loss mitigation
Foreclosure Sale Dates And Home Owners
Hello and welcome to our blog. We are Fred Weaver and Kevin Kauffman, Arizona’s leading short sale realtors. We have closed hundreds of short sales and we would like for you to make contact with us to learn more.
We wanted to talk to you today regarding what is going on in the short sale industry today. In particular, can foreclosure sale dates be deferred and as a property owner when should you begin working with us in a short sale transaction.
Lately, some of the investors don’t want to suspend foreclosure sale dates as much as they have in the past. A year ago, if we were talking, I would have informed you that we could get your home on the market and obtain an offer in 60 days allowing your foreclosure sale date to be postponed. To be very honest, that is not occuring any longer.
If you are in a spot where you are 60 or less days from foreclosure, please call us. We aren’t saying that your house is going to go to foreclosure. Still, if you have not missed a payment thus far or you are merely a payment or 2 behind, please contact us shortly. The sooner you act, the better off you will be. If we have more time, we have a better probability to make a positive outcome for you.
You ought to make sure that you are dealing with a proficient team that has relations within the lender and can successfully complete your short sale. The banks do want to help you out, but you need to make contact with us sooner rather than later.
Thank you for joining us today. Please fill out the form here on our website so that we can be in contact with you quickly. Have a great day!
Get more information on selling your home from Kevin and Fred at My First Short Sale by the Short Sale Specialists of Arizona
How Do We Close Tons Of Short Sales
Hello. I’m Josh Pomerleau with Shortsaleshift.com. I’m being joined by my partner, Sarah Willman. We are Minnesota’s best short sale group. Today we would like to answer one of the most prevalent questions we hear. Everybody wants to know how we close short sales so effectively?
Firstly, our mindset is that we are not going to give up on a file. Furthermore, no matter what the bank says, it can be completed. Nothing is ever what it seems in this trade. At the end of the day we are going to uncover a bank employee that will give us the solution we are searching for.
Second, our method is very detailed. This helps tremendously when we are a few weeks into the procedure and the lender does not know what is going on, we can rely on our earlier experiences and our system full of simple to access information.
Finally, we do a lot of pre screening. We examine our sellers to make certain that the short sale is a good alternative for them, because it is not the best alternative for everybody. We also screen the house to make sure that it is priced correctly. And lastly, we examine the buyers to make certain that they are willing to stick with us throughout this process.
We have also obtained lots of education lately. Josh recently met with seven of the best short sale agents in the nation to compare their process. They are people that understand the short sale procedure at a very high level and that was our objective too. We have now achieved that goal of understanding the short sale method at a high level.
All of these qualities make us the best short sale realtors in Minnesota. Call us or get in touch with us today.
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Growing Your Short Sale Company
Kevin is joined by a couple of the top agents in the short sale trade, Josh Pomerleau and Sarah Willman. Josh and Sarah are the premier short sale specialists in Minnesota. Short sales did not show up two years back in Minnesota like they did with Arizona short sales. They are just starting to swell in numbers. Nobody was attempting to assist residence owners in the Minnesota market. Thus, Josh and Sarah took control of the situation.
Through the process, they learned that dealing with someone else originally was a huge benefit. After they got comfortable with the process, they put good systems in place to deal with as many as 25 to 30 listings at a time. When you get the method down the short sale really becomes a deal like any other. Even though there are challenges in the short sale, when you have a system in place and a unmistakable frame of mind about not accepting ‘no’ for an answer, the short sale procedure is easier. With a goal of completing 100 short sale listings, Josh and Sarah recognize that the system they have put in place will help them accomplish that goal.
Nevertheless, knowing that they can not get to 100 completed listings without lead generation, Josh and Sarah use a couple strategies that have worked well for them. Firstly, bankruptcy lawyers and lawyers in general are a terrific source of leads. Especially with higher end clients, when taking into consideration a short sale, the first person a higher end client turns to for guidance is their attorney. Secondly, because of their familiarity, Josh and Sarah get many referrals from other realtors.
Your system, mindset, and lead generation are the biggest keys to success with a short sale business. Having a team to work with is also a incredibly critical part of success.
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Proposal Greater Than BPO Equals Everbody Wins?
A few weeks ago, we aired an installment about disputing BPO’s. Kevin had an attention-grabbing little incident at one of our favorite banks that relates to BPO’s. A file was setup and assigned to a processor at Wells Fargo. They asked for some supplementary documentation, which were provided. Then, Kevin asked what the BPO value was. What happened next was a bit out of the ordinary.
The negotiator at Wells Fargo emailed Kevin an actual duplicate of the BPO. Knowing the BPO now, all of the papers are taken care of and Kevin was expecting approval. Yet, the negotiator at the lender tells Kevin that the bid isn’t high enough. Here is the fascinating part. The bid was for $50,500 and the BPO is lower. There are actually three values on a BPO, but the only one that matters is the “as is” value. The “as is” value of this residence is $49,900. The other values on the BPO are the fast sale value of $40,000 and the completely repaired value is $52,200. Yet, with a repaired value, someone will have to put cash into the property.
All of these values are in line with Kevin’s proposal. Nonetheless, the negotiator still says that the proposal needs to be higher. Kevin replied by telling her that the proposal is larger than the BPO and we already know what the BPO value is. The negotiator did not even realize that we had the BPO, despite the fact that we sent her the BPO in the email with the bid.
The fact that the offer is not good enough, even though it is higher than the BPO, just makes us angry. This is happening too often. The media would have you think that lenders want to help residence owners steer clear of foreclosure. Nevertheless, this undoubtedly shows that negotiators are asking for higher offers without a BPO that justifies the request for a higher proposal.
Why don’t the banks take the proposal that meets their rules? Accept the bid and move on. Even if it doesn’t meet the guidelines, it is a lot better than foreclosure. It doesn’t help the residence owner and it does not help the bank mitigate loss.
Realtors need to be confident in the value of their proposal and they need to work hard to figure out the BPO. Banks need to empower their staff to think. Set up a procedure where agents do not need to escalate. Agree to the deals and move on.
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Tod Barton Chats Short Sale Business
Today, the boys of Group 46:10 are joined by Tod Barton, Short sale specialist in Las Vegas. He’s been doing short sales for about 2 1/2 years, completing roughly 120 over that time. Tod has a assembled a nice team to help him complete short sales. In his office there are two full time negotiators, 2 administrative workers, two buyers agents, and a listing agent. Each and every one of these people have been vital to closing 120 deals.
Tod pays his negotiators on commission. When they produce results, they get rewarded. The mindset that Tod and his staff take is simply to not take ‘no’ for an answer. Being relentless is critical to this business. Tod and his team try to escalate in a professional way. Nonetheless, that low level member of staff at the bank only gets a few chances to do their job. If they can not assist the short sale process, you have to find someone else to speak to.
Tod utilizes a simple rule that his negotiators need to get the same response from the lender three times before they go on to the next step in getting the short sale done. He sites many times where the lender has told him that the foreclosure sale date has been delayed, but calling the trustee reveals that it has not been postponed. So, the next level for his squad occasionally involves having the trustee call the bank.
Each short sale agent runs their agency in a different way. Nonetheless, the fundamental theme remains the same. Whether you are Tod Barton in Las Vegas, or Group 4610, Arizona’s premiere short sale specialist, you have to be relentless and never accept ‘no’ for an answer.
It is important to note that the short sale realtor has to escalate to the investor even more today than they had to in the past. Many times, they are not nearly as busy as the lenders. Going around your servicer when it is necessary it strongly recommended. If the lender is not willing to do their job, you have to move to the working with the investor.
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Short Sales And Missing Home Payments
Welcome to Group 4610′s blog. We are Kevin Kauffman and Fred Weaver, Arizona’s Premier Short Sale team. We have completed hundreds of short sales over the past couple years. However, this video isn’t about us, it is about you!
One of the frequent discussions we have with home owners is about missing payments. Many of these residence owners are even now current on their mortgage payment. Maybe they have not yet experienced the drop in their earnings or they haven’t entirely exhausted their entire savings account so far. They often want to know whether they should or should not miss payments.
Recognize a couple things about short sales. It is feasible to close a short sale without missing payments. Yet, with the regularity that short sales are being completed, the lenders aren’t even allowing for a short sale until the property owner is missing payments. We suppose that the lenders have made that change since they don’t want the house owner to take advantage of a short sale and still elude the harmful effects of missing payments. In addition, it is definitely a way for the banks to keep short sale numbers down. There is not a single bank in the country that has enough workers to handle the short sale files they already have.
We are never going to inform you to make or miss your payment. Nonetheless, we can tell you that the lender will want to see you miss some payments before they choose to even look at your short sale. Most of our customers are ok with the credit hit and knowing that they can get back into a house in a few years. We will talk about the decisions that are in front of residence owners in a future episode.
Fill out the form on our website so a member of our group can have a brief discussion with you. Thank you for joining us today. We will speak with you again soon.
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Get An Experienced Short Sale Agent
Hello and welcome to our blog. We are Kevin Kauffman and Fred Weaver, Arizona’s premier short sale agents. Thank you for taking a moment out of your day to check out our website. We would merely like to let you know that we have successfully completed hundreds of short sale transactions at a 90% achievement rate over the last few years. However, this blog is not about us. It is about you, the property owner.
It is extremely vital that you have an agent on your side that is working with your bank who doesn’t only agree with the lender and everything they say. The short sale can be a little bit tense to you as a property owner, so we want to give you some framework as to why you want a first-rate short sale realtor on your side.
Here is a straightforward illustration. We have a short sale that has an offer for $50,500 and the bank has a value on the house of $49,500. Notice that the value of the property is in fact less than the proposal. So, this agreement should very easily be accepted. The value of the home comes from a BPO, a brokers price opinion. When you work a short sale, the lender hires an independent business to find a value for the residence. The lender uses this value to decide whether or not they should make use of the short sale or foreclose on the home.
In this exact instance, the bank declined the bid because the offer wasn’t sufficient. Essentially, the bank employee making this choice does not understand the idea of loss mitigation.
Unless you have a real estate realtor on your side that is willing to assertively pursue the deal, you may have difficulty completing a short sale. In the end, if we did not keep fighting, this residence would have gone to foreclosure.
In general, 20-40% of short sales close successfully. With a 90% achievement rate, we feel like we can be your best friend in this situation. We find better results than the majority.
We encourage you to come back to the blog and contact us. We look forward to working with you shortly.
Get more information on selling your home from Kevin and Fred at My First Short Sale by the Short Sale Specialists of Arizona
FreddieMac Merely Doesn’t Get It
Let’s get the announcements out of the way first. Friday, August 13th is the time for Kevin and Fred’s Crush It Short Sales class. The price goes up to $99 after midnight August 10th. So, get signed up now. Furthermore, please remember that we wish for you to record your own Short Sale Power Hour video. We want you to communicate one of your most horrible, yet overcoming short sale stories. Put it into a capture on film that is less than ten minutes. Place it on YouTube and submit it to us.
Instantly we are on to other topics, specifically, FreddieMac. The conversations that Kevin has been having with FreddieMac recently have been ridiculous. They have asked for a $30,000 promissory note from one of our customers. The difficulty is that the property owner has a genuine hardship. The loan is a purchased money loan and the proposal is for more than what they think the property is worth. In addition, they are the lone lien holder and the PMI company already signed off on the agreement devoid of asking for a promissory note.
This owner has a actual hardship. He is in the education field and had to move forty miles away to rent a new house while they couldn’t sell their old home. So, they have been making payments on 2 homes for a few years now. There is no better illustration of an actual hardship. The house owner has been advised by his attorney that he ought to walk away from the home and let it go to foreclosure if he can’t short sale the property.
FreddieMac has asked for 1.8 billion dollars in help from the gov’t since they continue to run their corporation into the ground. If FreddieMac turns this short sale down, Kevin and Fred might have to go to the Mortgage Insurance company that is insuring the property right now. It will cost the MI company a lot more money if the property goes to foreclosure.
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Can I Execute A Short Sale Behind On Equity?
Can I short sale my house in the Phoenix market if my home is worth less than my mortgage balance? As a phoenix short sale specialist, I can accurately answer that question. Take into account, at all costs the bank does not want to foreclose on the property. There are some diverse scenarios that we want to establish to the bank in order for a victorious Phoenix Short Sale.
***does the consumer have evidence of hardship, the hardship can be produced by loss of salary, loss of employment, divorce, work relocation etc…
****short sale vs foreclosure, the bank in nearly all cases is going to want the home to sell as a short sale vs foreclosure.
****Is there a foreclosure date set. If there is a foreclosure date set bank may be a lot more eager to perform a short sale.
Please hold in mind, we have closed more than 100+ short sale properties. We have had clients that are suffering tremendous hardship additional individuals have not been as harsh. Bottom line is there is a much higher success rate on the short sale, than there is on a loan modification. As a phoenix short sale real estate agent, I will advise you appropriately on what your smartest options can be.
Remember, at Short Sales Done Easy, we work hard to make your short sale process go smoothly. There is no greater benefit to a succesful short sale than having a skilled real estate agent working on your behalf. Steve Horn is one of the most successful short sale realtors in the Phoenix area. Contact him today to discuss the choices that are available to you.
Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona
The Equity Versus. Hardship Debate
A recent rash of phone calls has been coming in to the Steve Horn Team office. These phone calls have been focused on Equity concerns. “I do not have a difficult hardship situation, but I am not going to continue on the road that I am on when I am $250k behind in my equity position.” This becomes a grey area when you are dealing with the thought of short sale versus. foreclosures. As a phoenix short sale specialist, I cannot advise my clients what to do, I can give them choices and allow them to make an educated conclusion. When a client tells me short sale versus. foreclosure and then just says they are going to allow the residence to go to foreclosure, my comment back is “why don’t you let the bank to choose if they will short sale the home.”
Here are the scenarios that we are running into:
1) I do not show a decline in income and I am showing positive growth in our earnings
2) I have a high FICO score
3) I spoke to an attorney
4) Not certain: short sale v foreclosure
There are many diverse variables that the lender thinks about when they agree to a short sale. The situation mentioned above is a situation we see daily and each day we are able to get written approval letters from the bank. These approval letters may have stipulations and conditions from the lender, Nevertheless, if you do not want a foreclosure on your record….short sale is a great decision.
Consider that the short sale will hurt your credit score less than foreclosure. If you just give up and pitch the keys at the bank they might come after you to recover some of the funds that you owe them. Short sale is the best decision in almost anybody’s case.
Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona
90 Day Short Sale Plan
Steve Horn comes from you today with some great details on his 90 day short sale plan. When you come to Steve Horn to have your property listed as a short sale, it is his aim to have your sale completed within 90 days. Let’s walk through the 90 day short sale plan that we have.
The program starts when we get the purchase contract. In most cases, it will take two to three weeks to receive a purchase contract on your property. So, from the day we catalog it to the day we receive a contract it should take about three weeks depending on the price range. If you have a higher end listing it might take a bit longer.
My negotiators must get your short sale completed within ninety days or they do not get paid. Those are the rules for our negotiators. In the original 30 days my negotiators have to get your file assigned to a bank negotiator and ask for an appraisal. The second thirty days is for the bank to gather the rest of the information they need and send it to their investor for written agreement. Written approval is the most essential thing that my negotiators are trying to obtain.
When we have get a written agreement from the investor we have the last 30 days of our ninety day program to complete the deal. That is what we are all motivated for. We realize that if we can get this short sale completed in ninety days, we can stay away from all of the troubles that can happen.
Keeping in the 90 day gap, we diminish the likelihood of the buyer backing out and decrease the issues that can occur with your credit score. Also, appraisal issues are reduced and eventually, we stay away from foreclosure.
Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona
Sizzling Tip For Short Sale Realtors
A fantastically principal topic that has come up in the last few weeks is our spotlight today. We’ve seen this quandary pop up over the last few weeks and we want you to be able to steer clear of it.
Make certain that the lender you are dealing with on a short sale is not the lender where the home owner has a checking account. We have now had many people over the course of the previous few weeks that have approached us on this issue. Both current clients and soon to be customers have been telling us that the have missed payments and the lender has taken the money out of their checking account without their authorization.
We believe that the note you signed for the mortgage is only secured to the home. It is not secured to the checking account. However, we suppose that the lenders have revised or applied their checking account terms of service to obtain their cash. Essentially, they are saying that if you are deliquent on other accounts they can acquire the money from one account to apply it to a different account. They are stealing it without any approval.
We don’t know if this is respectable or immoral, but it is occuring. So, there is a path around this. Ask your home owner up front where their checking and savings accounts are presently held. Make certain that if they are not held in the bank that you will be doing a short sale with. Immediately have them close down those accounts and get the money out. It is incredibly critical that you know this as short sale agents and that you share this information with your clients.
Get the word out to other teams and your clients. Don’t let this become a difficulty for the people that you are trying to assist through the short sale method. Also, please comment below if you have seen this occur already. Let us know what banks are using this scheme.
One additional thing to note, we will be in Las Vegas on August 25th with our Crush It short sales seminar. So, get your ticket today!
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Short Sale Homes Vs. Foreclosure Homes
Steve Horn with Short Sales Done Easy is coming to you live from a foreclosure home. You are about to distinguish the differentiation between a foreclosure property and a short sale. This is an extreme situation in downtown Phoenix, which is a dreadfully depressed neighborhood with a elevated crime rate.
When you are looking to purchase a foreclosure as a consumer, the lender is going to sell these homes in ‘as is’ condition only. Nevertheless, with a short sale, repairs can be completed at close of escrow. Note that this home has glass all over the floor, missing cabinets in the kitchen, some dim boarded up rooms, and a lot of other terrible surroundings.
As a consumer in this market, your plan may be to uncover a foreclosure home that you can close on fast. Yet, in this market you are not going to have a lot to choose from. Nonetheless, with a short sale there will not be as much of a demand because of the waiting stage that can be three to six months. When we act for buyers, we want to get them the finest deal. Yet, the finest deal can be like this home where you have to make quite a few improvements to the house in order to make the home your own.
Generally speaking, short sale houses are going to be in much better condition because the residence owner has not vacated the property. Fortunately, we deal with both the foreclosure properties and short sale houses. So, we can advise you as to what will be the greatest fit for you.
There are many investors emerging back into the market and this house will be a great investment. It will perhaps be sold for about $25,000 and rent out for about $600 per month with four bedrooms and two bathrooms. Check out our site for more details on short sales and foreclosures.
Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona
Post Short Sale Approval Troubles
Today, Kevin and Fred have decided to cover a subject that they have never covered previously. Also, they haven’t ever discussed it in one of their Crush It classes. The topic is post short sale approval troubles. Essentially, you already have an approval from the bank and troubles happen. How do you deal with them? What is actually occuring out there?
With a transaction that closed yesterday, our escrow officer was looking to get the last HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD in spite of the fact that all of the terms were met. The worst part was that the negotiator was not willing to talk in plain english to clarify that the HUD had to look a particular way. It is critical to note that just because the transaction is approved, it does not mean it is completed.
Understand that your approval note at most lenders says that they have to approve of the final HUD. Because the approval letters do not identify what they are paying and what they are not paying, you may not know if they will grant it.
We had one more post approval dilemma recently, with an approval from the controller. We scheduled the closing. About a week into the closing, we got a shout from a new negotiator that introduced themselves as the the new negotiator for this file. She asked for a number of papers so that she could get the folder accepted. When we told her that we already had the file approved, she let us know that that agreement was no longer applicable because they never got the file approved from the investor.
This is the sort of stuff that is happening out there that you will not here in a ordinary short sale teaching seminar. The point is that there are post approval troubles and you are going to have to deal with them if you want to be victorious in this business.
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GMAC Short Sale Process Getting Better
Often times we laugh at some point in this show, but we have to keep a upbeat approach because reflects on our business and we need to keep that upbeat outlook to deal with the lender and get short sales completed fast. So, while we have to be hard with them, we try to maintain a upbeat approach.
This is accurate with GMAC, which is our new favorite lender after venting yesterday in relation to Wells Fargo. GMAC is utilizing Equator which is a short sale folder management system which helps dialogue between us and the lender. It is extremely helpful. We are working on a folder that is moving as fast as we have ever seen. They did forward us a counter offer that was a speck high, but on the whole, GMAC has been incredibly easy to deal with. We had the property listed at that price for close to a month. So, at present we do love GMAC. We just want you to recognize that there are optimistic things occuring at the bank.
When we get an offer that nets them a decent percentage of what they are losing we have a improved chance at completing the file. If you are an agent, one of the most crucial things is to detect is what the BPO comes in at. They have been telling realtors the percentages that they are attempting to net lately. So, if you identify the BPO and you know what percentage the lender is trying to get back, you will be ahead of the game. You will also know whether you need to challenge the folder and get it closed in a timely manner.
Thanks for tuning in to Short Sale Shift. If you have a house that you would like to short sale in Minnesota, please do not hesitate to speak to us today.
Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota