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Plan Ahead for 2010 – Get Educated on Short Sales for the 2010 Stampede

Nov 122009

2010 is looking to be the biggest short sale year yet. If you’ve been avoiding them you might be out of business next year. I suggest agents become educated in short sales. Here is yet another article in North County Times about the opportunity.

“We have a massive government intervention going on,” said Sean O’Toole, founder and chief analyst for real estate Web site ForeclosureRadar. “We simply don’t have the political will to foreclose on these folks.”

“What’s pushing it forward is there’s such a lack of inventory, and you’ve got this huge Realtor force that needs something to sell,” he said. “This (Short Sales) is one of the things that gives them something to sell.”

Short sales also suffer from being complicated deals involving multiple lenders and thus multiple bureaucracies. In the end, the deals can take nine months or longer to complete.

“You’ll have a lot of people lining up to offer short sales, but it’s tough to get the banks attention to give them a deal,” said Nathan Moeder, a real estate economist with The London Group.

Troy Huerta continues to be the Short Sale Expert in San Diego. As a Realtor in San Diego the best thing you can do to improve your earnings in 2010 is contact Troy to help you become successful selling Short Sales.

Beta Testing Equator (REOTrans) Platform for Short Sales at Lender Help

Banks, Blog, Partnerships, Short Sales, Trends 1 Response »

Nov 042009

Troy Huerta has been beta testing the new electronic short sale system for Bank of America for the past few months. He is liking what he is seeing working with BofA. Troy feels that putting the short sales process on line will continue to shorten the process.

DS News recently had an article regarding this effort.

“This is the first time that short sales have been handled through an electronic platform,” said Equator CEO Chris Saitta. “With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents.”

“Short sales can be a daunting, complicated, frustrating task for everyone involved,” Saitta said. “This fresh approach using our sophisticated platform makes it fast and efficient for all parties involved.”

Troy sees the software platform as helpful, but the content placed in the forms is still key and you need an expert to managing this effort to succeed.

Click here for the article

Short Sales turn around getting shorter, but not without expert

Blog, Short Sales, Trends No Responses »

Oct 272009

The SF Chronicle had good article about short sales and the process is getting easier for pre-foreclosure Specialists. But if you use your realtor friend in the neighborhood you are not going to see any reduction in the turn around time. If you want success – seek out the specialist.

…Last year, lenders often took three to six months to respond to a short-sale offer…. the Obama administration put pressure on lenders to do more short sales and fewer foreclosures…. If buyers know they can expect a response from the lender in 30 to 45 days and not four to six months, they’ll be more inclined to make an offer….

Click here to get the full article

Lender Help and Troy Huerta in Smart Money

Lender Help Success, Partnerships, Press, Short Sales No Responses »

Oct 142009

We want to thank Jim Kortovich from Smart Money for supplying us the reprint of the August 2009 article

Click below for the PDF:
Troy Huerta and Lender Help in Smart Money a WSJ Magazine

NC Times Agree – Realtors need Short Sale Experts

Banks, Blog, Short Sales, Trends No Responses »

Sep 122009

Last week there was an article in the NC Times here in San Diego about Realtor’s advantage in using specialist for short sales. I agree with:

But agents say short sales have grown more complicated than ever, because of their sheer number, because of the prevalence of second loans, and because several large lenders have recently merged with others. Agents have complained that it’s possible to call a lender three times in a week and get three different people responsible for the same property.

But take great exception with this:

Beer said the situation may have eased in the last couple of months as lenders develop standards for approving short sales. The second loan is often paid off at 5 cents on the dollar, a low percentage that is nonetheless fair because such lenders get nothing in the event of a foreclosure, Beer said.

I don’t feel there has been much easing because the banks are so overwhelmed. Most second lenders will not even consider releasing the lien for less than 10% of their outstanding balance. BofA is now requesting the sellers provide a small cash contribution at closing or sign a promissory note as part of a morale obligation.

Here is the link to the article

Real Estate Insight working with Coldwell Banker

Blog, Partnerships, Short Sales No Responses »

Sep 102009

With it clear that Short Sales will be a significant part of the real estate business for at least the next 5 years, we are partnering with other real estate companies to help facilitate faster closure of Short Sales. The San Diego and South Riverside Coldwell Banker Group is the latest large partnership Real Estate Insight has developed.

San Diego Business Journal did a nice article on my arrangement, but got a few of the details wrong. Real Estate Insight has not merged with Coldwell Banker. I am running their Short Sales Division, but as a consultant.

But as they say any publicity is good publicity. Here is a link to the article

Treasury paying banks and sellers to Shortsell

Blog, Laws, Short Sales, Trends No Responses »

Sep 092009

It looks like soon the Federal Treasury will be paying banks $1K and sellers $1.5K . They are also looking for incentives o secondary holders. This sounds like great news for moving Short Sales forward.

Under the Treasury plan, which is expected to be announced this month, servicers would get a $1,000 “success fee” when a short sale is completed, according to short sale experts who have been briefed on the policy. The home seller would receive up to $1,500 to assist with relocation expenses, similar to the “cash for keys” programs that various servicers offer.

Treasury officials are working with an advisory committee to determine how to accommodate the holders of second liens, which have been a big hurdle to completing short sales. Much of the debate around short sales is centered on whether the holders of second liens will receive a fixed amount or a percentage of the short sale price.

Short sale info here

Short Sales Process Only Gets Harder

Press, Short Sales No Responses »

Aug 252009

The North County Times did an article about the difficulty of doing Short Sales. It reinforces the idea that you need an expert on your side. You wouldn’t go to court without an experienced attorney. Why would you go to your lender without an experienced short sale specialist?

Short sales have always been more complicated and taken longer than other sales because lenders usually verify financial hardship and determine what is an acceptable amount to lose on the property. In many cases, a second lender has loaned $50,000 to $100,000 on a property and is being asked to settle for $10,000 or less. Some lenders also demand that the borrower repay a portion of the remaining balance over several years after the deal closes.

But agents say short sales have grown more complicated than ever, because of their sheer number, because of the prevalence of second loans, and because several large lenders have recently merged with others. Agents have complained that it’s possible to call a lender three times in a week and get three different people responsible for the same property.

Beer said the situation may have eased in the last couple of months as lenders develop standards for approving short sales. The second loan is often paid off at 5 cents on the dollar, a low percentage that is nonetheless fair because such lenders get nothing in the event of a foreclosure, Beer said.

Agents have said pressure from federal and state governments has helped to discourage outright foreclosure, thus gumming up real estate markets. But Beer said such pressure and the smaller losses that result from short sales are also incentive to move them along.

I agree short sales have grown more complicated than ever…and Beer said the situation has eased in the last couple of months.

I don’t agree that there has been much easing because the banks are so overwhelmed. Most second lenders will not even consider releasing the lien for less than 10% of their outstanding balance. Bank of America is now requesting the sellers provide a small cash contribution at closing or sign a promissory note as part of a morale obligation.
Click here for the rest of the article

Short Sales Still a major portion of new home sales

Short Sales, Trends No Responses »

Aug 222009

The National Association of Realtors reported that July 2009 was the largest monthly gain since the group began tracking existing home sales in 1999.

Some 30 percent of the homes sold in July were distressed properties like short sales or foreclosures, but that is a lower percentage than in previous months, when nearly half of all existing-home sales were estimated to be foreclosures.

Over all, economists said, Friday’s numbers offered another signal that the housing market was climbing out of the basement, even as foreclosures and delinquencies creep higher amid rising job losses.

Click here for the full NY Times Article

The 5 Don’ts

Short Sales No Responses »

Aug 222009

Five Things You Should Never Do If You Fall Behind On Your Mortgage

Number One:
Absolutely DO NOT ever deed your property to a third party without absolute confirmation your loan has been paid off!

If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways. What the new owner might not do is make mortgage payments, and that could become a big problem for you.

Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation. If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be catastrophic.

Note: if you believe this option is best for you, please consult with an attorney – not the buyer’s attorney – before completing the transaction.

Number Two:
DO NOT sell your home at a huge discount.

Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. Take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal they are proposing is very favorable – to them.
If you have equity in your home, it belongs to you. Let’s see if we can get it to you.

For a Free, no obligation assessment, just click here to submit a request. You do not need to even give us your name. No one will call you on the phone unless you specifically request it.

Number Three:
DO NOT authorize a prospective buyer to deal directly with your lender.

The buyer has one goal and one goal only, and that is to negotiate a low, probably very low, price with your lender. The buyer will ask your lender to accept a discounted payoff. The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. Further, you have no control over the information that goes to your lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later.

If, however, you believe that your best option is to allow the buyer to work directly with your lender, make certain you consult with a real estate professional and/or an attorney before signing a contract. If you are going to do a Short Sale get representation from a real professional. It costs you nothing – the lender pays the fees. Someone should be looking out for you.

We can help, and it costs you nothing. We have fought for homeowners like you many times – and won. The lender wins also. They do not want to take your property through foreclosure. That’s why they will negotiate to get the deal done.

Number Four:
DO NOT DO NOTHING.

A surprising number of people just accept what they see as the inevitable, and let foreclosure run its course. Don’t let it happen – the damage to your credit will follow you for years.

Take a little time to explore potential options. You do not want a foreclosure on your credit record. It will hamper your ability to get a consumer loan or a car loan for at least a few years, and it will be very difficult to obtain another mortgage for a very long time.

Also, in some cases, doing nothing and letting the property go to foreclosure leaves you open to the lender coming back to you AFTER the foreclosure in an attempt to collect. When a lender agrees to and completes a short sale, we work to have them release any future rights to pursue a deficiency.

Number Five:
DO NOT pay upfront fees!

Never pay any upfront fees to a company offering to negotiate a short sale on your behalf! All of our fees are always paid by the lender, when the deal closes. We have confidence in our ability to close the transaction and will never ask you for any fees.

Not only do we disagree with the practice, it is illegal… Depending on the circumstances, short sale consulting may run afoul of, among other things, licensing laws and the federal Real Estate Settlement Procedures Act (RESPA). (Resource: California Association of Realtors (CAR) legal department)
Avoid any company that is asking for money upfront. There have been many cases of people paying upfront costs (sometimes in the thousands) and the company/person then “disappearing” or not providing the service(s) promised. No company should ask for money upfront when the service has not been provided. We get paid by the bank, when the deal closes!

If a company representing you feels confident they will close the deal, they won’t be asking for that money.

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