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Bank of America’s “10 Tips for a Successful Short Sale”

The following is a list titled “10 Tips for a Successful Short Sale” created by Bank of America. For the full list, click here.

Tip #1: Obtain education and experience with Short Sales

Tip #2: Set Expectations

Tip #3:  Get outside liens released ASAP

Tip #4: Work to sell property at fair market value

Tip #5: Fully execute purchase offers before submission

Tip #6: Negotiate fees in advance & supply complete HUD

Tip #7:  Check all documents prior to upload

Tip #8: Complete tasks in a timely manner

Tip #9: Agree on counter offers before accepting

Tip #10: Identify common causes of delays

 

  

 

 

To speak with a licensed real estate agent who specializes in Short Sales, Contact Showcase Realty, LLC anytime!

October 11, 2010

3 Tips for Negotiating Short Sales

Short sale transactions can be complex to negotiate with lenders. Hence, real estate trainer and educator Kathy Mehringer’s definition of short sales: “A transaction where nothing is certain but for the uncertainty.”

Mehringer, director of risk management for Coldwell Banker Residential Brokerage, Southern California companies, offered tips to negotiating short sales during her session, “Short Sales, REOs and Foreclosures: Still Hot” on Wednesday during the California Association of REALTORS® Expo in Anaheim, Calif.

Mehringer, who often educates real estate professionals on short sales and foreclosures, offered the following negotiation tips at her session:

1. Don’t give up.
When a lender turns down your short sale offer, do not view that as the final answer. Too many real estate professionals assume that a firm “no” from a lender means they’ll never accept a short sale on that home.

“You can’t see ‘no’ as an answer — see it as an opportunity,” Mehringer said.

Follow up by asking the lender: “What will you accept? What can I do to make this offer better?”

Remember, the lender is supposed to get the highest price for the bank; “no’ is merely the beginning of negotiations.

2. Earn their trust.
Lenders don’t always trust real estate professionals when it comes to short sales negotiations. Mehringer has learned the reason for much of their distrust: They believe listing agents put a home on the market for a significantly lower price than what it is worth and then waste their time by submitting a ridiculously low offer and present it as the best possible offer for the home.

“Lenders think you underprice short sales,” Mehringer said. “We need to show them that we are trustworthy and properly demonstrate the value of the property.”

After all, your job when representing a seller — even in a short sale transaction — is to work to get the highest and best possible terms for your seller, she told attendees.

3. Lose the low-level clerk mentality.
Mehringer said that she often hears from real estate professionals that the lender isn’t cooperating. But how is your behavior toward them? Telling the lender such things as “if I don’t have an answer by 5 p.m. today, the buyer will walk” is not going to work in closing a short sale faster but will serve as a turnoff, Mehringer said.

“You will get more by being nice to people,” Mehringer said. “And being nice doesn’t mean that you have to be a push over either.” Always be professional and courteous in your contact with lenders.

Also, realize that a short sale is optional for a lender. “It’s a business decision,” Mehringer said. “A lender may elect to cooperate to save the expense and time of foreclosure … but it’s purely a business decision — it’s an algorithm.”

By Melissa Dittmann Tracey for REALTOR® Magazine online

Worried foreclosure is coming?

LPS Data Shows GSE Foreclosure Starts Are Accelerating

Fannie Mae and Freddie Mac are beginning to initiate foreclosures at a faster pace.

According to a new study from Lender Processing Services (LPS), GSE foreclosure starts have been accelerating and are currently at all-time highs. From May to June, foreclosures initiated by Fannie and Freddie jumped 21 percent.

The GSEs’ prime borrowers are performing the worst. Foreclosure rates among the agencies’ prime loans have soared nearly 400 percent since January 2008, with a notable hastening tracked over the last two months, LPS reports. That increase is second only to the swell seen in non-agency “jumbo” mortgages, for more than $729,750.

LPS says the recent momentum in GSE foreclosure starts coincides with Home Affordable Modification Program (HAMP) cancellations, with most of the volume concentrated in the very late stages of delinquency (six-plus months).

The latest HAMP statistics from the Treasury showed an extremely elevated number of cancellations from trial plans, as many borrowers who received temporary modifications have not been able to verify their income or have missed trial payments.

As of the end of June, 520,814 HAMP trials had been cancelled – more than have been converted to permanent status. In addition, 8,823 permanent modifications have been cancelled under the federal program.

In contrast, LPS says foreclosure starts have remained relatively stable over the last several months for the rest of the industry. The company puts the overall foreclosure rate as of the end of June at 3.65 percent, but notes that foreclosure inventories are still elevated.

According to LPS’ market data, total foreclosure starts for 2010 are at 1,456,000. That stat is lower than 1,682,000 for the same period in 2009, but up from 1,245,000 in the first half of 2008.

July 13, 2010

More U.S. sellers cut home prices in June

Zillow.com recently published an article stating that an extremely large amount of sellers had to cut home prices in the month of June. Read the full article bellow:

“(Reuters) – The percentage of U.S. home sellers who cut their asking price rose in June, with price reductions even larger than the month before, real estate website Zillow.com said in a report.

Prices of about one in four homes, or 26.3 percent, listed for sale on the Zillow website had been cut at least once as of the end of June, up from 23.6 percent in May, Zillow said in the report, which was obtained by Reuters on Friday.

June marked the third month in a row that the percentage of home sellers who reduced their asking price increased from the previous month.

Price reductions peaked last September, when nearly one-third, or 32.6 percent, of listings on Zillow had at least one price cut.

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July 13, 2010

Biggest Defaulters on Mortgages Are the Rich

The New York Times just published a surprising article regrading Mortgages. Read the article below for more information:

“LOS ALTOS, Calif. — No need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars.

The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves like this one in Silicon Valley.

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.

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