Posts Tagged boise idaho short sale help

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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Another Wave of Foreclosures?

While we have experienced some leveling in our market the last 3 months there are fears of another wave in foreclosure activity. These fears may be founded as foreclosure starts were up 28% in January and some are of the opinion that we will see foreclosure activity at a greater level in 2012 than we did in 2010.

This new wave of foreclosures is expected to hit borrowers who were not involved in many of the sub-prime mortgages but rather folks with ordinary mortgages that have been effected by the recession.

See Reuters article “Americans brace for next foreclosure wave”.

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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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What a Short Sale “Expert” told me today…

Some buyers touched base with my wife and me over the weekend to take a look at a $600k short sale property. We lined up a time to take a look but before heading out to show the house I dropped the listing agent a line.

The short sale was being marketed as an “Approved Short Sale” so I wanted to make sure what the listing agent meant as the answers you get to that question really vary. Just a pet peeve it should have been listed as a “Previously Approved Short Sale” but I digress. I asked the obligatory questions of who’s the bank, what do you mean by approved, is the file still open and active with the negotiator at the bank, etc. I “foolishly” asked if any buyer closing costs had been approved…the listing agent went into a big rant about Bank of America not EVER agreeing to pay any buyer closing costs. I tried to tactfully convey that they do but quickly realized I was dealing with an “Expert” who wouldn’t accept any questioning of her authority on the short sale process, BofA short sales, and on who came first – the chicken or the egg. I tried to chalk it up as someone having a bad day, on an ego trip, etc. but then confirmed my suspicion that this expert hadn’t closed too many short sales and surely not too many with BofA.  9 … 9 short sales total closed and she was the authority on BofA short sales?

I bit my tongue and headed out to show the house.

I arrive at the house and who is at the house – none other than the “Expert” listing agent (this is not customary in ID for the listing agent to be at the house during a showing). Turns out she was waiting for the water company to turn on service to the house. It was a 6,000+ sqft house on a fair size lot so we spent an hour or so checking out the property with Ms. “Expert” Agent hovering, trying to interject in conversations, and watching us through the windows as we walked the grounds. As we were wrapping up the showing Agent “Expert” was hanging around the door and quickly stated that the house was approved for “x” and that to write an offer for anything less than that would be a waste of time. Wonder if her Seller would like to hear of that? She then went on bad mouthing her seller clients and also another agent that had presented an offer lower than the previously approved offer. Classy. Then as the buyers went back through the house to check out a couple more things I stood there talking with the “Expert”. She told me short sales were all she did and insinuated she had a sizable number of short sales currently listed (4 times the actual number she has listed). She then told me all about her expertise and reiterated that short sales are all she does and that oh by the way she teaches short sale classes. yeeesh…..

After she finally left the property my clients chuckled at how big a head the agent had and I gave them the low down on her actual numbers and explained the reasons that she may have said some of the things she had, etc. Needless to say my buyers were not impressed with this agent, we both knew she was full of it and herself.

As I drove away I wondered how someone gets paired up with an agent that discourages offers, bags on her clients, etc. I felt sorry for her clients and then later in my drive I felt sorry for for Ms. “Expert” as it seems a rough existence to be so full or yourself and/or delusional to twist closing 9 of 42 short sales into a performance that qualifies her as an “expert” all the while helping clients down the road to foreclosure.

Don’t be fooled when looking for an agent to help you short sell. Coming through 22% of the time won’t keep you swinging a bat in the big leagues even if you look and sound the part. If foreclosure is what you are trying to avoid you want an agent that bats far better than .220 – give me a ring.

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