RainCityRealtor

Ways to find a Short Sale Listing Agent.....Why a Short Sale Specialist is Better than a Neighborhood Specialist

2010-02-15T17:12:00.000-08:00

Home sellers can easily find hundreds of agents eager to list their homes, but finding a short sale listing agent is more difficult. That's because a short sale listing agent does more than slap the listing into MLS and plop a sign in the yard.
The short sale agent handles negotiations with the bank. If the agent has no experience dealing with loss mitigation and negotiators, the seller is the person who may suffer. More than half of my real estate closings in Sacramento for the past few years have been short sales. I know first hand what it takes to get them closed and, quite frankly, short sales are a ton of work. Novices should not handle short sales.

Searching for a Short Sale Listing Agent
Due to rising numbers of short sales in certain parts of the country since 2006, many real estate agents have decided to market themselves as short sale specialists. Some of those agents have little or no short sale experience.

Here are ways to find a short sale listing agent:

◦Referrals From Family / Friends
In some areas, foreclosures are ubiquitous and more the norm than a regular sale. Sellers may already know someone who successfully closed a short sale, and that seller is an excellent source for providing a referral.

◦Ask an Agent for a Referral
Agents who don't list short sale transactions generally know which agents are short sale specialists. Agents judge each other by harsher standards, I have discovered, than buyers judge agents, so you're likely to be directed to a top-notch short sale listing agent. Plus, agents regularly pay each other referral fees, which means the referring agent has an added incentive to make sure you end up in the right hands -- because if it doesn't close, they don't get a referral fee.

◦Attend Short Sale Open Houses
Find out if the agent hosting the open house is the listing agent. Sometimes, agents let associates in their offices hold open listings. Talk to the listing agent and try to get a sense of how many short sales this agent has handled and whether the agent is knowledgeable.

Feel free to reach out to me anytime with your questions about short sales for buyers and sellers.

Tim Schmitz

Coldwell Banker Bain
www.RainCityShortSales.com
www.RainCityAgent.com

What goes in the hardship letter for a short sale?

2010-02-10T22:43:00.000-08:00

This outline will help your Seller prepare their hardship letter. The sample answers are to assist NOT to just be copied. The hardship letter should only contain facts. Just be honest. The goal is to explain to the Lender why the Seller can no longer make the payments for their property. This letter should be handwritten by the Seller and legible.

TO: Countrywide Mortgage

FR: Paul and Suzie Helpus

RE: 1234 Lost Value Ave. Poinciana FL 34759

LN#: 34578903

First Paragraph-Explain what you want

We are requesting that you approve us for a short sale of our loan with your Company.
We are no longer able to make the payments and have been trying hard to sell the property.
We love our home but due to circumstances beyond our control we are no longer able to pay for it.

Secondly, describe your hardship

What led to your current financial problems and caused you to miss mortgage payments?
What caused your hardship?
Did you lose your job?
Did your current job require a transfer?
Illness?
Death?

Be very specific. Remember you are trying to get your Lender to accept a loss. Be honest and be thorough.

Then describe what you have tried to do to overcome your hardship.

Have you been to counseling?
Have you been job hunting?
Are you cutting back on your expenses?
Have you been making mortgage payments on your credit cards?

Briefly outline your current situation.

You have a new job but are making less money.
You had to move due to divorce, job, children etc....
Provide your contact information.

Let them know they are free to contact you if they have any questions BUT reiterate that they should contact your Broker.

Finally, sign and date the letter.

All Borrowers must sign.

OK, that's it for this time.

Short Sale Opportunity in Issaquah's Talus Neighborhood

2010-02-09T23:35:00.000-08:00

www.2105FarCountry.com

Why you should not overprice your house for sale

2010-01-27T08:10:00.001-08:00

Face Facts. Overpricing your home is BAD. Worse, in fact, than a rough case of the chicken pox. There are dozens of reasons overpricing is bad but a few stand out from the pack in terms of hitting your wallet when everything is said and done.
Overpricing your home makes the competition LOOK better.
When you price your home over the market value by even 5% or 10%, it makes other properties that are comparable to yours look better.
Overpricing your home destroys your ‘Window of Opportunity’.
The window of opportunity exists for this reason. When you place your home on the market, buyers are already out there looking. These buyer find your home through a Realtor or on a website and decide to go see it or not. These first few weeks of buyers are the ones already in the market. As time passes, only new buyers look at a home that has been on the market a while. When your home is overpriced, you completely miss this initial influx of buyers. Even if you realize your mistake by week 3 or 4 the damage is done. Buyers don’t go back and look at houses they’ve already been show is overpriced either online or by a Realtor. There is a stigma on the overpriced home even though it is now priced at market value.
Overpricing automatically halves your number of showings.
A home that doesn’t show doesn’t sell. Even at market value, due to locational, school, and misc. preferences, only 6 out of every 10 buyers that are looking at your price range will come see your home for sale. When you overprice your property by just 10%, your number of showings will drop in half. Now, only 3 out of every 10 buyers will come to see your property. The average property shows at least 8 times before there is an offer. By overpricing your home by 10% you have effectively doubled your home’s time on the market if it sells at all. Instead of being sold in 15 to 21 days, you are still making the beds, cleaning the dishes, tidying after the kids rooms, attending to extra details on a daily basis and wondering why your house has not sold when others have. The exact question you should be asking is “People have looked at our home and they choose to buy another?” Is it the Price or Condition?
I don’t give out this information to scare or intimidate sellers into lowering their prices. I do it to illustrate the fact that by overpricing your home you are hurting yourself and your family in the long run. If you only remember one thing about pricing your home, remember this:

Sellers do not determine a home’s value. Realtors do not determine a home’s value. Buyers determine the market value of any given property.

If you are wondering what your home is worth today, whether you’re selling soon or you just want to know, please contact me for a free pricing analysis of your property. www.RainCityAgent.com and www.RainCityShortSale.com I welcome your inquiries Call 425-372-6382 or email me at timschmitz@cbbain.com

What is a Short Sale?

2010-01-10T00:10:00.000-08:00

If you find yourself in a position where you owe more than your home is worth and you need to sell, a short sale may be your best option. But don’t get taken for a long, stressful ride by a self proclaimed ‘expert’…

“What is a short sale?”
Simply put, a short sale is a real estate transaction where the homeowner owes their lender more than what their property is worth and they need to sell. In a short sale, the lender must approve and accept less than what they are owed as full payoff (this means they may settle for $400,000, even if you currently owe them $500,000…even if the loss is hundreds of thousands of dollars)!!

◦Are you facing a financial hardship that you know will decrease your income?
◦Are you getting behind on your mortgage and you’re not sure if you can catch up?
◦Or do you just need to sell quickly but your home is worth less now than when you bought it?
If you are facing any of the situations above, it’s possible that a short sale may be your best option.

Don’t worry. It’s not your fault…
You gotta remember, we’ve all had our ups and downs in life and a lot of other good people are also in the same tough spot as you. Life seems scary when you’re facing the reality of foreclosure and I know how you feel when you just don’t wanna answer the phone any more…

We all agree that we’re in the middle of a national mortgage crisis and that, in many cases, homeowners who have bought or refinanced in the last few years have been seriously abused by unethical lending practices!!

You bought your home and hoped (like we all did) that it would increase in value (and some folks were even promised it would!), but most likely the harsh reality is that now your home is worth less than when you bought it and the value is still declining sharply.

It’s sad but true!
Did you know that nearly 90% of the homeowners nationwide who try to “short sale” their home will end up losing their home to foreclosure due to an uneducated or lazy agent?

Don’t allow this to happen to you!
I hate to say this, but the majority of agents that are “trying to help” have not been properly trained and sadly, they are misinformed as to how to even negotiate with lenders. Some even get so far as to submit your ’short sale packet’ and then just sit back and wait for a response! In the end, they simply don’t know how to help you and you will become one of those “90%” that were not helped.

“Short sales are not easy!”
…unless you seek the help of an expert agent with a proven track record. I have been personally trained by a former Chief Loss Mitigator of another bank who is a career loss mitigator and asset manager with 20 years in the business (he is ultimately the guy at the bank who accepts or declines short sales). We are now helping save even more folks from foreclosure.

We actually get the banks to say YES to our short sales. I have insider knowledge and a broad base of industry contacts that allow us to get our approvals faster than any other agents.

Now it’s up to you…
I am ready, along with my team of experts, to go to battle for you. Are you ready to take a serious look at your options and see how a short sale can help you?

◦Save your credit from the “Foreclosure” ding
◦Avoid Bankruptcy
◦Avoid Foreclosure
◦Relieve the stress that this financial burden has become
◦WITH NO OUT OF POCKET FEES OR ANY UP FRONT COSTS OF ANY KIND! …or in other words, you pay me nothing and if I do my job and save you from foreclosure, only then will I get paid by the lender!
If you have any questions I can answer that will help you better understand how the short sale process works, please don’t hesitate to contact me directly.

425-372-6382
www.RainCityShortSale.com

Treasury Releases HAFA Program Details

2009-12-20T12:18:00.001-08:00

The Treasury Department yesterday gave guidance to servicers on the Home Affordable Foreclosure Alternatives Program (HAFA).

The new version of HAFA looks very much like the one envisioned in the initial announcement made in May.

Yesterday's Treasury announcement includes the general terms and conditions, evaluation process, documentation, and reporting requirements.

The program will take effect April 2010 and servicers already participating in the Home Affordable Modification Program (HAMP) will be required to follow guidance.

One aspect of the the program is that it standardizes the eligibility for short sales. It is available to borrowers who meet HAMP eligibility requirements although do not qualify for a Trial Period Plan or do not successfully complete a Trial Period Plan.

Upon the successful closure of a short sale or deed-in-lieu through the HAFA, the following incentives of $1,500 in relocation assistance to the borrower; $1,000 in expense reimbursement to the servicer; as well as up to $1,000 in investor reimbursement for subordinate lien releases will be given.

Aside from these incentives, the program uses borrower financial information collected in conjunction with HAMP, removing the need for added eligibility analysis, sets minimum acceptable net sale proceeds to be determined by a consistent written policy developed by each servicer, and requires borrowers to be fully released from future liability for the debt.

According to analysts from Bank of America Merrill Lynch, the program is positive on the margin.
Even though the program provides standard rules, documentation, and process flow, the ability for servicers to make their own policy will leave HAFA's success largely up to them.

The success of this program, analysts said, is also a "double edged sword." They explained that short sales limit loss severity because of lower advancing and better bids on the property as compared with REOs.

But, analysts said that increased short sales will shorten the liquidation timelines and release the supply of distressed properties into the market sooner.

One of the key drivers of the better-than-expected headline numbers in the housing market, analysts said, has been the stalled foreclosure process. These numbers could also be attributed to the supply being artificially held back from hitting the market.

They further added that many of the issues that they have highlighted in the past still remain, such as moral hazard.

Do you need to sell your home, but owe more than it is worth?

2009-12-19T15:35:00.001-08:00

It is very common these days for seller'sl to find themselves in a situation where they owe more than the home will sell for. These are called a short sales and they take special dedication and skill to process successfully!
Not every agent can or will do short sales!
Because short sales are difficult to manage and need extra attention, many agents are charging up front fees, or are not taking short sale listings at all! I work with sellers in difficult situations. It isn't always easy, but it is very rewarding to help homeowners solve their real estate problems.
The sooner you call me, the sooner we can find a solution for you!
Whatever your reason for selling, I can help you make it happen by successfully marketing and negotiating the sale of your home. You aren't in this alone!
Similarly, in this current economic crisis, millions of homeowners facing financial hardship and possible foreclosure action are requesting the help of agents with the Certified Distressed Property Expert® (CDPE) designation. A CDPE is a real estate professional with specific understanding of the complex issues that confront homeowners in distress. Through comprehensive training and market experience, CDPE's are able to provide real solutions for homeowners facing hardships in today's market.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. CDPE's believe that in almost all cases, the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools necessary to help homeowners find the best solution for their particular situation. While enduring financial difficulties are challenging for any family, the process of finding a qualified real estate professional should not be. Tim Schmitz has achieved the CDPE designation, ensuring you deal with a professional trained to address your specific needs. CDPE's don't merely assist in selling properties, they serve and help save their clients in need.

Check out my other site at:
www.raincityshortsale.com

How important is the lender package in a short sale?

2009-12-17T22:53:00.000-08:00

The short sale package can make or break the transaction. The proposal put together for the existing lender and follow up after submission are the most important two issues in getting your short sale approved and closed. You have to make certain that you submit everything the bank is looking for and you may want to submit other items that the bank has not asked for but are highly recommended. Having a complete package is key to getting your short sale looked at by the banks.

Most banks want the following items submitted as a complete package:
• Listing agreement
• Listing history
• Executed contract
• Buyer pre-approval letter or proof of funds if cash
• Preliminary HUD statement
• Hardship letter from seller
• Paycheck stubs (usually latest 2)
• Bank statements (usually last 2 months)
• Financial worksheet
• Tax returns (last 2 years)
• If you cannot include all of these items, make certain to insert a page as a placeholder for that item explaining why you have not included it in the package.

The following items will help to make a stronger package for the negotiator at the bank to review. These items together with the above items will help to make a more powerful case for the approval of the short sale.
• Cover Letter including your contact information
• Explanation of marketing you have done with a brief history of showings and feedback
• Market statistics or a BPO completed by you
• Damage and Repair Report and pictures

Remember also to make sure to put the loan number and borrower’s name on each page you forward to the bank. And of course, make sure you keep an entire package for yourself as the banks often misplace portions of your package.

If you are a seller, experiencing a hardship with your current mortgage and thinking of doing a short sale on your home, make sure you select an agent to list and sell your home who has experience with the short sale process and has successfully sold their short sale listings.

If you are a seller and wish to contact us for a FREE consultation regarding a possible short sale on your home, please call us at (425) 372-6382 or send email to timschmitz@cbbain.com

www.raincityshortsale.com

2009-12-14T14:04:00.000-08:00

Chances are, you or someone you know in Western Washington is facing the possibility of foreclosure. But you need to understand that you are not alone.

Today, 1 out of every 10 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.

Through my experience handling distressed properties at Coldwell Banker Bain, I've found that homeowners today have more questions than answers about their circumstances. I have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.

You may also have noticed that I'm offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and I feel it is vital for you to have all the facts necessary to make an informed decision.

As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.

If you would like to know more about your options, please call me at (425) 372-6382.

I am here to help … in any way I can.

Tim Schmitz

www.raincityshortsale.com

Tim Schmitz
Coldwell Banker Bain
7808 SE 28th St., Ste# 128
Mercer Island, WA 98040

(425) 372-6382

How a Short Sale Can Stop Foreclosure

2009-11-17T22:00:00.000-08:00

No one wants the stigma attached to having a home repossessed by the lender through foreclosure, or the black mark left on one’s credit history for every creditor to see in black and white. And it can stay there for as long as 10 years no less.

Although essentially similar in process, for a homeowner to stop foreclosure in Houston the state laws may be slightly different for another city. Many homeowners who bought around the top of the market, back in 2004 through 2006, are now stuck with having purchased more home than they could afford. Through the ease of obtaining exotic adjustable rate mortgages during those years, homeowners found themselves over-encumbered with debt, having financed as much as 110 percent of the sales price of their home.

As a result, they are now finding themselves with a monthly payment that is unaffordable as interest rates adjust to higher rates, thus bringing the new payment to as much as 25 to 50 percent higher than the initial payments they made.

Now they are left looking for a way out of a dire financial situation without the stigma left over. For distressed homeowners one possible option is the short sale. Selling a home via a short sale is a legitimate method for stopping the foreclosure process, allowing the homeowner to get on with life and without the ding to the credit record.

What’s the catch? By definition a short sale is literally the sale of a home for less money than is currently owed the lender on the outstanding mortgage being foreclosed on. In other words the home is “upside down“ from a financial aspect. Therefore, the catch is that in order to successfully conduct a short sale, the foreclosing lender has to agree to it, essentially agreeing to accept less money than it is owed on the loan secured by the house.

A short sale is not a vehicle normally seen during a seller’s market when multiple offers are lining up at the door competing with each other for the house. Short sales are most widely accepted during a buyer’s market when home sales are dragging, home values are declining, and inventories of available properties are growing to the point that the lender basically is just throwing up its hands and saying some money for the house is better than no money at all.

Lenders are not in the business of owning real estate. They get upset when they have too many properties on their REO (real estate-owned) books instead of out in the market making it a profit through monthly mortgage payments. Plus, the foreclosure process is not free. Every house they foreclose on costs them thousands of dollars. So, in some instances, agreeing to a short sale is in the lender’s best interest.

And it is up to the homeowner to convince the lender that this is one of those circumstances where it’s better to fish and cut bait. It’s a matter of numbers and economics. The homeowner needs to demonstrate to the lender hard numbers that will lead the lender to conclude that selling via a short sale is going to benefit them more than the amount they would garner from foreclosing on the property and then selling it as an REO.

Keep in mind there is one major downside to a short sale, however. As much as the lender wants to keep the property off its books, it also wants the money it’s owed. In many situations the lender will make it a condition of agreeing to a short sale that the homeowner sign a promissory note to make up all or part of the difference between the proceeds from the short sale and the amount owed on the original debt.

Also, an important aspect most homeowners don’t realize when they decide to go the short sale route, is that any amount of the debt that the lender forgives is considered to be taxable income by the Internal Revenue Service. The lender must submit a form to the IRS stating the amount of debt forgiven, so the tax man can be waiting for the homeowner when April 15 rolls around next year —if any of the debt was indeed forgiven.

So for homeowners looking at all their options to stop foreclosure and save their home, the first step should be to contact their lender right away to try and negotiate a workout plan to temporarily lower payments, or to refinance to a fixed-rate loan.

After those and all other options have been exhausted, the next step might be attempting to get the lender to agree to a short sale. If so, then before going too far it is advisable to seek the assistance of a real estate professional who is well versed in short sales. Not all real estate brokers or sales agents know how to conduct a short sale or how to work with lenders in negotiating one.

Bottom line: Whether you want to stop foreclosure in King or Snohomish Counties or another area of western Washington, don’t be afraid to ask a real estate professional if he or she has any experience working short sales. If not, move on and interview until you find one who has. Possessing a real estate license does not make them an automatic expert in short sales. It calls for extra training not all real estate professionals have.

Remember: you are paying them to represent your interests and you want the most qualified representation possible when it comes to stopping foreclosure and saving your home.

www.raincityrealtor.com