For Sale By Owners House, Home For Sale By Owner

As we are growing the short sales on the market, I was reading an item from a popular news summary source about how condominiums are lower than the price of a Corolla. I know real estate assets have been depreciating recently. Yet, at the prices we are seeing now, you are unquestionably better off buying a condominium than a Corolla. I like Corollas. They last for a long time, but purchasing assets that can cash flow is most likely a better deal.

We primarily do short sales. We are Minnesota’s best short sale squad. Nevertheless, I also look at the stuff that people should be taking advantage of right now. The existing times are much like the Great Depression where there is an equalization of wealth. The citizens who had all of the money lost a significant amount and the citizens who had zilch weren’t burned. This is the point in time to buy. We presently are seriously invested in real estate.

We don’t take the foreclosures and short sales casually. It is a hard time for property owners. Nonetheless, on the other end of the spectrum, this will help make housing more inexpensive. Citizens who are doing short sales right now will most likely be able to acquire a better house with the same amount of money. As the market continues to go downhill, the opportunities are all over. This is a wonderful time to invest. We look forward to talking to you again soon.

Perhaps now is the time to reconsider a change in thinking. If there was ever a time to buy while prices are lower.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

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We would like to introduce a member of our team. This is our negotiator, Shawn. Shawn and I would like to chat about a few of the myths and answer some of the questions that many individuals have.

First of all, you can short sale a house with a HELOC. The diversity between a standard second purchased money loan and a HELOC. HELOC stands for a home equity line of credit. It’s dissimilar from a traditional second mortgage because the bank has the capacity to go after the deficiency. It’s seen comparable to a credit card.

There are various challenges with a HELOC versus a normal second mortgage. Generally, with a typical second mortgage, because there is no authority to come after the home owner, most second mortgage holders will simply accept the $3,000. With a bank that has your HELOC, they boast a little bit additional clout. They are typically looking to get ten to fifteen percent in return. The home owner needs to understand that you may have to offer them $5,000 or more to resolve the debt. This can be done before or after the short sale is completed. Every bank is diverse with how they handle this process.

With a HELOC, a bank has the ability to place a judgement against you and go to the court to collect on your deficiency by garnishing your wages. So, the HELOC is not something that you can just forget about. The advantage of doing a short sale with a HELOC is that the original lien holder will give the bank that holds the HELOC a little money.

There are companies out there that you can go to if you have a HELOC. They will release the lien on the property, however they might not release the deficiency. Those are various stipulations that you can aim to work out a payment schedule with.

So, in summation, in some cases it’s better to do a short sale with a HELOC versus a foreclosure. Additionally, every bank is diverse in how they handle the HELOC.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

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

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Short Sale Power Hour is happy to welcome Trent Chapman, Short Sale Genius, back to the episode. Trent has exhausted a lot of time instructing agents how to escalate. He provides a form letter on his website, theshortsalegenius.com, to provide people an exemplar of how to impart the escalation message to the bank. In essence, it gives a universal script as to how you can justify that the short sale is better than foreclosure.

Unfortunately, since too many people have simply copied and pasted the manuscript, Matt Vernon may have a problem with it. For folks that don’t know, Matt Vernon is a bigwig at Bank of America. So, Trent will be contacting Matt Vernon to discuss the escalation letter.

The thought behind the letter is that Trent needs to help agents in knowing how to escalate. When you are addressing somebody that is higher up in the bank, you need to make the story as short as feasible. We propose that you tell them the following. This is the home. It has been on the market for ‘x’ days. We have an offer. It’s full market value. Here is the fair market value backed by these comps. Then you offer them the figures. With a short sale, you will earn this much cash and if this forecloses, you will get this much cash. That is the general picture of the email.

Escalation done the right way can make the short sale process move more smoothly. Furthermore, the bank will unknowingly appreciate the fact that you have the knowledge showing why it is in their best interest to approve a short sale. Check out Trent’s website for the full script to use in your escalations.

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A few weeks ago, we aired an episode on the subject of disputing BPO’s. Kevin had an interesting little occurrence at one of our favorite banks that relates to BPO’s. A folder 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 occurred next was a bit out of the ordinary.

The negotiator at Wells Fargo emailed Kevin an actual replica of the BPO. Knowing the BPO now, all of the documents are taken care of and Kevin was expecting approval. Yet, the negotiator at the bank tells Kevin that the bid isn’t high enough. Here is the remarkable part. The bid was for $50,500 and the BPO is lower. There are really three values on a BPO, but the only one that matters is the “as is” value. The “as is” value of this house is $49,900. The other values on the BPO are the swift sale value of $40,000 and the fully repaired value is $52,200. Yet, with a repaired value, someone will have to put capital into the house.

All of these values are in line with Kevin’s proposal. Yet, the negotiator still says that the bid needs to be higher. Kevin responded by telling her that the proposal is larger than the BPO and we already know what the BPO value is. The negotiator didn’t even recognize that we had the BPO, despite the fact that we sent her the BPO in the email with the proposal.

The fact that the offer isn’t good enough, even though it is greater than the BPO, just makes us furious. This is happening too frequently. The media would have you believe that lenders want to help house owners avoid foreclosure. Yet, this clearly shows that negotiators are asking for greater offers without a BPO that justifies the request for a higher proposal.

Why don’t the banks take the bid that meets their rules? Agree to the proposal and move on. Even if it doesn’t meet the guidelines, it is a good deal better than foreclosure. It does not help the house owner and it does not help the lender mitigate loss.

Realtors need to be confident in the value of their offer and they need to work hard to figure out the BPO. Banks need to empower their workers to think. Set up a structure where agents don’t need to escalate. Agree to the deals and move on.

Short sale FAQs and more.

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Let’s get the announcements out of the way to start with. Friday, August 13th is the date for Kevin and Fred’s Crush It Short Sales lecture. The price goes up to $99 after midnight August 10th. So, get signed up now. Additionally, please bear in mind that we wish for you to capture on film your own Short Sale Power Hour video. We want you to communicate one of your most horrendous, yet overcoming short sale stories. Put it into a film that is fewer than ten minutes. Post it on YouTube and offer it to us.

Now we are on to other topics, to be precise, FreddieMac. The conversations that Kevin has been having with FreddieMac recently have been preposterous. They have requested a $30,000 promissory note from one of our customers. The dilemma is that the house owner has a actual hardship. The loan is a purchased money loan and the offer is for more than what they feel the house is worth. Also, they are the single lien holder and the PMI company by now signed off on the agreement without asking for a promissory note.

This owner has a genuine hardship. He is in the education field and had to move forty miles away to rent a new home while they couldn’t sell their old house. So, they have been making payments on two properties for a few years now. There is no better illustration of an genuine hardship. The house owner has been advised by his lawyer that he should walk away from the home and let it go to foreclosure if he can not short sale the property.

FreddieMac has asked for 1.8 billion dollars in aid from the gov’t since they continue to run their company 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 home right now. It will cost the MI company lots more money if the house goes to foreclosure.

Short sale FAQs and more.

Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona

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As a Phoenix Short Sale specialist, I think that it is essentially crucial  that I continue to educate myself as to the risks involved in short  sales.  In order to achieve this, the Steve Horn Team went and visited the  law headquarters of Thomson Law. Their law business specializes in real estate  law as it relates to foreclosures and short sales.  This troop was a  wealth of knowledge to our team. Also, the outing helped us put into  view our responsibility as realtors in the short sale route.  As a  Phoenix short sale property agent I was reminded of quite a few items of  significance.

****Realtors are not lawyers and we as agents can not and should not  give legal counsel when it comes to deficiencies and judgments.  This is  the task of a capable legal professional, not the realtor.

****Our responsibility as a short sale specialist is to price the property accurately,  discover and acquire the buyer, and negotiate on behalf of the seller.

****As a Phoenix short sale real estate agent, my duty is to discover a win  win result between the bank and the seller to maximize the odds of  a victorious short sale.

As we listened to the information, I was reminded by the team at Thomson Law  that the short sale is the unwinding or unraveling of a loan and the  property is merely the asset that is attached to this loan.  As a  Phoenix short sale specialist, I take risk in listing short sale  properties based on the tax and legal implications.  It is our job as  agents to counsel all of our clients to seek legal and tax guidance prior  to taking in short sale listings.  At Short Sales Done Easy we make  short sales done easy. Nonetheless, we do our very finest to offer the proper  advice as well.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

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

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Today is mindset Monday and we haven’t had any new legal action. So, evidently, it is a nice day. Today’s mindset message revolves around a friend of Fred’s who is trying to get a short sale completed on the east coast. She asked some very pointed questions about what Fred would execute in her present situation. He noted that he would be relentless and telephone every day. What Fred realized after the telephone call was that she was searching for a How-to, but she could implement the How-to and still not get the deal completed.

Fred had a insight. It is not about what you execute, but it is about your mindset behind what you do. It is about what you really have faith in at your core. Brian Klemmer, a personal development guru, has a fantastic book called “If How- To’s Were Enough, We Would All Be Skinny, Rich, and Happy.” It is not about what Fred would execute in this state of affairs. It is about his mindset that he already sees the job as finished.

Your deepest commitment will equal the outcome. Many times the short sale is not about escalating or stacking your file in a specific order. If you choose to get the job done, no matter what the difficulty is, you will be successful.

Even though you may know a lot about short sales, the process doesn’t have to look the way you want it to look. If you find yourself asking how to do something, you need to step back from the state of affairs and ask why. You need to recognize what your deepest commitment is in life. Everyone of us has opposing commitments in life. For illustration, Fred has a profound commitment to workout, but he also has a deep commitment to munch chocolate. Depending on which commitment is deepest, the consequences will differ. So, identify your deepest commitment and you will make real the outcome from that commitment.

Short sale FAQs and more.

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Another unique guest graces the pages of Short Sale Power Hour. Derek Gilbert runs a business in the Phoenix vicinity as well as in Colorado. Derek has been with Keller Williams for about six years now. Last year, Derek and his family relocated to Colorado and joined Keller Williams doing REO and Short sale in both Arizona and Colorado.

Derek has been doing REO for a while now, but he jumped into short sales for a number of reasons. First, you can organize your business much better with short sales than with REOs. There is a elevated profitability in short sales that comes with that management. The average commission on REOs for Derek has only been around 1.5-2% with all of the overhead involved. Nevertheless, Derek enjoys making more capital earning 3% with short sales.

Derek is a go getter. He can close any deal and has demonstrated that over his time as a short sale agent. There are so many distinctive resources that you can use to fight your way through a short sale. A lot of banks will tell you that their policy is to not pay full commission to real estate agents. Nonetheless, those rules can always be adjusted.

For illustration, many lenders will try to slash the commission if the realtors are from the same broker. Remember that the lenders are not in the real estate trade. So, they don’t necessarily comprehend the real estate business. You, as an agent, need to help them comprehend the real estate industry now and then to get the commission that you deserve.

With REOs, the lender will always disburse six percent. They will shell out for a multitude of fees with an REO. So, why would you as an agent permit them to pay a discounted commission with a short sale. Keep in mind that they can try to discount your commission by one percent or they can incur an additional 10-12% from taking a property to foreclosure.

Do not allow the bank to chop your commission. Escalate up the chain of authority if you need to. Occasionally you have to help the bank comprehend the real estate industry and the banking industry.

Short sale FAQs and more.

Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona

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Can I short sale my house in the Phoenix market if my house is worth less than my mortgage balance? As a phoenix short sale specialist, I will accurately answer that inquiry. Remember, at all costs the bank doesn’t want to foreclose on the property. At hand are some unique scenarios that we need to establish to the bank in order for a triumphant Phoenix Short Sale.

***does the consumer have indication of hardship, the hardship may be created by loss of income, loss of occupation, divorce, employment relocation etc…

****short sale vs foreclosure, the bank in most 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 much more agreeable to do a short sale.

Please keep in mind, we have closed more than 100+ short sale properties. We have had individuals who are suffering severe hardship some individuals have not been as severe. 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 properly on what your smartest options can be.

Remember, at Short Sales Done Easy, we work diligently to make your short sale process go smoothly. There is no greater benefit to a succesful short sale than having a experienced real estate agent working on your side. Steve Horn is one of the most skilled short sale agents in the Phoenix area. Get a hold of him now to discuss the options that are available to you.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

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

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Your Phoenix short sale specialist believes that there are better alternatives then foreclosure, but loan modification has a very small percantage of success.  The loan modification is an attempt to lower you payments in order to retain the borrower in the residence.  There are numerous risks involved with the completion of a loan modification.

****most figures maintain the nationwide average for a successful loan modification is near to 10%

****Some banks will tender a tryout period but in most cases will not make known upfront that your credit may be affected while doing a trial period loan modification.

*****90% of my clients that I have talked to have been issued rejection letters from the banks when attempting to perform a loan modification.

Banks understand that a large percantage of borrowers that attempt loan modification will in time short sale or foreclose.  The banks duty is to collect mortgage payments, and when the bank can get the borrower to consent to a trial period they have achieved their task as the bank.  In the Phoenix market, with the high rate of foreclosure, the bank may not postpone auction dates even as the borrower is attempting a  loan modification.  As a short sale specialist, the Steve Horn Team can counsel you on all options.

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 experienced realtor working on your behalf. Steve Horn is one of the most skilled short sale agents in the Phoenix region. Get a hold of him now to discuss the options that are available to you.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

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

Technorati Tags: foreclosure, loss mitigation, short sale