing agent in a short sale transaction our fiduciary duty is to the seller and the lender. To help the homeowner experiencing a true hardship; to find a serious and committed buyer and bring the lender the highest best offer. PERIOD. There is no easy way around it. No short cuts. Though this process can be very frustrating at the end of the day if the process is done properly then it will be a win win for everyone. If it is not, then we run the risk of potential legal ramifications. I don’t know about you, but I would much rather be able to close my eyes at night and actually sleep.
The BPO agent’s fiduciary duty is to the lender. I personally have only ran into issues with BPO agents driving my values up not down. Which is why I have developed the listing history method. This helps me when I am in a value dispute situation. So, now we have" Flippers and Floppers" to watch out for. Ha!
It is unfortunate to me that so many people are willing to create situations such as these. This is not a market to mess around with. Our number one goal should be to help homeowners who really need the help avoid foreclosure. The only way to do that is to take on qualified clients; know what the lender is looking for and act accordingly to reach that goal upholding our integrity and ethics. .
I believe if we truly have our client’s best interest in mind all of our good intentions and efforts will come back tenfold.
(Quote) "There are seven things that will destroy us: Wealth without work; Pleasure without conscience; Knowledge without character; Religion without sacrifice; Politics without principle; Science without humanity; Business without ethics."
— Mahatma Gandhi
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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