HAFA: Sorry Alex and NAR, still not a game changer

HAFA… you heard me talk about it before A year ago, the day it was announced. The same day I said it would not work. There there was nothing in it that was realistically going to make a change.

In October of this year I reported that only 342 HAFA short sales had been closed in the first six months of the program. Not exactly stellar results or a game changer for the short sale industry as some “experts” and NAR claimed it would be.

Now there are new changes to the HAFA program.

The first change to the HAFA program is servicers are no longer required to verify a borrower’s financial information to determine if their debt-to-income ration exceeds the 31%. This sounds great on paper, but most of the homeowners who are looking for a short sale I have seen already had debt-to-income rations above 31%.

As far as the second-lien goes, there was a change there too. Originally the second-lien investor had to agree to accept 6% of the unpaid balance owed to them up to $6,000. The new guidelines eliminates the 6%, but still keeps the $6,000 cap. This could actually help a little, but I don’t think it is going to make much of a change. Many of the second’s are still not going to agree to this unless the same investor owns both liens.

So with these changes again I give them credit for trying, but if the government really wants to make programs work they are going to have to get those who are in the trenches involved in suggesting changes.

I don’t expect much of a change in the HAFA program. The approval rate may go up 100%, but that is still going to be a tiny percentage of all short sales that get approved. Sorry Alex and NAR, this is still not a game changer.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

NationStar short sales, changes you need to know

http://www.youtube.com/watch?v=x5quJb1uktU

NationStar Mortgage has recently taken over servicing for a lot of loans including major servicers such as CitiMortgage. NationStar has also moved their short sale system to Equator following the likes of GMAC and Bank of America. While Equator is a great system, how each servicer utilizes it can vary and NationStar’s results are yet to be seen.

There is a danger you need to be aware of though when opening up your new NationStar file in Equator. NationStar has given all their new files new loan numbers which you may not be aware of. You need to make sure you use the new loan number and you are not using the old number. If you use the old number everything will appear to be fine, and you will not be given any warnings. However, the system will kick out the file and not tell you.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

Rant alert: I wish we could call agents out by name

Every now and then i do a rant video. I know there are people out there who dont like my rant videos, for those, this video and post are not for you.

The code of ethics for real estate agents says we need to be honest to all party in the transaction and that includes one agent to another and the buyers agent to the seller.

So agents, I know you have a fuduciarey responsibility to your buyer, but if you write an offer on a short sale and it says in the addendum you have ernest money for 90 days to give it time to be negotiated, then you are bound contractually.

If your buyer decides three weeks later later they want out of the deal, but when they learn they will lose their earnest money if they back out then mysteriously change their mind and decide to stay in, it is your responsibility to be honest with the selling agent.

In this situation the agent was just looking for the first opportunity to get out and save the earst money. As a matter of fact when we asked if the agent if the buyer was really still in because we did not want to lose the houes to foreclosure the agents response was sign an addendum to release the earnest money and we will answer that. That right there tells you they knew the buyer had been out of the deal for a while. Unfortunately for me the code of ethics does not allow me to call out the agent or i would get in trouble.

Yes you have fuduciary responsibility to pretoect your buyer, but you also have the responsibility of being honest. And buyers if you are not sure if you want the house, if you havent seen it yet, don’t write the offer. If you do, and your offer is accepted, then you need to fullfil the contract.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

Home buyers need to be ready to move

We hear all the time how the Chandler house market is a buyers market right now. Except for luxury homes over $400,000, that is not the case. There are a lot of buyers right now and homes are usually going fairly quick.

If you are a buyer in Chandler, Tempe or anywhere else in the valley you need to be ready to move. I was working with a buyer and we looked at about a dozen homes over a week. There was one property they they really like and wanted to sleep on it.

Wanting to sleep on it is understandable, but if it is a property you think you want you should be ready to move on it. In this situation the buyers waited a week and when they were ready to move the house was pending with another offer already accepted.

Lesson of the story, if you like a house be ready to move. If you are not ready to buy yet, then wait to look at homes until you are.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

Short sale: But I don’t want to lose my “home”

http://www.youtube.com/watch?v=rkVaRqMIX2c

We have been talking about making a decision to short sale your house. One thing I hear often is “but its my home.” I can assure you, you are not selling your “home” you are selling a house, a piece of real estate. I have talked to plenty of people over the last few years who have sold there house and almost all of them have said this and I cannot think of one who was not happier six months after the deal was done.

A house is blocks, plaster and windows, a home is where you and your family live and make memories. It is very easy to go just about anywhere and make it a home. You don’t sell your home because you can take any house and make it a home for your family. That is what you need to protect because a home should not be a financial strain.

I understand the emotional ties to the place you live, but we need to remember family is what is important and you can build that “home” just about anywhere.

In two years when you may be ready to buy the next house you will be so far over the house you are in now it really wont matter

I know it is easier said than done, but really dont get hung up on the this is the perfect house. For every perfect house there are a dozen more perfect houses out there for you.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

But I have a contract and it would be unethical to short sale

Is there a moral or ethical issue with breaking your contract and doing a short sale? No it is a business decision and I tell you why in this video.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

I feel like a failure because I need to do a short sale

So we hear all the time that people feel like they are a failure because they need to do a short sale, in truth, they are the winners.

I run through a short sale scenerio in this video where a standard middle income average home owner can be as much as $100,000 ahead in 14 years because they chose a short sale instead of remaining in their home.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

Short sale vs foreclosure, what is better in Arizona

All to often we hear from people thinking of short selling their home in Arizona that they decided against it because someone told them there was no difference to them between a short sale and foreclosure.

We asked Kevin Hardin of Thomson Law to join us and discuss how he advises his real estate clients. What you will hear are the overwhelming reasons why a short sale is almost always better than a foreclosure.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

New short sale law suit agents need to pay attention to

New law suits for short sale agents to worry about. What the short sale law suit was about is not what agents need to be worried about. What the judge said in his ruling is. The judge opened the door for a tidal wave of law suits. The best way to protect yourself is to over disclose.

More on the lawsuit here short sale law suit from Kevin Hardin

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png

Bad short sale counter offers are not always banks fault

As an agent doing short sales in Chandler and the surrounding area, sometimes I will get a counter offer from the lender that will make me wonder exactly what they were smoking.

Yesterday I had a Bank of America deal that did just that. We had received approval on a short sale in August at $131,000. By early September we lost the buyer. So back on the market the house went. The issue we were facing was a rapidly declining market in this area.

We put the house back on the market and in about a four weeks we received an offer at $125,000. We submitted the offer to the Bank of America short sale department and in just three weeks they ordered the new BPO to determine current value, assign it to a negotiator and send us a counter offer. But that is where the issues started. The counter offer was for $157k. What? 157k??

I pulled up comparable properties in the subdivision and I cannot find anything in the last three months that has sold for more than the $125k we had the offer in for. Then I found it, this one house that sold for $254k!

Now why did this house sell for so much? Maybe it was because it was 1200 square feet bigger than our listing? Maybe it was because of all the upgrades throughout the house that our listing did not have? Maybe it was because this house was a show house for the developer, a model home that had never been lived in. Most likely it was because of all the above.

As you can see this house is not comparable to our house at all. Does Bank of America know this? No, they only see the BPO that the agent submitted. They can only make decisions based on the information they have and now that I have provided them with all the information maybe we can get this approved quickly.

http://deansellsaz.com/wp-content/plugins/sociofluid/images/digg_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/reddit_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/delicious_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/furl_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/newsvine_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/technorati_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/google_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/facebook_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://deansellsaz.com/wp-content/plugins/sociofluid/images/twitter_32.png