Friday, June 22, 2012
Thursday, June 21, 2012
How do you avoid your short sale transaction falling apart?
Quote) “Coming together is a beginning. Keeping together is progress. Working together is success. "Henry Ford"
REALTORS, this is going to be a huge year for short sales. It is already happening. Home owners are rushing to take advantage of the Mortgage Debt Relief act that is expiring at the end of the year. More and more homeowners are realizing that it does not make sense to stay in a home that is continuing to depreciate and cut their losses now. As we move forward I wanted to share with you the most common problems I have seen in short sale transactions that can blow up your deal and put your sellers at risk of foreclosure. Here are the top 3:
HOA Delinquencies
As you know this can pose a problem once we receive Lender approval. From the time you take your short sale listing and the time it takes to get the short sale approval, the HOA fee will continue to go up along with penalties and interest. There is also the risk of the association attaching a lien to the property. I strongly suggest that you advise your clients to continue to pay the HOA if at all possible. If that is not a possibility then we need the HOA contact information to request a current payoff statement. We can atleast have an amount to work with to set expectation with a buyer. Obviously the amount will change depending on the amount owed and the association as the months go by. Some lenders will pay HOA delinquencies however; BofA will not and with a majority of the transactions being serviced by BofA this can be a difficult situation to work out.
Setting expectation with the buyer in the form of a counter stating that the lender may or may not cover certain fees and in the event this happens the "buyer" will be responsible for the additional costs up too $2000. That is just an example. The number you use will depend upon delinquencies, repairs, home warranty, termite, etc. In addition, if granted; homeowners are now allowed to contribute their relocation assistance money to costs such as these. Again, we will need to set that expectation with the sellers up front. It is extremely important that we are asking the sellers the right questions up front and explaining to them what will be expected of them as well. Which leads me to my next issue.
Seller/Buyer Cooperation
There is nothing more frustrating than working months on a short sale, getting approval and then a seller or buyer not willing to follow through with the transaction because they did not have all of the information up front about the short sale process, time frames, what needs to take place in order to be successful which will obviously vary from case to case. One of the things I look for is cooperation from the seller and the buyer. If I set expectation up front and I still feel that I am not going to get the cooperation I need from all parties to be successful I simply will not work with that person. This is a long process. I personally do not want to work on a short sale that is nearly impossible due to others lack of priority especially when I do not get a commission unless the deal closes. Why would we take on deals we will not get paid for?
That is why the pre-qualification process in the beginning needs to be thorough and honest. Don't tell your clients what they want to hear, tell them what they need to hear, the truth. I heard a quote a couple weeks ago that is so true in every situation in life be it personal or business; "The bitterest TRUTHS are far better than the sweetest lies." The truth will save you alot of waisted time, money and energy. Finally, this last issue has been catastrophic in short sales and quite honestly it is time for all of us to evaluate what is most important : Do I want to be right or do I want to be happy and close the deal?
Buyers lenders
Here is what we are looking at; extensions on approvals are not falling off trees. We have repeatedly explained that the short sale lenders are going to put a stop to extensions past a certain point. There is no guarantee that the short sale lender will grant one. The banks are finally working with us on short sales and have shortened their turn times however they want to close ON TIME. Buyers lenders are dropping the ball time and time again and requesting extensions. Sale dates, approval dates and rate lock expiration's are not being treated as priority. In addition, buyers lenders are requesting documents that should have been requested weeks before we received short sale approval.
I cannot stress enough that the minute a buyer puts an offer on a short sale that buyers loan officer needs to be on top of that loan. There needs to be a system they have to foresee problems before they happen and prepare accordingly so when that short sale approval comes from the short sale lender we will be able to close on time. We are dealing with peoples lives. This is not okay. All parties involved in the transaction need to understand the situation and what it is going to take to get it done and close on time and THEN all of us together need to move in that direction to see it through to the end. If one person in the transaction such as the buyers lender goes off task and requests an extension this is not working together and puts us at risk of foreclosure and looking poorly in our clients eyes.
Short sales are here to stay for awhile. There has got to be excellent organization, communication and follow through. If one of those important key pieces is missing in your transaction there is good chance the file will not close and you will have waisted your time and caused yourself unnecessary stress as these are all situations that are in our control.
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
REALTORS, this is going to be a huge year for short sales. It is already happening. Home owners are rushing to take advantage of the Mortgage Debt Relief act that is expiring at the end of the year. More and more homeowners are realizing that it does not make sense to stay in a home that is continuing to depreciate and cut their losses now. As we move forward I wanted to share with you the most common problems I have seen in short sale transactions that can blow up your deal and put your sellers at risk of foreclosure. Here are the top 3:
HOA Delinquencies
As you know this can pose a problem once we receive Lender approval. From the time you take your short sale listing and the time it takes to get the short sale approval, the HOA fee will continue to go up along with penalties and interest. There is also the risk of the association attaching a lien to the property. I strongly suggest that you advise your clients to continue to pay the HOA if at all possible. If that is not a possibility then we need the HOA contact information to request a current payoff statement. We can atleast have an amount to work with to set expectation with a buyer. Obviously the amount will change depending on the amount owed and the association as the months go by. Some lenders will pay HOA delinquencies however; BofA will not and with a majority of the transactions being serviced by BofA this can be a difficult situation to work out.
Setting expectation with the buyer in the form of a counter stating that the lender may or may not cover certain fees and in the event this happens the "buyer" will be responsible for the additional costs up too $2000. That is just an example. The number you use will depend upon delinquencies, repairs, home warranty, termite, etc. In addition, if granted; homeowners are now allowed to contribute their relocation assistance money to costs such as these. Again, we will need to set that expectation with the sellers up front. It is extremely important that we are asking the sellers the right questions up front and explaining to them what will be expected of them as well. Which leads me to my next issue.
Seller/Buyer Cooperation
There is nothing more frustrating than working months on a short sale, getting approval and then a seller or buyer not willing to follow through with the transaction because they did not have all of the information up front about the short sale process, time frames, what needs to take place in order to be successful which will obviously vary from case to case. One of the things I look for is cooperation from the seller and the buyer. If I set expectation up front and I still feel that I am not going to get the cooperation I need from all parties to be successful I simply will not work with that person. This is a long process. I personally do not want to work on a short sale that is nearly impossible due to others lack of priority especially when I do not get a commission unless the deal closes. Why would we take on deals we will not get paid for?
That is why the pre-qualification process in the beginning needs to be thorough and honest. Don't tell your clients what they want to hear, tell them what they need to hear, the truth. I heard a quote a couple weeks ago that is so true in every situation in life be it personal or business; "The bitterest TRUTHS are far better than the sweetest lies." The truth will save you alot of waisted time, money and energy. Finally, this last issue has been catastrophic in short sales and quite honestly it is time for all of us to evaluate what is most important : Do I want to be right or do I want to be happy and close the deal?
Buyers lenders
Here is what we are looking at; extensions on approvals are not falling off trees. We have repeatedly explained that the short sale lenders are going to put a stop to extensions past a certain point. There is no guarantee that the short sale lender will grant one. The banks are finally working with us on short sales and have shortened their turn times however they want to close ON TIME. Buyers lenders are dropping the ball time and time again and requesting extensions. Sale dates, approval dates and rate lock expiration's are not being treated as priority. In addition, buyers lenders are requesting documents that should have been requested weeks before we received short sale approval.
I cannot stress enough that the minute a buyer puts an offer on a short sale that buyers loan officer needs to be on top of that loan. There needs to be a system they have to foresee problems before they happen and prepare accordingly so when that short sale approval comes from the short sale lender we will be able to close on time. We are dealing with peoples lives. This is not okay. All parties involved in the transaction need to understand the situation and what it is going to take to get it done and close on time and THEN all of us together need to move in that direction to see it through to the end. If one person in the transaction such as the buyers lender goes off task and requests an extension this is not working together and puts us at risk of foreclosure and looking poorly in our clients eyes.
Short sales are here to stay for awhile. There has got to be excellent organization, communication and follow through. If one of those important key pieces is missing in your transaction there is good chance the file will not close and you will have waisted your time and caused yourself unnecessary stress as these are all situations that are in our control.
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
Friday, June 1, 2012
Bank of Americas NEW short sale system
" We trained hard, but it seemed that every time we were beginning to form up in teams we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing, and a wonderful method it can be for creating the illusion of progress while producing confusion and inefficiency." Petronius Arbiter- 210 B.C
Bank of America recently announced changes to their internal short sale system that would make the process run more effective and efficient. This has been one of many instances where changes have been made. I can appreciate the effort as short sales can be extremely time consuming and leave buyers and sellers pessimistic about the outcomes however; reorganizing their systems have created confusion for files that have been in process for months. The same issue was created when Bank of America first introduced the Equator system years ago. Files that had originally been faxed over had to be initiated in Equator therefore the turn time for a file was 9 months before Bank of America could train their staff properly and work out the kinks.
You will find the current issues the same as before. Until Bank Of America can get their teams running like a well oiled machine we will continue to have issues with files that got caught in the transition. I believe the new system will eventually be very helpful and shorten the time frames however; in the mean time we need to continue our diligence with the files and at the same time remain calm and patient. If we are calm and patient so will our clients as we are setting proper expectations with them.
Here are some details to some of the changes you need to be aware of:
1. Bank of America may require a homeowner to be delinquent 31 days before considering a short sale. This is per investor so you will not know if this is required until the file gets submitted to the investor for final approval. As you know to get to the final approval stage it takes some time. If your seller is not delinquent the investor may feel this is a strategic short sale and decline the file until their is a true hardship. I have also seen CHASE investors do this as well.
2. If you out source your short sale to a third party negotiator the LISTING AGENT still needs to complete a BofA third party authorization form.
3. If a homeowner receives a letter in the mail stating they are pre qualified for the BofA Cooperative short sale it does not mean they are approved for it. Please note the following in regards to the Cooperative short sale program:
a) Bank of America does not require the home to be owner occupied.
b)The amount a homeowner may get for relocation assistance is determined by the balance of the loan, loss amount, location of the property and the offer. If the seller receives an "Acknowledgment of Interest" the amount of the incentive will be reflected on the document.
c) If the seller receives relocation assistance money between $5000-$30,000, they will receive a 1099 however; if the home is their primary residence they will not be taxed. If it is an investment property they may be taxed. I would have your client speak to a CPA in this regard.
Again, setting proper expectations with the seller and the buyer will save allot of time and energy. When changes like this occur blaming can take place with all parties involved in the transaction. Experience has taught me that frustration most likely occurs due to lack of understanding and communication. Learning and communication are things that we can control. The better we can do this the better we can serve our clients.
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...
Bank of America recently announced changes to their internal short sale system that would make the process run more effective and efficient. This has been one of many instances where changes have been made. I can appreciate the effort as short sales can be extremely time consuming and leave buyers and sellers pessimistic about the outcomes however; reorganizing their systems have created confusion for files that have been in process for months. The same issue was created when Bank of America first introduced the Equator system years ago. Files that had originally been faxed over had to be initiated in Equator therefore the turn time for a file was 9 months before Bank of America could train their staff properly and work out the kinks.
You will find the current issues the same as before. Until Bank Of America can get their teams running like a well oiled machine we will continue to have issues with files that got caught in the transition. I believe the new system will eventually be very helpful and shorten the time frames however; in the mean time we need to continue our diligence with the files and at the same time remain calm and patient. If we are calm and patient so will our clients as we are setting proper expectations with them.
Here are some details to some of the changes you need to be aware of:
1. Bank of America may require a homeowner to be delinquent 31 days before considering a short sale. This is per investor so you will not know if this is required until the file gets submitted to the investor for final approval. As you know to get to the final approval stage it takes some time. If your seller is not delinquent the investor may feel this is a strategic short sale and decline the file until their is a true hardship. I have also seen CHASE investors do this as well.
2. If you out source your short sale to a third party negotiator the LISTING AGENT still needs to complete a BofA third party authorization form.
3. If a homeowner receives a letter in the mail stating they are pre qualified for the BofA Cooperative short sale it does not mean they are approved for it. Please note the following in regards to the Cooperative short sale program:
a) Bank of America does not require the home to be owner occupied.
b)The amount a homeowner may get for relocation assistance is determined by the balance of the loan, loss amount, location of the property and the offer. If the seller receives an "Acknowledgment of Interest" the amount of the incentive will be reflected on the document.
c) If the seller receives relocation assistance money between $5000-$30,000, they will receive a 1099 however; if the home is their primary residence they will not be taxed. If it is an investment property they may be taxed. I would have your client speak to a CPA in this regard.
Again, setting proper expectations with the seller and the buyer will save allot of time and energy. When changes like this occur blaming can take place with all parties involved in the transaction. Experience has taught me that frustration most likely occurs due to lack of understanding and communication. Learning and communication are things that we can control. The better we can do this the better we can serve our clients.
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
Cultural Shift In Todays Market Place
(Quote) “The first step towards getting somewhere is to decide that you are not going to stay where you are.”
When the housing crisis first hit in 2007/2008 and short sales and foreclosures began flooding the market place at such an alarming rate there is no doubt that it took us all by surprise. I do not think any of us were prepared for the onslaught of distressed properties and value declines. No one has ever seen this type of market to have the ability to manage it. When I think of the mess in its infancy I always think of the "Titanic". The unsinkable ship. One minute you are having tea and cookies on deck looking out at an endless sea. The future is bright and full of possibility and then suddenly the ship is sinking. You are in the water kicking your feet and trying to hold on to any debris available to stay afloat.
Some homeowners wanted to modify their loan in hopes to stay in the property while others wanted out from underneath their property that was continuing to depreciate by attempting to do a short sale or simply walk away and allow the home to go to foreclosure. Financial institutions were equally scrambling to untangle the mess however; they did not have a successful methodology at the time to handle such transactions properly. Only 10% of short sales were closing with a 9 month turn time.
I have been negotiating short sales for homeowners and other REALTORS for over 4 years since the very beginning and I have to say how awesome it is to see the change that has taken place with the financial institutions and their willingness to improve the short sale process and help those who truly need it. The reality is in order for things to change and improve we all must be willing to do the same. A problem cannot be fixed with the same consciousness that created it.
After nearly 5 years of trial and error; the financial institutions have finally pulled together their resources and implemented programs that will give home owner’s incentives to short sale their property in lieu of foreclosure. I feel that there is a level of mutual understanding between organizations and communities that there has to be a meeting in the middle for cooperation to take place.
In addition they have also created systems that will allow a short sale transaction to run smoothly and close quickly. The average turn time to date is now 2-4 months with an average close rate of 80% and climbing. Both lenders and real estate professionals coming together towards a common goal’ to help homeowners avoid foreclosure by streamlining the process will allow a quicker housing recovery and instill trust back into the community.
Here are some of the incentives for homeowners facing foreclosure:
Bank of America holds nearly 70% of the distressed property inventory and has worked extremely hard to ensure nothing falls through the cracks by implementing a smoother internal process through their equator system. Please note: due to the changes they are making; current files may be delayed as the transition takes place.
In addition, BofA is offering homeowners incentives up to $30,000 to short sale their property. Keep in mind that not everyone will qualify for these incentives. It is important to set proper expectations with your clients.
Finally, BofA is making the process easier for ACTIVE DUTY MILITARY. If you are a REALTOR qualifying a short sale candidate you will want to ask your client if they are in the military. If we know this upfront your short sale request will be re- directed to Bank of Americas "Military Short Sale Team" which will allow fewer delays and push the process along faster. For more information go to the BofA website.
Chase, Wells Fargo and Citi have also improved their process and are offering large incentives. All four of these financial institutions participate in the HAFA program which offers $3000 in relocation assistance.
If you are a seller and you are experiencing a hardship due to a change in income, divorce or job relocation and you can no longer afford to make your mortgage payments then NOW would be the perfect time to take action and see if you qualify for these programs.
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we 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, 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
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