Archive Monthly Archives: July 2011

Wellington Short Sale Agents- Closed another short sale in Wellington

9119 Dupont in Olympia in Wellington Florida 

Lender Servicer – Bank Of America
Investor rental property
Investors bought this home in 2006 for $489,000 plus closing costs.
Bank of America 1st Lien: $400,000
Bank of America 2nd Lien: $89,000
Home was in excellent condition, the tenant was a charm to work with.
Tenant vacated the premises prior to us getting the final offer that would be accepted by the seller.
We had multiple offers. Seller chose his best offer.
This home has 5 bedrooms and 2 bathrooms with 2888 square feet under air.

Bank of America approved the short sale for $ 239,000 
Waived all deficiencies, waived all rights to pursue a judgment,
Reported as “settled for less than the amount owed”.
Negotiated a promissory note for $3,250.00 to get the deficiency waived since it was an investor property so the owners did not qualify for HAFA.

Attention Short Sale Scammers: You Are Not Welcome Here! You will get turned into the Florida Attorney General when you are found out!

Florida Law clearly states that you are NOT allowed to negotiate short sales in the state of Florida unless you are:
1. A Loan Originator
2. A Licensed Real Estate Agent
3. A Florida Attorney

If you don’t meet those qualifications stay out of here! You are not welcome to bring your scam of a company here to Florida.

We just canceled the Scammers Convention in South Florida. 

A seller did a search on the internet and found our company. He called us to list his short sale. He had been working with one of these short sale companies from another state who has no office here in the state of Florida and does not meet the  above criteria.
You can just imagine my shock when I reviewed his short sale paperwork he had sent to this company that they had him sign! All the warning signs that the state of Florida warns homeowners against was in this package.
This seller was bullied and pressured into signing documents that should never have been asked to be signed. And no legitimate company would have asked for these to be signed.

There was a Power Of Attorney that was signed handing over ALL control of his property to this company. In this POA it stated that this company had the right to lease, rent, collect rents, handle ALL financial transactions and on and on. Scary Stuff!

Then there was a Deed of Trust. Heck, I have not seen a Deed of Trust since I left California. But here it was, not a Quit Claim Deed but a Deed Of Trust. And there was no disclosure anywhere that any type of deed transfer could cause the lender to call the loan due.

No, in fact, there was NOT ONE FLORIDA state disclosure in this package as is required by the state of Florida when working with a homeowner in distress. 
I am grateful we have great relationships with about 3 to 5 good attorneys. He has a certain budget which only one of the attorneys would be able to handle. We sent everything over to the attorney and he responded to me that he would be happy to rid this homeowner of this ILLEGAL and SCAM Short Sale Company.
We are glad that we read every single piece of paper the homeowners send us so we can catch any of these kinds of problems straight away.
From Pam Bondi- Our Attorney General of the State of Florida:
“The Attorney General also offered the following tips to identify and avoid a potential foreclosure rescue scam: – Avoid businesses that guarantee to save homes from foreclosure or stop the foreclosure process “no matter what the circumstances.”

– Do not work with businesses or individuals who instruct homeowners not to contact their lenders, lawyers or financial counselors and to make mortgage payments directly to the business or individual.

– Avoid businesses that use names or symbols which mimic federal and state programs or falsely suggest they offer legal services or are affiliated with an attorney or law firm.

– Before doing business with any loan modification business, check it out fully. Get its physical address, ask for the names of its corporate officers, and call the Attorney General’s Office to determine whether it has any complaints reported against it.

Consumers who wish to file a complaint may do so by calling the Attorney General’s fraud hotline at 1-866-9-NO-SCAM (1-866-966-7226) or by filing a complaint online at http://myfloridalegal.com.”

Bank Of America NOW Allows For Substitute Buyers When The Short Sale Buyer Walks!

And it is ABOUT TIME!!!!! We have been discussing this with the executive department at BofA for several years now.
Perhaps it was all the short sale brokers and agents that got them to finally listen to this biggest bottleneck in BofA short sales!
We don’t really care who BofA gave their ear to on this one, just that they finally took action on this!
We used to have to start the entire process all over again when a buyer walked and you tried to submit a back up offer.

You can now continue along with the original transaction! This will save time and eliminate some of the processing steps.
When your original buyer walks, let your negotiator at BofA know that you have a back up offer. The negotiator is supposed to respond to you within 2 days asking your if you have a back up offer to submit.
The short sale status will change to “marketing”. You will then be directed to complete the tasks within 14 business days.

You will need to: 
  • Complete the Listing Data task.
  • Provide the marketing description.
  • Review the marketing plan.
  • Upload the offer.
If you don’t do these steps within the 14 days- your file will be closed. 
Remember that this only works if you have a back up offer. If your buyer walks and you don’t have a back up offer your file will be closed. Keep that in mind as you are strategizing on how is the best way to proceed with the short sale when a buyer walks.

How Long Is My Wellington Short Sale Going To Take?

Naturally, people want to have a sense of control over their time, so most sellers ask early on in Wellington short sale intake evaluations. The answer is like most answers about short sales- “IT DEPENDS!”
That’s usually about as popular as Brussels Sprouts for dessert- it’s so vague! But in short sales, things change from month to month, week to week and sometimes even day to day. The one thing that is constant in short sales here in Wellington, in Florida and everywhere, is change.
The major factors that determine how long your short sale will take are:
  • How many loans you have on your property.
  • How long it will take to get a good offer.
  • Who the servicers are for your loans.
  • If the servicers also own your note and if there is a private investor involved.
  • If there is mortgage insurance the lender took out on your property that adds another party who has to approve the short sale. If your listing agent has contacts in the executive department at the servicer or not.
  • What the BPO on your property comes back at, and how close to the offer price it is.
  • And last but not least, can the buyers agent keep the buyer in the deal long enough or not.
A few years back, Countrywide was still doing many short sales and they most often took over six months to approve one. Later, Bank of America assumed Countrywide’s short sales and BofA became the worst bank to deal with everywhere. Wellington FL Short sales dragged on month after month and we even had some that stretched out more than a full year.
Things change. That was then, but today, Bank of America is one of the easiest banks to get short sales done with. We can often get Bank of America short sales in Wellington and Florida approved in 40 to 60 days, and in some cases, faster. Conversely, Chase used to be great to work with until they merged with WAMU who was awful. Then it seemed Chase took over WAMU short sales and the process became slower than snails. Further, other companies handle their seconds like FSLO and others that are simply awful and rude. But, more recently Chase became very interested in expediting short sales. They even called us after previously denying short sales to see if we could revive them and they would get them approved. They are now also offering sellers with certain loan products up to $20,000 to do a short sale and have the entire deficiency waived.
Sometimes, the best thing for a Wellington FL homeowner to do is to allow the short sale process to happen- get an agent who has a lot of experience with different lenders to list your property and help you maneuver through the Florida short sale process. Your short sale can take anywhere from 3 weeks to 6 months and sometimes longer. They are often completing a lot faster than they were several years ago.Stop Foreclosure- Learn Your Options. Maybe a short sale is your best option.

Call a Wellington Florida Short Sale Agent in Palm Beach County, Broward County, St Lucie County, Martin County or Miami/Dade County- call us today at 561-753-0135 for a confidential intake evaluation in order to estimate the possible outcomes of your short sale.

 

Freddie Mac Road Show – Updates From The Field For Freddie Mac Short Sales

We were invited to attend the WinDS REO Conference in Las Vegas last month where I was one of the speakers.

One of the benefits we had was being updated by asset managers, HUD and banks. I have a list of the posts we wrote about REOs and the conference at the bottom of this post.

The Freddie Mac Road show was at the conference. Jason Root who is the director of the short sales for Freddie spoke to us about important updates and some facts about Freddie that are not really reported about.

Freddie Mac’s first goal is home ownership. They want people to stay in their homes if they can. Freddie Mac agrees that home ownership is good for the economy and good for families.

  • In 2010 Freddie Mac approved 38,000 short sales.
  • In 2011 it is projected that there will be a 20% to 25% increase in approved short sales.

We always say there are two sides to every story and also there is more to it than just approving a short sale.

After Freddie Mac gets a short sale package they will have an answer back to the servicer in 5 days or less.

This is of course, assuming that the short sale package is complete and has been thoroughly reviewed by the servicer and the MI company if there is one.

If the servicer is telling you that it takes 3 weeks to hear back from the investor and that investor is Freddie Mac, they are lying about it. Now, if it still has to go to the MI company then yes, it could take 2 to 3 weeks to hear back from the MI company. Freddie Mac’s turn around time is 5 days or less.

Freddie Mac wants to get short sales approved and does not want to foreclose if they can do a short sale. They understand that a short sale is better for the agents, the homeowners, the buyers, the neighborhood and the community than an REO property.

Now, if you are an agent and you submit a short sale package to the servicer don’t go calling up Freddie a day later asking if they have a package because that is NOT how the system works. Agents who do this are clogging up the system. Jason was telling us about an incident where he received a phone call from an irate agent who wanted to know if the short sale package she had sent in had been approved yet by Freddie Mac. She said that she had been calling they bank over and over again and they never returned her call back. When he asked her when did she submit this short sale package she said, ” I sent it to the bank this morning at 9 a.m. It is 4 p.m. now and I still have not heard anything from the bank telling me whether the short sale was approved or not.” Seriously!! Get some education on short sale processes if you are in this category.

The other calls that Freddie gets a lot of are agents who call up demanding to know what is going on with a short sale package only to find out from Freddie that the short sale is not a Freddie owned note at all but rather is owned by Fannie Mae. They are two separate entities. Make sure you know who the note owner is before you start calling. I guess this does not surprise me any more when we still get agents to this day who don’t know the difference between a short sale and a bank owned property.

Some servicers do have full delegation authority for Freddie mac files. Not all of them do.

To be approved for HAFA for a Freddie file- the borrower has to be 60 days delinquent on their mortgage.

However, to do a regular short sale the borrower does NOT have to be late on their payments. Write that down! The Borrower does NOT have to be late to do a short sale.

Freddie Mac does NOT waive rights to deficiencies however they DO NOT pursue judgments unless they discover FRAUD was involved in the transaction. That is right from the director of short sales, Jason Root.

If you go buy another house right after you do a short sale, Freddie is not going to come after you, according to Freddie Mac.

Freddie Mac will NOT interfere with your listing agreement.They will NOT reduce your commission. The maximum commission they allow is 6% and unfortunately this is also the case on very small sales.

Freddie Mac also does not refer borrowers to specific agents or agents with specific designations. We really like that. Freddie Mac says that the investor or the servicer DO NOT own the property and therefore the choice to do a short sale and the choice of agents is totally up to the borrower and they have no plans in interfering with that choice.

They understand that they are NOT a party to the contract.

Nestor and I brought up the fact that the servicers are the ones holding up the process and not doing things correctly.We also understand that there is a contractual fiduciary relationship between the servicer and the note owners/ investors. They have a signed contract so it is not as easy as just being able to fire a servicer for doing a poor job.

So Freddie Mac Road Show goes around the country to the servicers places of business and is training their negotiators how to do short sales. The servicers had to hire a lot more people but those people need to be trained. So Jason and about 9 or so other employees are taking a proactive approach and doing the training themselves.

Freddie Mac will pay out a maximum of 6% up to 10% of the second note to the second note holder. This is their policy for right now and there is no plan on changing that any time soon. They understand that this can create problems for the short sale closing however this is a moral hazard approach that they have chosen. The second is going to get nothing at a foreclosure sale.

This does not mean that you should call Freddie for every short sale where they own the note. Go through the servicer. Go to the  negotiators’ superiors, take it to the executive office and then as a last resort you can call Freddie at 1-800-FREDDIE.

Some servicers also are now being given full delegation authority to postpone foreclosures in behalf of Freddie Mac without having to go to Freddie for those requests and rulings.

Freddie Mac says they want to do short sales because:

  • Short sales help neighborhoods
  • REOs sell for 10 to 15% less than Short Sales
  • It helps borrowers save face and not face the embarrassment of a foreclosure
  • The borrower can go back and buy another home a lot sooner after a short sale
  • Short sales save the time to put an REO on the market
  • Short sales help customers, buyers, agents, investors who own the notes and the neighborhoods.

Jason said on behalf of Freddie that they appreciate the real estate broker and agent community, they look to the agents to solve problems and take short sale listings. Jason is a sincere person and we appreciate his time very much in giving us these Freddie Mac updates for short sales.

FHA Extends Missing Mortgage Payments To 12 Months

FHA is extending the unemployment benefit of allowing homeowners with FHA loans to go from missing from four months to twelve months to keep qualifying homeowners from losing their homes to foreclosure.


This is supposed to help a small group of homeowners who default on FHA loans which right now is about 3.500 homeowners per month who are unemployed while they try to find a job.
The administration came out to say that expanding this assistance will help the economy and that they hope that other lenders will follow their lead in allowing homeowners to miss up to 12 months of mortgage payments if they are unemployed.
Banking consultants are not hopeful that this program will expand beyond FHA except in certain situations. Their position is if a homeowner does not make their mortgage payments for a year, gets the extended relief for that year, what happens after they default after the 12 months? Who will take the loss?
Community activist groups are saying this is a way to break the link in America between losing your job and losing your home.

This is interesting because out of that 3,500 borrowers per month this could help– only a very small percentage of those people will be helped actually and out of those helped, most will default anyways. That is what the HAMP program is proving.

It is human nature to choose the path of least resistance.People how live in their homes without making house payments get used to using their money for other things besides housing. It is very hard for most people to start paying a mortgage payment after they have been living mortgage and rent free for a year. It also does not create the motivation to get back to work.

This is yet another program from the administration that is not even going to make a drop in the bucket. It will follow down the path of failure as did HAMP and HAFA. They don’t get it. Government is not a business and they don’t know how to run businesses or programs that actually benefit people. Instead they create more frustration.

Let the chips fall where they may and we would get through this mess much faster. All they are doing is prolonging the inevitable.

Royal Palm Beach Short Sales and Foreclosures

Royal Palm Beach is directly to the north of Wellington Florida. It touches Wellington on the north boundary. There are a lot of nice communities and neighborhoods in Royal Palm Beach near schools and shopping.

Royal Palm Beach included neighborhoods such as Madison Green, a full community complete with a public golf course and lake front properties. There is Saratoga and La  Mancha and the acreage areas sometimes referred to as Royal Palm Beach but are technically either in Loxahatchee of West Palm Beach.
If you are upside down in your Royal Palm Beach home or townhouse you may consider doing a short sale before you just walk away from your home. You may qualify for the HAFA program or other incentivized short sale programs different lenders are offering their borrowers.
When you are looking for a Royal Palm Beach short sale agent make sure the agent that you hire knows and understands the short sale process, has closed short sales and knows how to negotiate the best terms for you in your short sale.

Never pay an upfront fee to anyone when you do a short sale unless it is your attorney’s retainer agreement. In fact, it is against the Florida state law for any short sale company or agent to ask you for money upfront to negotiate your short sale.

Royal Palm Beach representatives are looking for ways to keep the Royal Palm Beach neighborhoods safe and not damaged by abandoned homes. You can read what Wellington Florida is doing about the abandoned homes here.
One of the councilmen said that all the Royal Palm Beach neighborhoods have suffered from the distressed property situation among them abandoned homes and bank owned homes.

Royal Palm Beach has an ordinance that is furthering the communication between the town of Royal Palm Beach and the banks and the town’s code enforcement division. The code enforcement division has had a hard time in the past to find out the ownership of certain bank owned properties and then trying to find the right person to deal with at the bank regrading the code violations.

Now when a property goes into default this triggers a registration. This registration has a fee of $150 to $200. The bank has to pay for this fee. At that time, the bank would then provide the town of Royal Palm Beach with the appropriate contact information for the bank.

Royal Palm Beach has identified about 400 homes that are in default. Most of these properties are being maintained thanks to the diligence of the code enforcement officers of Royal Palm Beach.

The lenders are being proactive as well. They have other properties in the areas of concern where people are paying their mortgages. The banks want to protect those assets for their investors so it behooves them to remain proactive. The town of Royal Palm Beach says that since the registration program was implemented, they now have banks calling them through this process wanting to register the homes they own. The banks are cleaning up the properties and that is a good thing for the Royal Palm Beach neighborhoods.

Wellington Short Sale Agents- Wellington Takes Action

The Village of Wellington and Royal Palm Beach have been meeting to discuss what to do about the foreclosures. While Wellington does not have that many bank owned properties for sale- that number is usually hovering around 50 at any given time that are available for sale- there have been about 300 homes that have been abandoned in our town of Wellington since 2008.  As Wellington short sale agents we are also concerned about our home values and property preservation.

Wellington has strong code enforcement rules and has continued to pass more so this forces the banks to make sure that the properties that they do own are taken care of. If the property is not on the market and is still in the bank’s ownership, what we call a Wellington REO, the bank must keep the lawns mowed, bushes trimmed, secure the property and more. Once the property is put on the market, the listing REO broker is responsible to keep the home maintained.

If you live in Wellington and know of a home in your neighborhood that has been abandonedplease let us know  or you can call the Village of Wellington code compliance and they will make sure the necessary steps are taken so you don’t have an eye sore in your neighborhood.

The Village of Wellington will help take care of the homes. The goal is to make it look like someone is still living there. The Village of Wellington also buys the worst of the homes, makes the necessary improvements and then puts them back on the market to sell. This is of course taking a risk but one that is worth taking for the betterment of our community. Wellington is a beautiful home town that is very desirable to live in. We all want to keep it that way.

Short Sale News – Updates From The Field from the Freddie Mac Road Show

On the road with Freddie Mac: A “From The Field Update” with Jason Root

We were invited to attend the WinDS REO Conference in Las Vegas last month where I was one of the speakers.

One of the benefits we had was being updated by asset managers, HUD and banks.

The Freddie Mac Road show was at the conference. Jason Root who is the director of the short sales for Freddie spoke to us about important updates and some facts about Freddie that are not really reported about.

Freddie Mac’s first goal is home ownership. They want people to stay in their homes if they can. Freddie Mac agrees that home ownership is good for the economy and good for families.

In 2010 Freddie Mac approved 38,000 short sales.
In 2011 it is projected that there will be a 20% to 25% increase in approved short sales.

We always say there are two sides to every story and also there is more to it than just approving a short sale.

After Freddie Mac gets a short sale package they will have an answer back to the servicer in 5 days or less. This is of course, assuming that the short sale package is complete and has been thoroughly reviewed by the servicer and the MI company if there is one.

If the servicer is telling you that it takes 3 weeks to hear back from the investor and that investor is Freddie Mac, they are lying about it. Now, if it still has to go to the MI company then yes, it could take 2 to 3 weeks to hear back from the MI company. Freddie Mac’s turn around time is 5 days or less.

Freddie Mac wants to get short sales approved and does not want to foreclose if they can do a short sale. They understand that a short sale is better for the agents, the homeowners, the buyers, the neighborhood and the community than an REO property.

Now, if you are an agent and you submit a short sale package to the servicer don’t go calling up Freddie a day later asking if they have a package because that is NOT how the system works. Agents who do this are clogging up the system. Jason was telling us about an incident where he received a phone call from an irate agent who wanted to know if the short sale package she had sent in had been approved yet by Freddie Mac. She said that she had been calling the bank over and over again and they never returned her call back. When he asked her, when did she submit this short sale package? she said, ” I sent it to the bank this morning at 9 a.m. It is 4 p.m. now and I still have not heard anything from the bank telling me whether the short sale was approved or not.” Seriously!! Get some education on short sale processes if you are in this category.

The other calls that Freddie gets a lot of are agents who call up demanding to know what is going on with a short sale package only to find out from Freddie that the short sale is not a Freddie owned note at all but rather is owned by Fannie Mae. They are two separate entities. Make sure you know who the note owner is before you start calling. I guess this does not surprise me any more when we still get agents to this day who don’t know the difference between a short sale and a bank owned property.

Some servicers do have full delegation authority for Freddie mac files. Not all of them do.

To be approved for HAFA for a Freddie file- the borrower has to be 60 days delinquent on their mortgage.

However, to do a regular short sale the borrower does NOT have to be late on their payments. Write that down! The Borrower does NOT have to be late to do a short sale.

Freddie Mac does NOT waive rights to deficiencies however they DO NOT pursue judgments unless they discover FRAUD was involved in the transaction. That is right from the director of short sales, Jason Root.

If you go buy another house right after you do a short sale, Freddie is not going to come after you, according to Freddie Mac.

Freddie Mac will NOT interfere with your listing agreement. They will NOT reduce your commission. The maximum commission they allow is 6% and unfortunately, this is also the case on very small sales.

Freddie Mac also does not refer borrowers to specific agents or agents with specific designations. We really like that. Freddie Mac says that the investor or the servicer DO NOT own the property and therefore the choice to do a short sale and the choice of agents is totally up to the borrower and they have no plans in interfering with that choice.

They understand that they are NOT a party to the contract.

Nestor and I brought up the fact that the servicers are the ones holding up the process and not doing things correctly. We also understand that there is a contractual fiduciary relationship between the servicer and the note owners/investors. They have a signed contract so it is not as easy as just being able to fire a servicer for doing a poor job.

So Freddie Mac Road Show goes around the country to the servicers places of business and is training their negotiators how to do short sales. The servicers had to hire a lot more people but those people need to be trained. So Jason and about 9 or so other employees are taking a proactive approach and doing the training themselves.

Freddie Mac will pay out a maximum of 6% up to 10% of the second note to the second note holder. This is their policy for right now and there is no plan on changing that any time soon. They understand that this can create problems for the short sale closing however this is a moral hazard approach that they have chosen. The second is going to get nothing at a foreclosure sale.

This does not mean that you should call Freddie for every short sale where they own the note. Go through the servicer. Go to the negotiators’ superiors, take it to the executive office and then as a last resort you can call Freddie at 1-800-FREDDIE.

Some servicers also are now being given full delegation authority to postpone foreclosures on behalf of Freddie Mac without having to go to Freddie for those requests and rulings.

Freddie Mac says they want to do short sales because:

  • Short sales help neighborhoods
  • REOs sell for 10 to 15% less than Short Sales
  • It helps borrowers save face and not face the embarrassment of a foreclosure
  • The borrower can go back and buy another home a lot sooner after a short sale
  • Short sales save the time to put an REO on the market
  • Short sales help customers, buyers, agents, investors who own the notes and the neighborhoods.

Jason said on behalf of Freddie that they appreciate the real estate broker and agent community, they look to the agents to solve problems and take short sale listings. Jason is a sincere person and we appreciate his time very much in giving us these Freddie Mac updates for short sales.

Las Vegas Short Sale Agent- Yoggi Kaplan

Las Vegas Short Sale Agent- Yoggi Kaplan.

We met Yoggi Kaplan in Las Vegas at the WinDS REO Conference. She has about 50 short sale listings and she negotiates the short sales by herself.

Ms Kaplan speaks fluent Korean and works with a lot of Korean homeowners who are in need of doing a Las Vegas short sale.

I was very impressed with her tenacity and the smart skill set and negotiating skills she brings to the table to advocate for her sellers.

Call me at 561-753-0135 if you need to speak to an experienced Las Vegas short sale agent.