Arizona Short Sale

Archive for the ‘Short Sale’ Category

Kevin and Fred are lounging on Mission Beach in the San Diego area. It’s a tad cloudy on the beach, but that is not keeping Kevin and Fred from enjoying the shoreline. Because relaxing is more critical to them than chatting regarding HAFA, they have decided to make this one of the shortest short sale power hour episodes ever.

HAFA has proven to be a non issue in the short sale industry. Dave Sutherland with Bank of America pronounces it HOFFA, like Jimmy Hoffa, who is not anywhere to be found. That is a great deal like HAFA, which is not anywhere to be found. Back in March, there was a four letter label out there and other companies selling their certification and telling real estate agents that they need to get qualified for HAFA because it was going to be a game changer.

HAFA has not mattered at all. Now we are on July 21st, and HAFA was rolled out on April 5th. So far, of the few hundred agents that Kevin has spoken to in that timeframe, not a solitary one has reported completing a HAFA short sale.

We aren’t saying that no HAFA Short sales have been completed. We are simply saying that we have not experienced it or recognize any agents that have experienced it. So, now is what we would like from our listeners today. We are requesting your notes under the video in at least the form of two numbers. Firstly, how many HAFA short sales do you possess in the system. And secondly, how many HAFA short sales have you closed.

The initial month that HAFA was rolled out there were plenty of trainings to study about HAFA. Now those instruction courses are CE credit courses. It seems that all of the lessons that don’t really matter goes to a CE credit course because you would only go to it if you might actually get credit for it.

We are hosting a Crush It Short Sale Class in the Phoenix area on Friday, August 13th. It’s a real life, in the trenches, information you can employ, class. Get registered today!

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 Phoenix – Avoid Foreclosure Arizona

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

Kevin and Fred are hanging out at Taco Surf in Pacific Beach, California. Fred actually held his wedding reception at Taco Surf. If you are ever in the San Diego neighborhood, you must check out Taco Surf. The reason Fred is having such a last-minute lunch today is because he has exhausted more than a few hours this morning babysitting foreclosure auction dates.

The first folder, serviced by Metlife for Freddiemac, has been a pest during the complete progression. The first time we tried to complete this folder, MetLife sought to foreclose. So, we went to Freddiemac and they happily delayed the auction date. However, the buyer on that deal fell through following inspections. At the present we have a new buyer and we submitted that contract at the end of June. We have been dealing with Metlife to get them each and every one of the papers that they needed until last week. Last week they notified us that they could not delay the foreclosure auction date because it was too late. So, this morning, Fred had to phone Freddiemac yet again to get the foreclosure auction date delayed. Freddiemac, once again, happily delayed the auction date and sent Metlife an email asking them to delay the auction date for an added 60 days because the offer on this home is more than the BPO. It definitely makes you wonder what Metlife is doing in the short auction business.

The second folder, dealing with Chase, has been very testing. Fred was told last week that the auction date has been delayed and all is fine. Fred has chatted to a couple of people that have been very supportive and nice, but the trustee has already told Fred that the residence is going to foreclosure auction tomorrow. Fred called the trustee for the second time today and he confirmed that it is absolutely going to auction.

Finally, the Chase employee called Fred back and confirmed that the auction had not been delayed. It seems that, Chase delayed the auction internally, but Chase forgot to get consent from the backer. So, Chase had to go to the backer and ask for that they auction date be delayed.

We aren’t picking on any servicers or investors, but we would like other realtors to understand that you must verify foreclosure auction dates with the trustee. Trust no one inside the banks and corroborate everything.

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

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

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

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

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

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