short sales: Strategic Defaults: Are they good for the market? Right or Wrong? - 06/20/11 05:53 PM
Recent data suggests it would take banks in New York State 62 years to repossess the 213,000 houses now in default or foreclosure. In New Jersey, another judicial foreclosure state, it would take 49 years. Florida, Massachusetts, and Illinois would take a decade.  
Even though there are so many homes in these states--and in many others nationwide--in line for repossession, foreclosure cases are down nationally by about a third since last fall, according to LPS Applied Analytics. Does it seem like major lenders are strategically delaying the foreclosure process in order to get caught up? 
Perhaps the best explanation for … (0 comments)

short sales: What Percentage of All Home Sales will be Short Sales in the Coming Months? - 06/14/11 03:31 PM
What percentage of all home sales will be short sales in the coming months?
What about in one year? 40%? 50%?
Short sales rose from 17 percent in February to a record-high 19.6 percent in March. This is a chart that was included in the Housing Pulse Survey from Campbell Surveys and Inside Mortgage Finance:

Pay close attention to the sudden decrease in Damaged REO properties (red line) compared to short sales (blue line), which is drastically on the rise.
How would you interpret these results?
Are you prepared to handle the overwhelming demand for short sale expertise in the … (0 comments)

short sales: Listing a Short Sale in 3 Easy Steps - 05/17/11 02:47 PM
Listing a short sale can be broken down into the following three steps: identify, sign, and pursue.

Identify: Most real estate professionals might say that a short sale will occur when the value of a property is lower than the principle loan balance on a mortgage. This is true in most cases. A short sale can also occur when the net payoff to the first mortgage on the sale of a property is less than the total loan payoff amount, however. Let’s explore a few examples: Scenario #1: A potential seller asks an agent to list their property for $200,000. … (0 comments)

short sales: Get your Paperwork to the Bank BEFORE you Receive a Short Sale Offer - 04/26/11 10:37 AM
 
Many agents mistakenly believe that the negotiations process is the most important stage in the short sale process. They think that if they can be persuasive and persistent with the bank negotiator, they will secure a short sale approval more quickly. I would argue that getting your paperwork organized BEFORE you receive an offer is the best way to expedite short sale approvals. By getting your packages sent to the bank the right way the first time, you will spend less time going back and forth with a negotiator and more time preparing the seller and buyer for closing. 
You … (2 comments)

short sales: SSAA Helps Agents Pre-Screen Clients for Short Sales or Loan Modifications - 04/19/11 12:38 PM
 
Freddie Mac reported more than half of all homeowners going through foreclosure do not understand their rights and options. Furthermore, more than half of all homeowners going through foreclosure do not contact their bank(s) to work out a solution because they think it will only make their situation worse.
A recent Harris Interactive poll reveals homeowner's emotions during the foreclosure process:

 
I have developed a one-of-a-kind tool that allows homeowners to find out whether they should do a short sale or a loan modification. The evaluation essentially pre-screens prospective clients so that the agent can formulate the best plan to provide assistance. I … (0 comments)

short sales: Lead Generation Strategies for Today's Market Demands - 03/08/11 04:23 PM
I read today in an Associated Press article that the number of Americans who owe more on their mortgages than their homes are worth rose at the end of last year, preventing many people from selling their homes in an already weak housing market. According to Core Logic, 11.1 million households were underwater in the final quarter of 2010; that's up 22.5 percent from the previous quarter. 
Ronn Phipps, President of the National Association of Realtors, was quoted in a previous article saying, "You have to be where the market is, not where it was." My staff here at SSAA is … (1 comments)

short sales: Using Delegated Authority for Quicker Short Sale Approvals - 02/28/11 11:14 AM
The latest from SSAA's resource library is a short sale time-saver called delegated authority. Delegated authority is a specific level of permission granted to banks to approve loss mitigation transactions. Why is that important?
If we back up and discuss the short sale process, you'll see where delegated authority fits in. In a typical short sale process, an offer is faxed to the lender along with the seller's corresponding financials, the lender performs an interior Broker's Price Opinion (BPO) and compares it to the offer amount, the file is sent to the lender's investor for a final review, and the file … (0 comments)

short sales: Proposed Legislation May Increase Short Sale Approvals - 02/24/11 02:13 PM
Has anyone else heard the news about the Obama administration trying to push banks to pay for loan principal reductions? Sources say they're asking for a commitment from loan servicers to reduce loan balances for borrowers who owe more on their mortgages than what their homes are worth.
If the administration squeezes hard enough, and the banks are forced to bear their own losses, the overall decreases in principle amounts could make for some interesting advantages to agents processing short sales. 
At SSAA, we're already beginning to teach our agents how to use this legislation to their clients' advantage. Many of … (5 comments)

short sales: The TELL Pattern will help you earn trust and respect of your potential clients - 02/23/11 02:52 AM
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TELL Pattern
The TELL Pattern is an easy-to-use conversation style that will help you earn the trust and the respect of your potential clients. If done properly, you will eliminate most of the apprehension that would otherwise make it difficult for the homeowner to tell you the full story about their financial situation. The TELL pattern will help you build trust, ease in to difficult topics, explain objectively the facts regarding their situation, and offer real solutions that … (0 comments)

short sales: Wells Fargo Short Sales: A Lasting First Impression - 02/22/11 09:09 AM
If you are processing a short sale listing with Wells Fargo as the first lienholder, then consider using the following guide to work the transaction more smoothly:
Make sure you receive the following forms from your Wells Fargo negotiator or loss mitigation representative: Short Sale Listing Addendum, Short Sale Contract Addendum, Affidavit of Arms Length Transaction form, and the Closing Date Extension form. 
Non-members can access these forms by viewing the Lender & Government Forms e-Guide.
Along with all other standard documents you would include with a short sale package (sales contract, seller's financial documents, etc.), save yourself weeks of time … (6 comments)

short sales: Reach Distressed Homeowners Pre-Notice of Default - 02/17/11 12:42 PM
Earlier today The Mortgage Bankers Association (MBA) released foreclosure and default statistics from the fourth quarter of 2010. The MBA states the NORMAL percentage of seriously delinquent borrowers—those more than 90 days behind on their mortgages—are TYPICALLY just above 1 percent. In the fourth quarter of 2010, that figure was 8.57 percent.
The MBA still estimates the peak of foreclosures will occur in 2011 with over 5 million high-risk loans moving through the process. With so many homeowners approaching the brink of foreclosure, the time is now for homeowners and real estate agents to unite and take advantage of their limited rights … (0 comments)

short sales: Learning How to Process FHA Short Sales - 02/15/11 04:34 PM
 
Are you working on an FHA short sale? If so, you need to understand that the short sale process will look very different than your other short sale listings.
 
The Federal Housing Administration (FHA) backs mortgages for homebuyers in the form of federal assistance. Most homeowners approved through FHA are lower-income first-home buyers, typically viewed as "high-risk" by mortgage lenders. FHA insures a portion of the loan in case of default, thus making the loan more attractive to mortgage lenders looking to sell quickly in the secondary market.
 
FHA calls short sales “Pre-foreclosure Sales.” On December 14, 2008, the … (1 comments)

short sales: Lender-Specific Short Sale Tips - 02/14/11 09:45 PM
Short sale processing is as much of an art as it is a learned skillset. Your ability to think outside the box and adapt to the unique nature of each individual case will lead you to more approvals and closings. Processing short sales can be approached thinking logically but may not necessarily lead to logical results from short sale lendors and investors. Remind yourself not to get frustrated when things don't seem to make a whole lot of sense during the short sale process. Instead, train your mind to think both critically and creatively. 
Consider the following techniques:
Gather as much … (4 comments)

short sales: No Two Short Sales are the Same: Snowflakes - 02/11/11 10:35 AM
The following information is best received understanding a few basic suggestions:
 
Your previous knowledge of short sales will be applicable but may take on different meaning and understanding after this training from the lenses of an SSAA professional.
Processing short sales can be approached thinking logically, but may not necessarily yield logical results from short sale lenders and investors. Don’t get frustrated when things don’t seem to make a whole lot of sense during the short sale process. The banks’ loss mitigation departments have been bombarded with foreclosure alternative requests at an unprecedented rate for the past 3 years and … (5 comments)

short sales: Lead Generation Through Door-Knocking: Top Old-School Strategy - 02/04/11 12:53 PM

Call me "old school," but one of the most effective strategies I use to get into contact with potential clients is door-knocking. I work with distressed property clients and relish every opportunity I can get to be face-to-face with them. Getting in front of the homeowner--when done the right way--can yield impressive results.
Instead of waiting for a callback to schedule an appointment, agents who use door-knocking as a main part of their marketing strategy are able to conduct a home appointment immediately and sign a listing agreement all in one visit. 
Consider the following tips I use for door-knocking:
(5 comments)

short sales: Foreclosure Crisis to Peak in 2011: Lemonade Anyone? - 01/13/11 11:49 PM
 
In reference to this year's outlook on future foreclosure filings and bank-owned properties, Realty Trac Senior Vice President, Rick Sharga, announced "2011 is going to be the peak." Additional information was released inMSNBC's article today that supports Sharga's statement, reminding readers that our nation's efforts to recover from the foreclosure crisis has only just begun. 
We are referencing this article today at the risk of coming across as sounding negative and hopeless. Visiting most online news sites entices us to click on the latest doom and gloom foreclosure articles which subsequently fails to provide us with little else to recharge our metaphorical vials of optimism … (2 comments)

 


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