Have you opened your recent Short Sale Equator Update from BOFA? If not read what short sales CANNOT be initiated by the sellers Realtor.

Short Sale Agent Update July 8, 2013 Starting late June, new Federal Housing Administration (FHA) and United States Department of Agriculture (USDA) short sale properties will be processed using the Equator system.  The transition to Equator will happen for eligible short sale files. After the short sale file is assigned to a short sale specialist, the Bank will contact homeowners and real estate professionals affected by this transition. If you have an FHA or USDA short sale transaction that is already in progress, continue to work with your assigned short sale specialist. Therefore, you will not be able to transfer the file that is currently in process over to the Equator processing system. FHA and USDA short sale files are handled differently than other short sales.  The use of Equator does not change the way FHA and USDA short sales are initiated. Only homeowners can initiate an FHA or USDA short sale by working with their assigned Customer Relationship Manager (CRM).  Real estate professionals who try to initiate short sale loans for FHA and USDA loans will receive an error message. Per HUD guidelines, homeowners may need to be evaluated for retention options before pursuing a short sale.  If the homeowners have not yet been reviewed for retention options, they may need to complete that process.  Homeowner's that are already working with a real estate professional can notify their short sale specialist and submit the Third-Party Authorization Form.  This will allow the agent to access Equator for assisting with the file. Real estate professionals should coordinate with the homeowners to contact their CRM to initiate an FHA or USDA short sale.  If the homeowners do not have an assigned CRM, the homeowners should call 1.800.669.6650 to discuss their options. The FHA or USDA short sale specialist will work with the homeowner to collect financial documents and issue the Approval to Participate (ATP).  After the Bank receives the ATP within the required seven days, the Bank will enable the real estate professional to work the file, just like any other file in Equator. Note:  Do not list the property or submit any offers until the homeowner has received the Approval to Participate (ATP). For additional FHA materials and educational guides on using Equator, please go to the Agent Resource Center under the programs tab.

Independent Foreclosure Review Payment Agreement

On one of my files for BOFA the seller received a $300.00 check and we are just days from getting the approval. Want to know why this happened? 

Read this article.

Independent Foreclosure Review Payment Agreement

Payments to Eligible Borrowers Begin April 12
Payments to 4.2 million borrowers are scheduled to begin on April 12 following an agreement reached by the Office of the Comptroller of the Currency and the Federal Reserve Board with 13 mortgage servicers.
The agreement, which was reached earlier this year, provides $3.6 billion in cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the following companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
The payments will range from $300 to $125,000. Additional details about these payments can be found in the IFR Payment Agreement Details. Checks will be sent in several waves beginning with 1.4 million checks on April 12. The final wave is expected in mid-July 2013. More than 90 percent of the total payments to borrowers at those 11 servicers are expected to have been sent by the end of April. Information about payments to borrowers whose mortgages were serviced by Morgan Stanley and Goldman Sachs will be published by the Federal Reserve Board soon.

Rust is sending all payments and correspondence regarding the foreclosure agreement at the direction of the OCC and the Federal Reserve.

Borrowers can call Rust at 1-888-952-9105 to update their contact information or to verify that they are covered by the agreement.  Information provided to Rust will only be used for purposes related to the agreement.  Borrowers should beware of scams and anyone asking them to call a different number or to pay a fee to receive payment under the agreement.

Accepting a payment will not prevent borrowers from taking any action they may wish to pursue related to their foreclosure.

How To Sell HUD Homes Event

How To Sell HUD Homes

                   by Tina Marie Estrada, with The Omni Group

Also,

>Simplifying 203K Loans

by Darrell Gipson, with GOTMORTGAGE

>Q&A with HUD Inspector

by Harold Adams, CA

>Making Your Short Sales Easier

                   by Elizabeth Wojtaszek, The Short Sale Department

>Closing HUD Escrows and Short Sales

by Lisa Day/RJ Burke Tiempo Escrow II

FREE FOOD DRINKS and Wine Tasting

Sponsored by

Gotmortgage, Tiempo Escrow II, The Short Sale Department

and Train Your Smart Phone

Date: March 22^nd 4-6pm

Location: Total Wine and More

16272 Beach Blvd
         Huntington Beach, CA 92647
   (714) 861-4047

Please R.S.V.P to dantej@te2corp.com

ATTENTION: Keller Williams Agents, Team Leaders, Coaches, Commercial and Residential

As a member and part of the committee for NAHREP-OC we are hosting an AGENT BOOTCAMP in April and I am wanting for KELLER WILLIAMS to participate with our non profit organization to teach and explain what makes Keller Williams the #1 Real Estate Company? What does KW have that no other real estate company has? 

This would be a great way to recruit and meet agents looking to change and be with a great company. 

Please contact me for details: 1shortsaledirector@gmail.com

-The Short Sale Department

BOFA using DTS to pre-screen short sales for them...Get In The Know

Attention Realtors BOFA has decided to use a 3rd party company to pre-screen their short sales. This allows the realtor to register and through an agent portal allow them to upload their short sale listing to get screened by the various short sale programs that BOFA is offering.

You can count on the following when registered for the service:

·                Higher close rates

·                Up-Front Valuations (prior to offers) and other qualification factors to avoid surprises

·                Faster closings

·                Technology that provides real-time access to the progress of each file

·                Proactive communication with a dedicated Account team

·                Better outcomes for eligible homeowners

·                No fees paid by the agent, the homeowner or the buyer

·                Receive full commission

·                Account ownership system, specific associate assigned to each file, continuously monitors and clears tasks in the Equator

·                Preapproved listing price without an offer

For your client:

- Relocation incentive of at least $2,500.00 (can be between $5,000.00 and $30,000.00)

- Deficiency forgiveness

To get more information email me at: 1shortsaledirector@gmail.com

-The Short Sale Department

Listing the Short Sale with BOFA as the lender

Bank of America recently came out with this reminder. When listing the home on the MLS make sure you do it correctly. Below is the memorandum that BOFA sent out this week.
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In our continued effort to ensure acceptable and fair marketing activity for all short sales, this is a reminder that Bank of America requires all properties to be listed on the Multiple Listing Service (MLS). The property must have been listed prior to the acceptance of an offer. All offers must be submitted by the buyer subsequent to the listing date, and the property must be marketed on the MLS until a short sale approval letter is issued. Any property not listed on the MLS may experience processing delays, and/or the Short Sale file may be declined. The following actions can help prevent processing delays and/or file declines. List the property on the MLS and include all basic property detail, including:   Number of beds/baths, square footage, lot size, year built, location, interior features, etc. All known property information used to market the property to prospective buyers. Alternative language such as "unknown" or "unavailable" should be used - instead of leaving fields blank - when you encounter certain property characteristics that may be unknown via public record (e.g., Property taxes, deed information, and other fees).    Ensure the MLS remarks and/or comments do not reflect unacceptable language such as:   "Do not disturb homeowner, property not available for viewing" "Bank has already approved the short sale" "Cash offers only" "Preapproval through listing agent lender only"   Ensure the listing status is current and active on the MLSuntil a short sale approval letter is issued Per investor guidelines, additional documents may be required and will be communicated, as applicable, by the Short Sale Specialist.

JUST IN!!!! Wells Fargo makes the Process through Equator Easier

Wells Fargo to roll out new Equator Low Doc Process

Effective 2-15-13, for all loan portfolios except FHA, agents will no longer be receiving the following tasks within Equator

·         Hardship Reasons

·         Financial Information

Equator has removed these tasks in order to provide agents a better experience when navigating through Equator and to provide agents a quicker response and decision timeframe for their short sale.

On 2-15-13 Agents will receive the following task instead:

·         Upload Required Documents

Prior to agents receiving this task, Wells Fargo will review the file in order to request only the documents needed to review that specific file.   This avoids agents from having to upload blank or search for and upload potentially unnecessary documents.  

What does this mean for you as an agent?

If we don’t need a document, we won’t ask for it, and you won’t have to find it.    This will allow your file to move quicker through our processing pipeline and get an approval even faster!  

More Approvals = More Closings! 

How does this affect your current files?

As with any transition there will be impacts, and we have done everything to ensure a smooth transition for agents.  However, any active files will have to be converted to the new Equator Low Doc Process.  

Each file still requiring documents will be systematically reverted back and will restart its lifecycle within Equator, while this sounds tedious; it will be very quick and is the best solution to ensure a smooth transition.   

Agents will be sent the following tasks:

“Upload 3^rd Party Authorization”

“Borrower Contact Information”

“Is there an Offer”

Once the tasks are completed each file will end up right back in its respective workflow.

Short Sale Lease Back Program

The Short Sale with Lease Back is a program that was created for homeowners to short sale their home and lease back for 3 yrs with a possibilty of re-purchase. This program is not that simple for those to qualify for. 

These are the requirements:

Homeowners must work with a licensed agent who is trained and certified by the Short Sale Lease-Back Program.

A qualified non-profit would purchase the home in a short sale.

The homeowner’s lenders must approve of the lease-back terms — the intent of the sale and tenancy cannot be hidden from the lienholders.

The seller would lease the home for a minimum of three years, allowing their credit to heal so that they could qualify for a mortgage.

Homeowners must attend ongoing HUD and financial-literacy counseling and speak with legal and tax experts to ensure the program is the right fit.

If approved, the former owner might be allowed to repurchase the home, perhaps at a giant discount from what they once owed on it.

Not all homeowners qualify for the program. Borrowers must have sufficient income to afford the monthly rent payments in addition to their other debt payments.

If the homeowner doesn't meet with this criteria a Short Sale would be there best interest that if negotiated right can lead to relocation money from 3k-45k.

If there are any questions in regards to this contact The Short Sale Department .

-The Short Sale Department
1shortsaledirector@gmail.com

Do you know which banks are doing Principal Reductions?

This is a quick view of the lenders who are participating in principal reductions on mortgages. Pay attention to the information that is given about some of these lenders.

Banks Participating in Principal Reductions:

1. BOFA
2. CHASE
3. WELLS FARGO
4. GMAC
5. ALLY BANK
6. CITI MORTGAGE

The lenders above have certain criteria that is important when processing these principal reductions:

1. Must be 60 days late
2. CANNOT be a Fannie Mae, Freddie Mac, HUD, VA, GSE Loan. These are government loans/investors that will NOT participate in the principal reduction program.

Requirements for Wells Fargo, Citi Mortgage, GMAC:

These lenders can do the principal reduction if they own the loan. This means the loan is with these lenders and it hasn't been sold, transferred, or serviced with another bank.

Example: If your mortgage has been Wells Fargo from the day you started paying the mortgage to this present day then the principal reduction can be done. However same example but you recently received a letter in the mail that the mortgage is being transferred to "ABC Bank" and that's whom you will have to pay from now on then the loan, this loan will not qualify for a principal reduction.

The 2 banks that don't need to own your loan for principal reduction are BOFA and Chase. If you had your mortgage with either of the two and have been transferred to another servicer they are able to review your file for principal reduction.

As always contact the lender and ask if the borrower qualifies. This will lead to a great relationship and possible future business.

-The Short Sale Department

Independent Short Sale Negotiator

I have come across investors, realtors, and others in the real estate business that have decided to stray away from the thought of buying, selling, investing in doing a short sale. Just last week I was at an event and an investor that I had met told me that he would rather buy at an auction because it's easier for him. He gives his short sales away for others to deal with.

I have to admit I was completely floored at the idea that it's so easy to give the short sales away and not want to negotiate them but that's why there is a solution. It's called an Independent Short Sale Negotiator.

I am an Independent Short Sale Negotiator who works independently negotiating all short sales. I am not associated with any so called short sale companies that are advertising or with an escrow office. I am free from those third parties to make the process easier for the agent/investor who hire me. I keep a pipeline of over 35-45 files in process and have a quick turn around time. Updates on files are provided on a weekly basis and contacting me is open to agents even after business hours to answer questions. Postponements of sales are monitored closely and an open communication between the agent and myself is required to make the transaction smoother.

***IMPORTANT CALL TO ALL AGENTS AND INVESTORS*** If you come across a short sale remember all purchase prices can be reduced and the short sale can be a win win for all parties. When not wanting to handle the paperwork and the hassle of the lender contact an Independent Short Sale Negotiator to work the file and negotiate. Contact me.

-The Short Sale Department

My Interest for Short Sales and Negotiations

Any Realtor can say that they are a Short Sale Specialist and that they know how to negotiate with a bank but can they say that they themselves have experienced what it is to go through a Short Sale ? Not many can but I as a negotiator can.

I experienced what a seller has to go through when they have to choose between a loan modification or short sale. Obviously everyone wants to start with a loan modification because it gives the opportunity for payment reduction, but what happens when it's not possible? Short Sale is the next step.

Personally the thought of having to do a Short Sale, list the property and disclose "short sale" on the MLS made me feel embarrassed as if I let myself and my family down. The idea of owning a home was coming to an end. Sellers feel this way now and need to feel nurtured and secure with their realtors.

When handling short sales I take every file and think of the family and their hardships.
I know what it is to be denied for a loan modification and get advised to do a Short Sale. I know what it is to get the letters in the mail, the calls and harassment, and the unlimited amount of mail in regards to being behind and getting told that you are in foreclosure status.

Observing the agents and the files that I get it gets bothersome to see how some are in it for the numbers and are cold with their clients while the other realtors actually become part of the file and part of the final chapters of the sellers home life.

With my past experience going through a short sale myself and having the experience of being a negotiator I take every file seriously looking out for the seller and making sure they benefit from the file by getting them relocation money, incentive money from the lender, and release of deficiency from the sale of the home.

To have your short sale processed with a worthy negotiator who is hands on contact The Short Sale Department.

-The Short Sale Department

Who is InsideTheShortSaleDepartment ?

My name is Elizabeth Wojtaszek and I am The Short Sale Department and InsideTheShortSaleDepartment.com. I've been in the Real Estate business for 14 yrs and  have dealt with every aspect of real estate.

Within a short period of time I became an Executive Loan Officer in my first 6 months of Real Estate. As time went on and I picked up the business quickly I wanted to know what was behind the scenes and some would say that being an Executive Loan Officer would be better than being a Loan Processor but I ended up doing both. Basically this is the path I took in my real estate career:

Executive Loan Officer---Loan Officer/Loan Processor---Loan Processor---Account Executive for the 3 top Subprime Mortgage Companies---Account Executive for a Hard Money Lender---Short Sale Negotiator and Freddie Mac Certified

After the subprime mortgage downfall I went back to doing what I knew best which was processing but it was processing short sales.While starting out processing short sales I developed many contacts and still use the ones I met from when I started to this present day and continue to establish new relationships. I push the envelope on negotiating short sales because I know and have studied the guidelines and keep up with lender requirements at all times.

When negotiating my files I'm in control and know the language that the lenders use. My process time is short and clean. Escalations are used when needed and it's minimal most of the time. Postponements of sales are executed and followed through with constant follow up.

The blog that I have created is to chronicle the different scenarios or current short sale situations that I see and go through. It's informative and has explanation. Furthermore it's to encourage realtors to use negotiators such as myself and expand their pipeline and get more business.

-The Short Sale Department

Processing a Mortgage Debt Forgiveness for 2nd liens During a Short Sale

During the last 2 years of processing Short Sales there has been a change when processing 2nd liens. The normal way to process them is to submit the short sale package to the 2nd lien holder or servicer and begin negotiations. Approximately 6 yrs ago when I started negotiating the banks would take a minimum of 1k - 3k to approve the short sale. Then as the time passed and lenders and servicers started to see an overwhelming response to the "Short Sale Revolution", the payoffs to the 2nd lien holders started to increase from 6k, 10k, 10%-15% of the balance or a promissory note. 

These pass two years processing 2nd liens have changed. Now there are principal foregiveness for 2nd liens that are becoming easier to process short sales. 

When the borrower receives a letter like the one above which is an example of the letters that are going out please read carefully and follow instructions. The seller should call in immediately when receiving the letter to confirm there participation in this process. 

IMPORTANT if the home is in a short sale and is in foreclosure with a sale date your negotiator should be able to postpone the sale date and explain to the 1st lien holder about the process for the 2nd. The 2nd lien holders process is not something that will happen within a 1 month time frame it is approximately 60 days and if it's a HELOC in some cases it could be 1 month. At the end of the process a full reconveyance can be requested by the county recorders office and the seller will receive a 1099-C which is the cancellation of the debt.

If you have any questions contact InsideTheShortSaleDepartment.com

-The Short Sale Department

Short Sales are booming in California....read why!!!

The best article that was published this month about real estate happened to be about Short Sales...my specialty, my niche, my world. I was excited about this article in the LA Times that it's a must read. View just a piece below and to read the full article the link follows.

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The surge in short sales stems in part from last year's national mortgage settlement with the nation's five largest banks. To avoid going to court over foreclosure improprieties, the banks agreed to certain levels of debt forgiveness for underwater homeowners. Short sales count toward those commitments.

But the trend also marks a triumph of economic common sense. Short sales have long been less costly to banks than foreclosures. Homeowners often remain in a property until a new buyer is found, which helps banks avoid maintenance costs and keeps out squatters and vandals. Moreover, many buyers of foreclosures expect a discount, whereas banks aim to get market value for short sales.

http://articles.latimes.com/2013/jan/08/business/la-fi-short-sales-20130109

-The Short Sale Department

California Foreclosure Process

Time and time again and agent can get caught up in listings and sales that sometimes when working on a short sale they can often times forget what the foreclosure process is in California. It's always good to remember and educate the client so that they get a better understanding and gain some education. At the end they will appreciate that your including them and not thinking of them as your next commission.

Take your time and review for a minute:

At any moment that the client is going through a foreclosure and at the point that there is a sale date, consult with me so that it can get done and you can continue with the listing. 

-The Short Sale Department

What Is It With Real Estate Agents and NOT returning calls?

A cell phone to a real estate agent is something that is absolutely needed. How else would they communicate with someone if not in the office or in front of the laptop. The cell phone is the quintessential item needed besides your briefcase with your business cards and listing agreement. In most cases a real estate agent glorifies their cell phone and become mute without it. Without the phone they are lost and in most cases unable to do anything. Agents get the most expensive, hi tech, can do any transaction, and they probably have an application that allows them to run their office which is their world.  But the question remains why can't they answer and return a call?

I've learned that when you can't answer and a message is left, RETURN THE CALL! It's valuable for your business and in some cases it could be a new listing or connection. However I'm seeing that most calls are being put through the do not disturb button so that all calls go through voicemail, agents look at their phone and think should I answer it should I not? Question the validity of the call and say "well if it's important they'll leave a message", and in some cases "oh it's my negotiator let them leave a message"!

I can admit I have done the examples above, however I do return calls because you never know who it can be. I've had to process files where I know the agents and how they are in their work life and have been fortunate to come across true professionals where they enjoy an update on their files. I would think that getting the update via phone or email is satisfaction to the agent especially when they rely on processors, assistants, or negotiators such as myself to handle their files.

It's the agents with their fancy outgoing voicemail  messages that put you through their voicemail and claim that they are unavailable and super busy.  As a negotiator I have found out through social media like Facebook that those agents that your processing a file for are updating their status or advertising selling Laker tickets for that nights game. The status for that is, "message me if you're interested in Laker tickets", knowing very well that you could have important news they don't answer, don't return calls, or emails.

For agents that are like that there is no need to put the title as "Professional" in front of there name because if clients really knew how they were in their work life I'm pretty sure they would think twice in hiring them. This is just a general opinion in what I have observed and go through but I'm pretty sure many can relate.

-The Short Sale Department

Remember How Short Sales Use To Be?

When I first started with Short Sales it seemed to be just like processing a loan just a bit more critical. The critical part was that years ago and to this present day you have to make sure the sellers don't get foreclosed on if there is a sale date, make sure the file has been submitted, call everyday on the file and follow up, and get that APPROVAL. Sounds a bit much but it's true. As a negotiator the mindset is that of helping the customer so they can have a clean transaction and move out of their home with ease. With that in mind the documentation and how it's submitted is important.

The days of faxing the Authorization 10 times to different fax numbers and also the Short Sale Package has come a long way and now it's been made easier but still the requirements are the same.

Standard Checklist:

3rd Party Authorization
Hardship Letter
Financial Worksheet
2-3 months worth of Paystubs
2-3 months worth of Bank Statements
Last 2yr Tax Returns
4506-T
Listing Agreement
Preliminary Title Report
Purchase Agreement
Prequal Letter
MLS Page
Hud-1

Obviously now there are lender specific paperwork that should be included along with the checklist but still the process is the same and the above checklist should always be used as a tool when building the file to submit to the lender. For submissions and processing always consult a Short Sale Negotiator to negotiate the file.

-The Short Sale Department

Get to know my blog and what I do...

WWW.INSIDETHESHORTSALEDEPARTMENT.COM

I always sit behind the scenes of the transaction while viewing and monitoring agent behavior to sellers and towards myself. I’ve always wanted to really say what is on my mind but having an employer held me back. I always asked myself, if I tell the agent the wrong that I see when working a short sale will they not want to have me as their Short Sale Negotiator?

Fortunately enough they come back and the best part I went from having an employer to being my own boss. What is it with calling yourself a short sale specialist? Really a specialist? Not possible you’re an agent specialized in Real Estate, that’s it. I sit behind a desk up to 10hrs negotiating and overseeing the negotiations and making sure escrow is open and that the deal closes on time. So why do agents call themselves Short Sale Specialists when the work is being done by me, the short sale negotiator, to get the deal approved? I suppose wearing a fabulous outfit whether you’re a man or a woman will do it to influence the customer and the agents ego but that’s not the case.

As a Short Sale Negotiator I have developed the lingo, the language to say it a bit better. The knowledge, the guidelines, and what is especially important…the contacts.

Stay tuned I have more to say…

The Short Sale Department