short sale systems

Here’s the (my) Answer to WHY
Banks Make Such Crazy/Illogical/
Sometimes Stupid Decisions! (Part II)

(Yes, that means there will be a Part 3!)

Why do banks make such illogical decisions?

• Like change the FHA ‘how long you have to be on the deed
  before you can resell it’ 90 day Seasoning rule.  They
  just changed it in February 2010 allowing you to resell the property
  after a 2nd appraisal.
• Like HAFA’s rules when you close a short sale insist you
  hold the property 90 days before you resell.
• Like banks taking their houses to foreclosure when the buyer is
  a Company.  (LLC, Corp, Etc.)
• Like banks not accepting offers from companies (LLC, Etc.)?
• Like take a house to foreclosure sale when there is a qualified
  offer on the table but it wasn’t submitted more than 21 days
  or 14 days before the sale date.  (Lazy?)
• Like Fannie wanting to start making homeowners who do
  a short sale responsible to pay the unpaid balance and
  not let those who walk away from their house when they really
  could afford the monthly payment to not get loans through Fannie
  for as long as 7 years.
• Like only give help to people who are way behind in payments
  and not to the struggling homeowner who is giving up lots to
  just keep making their mortgage payment and not have a life?

Ok, my answer probably won’t explain all of the above.  But it certainly
will explain the first 5.

First:

Their logic is not based on our logic.

Our logic believes they should do what they can to get rid of their inventory
not create more inventory.  Sell the house when there is a reasonable offer and
not devalue the neighborhood.  If there is an offer they should take it – within
reason, of course, so if there is data to say the offer is Fair Market Value,
they should take it.

Our logic believes this is a capitalist country/society and if we have
specialized knowledge to allow us to resell the house after repairs or
not and make a profit - we should.  If we find the somebody else who wants
to pay a little bit more and we can get it closed WHILE BREAKING NO LAWS,
we should get paid for that knowledge and skill.

It still is a capitalist society.  Not to defend the banks but…We/they are also run
by the Constitution where we still have the right to freedom of speech
so the banks do have the ability to make those decisions on

• who to sell it to and
• who not to sell it to

as long as they do not discriminate among the protected classes.

However, a good business decision (on a small business basis – not on a
large business because obviously they are too big to fail LOL) would seem
that they should take the offer and sell it to a buyer today to cut their losses.
Even if the buyer might make money when they resell it.  It’s not likely that the
bank will make that money later.

Here is the Likely Scenario

• The bank will take it back through foreclosure.
• It might not even be listed for sale for 1-2 years, and maybe 2 days
• It won’t sell for another 6-24 months and
• The possibility of the Fair Market Value continuing to drop

The house will bring even less money later than selling to
someone who will make a profit today.

The bank won’t make the profit we would because of time and
they don’t have our knowledge.

A logical decision would seem to be to cut their losses now, put somebody
in the house and the bank stop paying taxes, insurance, upkeep (cut grass,
winterize the pipes, worry about the pipes being stolen, etc.) and just making the value of the house less.

Or they will leave it in the defaulting homeowner’s name and make them
responsible for all of the above even it went to foreclosure.

Tomorrow I will answer WHY for a different reason than they are a capitalist
company and the right to make what appear to be stupid decisions and they
want the extra money but will never get it.

Sorry for the delay.  I had more to say that I thought I did.  However, this
scenario is a great one to run through the next time the bank gives you any
of these reasons why they can’t accept your short sale.  Ask them if theyrealize they will make less money if they don’t sell it today versus months in the
future.

Deb McMillan
The Short Sale Queen® and Coach
Get Started with Short Sales
Sign Up for Our Next Coaching Program Now
www.ShortSaleQueen.com

I know.  It seems like an oxymoron.

• Necessary and attorney
• Reasons For an attorney

All in the same sentence.

Very scarry and I hope you haven’t stopped reading because you think I’m on drugs or something.  I’m not, really.  And it’s too early for a glass of dry red wine.

However, it is 5 o’clock….nevermind.

Back to the attorney thing.  I actually met one who might be worth his weight in gold.  Wait before you doubt me.

He represents homeowners who are losing their house.  He actually goes to court and represents them when necessary.  He does loan mods for them.

He does seem to understand that HAFA and HAMP is a bad idea

The cool thing was he had a great idea to confirm no deficiency jusdgement after the sale almost no matter what the acceptance letter said.

On attorney letterhead, have the attorney write back to the bank that twe are confirming their belief to this letter means the bank will revmove the lien from the property and not now or ever come after the homeowner the unpaid balance of the loan.  That this letter says paid in full and no more money is due ever on this loan.

OK, see why an attorney should write it?  It needs to be in legal ease – but the point is, if the bank doesn’t respond and say oh no that’s not what we meant, it is a binding contract.  And you take the signed copy (signed by the homeowner) and record it with all the closing docs.  Deed, etc.  So it is there for future debt collectors to see!

See, an attorney who gets it!

For $200 he’ll do a document review making sure everything isin place and write this letter to the bank.

This makes an attorney (one who gets it, of course) an important part of your team.

Call me, I’ll share his name and number!

Deb McMillan

The Short Sale Queen® and Coach

Always looking for better, smarter ways to get short sales done better!

www.shortsalequeen.com

Got Work To Do In Houses
Built Before 1978?

Do IT NOW!  AND LEGALLY!

But HURRY!  The new lead law has been delayed
to take effect until October 1, 2010!

so…

Get that lead repair done now!

If you are going to sand, pressure wash or replace painted
surfaces in a 1-4 family that was built before 1978

you don’t have to be EPA certified or the owner-occupant
to do the work until October 1, 2010.

So get the work done now AND get EPA certified too so you
can still get the work done after October 1, 2010.

• Think this law is stupid?
• Refuse to get certified?
• Wait until you get fined and then think about it?

All dumb ideas!  The less who get certified will raise the
prices that get charged for doing the work from those who do
get certified.  Remember the law of SUPPLY AND DEMAND?

Less people who are certified and can’t do the work will
significantly raise the price for the people who are certified
and can do the work.

It’s only $250 to get certified.  Learn the EPA ways.

Did you know:

• If you work on houses built before 1978 and you aren’t certified
  you can be fined $37,500 per DAY?  (Yes, I wrote thirty seven
  thousand dollars!)
• If you see people who are working on houses built before 1978
  and they aren’t certified, you can be reported to the EPA?
• If they report you they get paid part of the $37,500?

Yes, I said Nazi Germany.  Tell on your parents and collect money.

Yes, this is still America.  The lawmakers…we don’t know where they are
from.

Did you also know:

• You most likely won’t win a case in court if you fight the fine.
• A house built between 1960 – 1978 has a 24% chance of having lead?
• A house built between 1940 – 1960 has a 69% chance of having lead?
• A house built before 1940  has a 87% chance of having lead?
• The amount of lead dust needed to call your house “with lead” is less than the amount of sweetener in one sweetener packet?

Seems crazy doesn’t it?

The point is:  If you have work to do, replace windows, do
plumbing, electric, roofing, siding, anything that’s going to disturb
more than a 6sq ft area if it’s inside the house or a 20 sqft. area
outside of the house DO IT NOW!

DO IT NOW!   DO IT NOW!   DO IT NOW!   DO IT NOW!

All of those disturb painted surfaces and can create lead dust and
you can still have un-certified people do those jobs for a less
expensive price until October 1, 2010.  You have 3 months left!

Deb McMillan

The Short Sale Queen® and Coach

Saturday afternoon and evening I spent my time at a wedding reception.

This was no ordinary wedding reception.  The wedding was 3 weeks earlier and in Gatlinburg, TN.  And I wasn’t there.

But I was invited to the reception.  It was an outdoor picnic with family and friends. – Approximately 60 or so.

And who was the Groom?  None other than a family friend.  And what is his job by day?  A loss mitigator for a bank I can’t name.

Yep, a Loss Mitigator.

• One of those guys who you try and try to get on the phone to negotiate DOWN their offer.
• One of those guys who normally, you can’t get to answer the phone when you really need them.
• One of those guys who hold the keys to the kingdom to how the banks really work and can get your deal to the decision makes.

Not to worry.  The gift for the bride and groom was appropriate and memorable.

Stayed tuned and see if there are any “information updates” from smoozing with family friends!

Deb McMillan

The Short Sale Queen® and Coach

www.shortsalequeen.com

Get Free Tips and techinique at

www.BestShortSaleCourse.com

www.MyShortSaleTraining.com

I have been reviewing the HAFA program since it’s becoming more apparent that the banks want to have the homeowners enrolled in the program.

Have you looked at it?  It doesn’t look like a good deal at all to me.  Yes, not a good deal for the homeowners is what I mean.

The property has to be their personal home.  That’s normal.  But they must also still be living in it.  It is also very possible they may have to be making payments to the bank during the 120 days they give the homeowner to find a buyer on a short sale for a set purchase price the bank has per-determined.

UGH!  That who paragraph sounds like a lot of  “ifs” and a bad deal to me.

Also, when the homeowner signs up for the HAFA program, yest there is an Opt In Form, they agree to do a Deed-In-Lieu in 4 months (120 days) if the house doesn’t receive the desired short sale offer.

Does that stink?  In today’s market I’m guessing that the bank will price the house higher than it will really sell for.  And with the First Time Home buyers Credit gone, buyers are looking for deals.  So if the bank is pricing the houses high – no buyers will appear and the homeowner will automatically get a DIL on their credit.

OUCH.  That doesn’t look or feel near as good as a short sale or as easy to recover from.  Good job HAFA.  Really helping the homeowner.

We talk about all this and more on my weekly coaching call with short sale students all across the country.  You should be on there too!

Log on and learn more at www.shortsalequeen.com

That’s all for now

Deb McMillan

The Short Sale Queen® and Coach