New Help on Short Sales

NAR President Moe Veissi praises new help for struggling homeowners.    The Federal Housing Finance Agency on Tuesday announced measures to make “short sales” of underwater homes easier for homeowners, including extending help to people who have financial difficulties but haven’t missed mortgage payments.

  1. Pete

    Tracey Jackson says:
    August 30, 2012 at 11:08 pm

    I love the line in your comment:
    “How about working with a REAL servant heart mentality and thinking about the best outcome for our Seller clients?”

    I have many as you may who, through no fault of their own who were either laid off or were forced to take a huge cut in pay just to keep their Jobs. No longer able to keep their home are forced into foreclosure, SS or even Bankruptcy.
    The government owns the banks and the government got all of us into this mess with the brilliant idea of “Sub Prime Loans” Thank you Bill Clinton and Barney Frank. You continue to draw your retirement and your big salary and benefits package and remain unaffected by what you have caused. Yet you still ride on the backs of property owners who were the strength of this country, yes the ones who worked, paid their bills and earned the right to be a home or property owner.
    Then we hire a person to run this country that no one knows, who’s never even run a lemonade stand and mandates an increase in welfare benefits and food stamps? Please. The lesson to learn here is “all that glitters is not gold”, 4 more years of this so called leadership, and we’ll all be speaking Chinese. Sorry for the rant, but if you want to know how I really feel read a little more.

    NO LIFETIME RETIREMENT AND BENEFIT PACKAGE (get a job like the rest of us).

    Clint Eastwood was right, We own this country! These elected people work for us, so how does it happen that they can vote themselves a pay raise, have the best medical insurance money can buy at NO COST TO THEM!

    I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle. — Winston Churchill

  2. Eve Heffer

    Short sales with Bank of America are a very disorganized process. The right hand doesn’t know what the left hand is doing. After three months of wasting time submitting tons of useless repetitive paperwork, four negotiators and eight cash offers, they sent my listing to the foreclosure auction. The opening bid was half of what they could have received for the short sale. Try to figure it out. No wonder so many of us say never again!

  3. Good post. I have been personally trying to do short sales as a real estate investor and it has been hit and miss. Short sales is a wonderful way to make money if you have the budget to wait until the sale is final. I have moved to wholesaling and it has been working good. I found a $600 real estate course for $1. if you interested in real estate take advantage of this course. See link below.

  4. I hear the words about steamlining, improvement, enhancements, shortened timelines, etc. however see none of it actually taking place in the field!

  5. Christian Bengle

    There is no incentive or teeth in law for the banks to act honorably or trustworthy as they are able to break agreements, delay and wait for foreclosure in which they in turn buy the property and take the insured part then resell for even more profit. They constantly ask the seller to pay at closing and if they could they would have paid the mortgage. As brokers and realtors we spend 10 times as much work on short sales for less money. A contract is a contract unless its with a bank then it means nothing. This is a terrible circumstance and with all the billions in bailouts to the banks with 0% interest where is the mainstreet help

  6. Murlene Ware

    I do hope this will help. I have been working on a short sale with Bank of America for over a year. We have had 8 negotiators and I feel we are no closer than the day we started. Each time we get a new negotiator we have to send all the information. Please do all you can to get the process going more smoothly. Thanks

  7. Dean Vande Hey

    I recently closed on a short sale property being successful on the 5th, yes…the 5th contract. Why so many times? First, the Seller failied to complete timely actions during the 1st contract. Second, in the 2nd-4th contract communication with the primary lender’s negotiator that was restricted to email only–hindering the transaction of a property that had three liens. This was evident in that the 2nd and 3rd lienholders were only a phone call away, often preventing “molehills from becoming mountains.” RECOMMENDATION: Increase the avenues of communication between primary lenders & Realtors that are now restricted due to lender policies and/or federal regulatory requirements.

  8. #1 reason for SHORT SALEs failing and the backup is:
    (as noted above by the majority of my cohorts)

    >RESPONSE TIME< from the BANK(s) !!!!!!!!!!!!!!!!!!!!!!!!!!

    God Bless you! Praying for you, our realtors and the people of our great nation, Amen.

  9. sherrie philips

    I have had all of the above cited experiences. It should be fairly obvious to our industry that we are just being used by the banks and not in a good or fair way.

    I for one would like to see an industry wide boycott on handling short sales tell the banks to call us when they have something to sell and quit wasting our time.

  10. Kim

    Yes, all good points. Love the Winston Churchill comment. Having a new negotiators assinged every few weeks on the same property – really SLOWS the process down. I look forward to more solutions that will work for all parties involved and decrease the repetitive process !

  11. Words that have no force behind them. Until someone has the proper motivation at the “Banks” , not much will change.

  12. Until the Mortgage Insurance carriers step up and possibly fine the banks for “purposely” allowing a home to foreclose so that they can get the insurance payout on the loan default (which i have to assume is based on the ORIGINAL loan amount) the banks will keep doing it. They weigh the difference in net between what they would net in shortsale against what they would net in insurance payout. They will keep doing it until it bankrupts the Mortgage Insurance companies and we will have a whole new mess on our hands

  13. Vicki Zimmer

    Like so many of my collegues, I have heard how NAR is working on streamlining and improving the short sale experience. Frankly nothing that NAR claims as a victory has made much difference. There has been little improvement to help us or more importantly our clients. NAR cannot force the banks to hire enough people to process short sales responsibly, which is the bottom line. Bank management and their stockholders do not want to put out more money, so I think NAR needs to forget working with the banks and find whoever it is that actually has the power to make things happen. The Comptroller of the Currency handles banking complaints. Are they involved in this mess. What about the auditors from the Federal Reserve Banks, are they involved? I hate being ignorant or naive but there must be some entity that is in control! If not, there needs to be one and I don’t mean a committee of politicians (especially Obama’s) We need experts in banking procedures and real estate people to work on this problem and we need them years ago. NAR, our local boards and state associations have “expectations” of realtors. Each state has regulations that govern us. I would not have a license if I did not abide by the Code of Ethics or the state regulations. More importantly, I would not be a good citizen if I followed the example of the short sale process and offered my client lackadaisical and “I will get to it when I get to it” service.

  14. Mike

    I’m on day 52 of my short sale. The bank has not been giving me weekly updates as they are supposed to under the new regulation (after 30 days).

    They rejected the first offer saying it was too low, yet we had 2 BPOs which said it was fine. So they said they needed a new BPO, that was over 4 weeks ago and no one has come to do it yet. They have 8 more days to agree to the offer then what? They get fined? I get something? I have a feeling that in 8 days NOTHING will happen.

    My only repercussion will be in 5 years when there is giant class action law suite over this and I get a $50 payment on it. Meanwhile my credit continues to be ruined and my buyer will probably walk out because they are getting tired of waiting. And this deal won’t go through before the end of the year and I will end up paying taxes on the shortfall.

    Thanks Obama for this wonder new “REGULATION” but it’s not helping.

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