How will we ever get out of the financial debacle we are currently in?

The Problem:  More houses are available than the current credit system will sell too.

There are not enough buyers with good enough credit to buy all the houses that are currently on the market and about to come on the market with the back up of foreclosure.

  • Back Up of Foreclosure – Why?
  • banks and lawyers doing RoboSigning, it’s illegal, and the whole foreclosure process must be started over.  Causing a higher loss for the banks and homeowners can stay in their house longer.

More houses in the pipeline to go through the foreclosure courts.

Banks are waiting to file foreclosures because they don’t want the current market too overwhelmed with houses making the current low housing prices drop even more.  Which in turns makes the banks have a bigger loss.

What is one bank VP’s opinion from a servicing co. I’m working with on a current short sale?

We need a backer to guarantee losses when the banks loan to higher risk buyers.  Without someone (the government) to guarantee losses when a high risk buyer goes to foreclosure, banks won’t change their 800 credit score and 20% down criteria.

What’s your thoughts?

The Senators currently attempting to keep the government from shutting down on August 2 believe reducing taxes by taking away some important tax deductions will save the day.

They want to reduce tax breaks for charitable donations, mortgage interest, health insurance and retirement savings. They want to continue tax breaks for $1,00 per child tax credit and the earned income credit.  These last two pay tax money to people who paid no taxes.

My biggest concern is if you take away or even reduce a tax deduction on mortgage interest – how many more people will we see in foreclosure?

Many people who are currently making their payments by the skin of their teeth need this to keep them solvent.  This is money they pay and they are for the most part, paying income taxes.

If we don’t have enough A buyers now to buy the houses that are currently on the market, why do we want to throw more peo0ple out of their house by making taking away mortgage tax deductions, and putting more houses on the market for people who can’t get a loan?

These Senators surely aren’t thinking straight.

What are your comments?  And if you think this is crazy like I do, call your Senators and tell them so!

Deb McMillan

The Short Sale Queen and Coach

Have you tried to do a double close with or with a Trust lately?  I mean in the last 30-60 days?  With a buyer who is bringing a loan?

Conventional or VA?

Things change in this market soooooo fast you can’t keep up.  Yes – that’s why I’ve always said you need a coach who continually closes short sales so they know the latest SNAFU’s you are going to run across.

So let me tell you what I’ve run across this time.

The end lender wants you to be on the deed before they will even start the loan process.  It is taking the 30 days holds from the short sale lenders a little bit farther.  Ugh!  And know I own a house with a HIGH transactional lender rate.  OUCH!

This was my last Option Contract that didn’t get converted to my new Trust Purchase Contract.  Well, that won’t happen again.

What happened was since the end lender insisted on a new contract being written AFTER the deed was in my name, the new buyer changed his mind and didn’t sign the new contract.  All this happened after I had closed the first part of the transaction.

We went to 4 different lenders and they all had the same p0licy.  Must be on the deed first.  Didn’t have to be on it for 30+ days but the seller did have to be on the deed before they would order the appraisal.

Moral of my story:  USE my new Family Revocable Trust Agreement so this doesn’t happen to you!

Deb McMillan

Short Sale Queen and Coach

Seems like a good idea.  We often tell the BPO agent when we meet them at the house what our purchase value is.  We are hoping we can influence them with the repairs and condtion of the property to get our value.

And if the BPO agent uses that number correctly, that’s a good thing.

What if we doesn’t use it “correctly”?  And what is “using it incorrectly”?

Well, I have an example of using it incorrectly or even unethically.

US Bank, to name names, gave the BPO agent the value on the purchase contract, $116,000.    (Isn’t that partly how we got into the situation of baling out banks?  Fraudulent appraisals? knowing what the outcome is supposed to be before looking at the house?) So when the BPO agent got to the house, he commented to the investor (not realtor with a license and a board to report to if things aren’t ethical) “I like this house.  I think I’ll make a offer.  I think I’ll offer $120,000.”

Now, it’s not a listed property.  It is a property that the investor will sell to her buyer’s list for more money than the bank accepted and she will make the spread.  That is, if she gets the bank to accept the only offer the buyer has signed.  So how does he make an offer to the bank without the seller’s signature and it not being listed that nobody else knows the house is for sale?  And how does he know WHO to make the offer to at the bank?

Interesting.  Well, the funny thing is this guy has done this to the same investor twice.  And he did buy the properties from the homeowners both times.  The investor was pushed out by a few thousand dollars – did all the work – and how did the BPO agent get the homeowner to sign?  That begs a lot of different questions!

He bought the other properties then put them up on his REO site for sale.  So he made the spread.

Well, this time should be a little different.  My student, the investor, now knows to record something at the court house to cloud the title.  So if he pulls this again, he will get tripped at the closing table and have to pay her something to release the cloud and give him clear title.

The better part in this story is yet to be heard.  The investor also called the Loss Mitigator at US Bank and told him what this BPO agent had done in the past.  She said she didn’t want him to do the BPO because this was a conflict of interest.  She proceeded to tell the story of bidding higher on her other properties.

The house was going to the foreclosure sale in two days and they needed the results of this BPO to pull the sale.  They both decided to go ahead and do the BPO with this person.  the Loss Mitigator did note in the file the situation.

It could be priceless to see the expression on his face when he runs into the cloud or doesn’t get the house or any more jobs from US Bank after this.

I’d love to hear your comments whether you think this is unethical or conflict of interest.  Should banks be telling the BPO Agents or appraisers the value they are looking for?

Deb McMillan

Short Sale Queen.com

Here it is again.  The day for Red and White and Hearts and Love.

What do you get the one you love who probably already has everything…including you?

It could be candy.  Chocolates.

Past the lips to the hips.  OK, maybe not a great idea.

Flowers.  OK  they don’t last as long as your love, but they are going to last longer than candy, at least at my house.

How about a new rental house?

That’s unique!  something that keeps on giving,

  1. Cash
  2. Cash flow

Ok, so maybe some repairs but think of the long term gain.  It’s not even close to the long term gain of chocolates!

Find a good priced house, 3-4 bedrooms and more than 1 bathroom – and you have the PERFECT Valentines Day present.

Don’t say I never gave you great advice!

  • Deb McMillan
  • The Short Sale Queen and Coach
  • I wouldn’t steer you wrong!

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