Short Sale Power Hour

Today is once again Mindset Monday. We make out that there are some home owners and short sale realtors out there watching today. So, we would like to chat about the outback mindset today. We also have some wonderful previous episodes on shortsalepowerhour.com about the outback mentality.

Our focal point today is around page 91 of the Red Book. Being able to think tactically is vital. You need to distinguise between the rules of how you play the game and strategies of how you succeed. In real estate the rules don’t connect to money at all. The rules in real estate are about conduct, morals, and etiquette. There is no suggestion that you should break the guidelines. As a matter of fact, rules are about restraint and you should play by them. Nonetheless, strategy is typically discovered in the grey area of the guidelines.

How many times have you heard the expression, “Can we do that?” The outback mindset response to that query is “Did someone say we couldn’t?” Just contemplating the possibilities out there will increase your mindset.

Producing an assumption that you can not do something only stops your thoughts. However, if you reflect on all of the possibilities in working a short sale situation, your thinking is expanded. Then, with all of those possibilities, you can weed out the ones that break the guidelines and you will still be left with never-ending possibilities on how to solve your dilemma.

When you think strategically the possibilities that rest ahead of you are endless as long as you try anything and everything that nobody has said you can’t do. To repeat, when you think tactically the possibilities that lie ahead of you are never-ending as long as you try anything and everything that nobody has said you can not do.

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Short Sale Power Hour

Today seems like a lovely day for a tale. So, today we would like to chat about a buddy of ours named Raymond McRay from EMT Mortgage. We’re talking about bank counter offers, legitimate and illegitimate. Ray McRay doesn’t seem to be the biggest fan of Group 46:10 to start. However, we have prevail over that small point in order to speak about him today.

We were on the phone with Ray and we were chatting about a counter offer that dealt with an short sale that was already flawless. The offer and the BPO were precisely the same. Nonetheless, Ray and the lender were counter offering higher than the BPO. And then the truth spilled out of Ray’s chops.

Ray proceeded to tell Kevin and Fred that he instructs all of his negotiators to counter every offer, whether it is higher than, at, or under the BPO figure. Ray explained that he was simply trying to squeeze every penny he could out of the deal for his investors. Essentially, this is a collection counter offer.

This is a greedy mindset at its worst. To permit someone with this mindset to be in Ray’s position is depressing and revolting. The difficulty with this situation is that the offer is acceptable by the lender standards. Nevertheless, Ray and his staff are attempting to collect more money. So, an inexperienced real estate broker might suppose that the counter offer from the lender means that the initial offer is no good.

The end consequence is that Ray and his counter offer methods may be causing more loss. In a short sale transaction, the banks seem to be trying to hide their cards. If we unlock the books up and let everyone see the same information we can collectively mitigate more loss.

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Short Sale Power Hour

If you recall last week, Kevin and Fred chatted about Matt Vernon, the official at lender of America who came to Arizona last week. Mr. Vernon spoke to more than a thousand real estate professionals honestly regarding deficiencies at bank of America.

One of the things that Mr. Vernon talked about was the ’straw’ offers that jam up the system. In essence , a straw bid is an bid that is so unreasonable that the offer will never get accepted. Kevin and Fred believe that you ought to never send an offer to the bank that you don’t think will get approved. The straw bid only hurts this progression. You’re giving yourself more work, the bank more work and you are slowing down the process for any person that has a short sale listing in the system.

One of the scariest things is that there are short sale teaching courses out there that teach this as a general practice. Ultimately, the agent will take a listing and compose their own investor offer for an unreasonable amount so that they can get the short sale process started. In the mean time they can get a negotiator assigned and get a BPO prepared. All the while, the broker is hoping to find a real buyer and switch out the real buyer with the phony buyer.

However, if you get a BPO completed, the BPO number may not be relevant when you finally get a sincere buyer. At the end of the day, you are hurting the whole community and the value that you think you have in this straw offer process only works out one in ten times. You are not helping yourself by using the straw offer process. On behalf of other real estate brokers and lenders across the country please discontinue this process!

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Short Sale Power Hour

Welcome back to shortsalepowerhour.com. Today is completely about escalations. Yesterday we spoke about what is Never short sale escalation. So, what is escalation? Escalation is talking to somebody of higher authority. Maybe you are wonder “how do we accomplish that?”

Escalation can only occur with pre escalation. When we chat concerning pre escalation, we are referring to the collection of other details before you ever have to escalate. You need to get the contact information for your negotiators boss, and their boss, and that person’s supervisor. It is essential to gather these particulars because by the time you are unhappy it will be too late to gather this data. When you get to a spot where you have to escalate, it becomes difficult to locate someone at the bank that will take your telephone call.

There is surely no reason to be frightened by asking these questions when you are first assigned a negotiator. Bear in mind that if you do not ask for the information, you won’t receive the information. For those of you who like to stay away from the awkward questions about the boss’s contact information or the vice president of the bank and their contact information, there are other places to locate that information.

There is a terrific search engine that starts with a ‘G’ and rhymes with the word ‘moogle’ that can help you gather some of the pre escalation details that you need. Also worth noting is the fact that shortsalepowerhour.com covered some of this same information in previous episodes. So searching through their prior videos would very much benefit you. There are frequent avenues to use to collect the information you may eventually require in escalation. You just need to be creative to go find that information.

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Short Sale Power Hour

Group 46:10 will be taking a short vacation from their show to go on the road to Italy for a small bit of rest and relaxation. Nonetheless, there are many great episodes coming up. So, stay tuned to the week of details and learning.

Today is about a subject matter that comes up pretty often but is very often misunderstood. Kevin and Fred do not teach about it as much as they could, but that is only because they do not want to give it an credence. The subject is lender counter offers.

Take into consideration that the bank is not actually a party to the transaction, so they really do not have a right to counter offer. On occasion, a lender will send you an approval letter with a rejection letter. Basically, the lender denies your first proposal and then gives you the approval letter to let you recognize how much the proposal needs to be in order to be approved.

This is the time when a BPO is the most essential. The BPO is critical here because the lender is basing the counter offer on it. So, the BPO value that has been assigned to the residence is completely vital because you can figure out if the counter offer is a mitigation counter offer or a collections counter proposal.

Here is the difference. The mitigation counter proposal is an offer where the bank employee can not approve the short sale. The collection counter offer is a counter offer where the bank employee wants to collect more money for the bank.

Tomorrow we will dive into a narrative about an interesting man named Ray who didn’t quite understand his job responsibility and loved the counter proposal. So check us out tomorrow.

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Several Features of the Mortgage Short Sale Process:

1. The mortgage short sale boasts relief to all the homeowners in Queen creek, Arizona who are in a tough financial state of affairs.

2. Mortgage short sale is a quick solution to avoiding foreclosure proceedings.

3. The home owner utilizing a mortgage short sale can get lender on their feet in a shorter time period.

Advantages of a Mortgage Short Sale are:

· You have the capacity to get loans from a bank or lender more rapidly if there is not a foreclosure on your credit record

· The mortgage short sale relieves you of obligation and your mortgage would be settled with a lesser amount that if you ran the route of the payments.

· The buyer will get a fine deal on your house that is possibly in move in condition. Mortgage Short Sale Method for home Owners:

· Contact your lending institution to get the rules and guidelines of a mortgage short sale. We recommend that you find a real estate handler that has practice in coping with a mortgage short sale.

· Your real estate broker can help you provide the bank with all of the necessary papers needed to implement a mortgage short sale.

· The bank will look at the documentation that specifies the proposed proposal for sale of the home, present loan amount with your bank including overdue payments and fees, your real estate agents commission and fees that is taking care of the mortgage short sale.

· The house owner will need to write down a hardship letter to the bank noting the reasons the desire to carry out a mortgage short sale in your state of affairs. Along with your hardship letter you should also add in the following; present and previous bank statements, income documents such as pay stubs and the like to show the lender that you have to use the mortgage short sale plan and that you can not make the mortgage payments.

· Your bank will most likely negotiate on the sale price of your residence with the real estate professional that you have chosen and complete the purchase contract that will be compared to the house value according to the markets current status.

Do you want to go to the next step? Free Short Sale Consultation by Short Sale Specialists.

Fred Weaver and Kevin Kauffman, Group 46:10, do daily blog – find it here: Paradise Valley – Avoid Foreclosure Arizona

Short Sale Power Hour

Here is a narrative for Forgettable Friday from Group 4610’s recent chronicle. In reality, this story comes from earlier in the week. Involved in a short sale with OneWestBank, a negotiator on the Group 4610 staff was sent an approval letter that noted 5 percent commissions. Understanding that the agents at Group 4610 do not receive 5 percent commissions, the negotiator from Group 4610 replied back to OneWestBank that we desired a revised approval letter with 6 percent.

The negotiator on the team at OneWestBank responded by telling us that we were going to agree to the five percent commission since he could have given us four percent and there was not anything that we could do about it. So, basically, he believed that we should be delighted with our five percent. Once Kevin heard this, he became mixed up in the job.

After a little swift investigation on a social networking website, Kevin found out that this lender negotiator was possibly not representing himself in the way that his employer would enjoy. In addition, the bank negotiator took joy in the fact that he got paid for being a tool.

Kevin brought all of this information to the focus of the OneWestBank executives and much to his liking, they handled it in the blink of an eye. Within a couple of business days, Kevin had a fresh approval with six percent commission and a number of emails from various executives and managers within OneWestBank that offered their sincere apologies.

It is critical to note a few of things in this instance. There are some people out there that do not characterize the best interest of the bank that they work for. Additionally, Kevin and Fred were impressed with how the bank stepped in and corrected this problem. So, hats off to OneWestBank!

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Short Sale Power Hour

This week has been about the consumers. We want you to create results for your consumers. So, if you missed the last three days of episodes, stop at this time and check out the other episodes from this week.

Now we would like to hop in and show you what this method looks like for a buyer. It is critical to us that we have a meeting with the buyer before we ever let somebody see a residence. Please realize, we want you to get control for the buyer’s advantage. This is about advocating for our consumers. Doing a conference in the car on the jaunt to look at a house is kind of second rate. You are essentially telling them that they are not important enough to sit down with you prior to looking at a residence.

With our consultation, we go through a roll of questions that we ask a purchaser. What qualities do you value in this deal? How hastily are you hoping to close? What are you looking for in a home? And the most vital question is How can i win with you? Make note of that specific quesiton.

Lots of people don’t spend the time up front to save the time and energy afterward. If you can decide what the major things are that need to be accomplished in this deal, you can figure out whether or not you are a fit. At the end of this practice we want to pair the buyer with a buyer broker. Nonetheless, between first meeting and assigning a buyer agent there are a few things that need to occur.

Between the start and the end we feel that it is our obligation to educate the buyer on the state of the market. They should know about foreclosures, REO’s, and Short sales and realize that they all function in diverse ways.

There are a number of other tidbits to pull from this video and the entire week of consumer advocacy. Stop and look at the rest of the week’s videos for additional information.

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Short Sale Power Hour

After dealing with the Florida humidity, 5 nights of hotel rooms, and 3 flights in the past week, the boys are refreshed and ready to crush it once more. Today’s topic is an expansion of yesterday, specifically strategic defaulters. It is vital to observe that the bank has the hardship in this state of affairs. When someone is not paying their bills, the lender can either take the home to foreclose or agree to a strategic default. The lender actually has no other choice.

Martin Andelman has the same belief on this subject as Group 4610. Martin is a self described home owner backer. He hates lenders, possibly more than anybody else in the nation. Martin has a blog that specially addressed a fresh editorial from a Freddie Mac VP. The Freddie Mac VP asked home owners to please discontinue utilizing the strategic default.

The truth of the matter is that home owners are facing sincere situations concerning their future. Many home owners owe more than double what their residence is currently worth. Given the history of residence appreciation, it will take about 25 years for a residence to return to the value of the loan. This is why we call it a strategic default. The strategy is to lose less money as a home owner.

The lenders are doing the same thing as home owners. Morgan Stanley strategically defaulted on a loan valued at hundreds of millions of dollars. Also, the Mortgage Bankers Association walked away from some of their real estate also. So, that is where the genuine crisis is. Why is it Ok for big business to use a strategic default, but not for the little house owner.

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The mortgage short sale takes more time than a traditional house sale will take in Fountain hills, AZ. The house owner, with the help of a real estate handler that deals with mortgage short sale, will need to find a buyer. This is crucial because the lender will get the home back if a mortgage short sale does not work. When the procedure starts, the bank will negotiate the terms of the sale sometimes. The seller can find out the value of a residence by looking at what other properties in the area have sold for that are alike. So, if a residence that listed at $250,000 sold for $160,000, this would be comparable to your situation. Show this to a bank so that they can consider a mortgage short sale with the difference being only $90,000 instead of the $110,000 listed above.

Numerous times, a home owner utilizing a mortgage short sale is behind on the payments, but they do not have to be. A mortgage short sale is the alternative of a property owner. If you decide to use a mortgage short sale, bear in mind that nothing is certain until there is a formal offer from a buyer. Before the mortgage short sale process starts, you may need to provide the lender with a financial statement, pay stubs, tax returns, a purchase arrangement and a letter of hardship.

Approximately a few weeks after all of the paperwork for a mortgage short sale, you will be approached. From time to time they will try to collect the unsettled debt from you first and not give you approval.

The steps to close a mortgage short sale can be difficult. So, if you want to try a mortgage short sale you should contact a real estate agent that has understanding completing these types of business. You need to have understanding of the mortgage short sale method and the real estate professional can aid with that. The real estate broker in a mortgage short sale should be able to negotiate with your bank. If you hold a second mortgage on your house, the second mortgage will also have to be negotiated in the mortgage short sale process. Do not forget this important fact.

With the economy struggling and house values dropping like rocks from an airliner, there are not a lot of choices out there. The mortgage short sale process is a good alternative for people that have to find respite from bad mortgage situations.

Do you want to go to the next step? Free Short Sale Consultation by Short Sale Specialists.

Fred Weaver and Kevin Kauffman, Group 46:10, do daily blog – find it here: What Is A Short Sale – Avoid Foreclosure Arizona