Foreclosure Prevention and Short Sale Blog

LALAs.  Largely Acceptable Legacies of Assumptions. 

A term from my “corporate days” pertaining to incorrect methods, statements or policies perceived by some to be relevant or “the way things are or are supposed to be” and becoming acceptable “truisms” by others.   

I just got a very frantic call from one of the Realtors for whom we negotiate their short sales.  We are currently working on three (3) of his short sales from Bank of America.

He was beside himself because of the “new policy” from B of A requiring the seller to pay or come to the table with 10% of the deficiency difference.  He was told by more than one of the agents in his office that B of A recently changed their policy and now requires the seller to come to closing with 10% of the difference between the payoff and loan value! 

While I had not heard of that policy change B of A or any of my resources, I was nevertheless interested in finding the source of the information and if there were any truth to it. 

It seems that one of the “short sale experts” in his office (she has done 5 – and this was her first BofA short sale) recently had the lender require a seller contribution of 10% of the deficiency (as a promissory note it turns out).  

The reason as it turned out?  Not policy – but because the seller had over $100,000 in his checking account! 

I’m not sure what is worse.  Inexperience passing on misinformation as truisms.  Or inexperience taking this misinformation as gospel.  

Like I said.  LALAs.

So you think you want a foreclosure or short sale because it's a "great deal"...Buyers are justifiably interested in the savings a short sale can offer. However, few buyers are prepared for the process, often because it is new terrain for many agents as well. 

I would not recommend getting into this without a Realtor.  First off...not every short sale is a "deal".  Your Realtor can let you know if a short sale is right for you based on neighborhood values, condition of the home, and the stress level you can handle. 

Finding a great Realtor that is a true task master over self and others would be highly recommended here...lot's of follow up with many that could care less if you did or not.
Patience is the key here...it can be done. 

Here are some things that you should be prepared for if you have a short sale in your sights:

You must be patient. Occasionally, a short sale clicks and the thing is done almost as quickly as a regular sale. Those are the exception and not the rule. Typically, and it all depends on the lender, short sales can take 60 - 90 days.

1. You are buying the house AS IS. Just like with a bank-owned foreclosure, it is "an as" is transaction, because no principal has the funds to remedy any physical issue with the house. Get an inspection for sure, but understand the lender won't address anything and the seller cannot financially.

2. You WILL get clear title. In an approved short sale, none of the seller's back taxes, arrearage or other issues convey to you. The lender is releasing all liens. That is why you want to close the deal through a title company.

3. You probably can't "steal" the house. As a matter of fact, your offer may not even be submitted unless it is your best offer. You might get a $400,000 house for $340,000, but you won't get it for $250,000. Short sales are good deals, but they are seldom steals. Which brings us to this point:

4. The lender may counter your offer.  The house may appraise considerably higher than your offer, or your offer may indeed be too unrealistic. If the bank counters you, look on the bright side: the finish line is in sight! If the counter isn't to your liking, the smart move is to counter back. If you simply walk away, you may have nailed the seller's coffin, which has, in good faith, been working and waiting just like you have been. Negotiate. If the seller chose your offer to submit to the lender over the others, you should operate in the same good faith and negotiate. The lender may still come down some.

5. Once approved, you have a deadline to close. Typically, it is only 30 days to close or the offer is rescinded. Therefore, you should have your act together with regard to your appraisal, rate lock, inspections, and so forth. When that approval comes down the pike, you need to be prepared to pull the trigger.  

To see our list of pre-foreclosure properties and short sales for sale, visit: 

http://www.trademarkforeclosureprevention.com/properties.php

Or call us at 832-330-4588

Sell Your Home As A Short Sale

If you:

➢    Have a financial or personal hardship where you are behind or will be behind in your mortgage payments and unable to pay...

then by all means, find an experienced short sale agent (not just any real estate agent, but one with a proven successful track record) to assist you in dealing with your lender and getting your home sold.

A short sale is primarily used when all negotiations for a loan workout have failed and you are upside down on your mortgage, meaning you owe more on the mortgage than it's worth. The lender basically agrees to cooperate in the sale of your home and take a loss. You place the home for sale and any offers that are obtained will be presented to your lender.

Benefits Of A Short Sale

• Sell your home quickly and easily
   
• No money out of pocket - the lender pays your closing costs
   
• No foreclosure or bankruptcy on your credit

click here to read more on short sales

Get Your Short Sale Questions Answered Here!

Get your short sale questions answered by our team of real estate agents, negotiators, attorneys, mortgage brokers, title companies and more. 

Just add a comment to the post, and we will answer your questions usually within 24 hours or less.  RSS feed your question to get an immediate notification when it is answered.

I'm not fond of "Big Government".  Nor am I a fan of "Excessive Government Oversight" of business. 

Is oversight necessary?  Absolutely!  But in my opinion, laws that are made to protect "the public" usually swing so far to the other side that everyone is negatively affected, even those that are supposed to be protected. 

However, a new bill just passed by the Texas Senate, SB 472 regarding Foreclosures may be a win-win situation for everyone.  If the Bill becomes Law, it will go into effect for all foreclosures after September 1, 2009.

The following is non-legal summary of that bill:

Texas SB 472

The Mortgage Bankers Association of America has recently reported that at least one in ten Texas homeowners are at risk of default and foreclosure.

Last fall, Texas Attorney General Greg Abbott recommended that the legislature consider lengthening to 45 days the time frame allowed to a debtor in default to cure a loan default before a notice of sale. Current state law provides homeowners a 20-day window to cure a default.

This bill extends the cure period on a pending foreclosure from 20 to 45 days. The bill requires lenders to contact the borrower by telephone or in person and to extend a 30 day time-period from the date of foreclosure to homeowners and renters in order to vacate the property.

The bill authorizes the Office of the Attorney General to create a model "notice of foreclosure" form, that would include a definition of mortgage foreclosure, a reminder that homeowners have 45 days to cure defaulted loans, all rights and options available to homeowners seeking to save their homes, a warning about foreclosure rescue scams,

and a listing of resources available to homeowners, for mortgage companies to use.

The bill requires debtors to notify any tenants of a pending foreclosure within seven days.

Ø      Requires a purchaser of a property at a foreclosure sale for which notice was given to deliver to the tenant not later than 24 hours after the time of the foreclosure sale a notice to vacate the property that states the tenant's rights under this chapter and Chapter 51 (Provisions Generally Applicable to Liens).

Ø      Requires the attorney general to prescribe the contents of the notice. Authorizes the purchaser to require the tenant to vacate the property before the period prescribed by Section 51.002(i) only for failure to pay rent or other payment due under the lease agreement, including a late fee, as of the date of sale.

Ø      Requires the mortgage servicer, notwithstanding any agreement to the contrary, to serve a debtor in default under a deed of trust or other contract lien on real property used as the debtor's residence with written notice by certified mail stating that the debtor is in default under the deed of trust or other contract lien and giving the debtor at least 45, rather than 20, days to cure the default before the notice of sale can be given

Ø      Requires a mortgage servicer of the debt, in addition to the notice provided by to serve the debtor with a written notice under this subsection. Requires that the notice be printed on a separate sheet of canary yellow or a similarly colored yellow paper that is eight and one half by 11 inches or larger and affixed to the notice of default provided.

Ø      Requires the attorney general to prescribe the contents of the notice. Requires that the notice include a statement that the notice provided by the mortgage servicer is required by law; a description of the process of foreclosure on a mortgage; a statement that the debtor in default has 45 days to cure the default; a description of the options available to the debtor in default to prevent the foreclosure; a description of resources available to the debtor in default to assist in preventing the foreclosure; a list of resources the debtor is authorized to contact for assistance in filing a complaint concerning the foreclosure process; and a statement that the debtor is required to serve a copy of the notice of sale on each tenant as prescribed.

Ø      Requires the mortgage servicer of the debt, in addition to the notices provided, not later than the fifth day after the date the notices are mailed under, to attempt and make every reasonable effort to contact the debtor in default by telephone if the debtor has telephone service and provide the debtor with the same information provided in the notices.

Sale of Property

Ø      Provides that if a sale of property occurs, the tenant of the debtor who timely pays rent is not required to vacate the property before the 31st day after the date of the sale and the debtor is not required to vacate the property before the 14th day after the date of the sale.

Ø      Provides that a debtor who retains possession of the property during the period described (relating to the debtor not being required to vacate the property before the 14^th day after the date of sale) is prohibited from destroying, damaging, impairing, allowing to deteriorate, or committing waste on the property; and is liable to the purchaser for the damage caused by a violation, and to the injured party for any injury to an individual or damage to any property occurring during the period of possession.

Notification to Tenants

Requires the debtor, not later than the seventh day after the date a debtor receives a notice of sale under, to serve a copy of the notice on each tenant of the property by personal delivery to the tenant; certified mail, return receipt requested, to the tenant; or leaving

the notice inside the dwelling in a conspicuous place if notice in that manner is authorized in a written lease.

Foreclosure Prevention Network

Providing Short Sale Negotiation, Training and Loan Modification

Address: PO Box 1998 Spring TX 77383.

E-Mail: info@TrademarkForeclosurePrevention.com

Web Site:  http://www.TrademarkForeclosurePrevention.com

Blog:  http://www.shortsalereporter.com

Trademark Realty Investments, Inc.
Trademark Loss Mitigation

If you've heard the name Trademark Realty Investments, Inc or Trademark Loss Mitigation, you may wonder what we do and who we serve.

Who Are We?

We are " A Network of Real Estate Professionals; RE Agents, Attorneys, Title Companies, Short Sale and Loan Modification Negotiators, Credit Repair Providers, Mortgage Providers, Inspectors and Investors ."

We are Houston Texas based. We know the local market. We are accessible. We know the local and state laws. We provide a one-stop destination for all things related to short sales, loan modifications pre-foreclosures and marketing of short sale properties in the greater Houston area, including Harris and Montgomery Counties.

Our expertise and network also expands nationally.

Serving Realtors and
Home Owners With Distressed Mortgages

Trademark Realty Investments, Inc and Trademark Loss Mitigation is pleased to serve realtors, who want to increase their business and be a better real estate professional. Trademark professionals are willing to share strategies and offer assistance to you in order to help your clients avoid foreclosure.

Real estate agents will secure expert services and training offered by the team of short sale experts and by Jim McNinch, Founder of Trademark Realty Investments and Trademark Loss Mitigation.

We are experts in the short sale process and our Retail Short Sale System will assist you in being more successful in short sale closings. 

Our services and training includes:

• Short Sale Negotiation
  
• Loan Modification
  
• Credit Repair
  
• Foreclosure Consultation
  
• Short Sale Training 

 
REALTORS now have a new expert resource dedicated just for the purpose of managing their short sale transactions. Providing a one-stop destination for all things related to short sales, loan modification and marketing of short sale properties in the greater Houston area.

Trademark Realty Investments provides a comprehensive suite of tools, training resources and services at a comprehensive web site aimed at helping Houston real estate agents navigate the riggers of a short sale transaction.

The intent of this new web site is to empower Houston real estate agents to easily negotiate these transactions, to assist in training as well to help manage the entire process for a higher sold to close ratio.

Home Owners With Distressed Mortgages

Houston homeowners, home buyers and sellers alike can now obtain a proven real estate agent as a result of our partnership with local area real estate professionals trained to make a short sale transaction simpler to complete and consultation on how to avoid foreclosure.

Homeowners will appreciate using Trademark Loss Mitigation because they don't have to pay for anything. A big plus is that the homeowner can avoid having a foreclosure on their record, which hurts credit scores and the ability to get a decent mortgage rate for years to come.