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Bank of America Executives admitted to a terrible 2009 in which only 30% of their short sales were approved.

True Fact: BofA had one intake center that consisted of 125 fax machines for all short sales documents to be faxed to. In that room 5,000,000 documents came through per month. I think this explains a lot!

True Fact: They currently only have 200 people in the call center to field short sale calls from agents and clients. So your wait time will be… “Two Hours… Fifteen Minutes”

Things are improving and I can vouch for that. Submissions from 2009 are still being lost in the shuffle, but deals in 2010 are moving quicker with the addition of Equator. This is a web-based program in which all files are uploaded… no more faxing. Make sure your Realtor is registered and familiar with Equator.

True Fact: By approving a short sale the bank will recover 12-20% more of the loss than they would if it went to foreclosure.

True Fact: You do not have to be late on your mortgage to get the short sale submitted and approved. You do however need a valid financial hardship.

True Fact: Bank of America is only delegated to make a decision on 30% of the loans they service. The other 70% require an approval from an outside investment group.

The new goal for Bank of America is to approve short sales in 45-90 days. Lets hope this goal is achieved!

admin Market News update, Uncategorized Bank America, Bank Of America, Bofa, Call Center, Equator, Fax Machines, Fifteen Minutes, Financial Hardship, foreclosure, Intake Center, Investment Group, Loans, Mortgage, Realtor, short sale approvals, short sales, Shuffle, Submissions, True Fact, Wait Time

I wanted to write this to discuss a little more about short sales and the business model so that those of you that are looking to get into short sales and help homeowners  who are facing foreclosure to STOP a foreclosure thereby saving the property owners credit, dignity and embarrassment.

The most important part of the short sale business model is the negotiator and the broker’s price opinion (BPO). The reason why i think the negotiator is the most important job in the short sale business model is that negotiators must be an artist and be able to keep communications open between Realtors, the BPO agent,  the listing agent and the funding source as well as the referring source that is giving you properties to process.

Short Sales Model

Acquisitions –> Negotiator –>BPO Agent –>

Listing Agent –>Transactional Funding –> Title Company

It is extremely important to have your negotiations in house and not outsourced. The biggest reason is because that it is easier to have better communications to all of the people in your different departments.  So if you have a funding problem and the transactional funding company  need details, the negotiator will have all of the information. If the listing Realtor need to have details about the concessions or need to know how soon before the approval should be here, the negotiator will have this information.

If you’re brand new to real estate investing the first thing you will want to get is a deal right? You know and actual deal that is a short sale. So this means that you need to have some marketing strategies in place. You should have some direct mail marketing going, posting Craigslist ads and other internet marketing, T.V. and radio ads, door knocking, cold calling and possibly press releases talking about your services.

Once you get leads coming in, that you need to have a presentation person that you hire or maybe its YOU that makes the presentation to the property owner to show them how to use a short sale strategy how to move through the foreclosure/short sale process. This person must be good at listening, presenting the solutions and answering questions and truly care about helping the property owner resolve the foreclosure.

My next blog post will address in more detail the short sales business model.

admin Investor Short Sale Profits, Uncategorized acquisitions, Better Communications, Business Acquisitions, Business Model, Business Process, Business Sales, Cold Calling, Concessions, Dignity, Direct Mail Marketing, Embarrassment, Facing Foreclosure, Internet Marketing, Job, Marketing Strategies, Negotiations, Negotiator, Negotiators, Presentation Person, Process Model, Property Owner, Property Owners, Radio Ads, real estate, Realtor, realtors, Sales Help, Sales Model, short sales, Title Company, Work Wanted

There’s proof that there are many real estate agents that are having to rethink a properties status when listed in the MLS or a private pocket listing deal for that matter. Many Floridian real estate agents that don’t understand the difference between a short sale and a bank owned property. I wonder how many in Colorado don’t know the difference. This post attempts to explain the difference.

It is then up to the seller what he wants to do with the offer. He can reject the offer, he can accept the offer, he can counter the offer or he can choose to do nothing with the offer. Your offer expires if he does not sign the offer before the time for acceptance lapses.

On one of our listings we received 3 offers in one day. Most all of our short sale listings get multiple offers. When this happens; our sellers choose one offer that they feel is the best and often ask for our input based on our experience. Then the seller will choose a back up offer also.

If none of the offers meet with the sellers’ approval and with our experience of what a short sale lender is going to approve then the seller may send back to the buyers a counter offer. He may choose just one offer to counter or all.

So there is one agent who had sent in one of the offers for her buyers. The offer was $20,000 below asking price, the financing clause stated that the buyer was approved for his loan, yet there was NO approval letter. There was a pre approval letter that said his financials, income, etc were NOT reviewed. All they did was pull his credit. The financing spaces were not filled in correctly. When I did the math, the offer showed that the buyer was getting 100% financing. Then the addendum stated that the buyer was also asking for 6% back from the seller.

Read More Here…

admin Uncategorized Addendum, Asking Price, Bank Owned Properties, Bank Owned Property, Choose One, Floridian, Lapses, Math, Mls, Pre Approval Letter, Proof, Real Estate Agents, reo properties, short sales

What is a Short Sale?
A Short Sale is a win-win solution for the home owner and the lender. The lender gets the highest price for a quick sale at a market price. The borrowers get their credit restored and generally get relief from possible future legal actions and deficiency judgments.

Short Sales occur when borrowers sell their property for a sales price less than the amount owed to their lender(s) after all sales expenses, including brokerage fees, are taken into account. In order for this to take place the lender(s) must accept a discounted payoff; meaning the bank(s) get paid less than the full loan amount owed. In a short sale, the homeowners get complete relief from all of their mortgage debt.

The end result is your home is sold, the mortgage is satisfied (paid off) and you avoid a foreclosure or a bankruptcy in the event of hardship. Perhaps even better, your credit rating will almost immediately improve because your credit report shows that your mortgage was paid in full.

What are the Benefits of a Short Sale?
When a Short Sale is achieved, there will not be a foreclosure. A Foreclosure damages credit up to 7 years and bankruptcy up to 10 years. Many experts believe that a foreclosure is much worse than a bankruptcy.

* Protect your credit. Foreclosure damages credit up to 7 years and bankruptcy up to 10 years. Many experts believe that a foreclosure is much worse than a bankruptcy.

* Our Short Sale Service is FREE to you; the lender covers all the costs involved.

* Controlling future costs. If your property is sold at an auction, you may owe deficiencies and other expenses to the lender. Under most short sales we negotiate, the homeowner will be relieved of this possible future headache.

Can investment properties be short sold?
Most definitely. Any type of property can be sold through a short sale.

Can you do short sales anywhere in the county?
We have done short sales all over. While we cannot promise that we can handle properties everywhere, so far we have not had any problems.

What is a Hardship?
* Reduced Income or Unemployment.
* Inability to work due to health reasons.
* Separation or Divorce.
* Medical Bills.
* Business Failure.
* Death of a Spouse.
* Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
* Any other circumstance that cripples your ability to repay your mortgage.

Does It Matter Who Does a Short Sale?
Very much so. Traditional Realtors only get about 15% of short sales approved. We work with the largest and most successful short sale processor in the county. Their success rate is over 95%. My company uses select Realtors to represent the Seller to make sure that the Seller is represented by a licensed Realtor. The Real Estate Commission supports this approach because we look out for the consumer (the Seller). My company works with Licensed professionals, experienced negotiators, and qualified real estate investors that buy our properties that we bring to them to purchase. It is critical to hire professionals that 1) Make sure that your represented by a licensed real estate professional 2) Have experienced negotiators 3) Qualified real estate investors that immediately place an offer on the home.

What Happens If I Don’t Do a Short Sale or my Short Sale is Unsuccessful?
The result is the same: A Foreclosure. Our goal is for you to avoid foreclosure, which will affect your credit more than a short sale. Generally a foreclosure is one of the most damaging occurrences in a credit history. Most likely you will miss mortgage payments through the course of a short sale and this will show on your credit history. But at the end of the day, when your short sale is completed, your credit report will show that your mortgage has been completely “satisfied” and typically your credit score should almost immediately rise by 65 points.

What separates you from everyone else in the business?
Not only do we provide FREE services for our clients, but we offer rent-2-own homes, debt reduction strategies, and a FREE financial analysis for all clients. If our investor cannot make money in reselling the property they will back out of the deal and allow for the end buyer to purchase the property. Most companies will just drop the deal if they cannot make a profit between what they buy it for and the resale price to an end buyer.

admin Foreclosure Help, Uncategorized 10 Years, Auction, Avoid Bankruptcy, Avoid Foreclosure, Bankruptcy Credit, Borrowers, Brokerage Fees, Credit Rating, Credit Report, Damages, Deficiencies, Deficiency Judgments, End Result, Eve, foreclosure, Headache, Improve Credit, Investment Properties, Legal Actions, Mortgage Debt, short sales

Foreclosure activity in Colorado dropped by a third in the first three months of this year compared with the same period in 2008, according to a report Wednesday from RealtyTrac.

“It would tend to reinforce the basic trend we have been seeing, that things have been declining slightly,” said Ryan McMaken, a spokesman for the Colorado Division of Housing, which compiles its own foreclosure report. 

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admin Market News update, Uncategorized Colo, Colorado Division Of Housing, Colorado Foreclosures, First Three Months, Foreclosure Report, Realty Trac, Realtytrac, short sales, Spokesman