NationStar short sales, changes you need to know

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.

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

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.

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.

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.

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.

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.

Buying a foreclosure or short sale can be a hairy situation

Buying a foreclosure and buying a shorts sale in the East Valley these days can be a hairy situation. There is very little the buyer does have control over. One thing they do control is who their agent is and who their lender is.

A good agent and a good lender can dramatically change your buying experience. The deal may not always go perfect, but at least a good agent is going to let you know before hand what the scary situations may be. You can be prepared for the hurdles of buying a foreclosure or short sale and minimize surprises.

A good lender is going to get deals done on time and get them done quickly. Asking for an extension late in a foreclosure purchase could cost you money to get the extension approved. Asking for an extension late in a short sale deal could cost you the house if deadlines are not met.

Stupid real estate questions

Why does a lender thing a closing date on a contract is a suggestion and not an actual contractual date?
Why do buyers think short sales are actually a short process, even after explained?
Why do buyers put in offers on houses if they are not willing to wait?
Why do government agencies not hire people who can do basic math?
And more.

Bank of America short sales policy needs to be changed

Bank of America short sales policy towards conventional loans needs to be changed. When they will reject a conventional loan offer that nets them the same as a FHA offer they will accept, that is a problem. If a conventional and a FHA offer net them the same amount they should give them the same consideration.

Why would an agent turn down a short sale listing?

Believe it or not we will not take every short sale listing that comes to us to sell their home. Short sales are a lot of work for everyone involved us as the listing agent and the home owner too. Knowing the amount of work that it is going to take we want to make sure the owner is willing to put in the work necessary which is why we make them fill out a short sale packet before we do the listing.

If a buyer is unwilling to do what it take to provide the information up front they are most likely not going to be willing to get the updated documents the same day later on towards the end. So yes there are cases where we will not take a short sale listing.