Dear Short Sale Buyer

When you started looking for a place to buy, presumably, your agent educated you on the types of sales that you can choose from, the pros and cons of regular sales, short sales, and foreclosures.

And that when you decided to write an offer on my short sale listing that you determined that this is the one you want.

And that you wrote your offer in GOOD FAITH.

"Good faith in legal terminology refers to the use of honesty and best efforts in dealings with others."

And that you were prepared to wait. Your agent may have told you it could be 3 months or longer from the time you submit your offer to the time you can close escrow.

Since you still submitted your offer, we assumed you were serious.

My seller and I busted our buns in submitting a complete short sale package to the shorr sale lender. Each bank has different sets of requirements, but typically, they require the following

• Hardship Letter
• Financial Statement
• Profit and Loss Statement (if seller is self-employed)
• 2 most recent pay stubs or evidence of income
• 2 most recent bank statements
• 2 most recent tax returns
• Affidavit of arms-length transaction

Additionally, as the seller's realtor, I provide

• Letter of Authorization from the seller to allow me to convey/receive information on the loan(s)
• Listing agreement
• Property information (MLS, market analysis, comps)
• Short Sale Listing Addendum
• Accepted offer (from you)
• Buyer's preapproval letter
• Buyer's proof of funds
• Estimated closing (HUD) statement from your escrow manager/title company

All these documents take time to compile and submit to the short sale lender. And the bank's set up specialist and negotiatos need time to review the file and submit to the investor.

We follow up and we update your own realtor --- nearly weekly --- so that he, in turn, can update you.

Now, just as we are close to getting the  short sale approval, you tell us you're backing out?

Do you know how devastating this is?

How could we have known you wrote offers on other properties?

If you weren't serious about this one, why write an offer?

We changed the status of the listing to "pending, subject to lender approval" which is nearly the same as taking it off the market while we work through the process.

Now, for the next buyer, we literally have to start all over again from the very beginning. That short sale approval was specific to you as the buyer. For the next buyer, we have to start the process as if this is a new short sale application. And yes, re-submit the entire package

 

Is it any wonder that some short sale sellers and their agents require the buyer to open escrow and submit their intial deposit check as proof of their seriousness in purchase of the property?

Raw emotions, untold number of hours, mountains of paperwork are involved.

 

Next time you write an offer ---make sure that you truly are acting in good faith and will make every effort to move forward  if your offer is accepted. It's the right and fair thing to do.

If, at any time, you are uncertain about your desire to buy the specific property, don't wait too long, and back out quickly so that we can restart sooner.

 

DEAR SHORT SALE SELLER

We want to help, we really do...but we can't do it without your help and active participation in this process. There are several things we hope you'll take to heart

COMPETITION

• Put your ego aside and price it aggressively
• Don't think of how much you paid for it, or how much you think it's worth.
  • It's only worth what a buyer is willing to pay for it
• Buyers will be attracted to your property only if they believe it's a good deal, i.e. good price
• Short sales are competing with other listings that are easier and faster to close, including bank-owned listings and regular sales
• It takes a special --- and very patient --- buyer who is willing to write an offer on a short sale and wait for 3 months or longer

 

 

COMPLIANCE

• Do not discontinue insurance. If you do, your lender may have to get a more expensive forced place insurance for your place and bill you for it.  
• Don't assume that the short sale lender will pay for all your delinquencies and closing costs.
• If there is an HOA, make sure you continue paying it.
  • First of all, your HOA can foreclose just as any bank can.
  • Secondly, some banks may not approve paying off your delinquent HOA fees and fines.

CONDITION

• First impression counts -- the same advice on how to market a home for sale still applies.
  • That means: good curb appeal, well-maintained, clean, clutter and odor free. Yes, it's work, but it must be done.
• Don't start stripping or ripping off...er, taking off most of the improvements you've made.
  • But if you must remove a chandelier, put something in its place. It's not only unsightly but unsafe to have loose wiring.

COMPLETENESS

• Yes we know there's a mountain of documents that the bank requires. Please respond to requests for updated bank statements, pay stubs or sources of income, financial worksheets.
  • Since short sales take awhile to process, these statements may be outdated by the time they get to the negotiator.
• Don't make us nag you to provide required information on time.
• Disclose other liens and pertinent information affecting your loan.
• And if you're planning to declare bankruptcy or some other action affecting this transaction, tell us right away.
  • Don't wait until we're almost closing escrow before you tell us! Non-disclosure is akin to deception and bad faith.

COMPASSION --- commiserate, don't complain

• Many agents flat out refuse to work with short sales because it requires 10 times the amount of work ---effort, time, patience --- than it would be for a regular sale or even a bank-owned sale.
• Your listing agent is doing this to help you.
  • So don't get upset with him if he asks you for more documents, more information.... or that the process is taking so long
• As a matter of fact, you may want to help by following up with your lender from time to time, and lend support to your agent's efforts
• Compassion goes both ways. 

 

RELATED POSTS

Dear Short Sale Buyer, how could you, and why did you back out?

Who pays forced place insurance after short sale closes

Alert the media: Force-place insurance WILL delay short sale

SHORT SALE PRIMER for sellers --- setting the groundwork and expectations

10. You don't have to run into that leasing office and get tempted by those cookies that have been sitting all day...

9. NO MORE stares by the workers that come over and exterminate or change the filter and ask yourself, "Did I leave my panties on the floor?" <not me of course....>

8. Uncle Sam just might give you some of that tax break!

7. You now have a fence to paint!

6. You now have your OWN trash BINS and RECYCLE BINS of your own and the BILL of course....

5. You don't have to put a deposit down for YOUR PET! and he or she has a yard NOW to play in or an OC patio (LOL)

4. The AMERICAN DREAM OF HOME-OWNERSHIP! <God Bless the USA>

3. Paint your walls any color you want and actually put a NAIL in the wall and NOT freak out that you are NOT getting your deposit back!

2. A sense of responsibility and GROWING UP! Maybe commitment to a home is good and then you can COMMIT to other things too!

1. You have a mortgage payment that is less than your rental payment and IT"S YOURS!!! WOO HOO!!! SO, STOP THROWING THAT RENT MONEY AWAY!!!

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READY TO BUY A HOME IN THE ORANGE COUNTY, CA AREA? CALL ME TODAY AND LET'S BUY A HOME FOR A REASON NOW!!!! CALL LAUREN SELINSKY, 949-310-4960

 

     

 

    

 

 

        

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MULTI-MILLION DOLLAR PRODUCER, SOUTH ORANGE COUNTY SPECIALISTS, PROVIDING EXCEPTIONAL SERVICE FOR BUYERS AND SELLERS IN SOUTHERN CA INCLUDING THE CITIES OF: ALISO VIEJO, BEVERLY HILLS, CORONA DEL MAR, CAPO BEACH, COSTA MESA, DANA POINT, IRVINE, LAGUNA BEACH, LAGUNA HILLS, LAGUNA NIGUEL, LAGUNA WOODS,LOS ANGELES, MALIBU, MISSION VIEJO, MONARCH BEACH, NEWPORT COAST, NEWPORT BEACH, SAN CLEMENTE AND SAN JUAN CAPISTRANO, SANTA ANA, SHERMAN OAKS, AND WOODLAND HILLS. LUXURY HOMES & OCEAN VIEWS FROM MALIBU TO LA JOLLA... BI-LINGUAL IN SPANISH *** A LEADER IN MY COMMUNITY AND A CONTINUED VOLUNTEER IN YOUTH SPORTS IN ALISO VIEJO, LAGUNA NIGUEL, MISSION VIEJO AND DANA POINT SINCE 1994.

                             

I sell Real Estate...and I am supposed to care about the clients needs, but what about "my needs", our needs.  What do Real Estate Agents and Realtors really expect from the other people in a transaction of buying and or selling properties.

 

Real Estate Agents write tons of stuff.  We have blogs to educate.  Blogs to entertain.  Blogs that are written to network so we have a good referral base, but really what have all these blogs taught everyone?  Why are we still trying to educate people about some of the basics of Real Estate transactions?

 

I am working with someone to write a promotional piece for the public on what an Agent does or doesn't do, and a few other things that we want them to know.  However when the eDesigner that I am coordinating with sent me this I thought, oh that is too simple. 

 

"I've included some that are specific to the protocol of hiring an agent, and some that are more general, in case you want to include any of that information. Let me know if this is the type of thing you're thinking of, or if you can think of other resources that might be helpful."

 

 

Rules for Working with Real Estate Agents:

• What Is A Realtor
  
• Debunking Real Estate Agent Myths
  
• Your Duties to Your Agent
  
• How to Interview A Real Estate Agent
  
• Why Hire a real Estate Agent

 

What she's envisioning at this point is something that covers the following points:

•   Your agent works on commission, not salary. If you cut them out of your home purchase they get nothing.
  
•  If you already have an agent representing you, you shouldn't ask another agent to show you a home. Agents respect the client relationship, and an ethical agent will not undercut an agreement made between you and a colleague.  Also often times it is against the Code of Ethics a REALTOR adheres to.
  
•   Real estate agents are busy professionals. They are not at your beck and call any hour of the day, ready to drop everything to show you a home right this minute. You are not your agent's only client (this is a good thing!), and like you, real estate agents need to eat, sleep, and spend time with their families.
•   If your agent is not able to show you a home right this minute, it is not acceptable to call another agent and ask them to show you the home (see #2)

 

Do we as Real Estate Professionals educate people enough? What would you want them to know?

So, what do you think?  Do we need to educate each other or the Public on what our responsibilities, work style and expectations are in order to facilitate a smooth transaction? 

If we could only have a 3 minute presentation what would you want a prospective client to know?

 

A growing number of homeowners around the country are using a foreclosure defense that may help them retain their homes. It’s called “Produce the Note” and we want you to know this is not a mere technicality that should be treated lightly by the lender or by the Court.

Everyone needs to understand the importance of this issue. When a lender can’t produce the original note, allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party in the future. Therefore, great caution must be taken before a judge can allow someone who can’t produce the original note to cash in on your home.

What if Your Lender CAN’T Produce the Note?

So, what happens when the lender tells the Court it can’t produce the original note, because it is lost? Let’s start with the basics. If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed. That right to foreclose belongs ONLY to the person who has legitimate POSSESSION OF THE ORIGINAL NOTE - not a copy, not an electronic entry, but the original note itself with the original signature of the person(s) who allegedly owes the money along with appropriate raised notary seal and signature. So, if you are faced with a foreclosure, you have every right to demand that the person or entity trying to take your property, first prove to the Court that they have the legal right do to so in the first place by proving they have legal possession of the original promissory note.

In my opinion, an original mortgage note is much like legal tender and should be guarded and protected as such by the person holding such an asset. Loosing an original mortgage note is like loosing a $100 bill or a gift card or a lottery ticket. What if I scratched that million dollar ticket and just stuck it somewhere and misplaced it? Do you think I could just show up at lottery headquarters and claim my prize without having the winning ticket? The same principle applies to the person or entity claiming to be the legal holder of an original mortgage note. He who holds the note holds the key.

What the Lender Must Do

What often happens, however, is that the lender claims it doesn’t have the original note, because that note has been lost or destroyed. If the lender is making such a claim, the law requires the lender to prove all of the following under the “Uniform Commercial Code”, which is a set of laws governing commercial transactions that many states have adopted. It contains a specific provision on this subject (Section 3-309) which states that a person can enforce a promissory note without having the original, BUT only under certain limited circumstances.

1. The person or entity has to swear and attest that it no longer has the original note;
2. The person or entity has to prove that it was properly in possession of the note and was entitled to enforce it WHEN it lost possession of the note;
3. The person or entity has to prove it didn’t “lose” possession simply because it transferred the note to someone else (i.e., it’s not really lost); and
4. The person or entity has to prove that it cannot produce the original note because the instrument was destroyed or its whereabouts cannot be determined or it was stolen by someone who had no right to it.

All of these matters have to be definitively proven by the person or entity trying to foreclose on the property. It is not the obligation of the borrower to prove or disprove any of this. The borrower can challenge the right of the person or entity trying to foreclose and demand proof.

The Court’s Important Role

It is up to the Court to determine whether the lender has satisfactorily proven why it no longer can produce the original note. The Court also has to be satisfied that when the original note was lost, the person trying to foreclose on the property had possession of the note at the time it was lost. Until the Court has been satisfied of all of this, the foreclosure cannot proceed.

It is also important for the Court itself to understand that this issue is not merely a “technicality” and the judge should not be satisfied with anything less than full proof of this issue. The Court itself needs to appreciate the fact that if it should agree that an original note has been legitimately lost (and allows the foreclosure to proceed) it is the borrower who is still at risk.

Why? Because incredibly, even if a Court has found that the original note is lost and the foreclosure sale is finalized, if someone later turns up with the original note and proves that it is the proper holder of the note, and not the person who foreclosed on the property, the original borrower is STILL LIABLE.

That’s right. Someone took your home and the Court allowed it because it believed that the lender proved that the note was lost and it was the proper party. Then someone legitimate shows up in the future with the actual note and you still owe that person the money even though your property was taken with the blessing of the Court. Trust me, this is a very serious issue regarding post foreclosures and post pre-foreclosure short-sales. It has happened to three of our own clients! These homeowners had the need to sell their property by means of a negotiated short-sale (so they could avoid a foreclosure) only to find out that the entity claiming to have the legal right and authority to enter into such negotiations and accept such settlements sold their note to another entity and weren’t even aware of it. Several months later, the newly assigned lenders (now claiming to be the rightful owners of our client’s original notes) have since come forward and have also filed suite seeking to recover their entire outstanding principle balances owed to them (prior to the homeowners closing their short-sale transactions with the wrong note holders).

How fair is that?!?! It’s not! And that’s why homeowners need to start fighting back when someone is trying to take their home by foreclosure, especially since an overwhelming percentage of mortgages granted over the last 3 to 5 years have been packaged into securities and re-sold and re-assigned numerous times since the inception of the borrower's original note and mortgage. In some states, homeowners have better than a 50/50 chance of being successful in defending themselves against a completed foreclosure. Why wouldn’t anyone who owns a home do everything in their power to protect and defend it?

All the Best,

Rick D. Misitano, Senior Paralegal
Law Offices of James M. Bosco & Associates
Methuen Executive Park
240 Pleasant Street
Methuen, Massachusetts 01844
Phone: (978) 687-8804
Fax: (978) 687-8872
boscolaw@comcast.net

5 Ways To Create an Inviting Front Porch To Attract Buyers

I was talking with my agent, Monica Hess tonight. We were discussing an upcoming article she is doing for a magazine.

As she was trying to come up with ideas for her topic, I told her how I felt a front porch needed to give a good vibe in order for the house to sell.

Some front porches are clean and nice but lack comfortable places to sit or interesting areas.

They are one of the first areas of your home that new buyers will see and gather a first impression. 

Here are my 5 simple ideas that I used on my front porch:

1. Keep it clean. Each morning when I let my dog out, I spend time sweeping away bugs and leaves. I also take off dead leaves and flowers off the plants. By the time I do this my dog is ready to come back in.
2. Comfortable furniture. What I have on my porch isn't new. The bench had been in my Dad's Greyhound Station since the 40's, the wicker table I found on a curb that someone didn't want. Check secondhand stores for furniture that can be recycled. I prefer wood over metal. Even a chair with a seat out can be a plant stand.
3. Look for cheap pillows that if they get wet or stained you can just replace or wash them. These were a few bucks each and can from a discount store. I liked the Mai-tai drink designs on these. I carry these in if it starts to rain.
4. Plants. Buy a few on the sale table at a garden center that look exotic. I put these in odd containers and in a few weeks they burst back with new life. By putting them on the porch they have a chance to recover. My favorite one now is my Desert Rose. I love the trunk of this one, it looks like a body! I used a tub with a leaky bottom to plant purple petunias. The ferns are very hardy and fare better than flowers in hot weather. I redo them fresh every spring. Don't put the hanging ferns up till after Mother's Day to keep Robins from building nests in them. It breaks all the fronds I found out.
5. Use rugs or paint the concrete with a stain if the porch is in bad condition. There are some nice outdoor rugs that resist the weather really well.

I like the idea that the front porch should be just as inviting as the inside of your house. Spend a little time thinking of unique pieces to add some pizazz!

It might be all the buyer needs to imagine themselves there with a nice glass of sweet tea and a book.

Next step might be an offer!

Finding a new Kentucky home has never been so easy!

Just click on the link below.

Lexington KY Residential Homes For Sale

  

Lizette Fitzpatrick- Principal Broker at Lizette Realty.

For more information on Kentucky Horse Farms and Lexington KY real estate 

click on Lizette.us.

 Copyright © 2009 By Lizette Fitzpatrick, All Rights Reserved

5 Inexpensive Ways To Create An Inviting Front Porch To Attract Buyers

Tuesday my husband was given a pink slip from Belleville High School. He is history teacher and social studies teacher. He is tenured.

I was shocked

The schools in Michigan are handing out a lot of pink slips including: Flint 257, Detroit 600, Pontiac everyone, Lansing 170.

Last year at Belleville High School, (where he teaches) they didn't let enough teachers go so in October after the enrollment count they had to redo classes.   Mike was not one of them.

When they change the class sizes some students go and some classes are dropped and it is disruptive. So this year they are letting 90 go and then hiring back.

If you are pinked slipped and hired back you can still be let go in October after the enrollment count.

Can you stay unstable?

 

 

I don’t want your sympathy but your advice, prayers and help.

I want to see if Social Media (which we all hail) can get my husband a job.

 In Tennessee

Most of you know I am from the South and we have hoped to move back there when we retired if not before.

So I am asking you if you know anyone in Tennessee, the Nashville Area to please pass along my husband’s name.  We have looked and there are 5 History teaching positions available in the Nashville, Williamson County Area, which he is applying for.

However, it is not what you know but WHO YOU KNOW.

A little bragging:

My husband is an outstanding teacher. Every year his classes fill up and if a student is removed for scheduling issues…mom and dad demand they be put back in Mr. Caulk’s class.

Mike does all of his lesson plans on Power Point, uses YouTube and the news this week by Uncle Jake.  He is a fun, and an engaging history teacher. Making the subject  come alive for his students. 

Everyday at school for 5 years, he would check out the over-head projector so this year, the administration bought him one.  I can count on my ONE hand the days he has missed in the last 6 years, even returning the day after he had stints put in his heart. 

Social Media is more than Twitter, more than FaceBook it is like attending a Chamber of Commerce meeting that extends outside four walls.

Can Social Media help find Mike A JOB?

They say if you want to adopt a baby tell everyone you know. So I am telling everyone I know.  Any help would be so appreciated, especially if you know anyone in the Nashville area that teaches, a principal or works in Administration. ( If you do I will email you his resume.)

When one door closes, another one opens so we are thinking and hoping this might be an open door to move and settle in TN. First of all we are believing God will open a door if we are to move forward with a job in Tn.  But, we know He works through people, so hence my appeal to you here on Activerain.

I figure if Jay McGullicuddy can find his birth mother and Brad Andersohn his brother,....

ALL things are Possible on Activerain.

AnnArborRealtor@gmail.com

 

Yay! You get a tax credit! Good for you!

Really, there's not much to gripe about when it comes to the tax credit. The government handing you a check for buying a house you needed to buy anyway - that's pretty sweet right there!  

Here's the kicker - The Sellers KNOW you are getting up to $8,000 free for buying their house and they DON'T get one for selling it to you and buying their next place.  Their loss, right?  Wrong!   Now more than ever, I am seeing sellers who WILL NOT budge.  And 9 times out of 10 - the reason comes back as.....

*drum roll please*

"Well, the buyer's getting $8,000 and we're not, so we feel they can use that money to make up the price/closing costs and/or decor/repairs."

Sorry, that sound you hear is me banging my head against a wall. 

Here's an idea!  

Sellers:

• Just because they're making you an offer on a lower-mid end home does not mean they qualify for the credit.  They may have previously owned or be married to someone who previously owned! So don't assume they get $8,000!  
• Even if they do qualify for it, that does not mean they have to take it.  This is not a forced credit, they have to ask for it!
• This is a tax credit - not a closing credit! They won't get that before closing to use and they won't get it until they file their 2009 taxes, which will be next year!
• And NO, the tax credit does not make your house WORTH $8,000 more! Yes, we had a seller try to do that!

Buyers:

• Realize that you are indeed getting a government boon for buying a house.  Maybe not now, but you will get it if you qualify and ask for it.  So keep that in mind when eyeballing repairs, updates, and more. 
• Know that the seller knows about the credit too and they will use this as leverage if your offer "sucks" in their eyes.

Think this isn't common?  

Of the last 5 offers I worked on, 4 of them countered back and cited the First Time Homebuyer Tax Credit as the reason they would not do such-and-such or pay this-and-that.  

So keep in mind that you're getting a great tax credit for purchasing -
but watch out for it biting you back in your negotiations!

As some of you might know by now, the House passed a stimulus bill last week. In my opinion the two key provisions of the House bill is the restoration of 2008 loan limit sand new tax credit. The Senate has not yet passed the entire Stimulus Bill but passed an expansion of the tax credit proposal on 2/4. The proposal would be available to all purchasers (not just first-time homebuyers). The key elements are:

• A tax credit in the amount of $15,000 or 10 percent of the purchase price (whichever ever is less), with the option to utilize it all in one year or spread it out over two years with no repayment, unless the house is sold within the first two years.
  
• The tax credit is available to all purchases of any home from date of enactment for one full year.
  
• Able to claim the credit against the 2008 tax return.
  
• Buyers must occupy the homes for two years as their principal residences.
  
• Purchases of homes by investors are not eligible.
  
• Terminates the previous $7,500 Housing Tax credit on the date of enactment.

It is expected that the Senate will pass its entire Stimulus Bill by this week-end. If that happens the House and Senate will then have a conference next week to work out the differences between their bills.