Archive for category HAFA

Short Sale Fail – A Series on Questionable Things I Run Into With Short Sales: CDPE Disclosure

Short Sale Fail – A Series on Questionable Things I Run Into With Short Sales: CDPE Disclosure

When working with buyers I often run into listing agents forcing the use of forms that leave me wondering how many short sales they have completed and the level of service that they provide to their clients. For instance I was showing a house this past week and the agent included the below form as a document to be included in a contract. It is a CDPE form (Certified Distressed Property Expert – in my opinion little more than a “I paid $500 to get a designation for my business card club”). CDPE has their trained agents using the below form that has more than 1 questionable item on it. For this post I would like to focus on Item #2.

Item 2 States the following. “The seller will receive no cash from this transaction (unless it is a HAFA short sale). Any funds usually due to the seller will be paid to the lender.

This is inaccurate Click HERE  to look at at one of my more recent posts below. I have been able to obtain cash for sellers on more than just HAFA short sales and have the approval letters to reflect it. If your agent is using this form do they know that they MAY be able to negotiate a Seller Incentive paid to you upon closing?

As a Seller you need to know you have a competent agent working for you. You are not guaranteed to recover any money from a short sale as a seller but if you could why wouldn’t you want help with moving expenses, rent at your new place, etc.?

If you as a buyer see a form that has this specific wording on it included in your contract it may be an indicator of the possible rodeo you are about to be a part of. To me it suggests at least a lack of knowledge of the party bringing it to the table.

Call me if you are considering buying or selling a short sale . 208.830.6185

CDPE Form P

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Short Sale Fail – A Series: Intro

Short Sale Fail – A Series on Questionable Things I Run Into With Short Sales: Intro

  I daily run into behaviors, responses from “experts”, forms required by “experts”, etc. – things that make me scratch my head when I am working with short sales. Not always are these things that I run into worthy of an entire blog post but I figured I would create a series to at least allow for brief posts discussing/presenting these things.

This is a series that I will revisit as time permits that is good information for both Buyers and Sellers in considering the short sale process. Short Sale Fail obviously suggests that I will at the very least bring into question some of the practices, forms, designations, etc. discussed.

Please touch base if you are considering buying or selling as a short sale. 208.830.6185

*This is not to be construed as legal or financial advice and you should seek qualified council regarding any financial or legal questions.

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Homeowner Receives $13,000 to Short Sale House

I recently closed a short sale where my Seller client received $13,000 at closing as a Short Sale Relocation/Seller Incentive and was also released from any further liability for the deficiency. It is possible. See the approval letter below.

Does this happen all the time? No.

When Sellers do receive compensation at closing it is generally between $750-$3,000. The situation where the clients received the $13,000 was from a Servicer (Bank) that does offer substantial compensation on some of the loans they service for completion of a short sale. Depending on the specific situation and the specifics of your loan(s) you too may be able to be paid to complete a short sale. Not all short sale sellers and loans will qualify for cash compensation at closing but it happens often enough that you want to have an agent that knows how to get that compensation for you if it is available. Read my next post to see that some “expert” short sale agents with “fancy designations” think that a seller can’t be paid at closing (I will include examples of their published forms that reflect this).

Drop me a line if you are considering selling your house. 208.830.6185

One of my Clients made $13,000 short selling their house!!!

One of my Clients made $13,000 short selling their house!!!

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HAFA Short Sale Program – Fabulous or Flop?

The HAFA short sale program has been going “strong” for nearly a year now and there is still quite a bit of fuss about it. Guidelines have been modified a bit effective February 2011. But no real changes have occurred. So what exactly is all this fuss about?

Seller’s are excited about the possibility of receiving up to $3,000 back for completing a HAFA short sale, the bank has to agree to release the borrower from any further liability, and the bank cannot ask the borrower to contribute any cash at closing or require the signing of a promissory note. These are all really great for a borrower – no doubt – if they happen.

Real Estate agents and other mitigation companies are advertising the heck out of the program – generally this presents itself with some marketing material that tells homeowners in default that they can get paid up to $3,000 to complete a HAFA short sale – nice marketing hook.

Real Estate related “trainers”, real estate related associations, companies that sell designations agents can tag behind their names, market area short sale “experts”, etc. are marketing seminars, conference calls, manuals, training programs, three and four letter designations, etc. – nice opportunity to talk like an expert, look like an expert, and sell the image of being an expert.

So is HAFA fabulous or a flop? Word on the street is in a grand total of 661 HAFA short sales total were closed in 2010. For all the racket it seems to be a flop.

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