(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
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Thursday, May 17, 2012
Thursday, April 26, 2012
Pro Real Estate Seminar with David Bright and Cari Drolet
Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” (Winston Churchill)
Wednesday 9:00am to 4:00pm
Thursday 9:00am to 4:00pm
There have been numerous changes to the real estate market over the last 4 years. Economically, guidelines with the lenders and the DRE but most importantly; law and ethics. I have felt the frustration for myself and for all the REALTORS I work with. Over the years my Real Estate Attorney, David Bright and I have worked hard to create a platform for agents to be successful in the real estate market in regards to short sales. From how to pre qualify short sale candidates and build your pipeline to protecting yourself from any and all legal ramifications that can result from not working this type of market appropriately. Moving forward it is important to become aware of the legal and practical sides of real estate to ensure that all your basis are covered from A-Z.
If you are a real estate professional, this seminar will change your life. Over a two day intensive high energy course David Bright and I will give you a blueprint to success. Combined with our decades of experience and success in the real estate market a 200 page binder that delves into every aspect of the real estate business from creating the correct legal environment to protect your hard work to implementing a proven sales and marketing program to obtain listings. The seminar will also provide you with the tools to manage and expand your operations in a controlled and manageable way so that success is yours for the taking. These tools will enable you to thrive and succeed by retaining your commissions and building your real estate business effectively, efficiently and ethically.
We will be covering some of the hottest topics in the industry such as:
a) Short sales
b) REO properties
c) Foreclosures
d) Real Estate fundamentals
e) Contracts and disclosures ( How to write contracts and counter offers)
f) Legal ( How to avoid getting sued)
g) Practical issues, Current market issues.
h) Case studies
i) DRE hot buttons
A more detailed course outline can be viewed at ProRESeminars.com.
This course covers all facets of the real estate market. Upon completion of the course you will receive the following:
-12 hours of DRE credits
- Short sale certification and designation.
First Seminar
When:
May 23rd and 24th (Room for 75)
Where:
Courtyard Marriott- Mission Valley
595 Hotel Circle
San Diego, Ca 92108
595 Hotel Circle
San Diego, Ca 92108
Time:
Wednesday 9:00am to 4:00pm
Thursday 9:00am to 4:00pm
Cost:
$299 if you Sign up before May 11th
$399 after May 11th
To sign up please go to ProRESeminars.com and click on register now. For more information please feel free to call David Bright (White and Bright) at 760- 747-3200 or Cari Drolet ( Lotus Realty Group) at 858-764-7300
Monday, April 9, 2012
How do I get short sale listings?
"Unless you're willing to have a go, fail miserably, and have another go, success won't happen."
"Phillip Adams"
With the major financial institutions cooperating more and more with short sale transactions there has been an increase of competition in the market place. Homeowners in default are bombarded with mailers, door knockers and phone calls which in my opinion; unless you have extraordinary sales skills it is nearly impossible to get a homeowner who is losing their home to have a phone conversation about it. Typically it is a hang up.
I had an agent client of mine I negotiated a few short sales for a couple years back contact me a few weeks ago with one new short sale listing and over the weeks it has turned into 4 short sale listings. I asked her how she went from 0 to 4 listings in such a short period of time? She started calling her sphere of influence and past clients. Clients she helped get into homes at the peak of the market are now wanting out due to the market depreciation and other contributing factors such as income change, job loss or job relocation.
Your sphere of influence and past clients is the best place to start. When I first started working with short sales nearly 4 years ago I started by doing rescue calls to my data base. I wanted to let everyone know that not only do I help homeowners buy and sell Real Estate in a traditional market; I also help homeowners who are under water and can no longer afford to make their mortgages. Followed by the question; who do you know in your circle of family, friends, neighborhood or community that may be experiencing this type of difficulty?
Nearly everyone knows someone who is going through a hardship of this sort and with the increase of competition surely you do not want another Realtor working your clients. Another quality to have that will help you with your competition is to be well versed in the short sale process and how to pre qualify. Homeowners potentially facing foreclosure will be very cautious when choosing an agent and they will look for a level of comfort ability with the agent they choose to handle one of the most stressful processes they will ever go through.
In my opinion, working your sphere and working it well will help you increase your short sale listings more than any other form of prospecting; not to mention it doesn't cost you anything but your time to get on the phone. With an increase of homeowners in crisis and an increase in cooperation with the lenders this is a great time to build your pipeline and help your clients through this rough time.
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...
"Phillip Adams"
With the major financial institutions cooperating more and more with short sale transactions there has been an increase of competition in the market place. Homeowners in default are bombarded with mailers, door knockers and phone calls which in my opinion; unless you have extraordinary sales skills it is nearly impossible to get a homeowner who is losing their home to have a phone conversation about it. Typically it is a hang up.
I had an agent client of mine I negotiated a few short sales for a couple years back contact me a few weeks ago with one new short sale listing and over the weeks it has turned into 4 short sale listings. I asked her how she went from 0 to 4 listings in such a short period of time? She started calling her sphere of influence and past clients. Clients she helped get into homes at the peak of the market are now wanting out due to the market depreciation and other contributing factors such as income change, job loss or job relocation.
Your sphere of influence and past clients is the best place to start. When I first started working with short sales nearly 4 years ago I started by doing rescue calls to my data base. I wanted to let everyone know that not only do I help homeowners buy and sell Real Estate in a traditional market; I also help homeowners who are under water and can no longer afford to make their mortgages. Followed by the question; who do you know in your circle of family, friends, neighborhood or community that may be experiencing this type of difficulty?
Nearly everyone knows someone who is going through a hardship of this sort and with the increase of competition surely you do not want another Realtor working your clients. Another quality to have that will help you with your competition is to be well versed in the short sale process and how to pre qualify. Homeowners potentially facing foreclosure will be very cautious when choosing an agent and they will look for a level of comfort ability with the agent they choose to handle one of the most stressful processes they will ever go through.
In my opinion, working your sphere and working it well will help you increase your short sale listings more than any other form of prospecting; not to mention it doesn't cost you anything but your time to get on the phone. With an increase of homeowners in crisis and an increase in cooperation with the lenders this is a great time to build your pipeline and help your clients through this rough time.
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...
Monday, March 12, 2012
Harder for Investors and No-Investors to purchase property
There has been a decrease in REO's due to more properties being sold at auction. These properties are mostly bought by investors who have the cash on hand to purchase them at the court house steps. Investors have reported that the lenders are aggressively pricing the opening bids at the auction to attract more bidders. Typically the lender would start the opening bid at what is owed on the property however; due to the costly nature of a foreclosure the lenders are trying to keep these properties off their books.
In addition to avoid foreclosure the lenders are pushing for homeowners to short sale their property. We are going to see alot more short sales come on the market and a continuous decline in REOS. What does this mean for investors? Most lenders agreeing to short sale are requiring" No-Flip" Affidavits to be signed by all buyers. Most investors want to turn properties in 30 days. With the increase in short sales and decrease in foreclosures I can see this as a potential problem.
Investors typically drive prices down while the short sale lender wants the highest and best offer with the ability to show them the properties were marketed for a substantial amount of time. If these properties are being re- sold significantly higher than what they were purchased at 30 days later and a "No-Flip" Affidavit was signed, that puts all parties a risk. The decrease in REO's are not easy on the non-investor either. Most home buyers do not have the cash to buy a property at the auction.
Short sales are going to become the primary focus of Investors and non-investors purchasing property. Working with investors are going to be tougher with the new forms the lenders require to be signed. Typically the" No-Flip"Affidavit is an agreement stating that the buyers and buyers agent are not involved in a profit scheme to flip the property and there are no current agreements written or otherwise, to immediately re-sell the property at a higher price and that no transactions of this nature will take place WITHIN 90 DAYS of the date of closing the short sale transaction. If there is knowledge that the home will be re-sold after the 90 day mark, it is my opinion that the short sale lender should be made aware and if possible get it in writing that it is acceptable.
For the non-investor purchasing a short sale it would be in the best interest of all parties that the property is the home the buyer truly wants and the buyers agent sets expectation with the buyer giving proper time lines. A homeowner going through a short sale may have a sale date and any hesitancy removing contingencies or putting in multiple offers can put the homeowner at risk of foreclosure.
With the increase of legal action that has been taken against agents who may or may not have operated above board in the short sale lenders eyes; non of us can afford to take risks in any fashion. The more dark allies that people choose to go down the more eyes that will be upon us all. Though this is going to be a stressful time, I believe we can work through any changes and obstacles that come our way.
(Quote) Observe constantly that all things take place by change, and accustom thyself to consider that the nature of the Universe loves nothing so much as to change the things which are, and to make new things like them.
"Marcus Aurelius"
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
In addition to avoid foreclosure the lenders are pushing for homeowners to short sale their property. We are going to see alot more short sales come on the market and a continuous decline in REOS. What does this mean for investors? Most lenders agreeing to short sale are requiring" No-Flip" Affidavits to be signed by all buyers. Most investors want to turn properties in 30 days. With the increase in short sales and decrease in foreclosures I can see this as a potential problem.
Investors typically drive prices down while the short sale lender wants the highest and best offer with the ability to show them the properties were marketed for a substantial amount of time. If these properties are being re- sold significantly higher than what they were purchased at 30 days later and a "No-Flip" Affidavit was signed, that puts all parties a risk. The decrease in REO's are not easy on the non-investor either. Most home buyers do not have the cash to buy a property at the auction.
Short sales are going to become the primary focus of Investors and non-investors purchasing property. Working with investors are going to be tougher with the new forms the lenders require to be signed. Typically the" No-Flip"Affidavit is an agreement stating that the buyers and buyers agent are not involved in a profit scheme to flip the property and there are no current agreements written or otherwise, to immediately re-sell the property at a higher price and that no transactions of this nature will take place WITHIN 90 DAYS of the date of closing the short sale transaction. If there is knowledge that the home will be re-sold after the 90 day mark, it is my opinion that the short sale lender should be made aware and if possible get it in writing that it is acceptable.
For the non-investor purchasing a short sale it would be in the best interest of all parties that the property is the home the buyer truly wants and the buyers agent sets expectation with the buyer giving proper time lines. A homeowner going through a short sale may have a sale date and any hesitancy removing contingencies or putting in multiple offers can put the homeowner at risk of foreclosure.
With the increase of legal action that has been taken against agents who may or may not have operated above board in the short sale lenders eyes; non of us can afford to take risks in any fashion. The more dark allies that people choose to go down the more eyes that will be upon us all. Though this is going to be a stressful time, I believe we can work through any changes and obstacles that come our way.
(Quote) Observe constantly that all things take place by change, and accustom thyself to consider that the nature of the Universe loves nothing so much as to change the things which are, and to make new things like them.
"Marcus Aurelius"
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
Thursday, March 1, 2012
Create a habit of discipline
( Quote) “Part of being a winner is knowing when enough is enough.
Sometimes you have to give up the fight and walk away, and move on to something that's more productive.” Donald Trump
I think one of the hardest things in life is to change old beliefs and patterns or ways of being in general in order to move forward and achieve our goals. We take the things we have learned as a child and recreate them over and over again. If these were all positive patterns that would be great and everyone would be successful; unfortunately that is not the case for everyone. Some of us may get lucky and be gifted with unimaginable talent and discipline but a majority of us typically go through some form of a hardship that teaches us what our unimaginable talents are therefore creating an act of discipline for our lives to nurture those talents and allow them grow.
I am going on my fourth year in business. When I look back at where I came from to where I am now , those are two very different people. I had to truly fight to let go of some of those things that didn't serve me anymore. I wanted change. I wanted success, But most importantly I wanted freedom. Freedom from the old tapes so I could fly. I had to create that habit of discipline everyday. I had to create a schedule and follow it religiously and then some. I had to have the desire, the passion, the drive and the commitment to the path that I had chosen. One thing I was chatting to my partner about today is after all this time you realize that the tapes will still play, nothing changes really. Its the decision you make every day to not listen to them so you are able to keep moving forward and accomplish what you need to accomplish.
I am in process of interviewing agents to join Lotus Realty Group. I remember when I started my business I was a bit nervous. I was originally with Keller Williams and I really liked it there however; my need was to create my own company. The nervousness I had was due to the fact I was starting a new name that no one knew about yet. The old tapes were playing strong. I am really glad that I did not listen because over 3 years later we have closed over 150 short sale transactions and provided training to many agents in this market and people do know who we are. I am very proud of that. The bottom line is; it does not matter where you hang your hat. If you have the desire, the passion, the drive and the commitment you will be successful no matter where you go. Some of the greatest businesses in the world started in someones garage.
We do offer a wide range of support, training and a competitive commission structure along with a warm environment. If you would like more details please contact Erik Orezechowski at 760-529-1732 or by email Erik@lotusrealtygroup.com for an interview.
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Sometimes you have to give up the fight and walk away, and move on to something that's more productive.” Donald Trump
I think one of the hardest things in life is to change old beliefs and patterns or ways of being in general in order to move forward and achieve our goals. We take the things we have learned as a child and recreate them over and over again. If these were all positive patterns that would be great and everyone would be successful; unfortunately that is not the case for everyone. Some of us may get lucky and be gifted with unimaginable talent and discipline but a majority of us typically go through some form of a hardship that teaches us what our unimaginable talents are therefore creating an act of discipline for our lives to nurture those talents and allow them grow.
I am going on my fourth year in business. When I look back at where I came from to where I am now , those are two very different people. I had to truly fight to let go of some of those things that didn't serve me anymore. I wanted change. I wanted success, But most importantly I wanted freedom. Freedom from the old tapes so I could fly. I had to create that habit of discipline everyday. I had to create a schedule and follow it religiously and then some. I had to have the desire, the passion, the drive and the commitment to the path that I had chosen. One thing I was chatting to my partner about today is after all this time you realize that the tapes will still play, nothing changes really. Its the decision you make every day to not listen to them so you are able to keep moving forward and accomplish what you need to accomplish.
I am in process of interviewing agents to join Lotus Realty Group. I remember when I started my business I was a bit nervous. I was originally with Keller Williams and I really liked it there however; my need was to create my own company. The nervousness I had was due to the fact I was starting a new name that no one knew about yet. The old tapes were playing strong. I am really glad that I did not listen because over 3 years later we have closed over 150 short sale transactions and provided training to many agents in this market and people do know who we are. I am very proud of that. The bottom line is; it does not matter where you hang your hat. If you have the desire, the passion, the drive and the commitment you will be successful no matter where you go. Some of the greatest businesses in the world started in someones garage.
We do offer a wide range of support, training and a competitive commission structure along with a warm environment. If you would like more details please contact Erik Orezechowski at 760-529-1732 or by email Erik@lotusrealtygroup.com for an interview.
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Friday, February 17, 2012
Incentives to Short Sale Vs Foreclose
It is no secret that the larger financial institutions are offering incentives for home owners experiencing difficulty with their mortgage payments to short sale rather than let the home go to foreclosure. Clearly it will take much longer and cost more money to foreclose. Foreclosures will only continue to drive prices down and keep the housing market weak in growth and recovery. I can sense the urgency with the lenders to stream line the process and get the properties off their books which is very helpful.
I think alot of us are wondering why the incentives are so high. Ranging from $15,000 to $35,000. I read an article where one person commented their opinion which made sense to me. " Are the lenders offering these large incentives for homeowners with underlying title issues and do not have the proper paper work to foreclose? With all of the previous allocations of abusive practices that have slowed the foreclosure process it is no surprise that they are taking extra precautions.
One of the concerns I have is; are homeowners going to jump at the chance to short sale their property in hopes to receive these incentives and is their decision to short sale contingent upon receiving incentives? Does this extend to mortgages backed by Fannie Mae and Freddie Mac? According to an article from C.A.R. released on 2/13/2012 it does not apply to Fannie and Freddie mortgages which makes up a pretty good percentage of loans out there. All guidelines are still unclear.
I believe this will light a fire for homeowners to make a choice to short sale sooner than later however; proper expectation should be set upfront. There is no guarantee that the homeowner will qualify. The number one incentive to short sale vs foreclose still rings true; The short sale will have less of an impact on your credit. Those who are frustrated with their current circumstances may say " I really don't care about my credit, nor do I care if I ever buy a house again." Seasons change and so do people and the things we want and desire. Wouldn't it feel better to know that even if you do not care now, if you do happen to change your mind, the option to buy is available? I like to keep my options open. It creates more possibility for the future.
Another incentive for a homeowner who has a non-recourse loan to short sale is the fact the Debt Relief Act expires at the end of this year. I believe it is not necessarily a good thing to sell to our clients cash incentives to put their home up for sale. I feel it is better to look at the facts of their situation and give them reality. Create a long term incentive to short sale instead of short term.
Tip of the day:
Citi Mortgage will not give incentives to a homeowner in a short sale if the BPO comes back higher than the offer. Whether or not their BPO is correct does not matter. If they do not counter and give an approval the incentives go away.
(Quote) You are the person who has to decide. Whether you'll do it or toss it aside; you are the person who makes up your mind. Whether you'll lead or will linger behind. Whether you'll try for the goal that's afar. Or just be contented to stay where you are.
Edgar A. Guest
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...
I think alot of us are wondering why the incentives are so high. Ranging from $15,000 to $35,000. I read an article where one person commented their opinion which made sense to me. " Are the lenders offering these large incentives for homeowners with underlying title issues and do not have the proper paper work to foreclose? With all of the previous allocations of abusive practices that have slowed the foreclosure process it is no surprise that they are taking extra precautions.
One of the concerns I have is; are homeowners going to jump at the chance to short sale their property in hopes to receive these incentives and is their decision to short sale contingent upon receiving incentives? Does this extend to mortgages backed by Fannie Mae and Freddie Mac? According to an article from C.A.R. released on 2/13/2012 it does not apply to Fannie and Freddie mortgages which makes up a pretty good percentage of loans out there. All guidelines are still unclear.
I believe this will light a fire for homeowners to make a choice to short sale sooner than later however; proper expectation should be set upfront. There is no guarantee that the homeowner will qualify. The number one incentive to short sale vs foreclose still rings true; The short sale will have less of an impact on your credit. Those who are frustrated with their current circumstances may say " I really don't care about my credit, nor do I care if I ever buy a house again." Seasons change and so do people and the things we want and desire. Wouldn't it feel better to know that even if you do not care now, if you do happen to change your mind, the option to buy is available? I like to keep my options open. It creates more possibility for the future.
Another incentive for a homeowner who has a non-recourse loan to short sale is the fact the Debt Relief Act expires at the end of this year. I believe it is not necessarily a good thing to sell to our clients cash incentives to put their home up for sale. I feel it is better to look at the facts of their situation and give them reality. Create a long term incentive to short sale instead of short term.
Tip of the day:
Citi Mortgage will not give incentives to a homeowner in a short sale if the BPO comes back higher than the offer. Whether or not their BPO is correct does not matter. If they do not counter and give an approval the incentives go away.
(Quote) You are the person who has to decide. Whether you'll do it or toss it aside; you are the person who makes up your mind. Whether you'll lead or will linger behind. Whether you'll try for the goal that's afar. Or just be contented to stay where you are.
Edgar A. Guest
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...
Tuesday, February 7, 2012
BPO Valuations
BPO Valuations have been harder to dispute. Due to the loss the lender will take on a short sale and the inability to pursue for a deficiency judgment they are becoming a bit more unrealistic on the values. It doesn't help that the BPO agent they send typically performs an exterior BPO. If the property is in a nice neighborhood but has alot of repairs such as water or termite damage, plumping issues or cracked tile; there is no way you will have a fighting chance if the BPO agent has not performed an Interior BPO. The BPO agent and the short sale lender will base their value on the last 3 sold properties in the neighborhood.
Values are still declining and will continue to for quite some time. One of the issues I see with the lenders basing the value off the last three sold comps is those listings were most likely sold 6-8 months ago. With the market decline there is no way that the BPO agents number is realistic. The fun part is trying to plead your case. It has been my experience that a short sale is an art of its own. It has to be set up correctly from the beginning. We have to be able to see a problem before it occurs in order to be able to overcome those potential challenges successfully.
We have to know the home inside and out. Any repairs need to be listed and if there is anything visible, pictures are always helpful. If there is severe damage it may be in your best interest to get a home inspection completed so you know exactly what you are getting yourself in to. This will also help you to be able to set expectations with your buyers. If a buyer finds out about damages after you get short sale approval you run the risk of the buyer either reducing their offer or they may back out all together and put you at risk of going to foreclosure.
A strong listing history is always helpful. We recently had a value dispute with one of our properties. We were getting killed because the property is in Solana Beach and prices in the neighborhood were higher than our offer. I had a strong listing history starting at the number the bank thought it was worth and did periodic price reductions. I was able to show them regardless of what their comps were, our listing history that shows where we started and where the offer came in was proof enough that the home is worth what a buyer is willing to pay. The second thing I had going for me was a list of detrimental factors such as; the home is located on a busy street across from a shopping center. The bank wanted $95,000 more than what our offer came in at however; after presenting all the above and detailed descriptions about the last three sold comps and how they differ from our listing we were able to get our value accepted.
We are going to continue to run into this issue and more value disputes will most likely have to be performed however; I believe if we take the appropriate steps in the beginning we will be able to achieve the ultimate goal which is a short sale approval. Good luck to you.
(Quote) Quality questions create a quality life. Successful people ask better questions, and as a result, they get better answers." Tony Robbins"
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...
Values are still declining and will continue to for quite some time. One of the issues I see with the lenders basing the value off the last three sold comps is those listings were most likely sold 6-8 months ago. With the market decline there is no way that the BPO agents number is realistic. The fun part is trying to plead your case. It has been my experience that a short sale is an art of its own. It has to be set up correctly from the beginning. We have to be able to see a problem before it occurs in order to be able to overcome those potential challenges successfully.
We have to know the home inside and out. Any repairs need to be listed and if there is anything visible, pictures are always helpful. If there is severe damage it may be in your best interest to get a home inspection completed so you know exactly what you are getting yourself in to. This will also help you to be able to set expectations with your buyers. If a buyer finds out about damages after you get short sale approval you run the risk of the buyer either reducing their offer or they may back out all together and put you at risk of going to foreclosure.
A strong listing history is always helpful. We recently had a value dispute with one of our properties. We were getting killed because the property is in Solana Beach and prices in the neighborhood were higher than our offer. I had a strong listing history starting at the number the bank thought it was worth and did periodic price reductions. I was able to show them regardless of what their comps were, our listing history that shows where we started and where the offer came in was proof enough that the home is worth what a buyer is willing to pay. The second thing I had going for me was a list of detrimental factors such as; the home is located on a busy street across from a shopping center. The bank wanted $95,000 more than what our offer came in at however; after presenting all the above and detailed descriptions about the last three sold comps and how they differ from our listing we were able to get our value accepted.
We are going to continue to run into this issue and more value disputes will most likely have to be performed however; I believe if we take the appropriate steps in the beginning we will be able to achieve the ultimate goal which is a short sale approval. Good luck to you.
(Quote) Quality questions create a quality life. Successful people ask better questions, and as a result, they get better answers." Tony Robbins"
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...
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