Arizona Short Sale

Archive for the ‘Short Sale’ Category

Last Friday we chatted about a commission disagreement with Condor Capital. They are not actually a servicer of loans. They are really a buyer of loans. They identify themselves a scratch and dent lender. It turns out that Condor Capital goes out and purchases up the nastiest loans out there for a specific fraction of the outstanding balance. Then they pass them off to their loss mitigation group and attempt to turn a profit. They do this through closing short sales and other strategies.

The loss mitigator that we chatted with last week was excited about the deal with Fred because he knew his company was going to make a gain. Still, the real catch here is that the loss mitigator receives a percentage of Condor Capital’s profit on the deal. He’s not simply getting a bonus for closing files, but really getting a percent of the profit.

So, when you are working with Condor Capital, bear in mind that the negotiator is making a commission on the contract. This almost certainly leads to some added motivation for the negotiator. You may want to think again some of the techniques that you use when negotiating a short sale with Condor Captial. Take a little atypical tactic with Condor Capital because they are making a profit and you are making a profit. So do your best to deal with them.

There will be lots of visitors coming up in the next few episodes. So be sure to check out the next several days of episodes for a few very extraordinary visitors.

Also, a reminder, that August 13th we will be hosting another Crush It Short Sale seminar in Phoenix. It doesn’t matter if you have seen us live previously, we have so much fresh content to reveal with you. If you can not make it, send your negotiator or transaction executive. We will blow your brain and explode your production!

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Glendale – Short Sale Arizona

For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

Mindset Monday brings us a chat concerning the mindset of triumph. In the last couple weeks, Kevin and Fred have jumped back into the trenches taking on more records than ever before. In the last three weeks, Kevin and Fred have gotten 16 short sales accepted. We don’t point that out to prove how remarkable we are. Nevertheless, we bring this to your awareness so that you can recognize that there is a mindset to our achievement.

There is a mindset that the deal will be accepted when we want it to be accepted. We get questioned in our lessons on a regular basis about the things that we do in our own company. It is critical to know that we put into practice the exact same methods that we educate in other realtors. There is nothing that we teach in session that we don’t use in our own business.

We want you to understand that we jumped into a number of folders that were in rough spots. Nevertheless, we did not allow defeat. We set a plan to be successful and we go after it. A great illustration of this winning mindset is the commission argument that Fred won today.

There is an forceful authoritarian technique to inflict your resolve without running people over or demeaning them. Sometimes it is just a matter of working through the chaos. If you don’t take a assertive stance, there is a house owner on the other side of this matter that will lose their house. That house owner’s life and economic future is depending on whether or not you can conclude a short sale. When you take on a customer in a short sale, you have to put that person’s needs in front of your own. When you don’t impose your will and do that, you will be average like everybody else.

One last word of advice for you. When your negotiator asks for something, give it to them immediately. Be strong with your process and resolute from the start and you will have an easier time completing short sale deals in the end.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Pre Foreclosure – Mortgage Short Sale Arizona

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Last week we talked about the waning home sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and ever since that point in time there have been a lot of articles supporting what we are saying.

To begin with, if you took our episodes last week to think that you should run and hide from this situation, you are totally wrong. We communicate this information with you so that you can face this market head on. We’re simply trying to be realists and move our strategy as the market changes.

One critique notes that the US economy appears to be in turmoil as the effects of gov’t incentive are already wearing off. Also worth noting is that a double dip recession is extremely improbable due to past precedents. Nonetheless, Kevin wonders aloud how we can undergo a double dip recession if our market never improved. The economy has consistently been appalling. Also mentioned in other articles was the national mortgage deliquency rate. It grew to 9.2% in May, up 2.3% from a month previous and up 7.9% from a year earlier. This makes you conjecture how mortage deliquencies are going up, but there was a rise in our economy.

When we study articles like this, understand that there is an opening to help people out. Don’t run and be scared. There will always be purchasers and there will always be sellers. People have to have a dwelling to live in. Every home is viable at the suitable price.

It is important to note that the non-current mortages are in reality at a 12.4%. That is awful, because the historical average is close to 1%. One other great statistic to note is that the average quantity of days elapsing between when a mortgage becomes 30 days deliquent to foreclosure sale reached a record high of 449 days. So, from the point that a home owner is a month behind in payments, they are not losing their home for 14 months on average.

We will also be teaching a Short Sale Crush It class that continues to get better. Preregister for that August 13th session at shortsalepowerhour.com

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Scottsdale – Short Sale Arizona

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

First and foremost, comment on today’s video at shortsalepowerhour.com and you will have the chance to be entered into a drawing for free flip flops from the team at Group 46:10

We are going to talk about a commission dispute that we had on a file that was being handled by Bank of America. The financier on the file was HSBC. The file was rejected regardless of the offer being the same as the BPO. We came to find out that they sold the mortgage to Condor Capital.

Condor Capital is an asset management business that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this affair out for yield. They did not necessarily do any loans. So, Kevin formally began working with them on July 1st.

Condor Capital reviewed the papers and noted that the commission was at 6%. They asked that we decrease the commission to 5%. They really wanted to make the commissions 5% of their net sales price, which was buy price excluding the buyers closing costs. Kevin replied to them informing them that he was not prepared to do that. He knew that they liked the bid because they had previously told them it was a fine bid.

Condor Capital replied that their policies only allowed them to give 5% commissions. If Kevin did not accept that rule, they would simply foreclose on the property. This foreclosure proposal got Kevin a bit upset.

It was apparent that they were out to make more cash rather than find a win-win situation for both groups. Kevin explained that he could get them a poorer bid and agree to the inferior commission, but that wouldn’t be a win-win situation for either party. The policies they were using were not in the best interest of either group. At the end of the day, you need to set up policies that help all groups productively complete deals.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Mesa – Foreclosure Short Sale Phoenix

Yesterday we spoke about current market data and how we believe that the market will continue going down. So, we would like to speak about what occurs when there is a sharp increase in active inventory and a sharp decrease in sold houses.

Having been in the short sale business for 3 years, we have seen modest rises with tax credit extensions and other programs. What we have watched is when inventory goes up and sales go down, lenders do not respond to that information promptly. In general, they pull their numbers for BPO’s and appraisals from as much as six months ago. The trouble with this technique is that the BPO is heavily weighted on sold costs. So when you pull sales from contracts that were written in January, February and March, the tax credits impacted the market. Those comps are not taking into account that sales are going down and quantity of active listings are going up. When you see this transpire, you will have to start pricing your houses more aggresively. The market is falling again but the bank is very slow to respond to that information. They do not want to be the first to act on the lower price. You can assume that they will counteroffer with other prices of houses sold months ago when the market was not the same.

For instance, we had a listing with an offer price of $245,000. We felt it was a stout offer because the market was going down. We got a counteroffer with the BPO value at $265,000. We were given 24 hours to recreate the offer or the file would be closed.

Kevin disagreed and had to show to the negotiator that the BPO price was off. He found a comp that was the duplicate floor plan listed at $235,000. This was sent to the negotiator and along with a memo that explained the position. The alternative to the bank counter offer was to foreclose on the house and relist it in ninety days at a lesser price than the offer.

Be conscious that there will be BPO disputes in your future. With listings growing and sold houses declining, you will have more disputes on your hands to conquer.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Short Sale – Avoid Foreclosure Arizona

Today we are talking about house sales, particularly national statistics. We do not typically care too much about national figures. It is crucial that you go glance at your local numbers because real estate is a local industry. Nevertheless, sometimes the statistics are so incredible that they need to be brought to your attention.

According to the National Association of Realtors, pending house sales fell 30% in May from where they were in April. Granted, April was the finish of the tax credit deadline. So that had some impact on the situation. We do not quite know what has happened from May to June.

Kevin and Fred were foretelling that this would happen as much as a year ago. Essentially, we have been borrowing buyers from the future. With the incentive tax credit offered by the government, loads of people resolved to purchase houses earlier than they would have.

This is just like what occurred in the first half of the decade. The banks were lending money to about anyone that sought it. Buyers that were not necessarily qualified or were not prepared to acquire a house stepped forward and purchased houses. So, in both cases, there is going to be a lag time before house sales catch up.

The largest parts of this enigma are inventory and house prices. Because sales are down and inventory is going to increase, prices will definitely plunge.

With adjustable rate mortgages and their pending resets, house owners will be taking a closer look at their mortgage and the house value. For some the payment will go down, but so will the value of their house. There is a solid potential for an increase in strategic default. We haven’t seen the worst of defaults, unemployment and short sales. The worst is yet to appear.

We’ve had all of this feel good information with the last few months of sales and pulling buyers from the future. We will be in a worse position from a national viewpoint than we ever were in 2007.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Queen Creek – Arizona Short Sale Specialist

The latest government program intended at assisting home owners has just been announced. In the news a couple days ago was a piece of information concerning this new program and unemployment. Hopefully you can learn something from this new program and the details behind it.

Beginning July 1st, home owners can begin applying for the HAUP program. HAUP stands for Home Affordable Unemployment Program. HAUP provides home owners a forbearance of monthly mortgage payments, either reducing them or suspending them for at least 3 months. If you do not know what forbearance is, it basically stops payments.

The interesting thing about this is that it is connected to unemployment. Paul Jackson wrote an appealing article about the miraculous shrinking unemployment rate. It seems that, the unemployment rate fell in May from 9.7% to 9.5% in June. It is one of those figures that makes you scratch your cranium. You have to question what happened to the 652,000 unemployed Americans that vanished. There are some interesting devices the government uses to bury unemployment records.

In the near future, I feel you will hear lots about how things are getting healthier. The media and the government will probably be telling you how things are getting better. Actually, there is a good chance that things will get poorer. You can look at the active inventory in the Phoenix vicinity or talk about penny home sales.

There can only be so much writing on the wall before you recognize that things are not as they seem. Observably there is a desire to get good information out to the public. Nevertheless, much of that information is fiction. We want things to get better, but lets be candid about what we are in front of, so that we can fix things.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Maricopa – Arizona Short Sale Specialist

From the very beginning, shortsalepowerhour.com has spoken in relation to the outback mindset. The outback is a answer oriented mindset to recognize processes that don’t work and producing solutions for them. The majority of people in a short sale transaction are devoted to saying I can or I can not do this based on what somebody else has told them.

We would like to talk about the HAFA program which rolled out April 5th. It was believed to be a game changing course. The HAFA program, in my opinion, has been a great catastrophe. That’s not to say that people haven’t qualified for HAFA, but the point is that the predefined requirement standards are a slap in the face. The whole idea has been missed because nobody understands the program even though the information is out there.

So, sellers come to us and say, “Hey I heard i can get $3000″. That is the initiation for the program and it creates an opportunity for an emotional circumstance and creates more victims.

About a month ago, I was up in Scottsdale at a large event where Matt Vernon, Bank of America official, talked about short sales and the problems that they have had with them. During the meeting he brought up HAFA and I laughed at him. I laughed because HAFA has been a total catastrophe. Interestingly though, according to Matt Vernon, Bank of America has devoted themselves to producing their own course that is comparable to HAFA to speed up the route and incentivize the home owner. The hope is that the short sale route can be whittled down from 120-150 day short sale down to 60-90 days.

Two years ago, based on results, Coach Collard hated you guys at Bank of America. It is incredible to see that you are talking about leadership and you are making things come about. We appreciate the fact that you are openly communicating with short sale professionals. Stick to the outcome and make it happen.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Short Sale – Arizona Short Sale Specialist

Kevin Kauffman is together for forgettable Friday by the forever dapper, Coach Collard. We’ve got a small situation to share with you today about a listing that Fred and Kevin took in November of 2008.

So, a year and a half ago, Kevin and Fred took a listing in the Scottsdale, AZ area listed at $330,000. That is what the property was worth in November of 2008. Remember that the market was still diving steadily at that point. They got an offer at $330,000 and took it to bank. Using the same short sale procedure, they kept getting rejected. There was a dispute on the value of the house and were constantly rejected through January of 2009.

The first servicer on the folder was COuntrywide and the second was Bank of America. At that moment in time Bank of America was in a very tough spot. Also, in the middle of this progression was the Countrywide unification which formed additional problems.

We put the home back on the market and got another proposal at $270,000 and got rejected. The buyer ultimately walked away from that. Again, we got an offer at $265,000 and again the agreement was rejected and the buyer walked away.

It has been an exceptionally testing folder because we rarely go through one or two offers, but with this folder we have had many buyers walk away. We finally got an offer accepted at $255,000 in the first quarter of 2010 after six weeks. After the inspection, the buyers walked. Nevertheless, we had another buyer with the identical proposal and same net proceeds for the bank. The negotiator did not think that was an easily approvable deal. It took an extra thirty days to review and were rejected for the identical proposal that was accepted before.

So, we had to escalate to the investor and bring this to their awareness. The investor looked into the folder and found out that the agreement was accepted. Over a 19 month period a lender rejected multiple better proposals purely because of lack of communication.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at What Is A Short Sale – Foreclosure Short Sale Phoenix