Short Shale Genius Shares More Knowledge
We are setting out on day 2 with Trent Chapman and we’re astonished by the number of appearances Trent has had on shortsalepowerhour.com. We asked Trent to come back to chat about the Short Sale Genius Designation program. Everybody understands that we are not great fans of designations. We have contributed on our own designation in recent times, but we stole that from Trent. Still, Trent has decided to do a real designation. The designation is for realtors who work with distressed houses.
The designation is dissimilar from other designations. With other designations, you go to a session and take a test and obtain your designation. With the Short Sale Genius designation, there are distinct levels based on how many short sales you have completed.
If you take the class you will get a general designation, but it will also document how many short sales you have completed. Trent merely figured that taking a class and passing a examination didn’t make anyone an expert. So, he decided to add a little bit of common sense and integrity into the method.
On another note, software is something that a lot of other realtors ask about. Trent offers software that is state of the art with features that aid the realtor that is doing a couple transactions or hundreds. His system actually coaches you along in the short sale process. There are red flags that let you know if a file is out of compliance or taking excessively long. There is also a feature that allows the property owner to log in and see the standing of their file. It was purposely built for short sales. Check out the theshortsalegenius.com
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GMAC Short Sale Method Improving
Many times we express amusement at some point in this show, but we have to maintain a optimistic outlook because reflects on our firm and we need to keep that upbeat approach to work with the bank and get short sales completed rapidly. So, although we have to be hard with them, we try to sustain a upbeat approach.
This is accurate with GMAC, which is our new preferred lender after venting yesterday in relation to Wells Fargo. GMAC is using Equator which is a short sale file management system which helps dialogue between us and the bank. It is very beneficial. We are working on a file that is moving as fast as we have ever seen. They did forward us a counter offer that was a tad high, but in general, GMAC has been very easy to work with. We had the home listed at that price for close to a month. So, today we do love GMAC. We merely want you to realize that there are upbeat things happening at the bank.
When we get an offer that nets them a decent percentage of what they are losing we have a better possibility at completing the folder. If you are an agent, one of the most significant things is to detect is what the BPO comes in at. They have been telling agents the percentages that they are trying to net recently. So, if you identify the BPO and you know what percentage the lender is trying to recuperate, you will be ahead of the game. You will also know whether you need to challenge the file and get it completed in a timely manner.
Thanks for tuning in to Short Sale Shift. If you have a residence that you would like to short sale in Minnesota, please don’t hesitate to contact us today.
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Missing Payments Necessary To Complete Short Sale
Today we are going to chat about the number one question that we hear every single time that we deal with a short seller. Do I need to let pass a payment? The short sellers that we deal with that are previously missing payments don’t normally ask. Nonetheless, the people that are being proactive often ask this question.
regularly the seller thinks that they can take cash out of savings or take cash out of retirement or have a loan of cash from family. They suppose this may be crucial to keep their credit score up. FHA in fact requires that the folder is 31 days late. That is one of their necessities, that the property must be late in order to close. We are discovering it more commonly. Investors are requiring the file to be late.
We think this may be the situation because they have so many folders to deal with. So, they don’t worry about the files that are up to date since they have to deal with the files that are previously late. We are also hearing that many banks are telling property owners that call the bank that they must be late for the lender to even look at the folder. This is true for both loan modifications and short sales.
Is it likely to get a short sale closed without being late? It may be workable if the situation is severe or it is predictable that the payments will be late. More and more however, we are finding that you need to be late to close a short sale.
Tune in again tomorrow when we talk more about short sales and the route of doing a short sale. If you are thinking about the short sale as a remedy to your present situation it is better to be proactive than wait for the bank to mail that unsightly letter.
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Current Housing Statistics Look Grim
Last week we chatted about the declining home sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and since that time there have been loads of articles supporting what we are saying.
To begin with, if you took our videos last week to think that you ought to run and hide from this state of affairs, you are entirely wrong. We communicate this information with you so that you can stand facing this market head on. We’re merely trying to be realists and change our strategy as the market changes.
One critique remarks that the US economy appears to be in turmoil as the effects of gov’t incentive are already wearing off. Also worth noting is that a double dip recession is highly unlikely due to historical precedents. Yet, Kevin wonders aloud how we can undergo a double dip recession if our economy never improved. The economy has constantly been terrible. Also mentioned in other writings was the national mortgage deliquency rate. It grew to 9.2% in May, up 2.3% from a month earlier and up 7.9% from a year earlier. This makes you wonder how mortage deliquencies are going up, but there was a rise in our economy.
When we look at writings like this, realize that there is an opportunity to help citizens out. Don’t run and be petrified. There will always be purchasers and there will at all times be sellers. People have to have a residence to live in. Every house is marketable at the appropriate price.
It is vital to note that the non-current mortages are actually at a 12.4%. That is very bad, because the historical standard is close to 1%. One other distinguished statistic to note is that the average amount of days elapsing between when a mortgage becomes 30 days deliquent to foreclosure auction reached a record high of 449 days. So, from the point that a house owner is a month behind in payments, they are not losing their home for 14 months on average.
We will also be teaching a Short Sale Crush It session that continues to get better. Preregister for that August 13th class at shortsalepowerhour.com
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We Observe What We Teach In Short Sale Transactions
Mindset Monday brings us a conversation about the mindset of success. In the previous couple weeks, Kevin and Fred have jumped back into the trenches taking on more folders than ever before. In the previous three weeks, Kevin and Fred have gotten 16 short sales approved. We don’t point that out to verify how talented we are. Nonetheless, we bring this to your awareness so that you can recognize that there is a mindset to our success.
There is a mindset that the contract will be accepted when we want it to be accepted. We get questioned in our course on a normal basis about the things that we do in our own business. It is significant to recognize that we practice the exact same methods that we teach other realtors. There is nothing that we teach in session that we don’t use in our own company.
We want you to recognize that we jumped into some files that were in tough spots. Nonetheless, we didn’t admit defeat. We set a plan to succeed and we go after it. A remarkable instance of this winning mindset is the commission quarrel that Fred won today.
There is an forceful domineering method to inflict your will without running people over or demeaning them. Sometimes it is just a matter of running through the clutter. If you don’t take a assertive standpoint, there is a house owner on the other side of this business deal that will lose their home. That home owner’s life and economic future is depending on whether or not you can conclude a short sale. When you take on a patron in a short sale, you have to put that person’s requirements in front of your own. When you don’t compel your will and do that, you will be average like everybody else.
One last word of advice for you. When your negotiator asks for something, give it to them ASAP. Be strong with your method and determined from the onset and you will have an easier time closing short sale deals in the end.
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Supply And Demand Effecting The Short Sale Business
Yesterday we talked about current market statistics and how we believe that the market will keep going down. So, we would like to chat about what occurs when there is a sharp increase in active inventory and a sharp decline in sold properties.
Having been in the short sale business for 3 years, we have seen modest rises with tax credit extensions and additional programs. What we have watched is when inventory goes up and sales go down, lenders do not react to that data promptly. Commonly, they draw their figures for BPO’s and appraisals from as much as 6 months ago. The trouble with this method is that the BPO is greatly weighted on sold costs. So when you pull sales from contracts that were written in January, February and March, the tax credits impacted the market. Those comps are not taking into account that sales are going down and quantity of active listings are going up. When you see this happen, you will have to start pricing your properties more aggresively. The market is sinking again but the bank is very slow to react to that data. They don’t want to be the first to act on the lower price. You can assume that they will counteroffer with other prices of houses sold months ago when the market was not the same.
For instance, we had a listing with an offer price of $245,000. We felt it was a strong offer because the market was going down. We got a counteroffer with the BPO value at $265,000. We were given a day to redo the proposal or the folder would be closed.
Kevin disagreed and had to prove to the negotiator that the BPO price was off. He discovered a comp that was the identical floor plan listed at $235,000. This was sent to the negotiator and along with a memo that explained the situation. The alternative to the bank counter offer was to foreclose on the house and relist it in 90 days at a lesser price than the offer.
Be conscious that there will be BPO disagreements in your future. With listings rising and sold properties declining, you will have more disagreements on your hands to prevail over.
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Short Sales Take A Long Time - Hang In There
Welcome to an additional episode of Short Sale Shift. I’m joined by chief, master, team leader, self-starter, Sarah Willman. Today we are going to chat about how sellers and buyers can get especially worried and weighed down because the route of completing a short sale can take a lenghty time. So, we would like to chat a little bit in relation to hanging in there.
A year ago, we were talking about the short sale taking around 6 months. However, the previous 2 short sales that we have closed have been accepted in thirty days. In fact, from the spot where the bank had all they needed from us, we got authorization in about four or five days. Once the lender got all, the deal was completed.
That is definitely not the situation each time. If you are tuning in to us now and you are a purchaser or seller or broker on behalf of a buyer, please understand that you have to ask a few questions of the listing broker. How many files have they effectively completed? How many files do they have? What are their time lines? What are their associates at the bank? If they know there trade, they will be able to close your file, because they wouldn’t take your folder if it didn’t have a huge chance of closing.
If this is the case, know that sticking with this procedure will be worth it. We comprehend that it can be rough to go through the short sale route. You will be getting a very good deal. Being a purchaser and hanging in there is demanding. You may observe other properties come to market that you like a little bit, but hanging in there will pay off in the end.
The short sale route is a difficult, time demanding procedure. Nonetheless, if you have completed your due diligence, you will end up with the property that you desire. If you have an agent that closes short sales, you will be thrilled with the end outcome.
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Disregard Lender Guidelines About Short Sale Commissions
First and foremost, remark on today’s video at shortsalepowerhour.com and you will have the chance to be entered into a drawing for free flip flops from the boys at Group 46:10
We are going to talk concerning a commission disagreement that we had on a file that was being handled by Bank of America. The backer on the file was HSBC. The folder was rejected even though the offer being the same as the BPO. We came to find out that they sold the loan to Condor Capital.
Condor Capital is an asset management group that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this affair out for revenue. They did not necessarily do any loans. So, Kevin officially began dealing with them on July 1st.
Condor Capital reviewed the papers and noted that the commission was at 6%. They asked that we cut the commission to 5%. They essentially sought to make the commissions 5% of their net sales value, which was buy price excluding the buyers closing expenses. Kevin responded to them informing them that he was not prepared to do that. He knew that they liked the offer because they had earlier told them it was a good proposal.
Condor Capital responded that their rules just allowed them to give 5% commissions. If Kevin did not accept that rule, they would simply foreclose on the house. This foreclosure suggestion got Kevin a bit upset.
It was clear that they were out to make more money rather than unearth a win-win situation for both entities. Kevin explained that he could get them a lower bid and agree to the lower commission, but that wouldn’t be a win-win situation for either group. The policies they were using weren’t in the best interest of either group. At the end of the day, you have to set up guidelines that help all groups successfully complete deals.
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Inside Lender Form Gives Insight Into Short Sale Vs Foreclosure
Kevin is flying alone today. He’d like to talk concerning a few different things today. To start with, we would like to revert to yesterday’s blog regarding HAFA. We talked about the lack of effect that HAFA, or anything with four letters, has on the short sale market. With concerning 15 separate people responding yesterday, we discovered precisely zero closed HAFA short sales. So, as we acknowledged yesterday, HAFA is basically not a game changer. We even got a remark that declared that a realtor was on day 67 of their 15 day HAFA route. That was comical. It has not been impactful to the short sale market despite what others may have claimed.
The second thing that we would like to speak about is a little internal document that we were given from a representative of Bank of America. I don’t believe that this is a Bank of America specific document. I think it is an investor specific document. This form is an impact analysis. We wanted to communicate a few things with you from this impact analysis. It has the borrowers information, how much the loan total is, the origination amount, the home worth today, and the bid amount. This form also shows what they think the home would sell for as an REO. However, here is the bombshell. The anticipated marketing costs on this $271,000 home is approximately $34,000.
You need to keep this stuff in mind when you are told by your negotiators that they will take the house to foreclosure. The bank will never get extra funds from an REO. It costs them too much money to take a home to foreclosure sale.
One final reminder for our Crush It Short Sale Session. Friday, August 13th we are hosting our session. You absolutely do not want to miss this seminar. It is being taught by guys that are in the trenches closing short sales. So, if you are a Phoenix vicinity realtor or even somebody who understands the value of this seminar and is willing to fly on a plane to get some big education in the short sale industry, you will not want to miss this class.
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HAFA Short Sales, Do They Actually Exist?
Kevin and Fred are lounging on Mission Beach in the San Diego locale. It’s a bit cloudy on the seashore, but that is not keeping Kevin and Fred from enjoying the shoreline. Seeing as relaxing is more significant to them than chatting on the subject of HAFA, they have decided to make this one of the shortest short sale power hour videos ever.
HAFA has proven to be a non issue in the short sale industry. Dave Sutherland with Bank of America says it HOFFA, like Jimmy Hoffa, who is not anywhere to be found. That is a great deal like HAFA, which is not anywhere to be found. Back in March, there was a four letter designation out there and other companies advertising their documentation and telling real estate agents that they need to get qualified for HAFA because it was going to be a game changer.
HAFA has not mattered at all. Here we are on July 21st, and HAFA was rolled out on April 5th. So far, of the few hundred agents that Kevin has spoken to in that timeframe, not a solitary one has reported closing a HAFA short sale.
We aren’t saying that no HAFA Short sales have been closed. We are only saying that we have not experienced it or recognize any realtors that have experienced it. So, here is what we would like from our viewers at present. We are requesting your remarks under the video in at least the form of two records. First, how many HAFA short sales do you control in the system. And secondly, how many HAFA short sales have you completed.
The original month that HAFA was rolled out there were lots of trainings to study about HAFA. Now those education courses are CE credit courses. It seems that all of the classes that don’t actually matter goes to a CE credit course because you would only go to it if you could essentially get credit for it.
We are hosting a Crush It Short Sale Seminar in the Phoenix area on Friday, August 13th. It is a real life, in the trenches, information you can make use of, session. Get registered today!
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