Hell... That is a great term to describe the situations created by some of these banks. Ya know, sometimes you just gotta laugh... This post caused me to do just that... Mainly is disbelief!
My recent post Arizona Short Sales Have Advantages &amp Disadvantages

I just closed on my scottsdale home this month and it took over 7 months to complete the short sale. It was stressful but much better than having a foreclosure on my credit.

I hear that many lenders are finally adding more processors and going forward short sales will go much faster.

dealing with short sales can be really frustrating for banks as they are short changed the full amount of a loan they agreed would be paid in full (with interest) but compared to someone foreclosing on their mortgage and going bankrupt I am sure teh bank would rather get as much money they can.
.-= mortgage free´s last blog ..Mortgage Equity Withdrawal – The Refinancing Trend =-.

I understand that many banks are in the process of rolling out streamlined short sale processing. This is supposed to take as little as 2 weeks. I'm not sure if they can pull it off, but time will tell.

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.Susanhttp://mariahcareylyrics.net

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.Susanhttp://mariahcareylyrics.net

To San Jose Buuyer - Once the seller passed close of escrow, you had no contract. A contract is an agreement between both parties to do such and such by a specific date. They could only take your earnest if you agreed - in writing- to extend the date of closing - OR - you agreed - in writing - that your earnest money was non-refundable under any circumstance. The seller's agent is bullying and b.s. ing you - which gives all of us agents a bad name.

This is sick but sometimes I like to read this article. Only because it makes me feel better that someone else is going through what I have gone through.

Sorry Jay.

**Jeff Buettner´s last blog post..Arizona Short Sales Rise With Unemployment</abbr></abbr>

Great short sale article, and an especially great website!! Your site pulled up #1 on Google with all of your organic Search Engine Optimization through your interesting articles and reader feedback. I think its awesome that people can log-in to your site through Facebook as well. Congrats!!!

I'm wondering if anyone had any experience with attorneys in Arizona that handle foreclosures and short sale issues. I would love to have someone to refer my clients that are having major problems with their short sale/pre foreclosure dealings with mortgage companies.

Beware when the sellers agent says its an "Approved Short Sale"

I put a bid out on house listed as that and a month went by with no reply. Finally my agent found out that the bank requested and appraisal order. It turns out that the bank had approved that they can sell it short but never decided how much. Basically meaning that my bid sat in some dusty file cabnet for over a month and was never even thought about. Another month later my offer was rejected and teh price of the house was jacked up from 245,000 to 278,000. So basically I wasted over two month of my life on a house I thought had been approved at around (or at least close to) 245. Oddly enough that house has been sitting on the market ever since. If your going to bid on a short make damn sure that the sellersellers agent has done all their paper work.

Short sales have become very common place in an area like Florida. Since home values have dropped so significantly it has been necessary for homeowners who want to sell to list their homes as short sales.

That story makes me not want to do short sales. Congrats on finally closing it!

Check out IShortSale.com, they enable me to close about 5-10 deals a month! Wait to price your properties at the smoking hot price UNTIL you have the BPO completed and then you don't have to hope and pray that the Buyer holds on. Because so many people don't do it this way, they are forced in to taking multiple offers in order to try and hold on to just one decent Buyer...how about getting just 1 great offer and locking it in...allowing all those other Buyers to go actually buy another home. I would say close to 50% of the Active Phoenix listings under $250,000 have multiple offers...do you now how much the market would change if it were one offer to a property...one good offer?! STOP TAKING LOW BALLS!

Hi Frank - Yes, it closed. I posted a follow up post here:

http://www.phoenixrealestateguy.com/short-sale-fr...

And don't get me started on the "fake priced" short sale listings. They are rampant here.

Hey Jay,

I tried to look for an update, did you ever close?

I just wrote a post on Short Sales and all the tricks the banks do. My favorite is "Keep making payments, and we might consider a short sale." Then they... delay it 3 months to make that extra cash, and let it go into foreclosure.

So as a Buyer's agent, do you avoid showing the "sexy, FAKE priced" short sales?

Short Sales Are "Fake Listings." Only 5% Close!
http://blog.franklyrealty.com/2008/02/va-short-sa...

Frank

The tax on the lender's portion of the write-off (debt forgiveness) gets a lot of publicity, but from my experience the majority of the short sales we're coming across are from investors who bought near the top of the market. These people will most likely get to write off the loss taken on the sale of the property against the income earned in the form of debt forgiveness, so there shouldn't be much of a tax bite. (disclaimer - I'm not a CPA, nor am I licensed to give tax advice. You may want to ask your tax professional about this topic, however. I'm just putting it out there as a heads up..) ;-)

How come everyone including get rich overnight using short-sales material tell you can make a boatload of money but NEVER has anyone said that the borrower ends up having to make up the defiency or what's left owed to the lender known as the "Promissory Not Modification". I've just successfully negotiated a short-sale and the lender will take 92K on a property possibly worth 155K. 130K is owed and their willing to accept a 30K loss. Unfortunately, the borrower will have monthly payments of $280 for 30yrs. Am i missing something here??? What gives? I need help. I've done research, studied books, publications, websites on short sales and no ones ever mentioned they the borrower ends up LOSING in the end. If there is a way to do this. I'd be happy to to Mentorship arrangement. torojd@yahoo.com

Joel

Jay:

In the San Diego short sale market, we are finding short sale pricing needs to be under market, because many agents and buyers don't want to waste time and opportunity with non-responsive lenders.

That non-responsiveness is costing lenders and their investors real money.

516 minutes on hold? They're also costing you real money.

Jay,

Only one post was meant to be placed on your blog regarding the lender thresholds. Please disregard the second post.

We hope this email helps you and all the agents out there working short sales. Our company just recently returned from the NAR Convention and, who knows, we probably met you. We had an exhibit (#4523). We have partnered with First American Title to bring the first fully-comprehensive training program for agents working short sales and we will be taking this program to 13 states in the next 3 months, including the Phoenix area. After five years of working hundreds of short sales and documenting everything that has ever occurred, both good and bad, including lender net thresholds for every FHA, VA, and Conventional short sale, our class is one you can't miss! Too many agents are working short sales that will never close to begin with. We provide many resources and training materials for real estate agents (not investors) who have the desire to build a niche in short sales...the right way! We have even introduced the first short sale calculator program for Windows and Macintosh in the nation. It calculates what your initial listing price is for both the MLS and your listing agreement, what the 1st lien holder should net based on what type of loan you're shorting, what the 2nd lien holder should net if there is a second lien, and what the lowest offer is that you should be entertaining. Please check us out at www.ShortSaleSolutions.biz when you have a chance. Have a great day!

Short Sales: Knowing Lender Thresholds for VA, FHA, and Conventional Loans = Saving Your Commission!!!

In working Short Sales, there are some numbers and calculations that are especially critical and knowing how to run these calculations will ultimately save you many headaches in the long-run. For instance, the initial list price for the Listing Agreement that is submitted to the bank, the initial list price for MLS, the net amount that banks typically require in a Short Sale given the type of loan, the bottom-line offer that will be necessary to cover the bank's required net, as well as all broker commissions and Seller closing costs. In addition, you need to know how the numbers are affected if there are multiple mortgages on the property. All of these numbers are critical for you to facilitate the transaction effectively, gain credibility with the bank, and best represent your client.

Determine the Lender's Discount Threshold

Banks have a threshold at which they will accept or reject on offer in a Short Sale. And knowing these approximate discount thresholds is imperative in determining your list price for MLS, so that you are able to generate an offer that will meet the bank's requirements, as well as cover all the Seller closing costs and protect your commission. When we refer to the banks "discount threshold", we are referring to the net amount that the bank requires in the transaction after all approved closing costs and commissions have been paid in the transaction. As a reminder, when it comes time to go active on the market in MLS, you need to adjust the price in the Listing Agreement and have your client initial off on this price change.

Calculating the initial list price for MLS is a critical part of setting up the Short Sale. We all know that when considering market comparables for a specific area, if the price per square foot of your client's property is equal to or higher than any other property in the neighborhood, your chances of getting an offer quickly are pretty slim and the whole goal in a Short Sale is generating an offer quickly so that the house doesn't go to foreclosure. In many states, the foreclosure process is a very aggressive one, so knowing how to calculate your initial list price for MLS is imperative. To do this, you must know what kind of loan you are shorting and have a good idea as to what the lender's discount thresholds are for each type of loan.

Currently...

FHA loans are insured at 82% of the current market appraised value

VA loans are guaranteed at 88-91% of the current market appraised value

Conventional and Home Equity lenders expect net proceeds of no less than 85-92% of the current market appraised value.

Note: These thresholds represent a percentage of current market value, not the loan balance. Currently, the Conventional threshold is 85-92% of current market value. This threshold fluctuates with the market and is lender-specific. We have been working Short Sales for almost 5 years and FHA and VA thresholds have not changed during this time. Know that changes in market conditions, bank policy and/or the passing of legislation can effect these thresholds. If the market takes a turn for the worse and property inventory increases for lenders, you will most likely find that Conventional thresholds will decrease.

Know the numbers, save your commission, and enjoy building a commission-generating machine in Short Sales!

The Team at America's Home Rescue

That waiting time on the phone made me laugh. Sometimes I want to give my speaker phone I gift. After all, without it, I would wither away and die while in waiting-line hell.

Nice post, Jay!

I have been totally surprised about this as well. We got a referral for a short sale for a condo dealing with Countrywide. With all their recent problems I would expect them to be a little more interested in making a deal work. It took 45 days to just get assigned to a person. Its bizarre. It seems their systems are frequently down. I really makes me wonder if they deserve a govt bailout if it comes to that.

Jay - Short Sale is a word which causes many different emotions. I always feared a buyer who was approved by Ocwen and can imagine they would be just as difficult in a short sale.

I do miss the wonderful addendums the Arizona Association provides it's agents. Here in Indy - nothing. When I ask my broker - he suggests I join the forms committee. Maybe I should. They need these forms, documents and addendums which protect everyone.

Hope this closes for you. And how much did you make per hour? :)

I've lost 4 buyers on short sale listings that just wouldn't wait it out. And for that matter, why should they?

Banks are their own worst enemies!

The longest I heard was a contract in July that was accepted in October.

Wait until they become REOs. I hear banks are much more responsive when they own it.

I called on a listing and the agent in Mesa said she had 60+ REO listings. She promised a 48 hour turn-around time from the banks on offers.

I'm glad you you could keep the buyer in the deal. I just had one last week where the buyer bailed (after only 75 days) because we got no response from the bank. Today I got an email and it looks like the deal will be approved. Uh oh no buyer anymore since he is now under contract on a home that is NOT a short sale. Do banks really wonder why they get some of these properties back?

Ashley - it's a great addendum, pretty new here. Here's the link -- take it to your board!

http://www.aaronline.com/documents/SSARPC.pdf

Hell... That is a great term to describe the situations created by some of these banks. Ya know, sometimes you just gotta laugh... This post caused me to do just that... Mainly is disbelief!
My recent post Arizona Short Sales Have Advantages &amp Disadvantages

Hell... That is a great term to describe the situations created by some of these banks. Ya know, sometimes you just gotta laugh... This post caused me to do just that... Mainly is disbelief!
My recent post Arizona Short Sales Have Advantages &amp Disadvantages

I just closed on my scottsdale home this month and it took over 7 months to complete the short sale. It was stressful but much better than having a foreclosure on my credit.

I hear that many lenders are finally adding more processors and going forward short sales will go much faster.

dealing with short sales can be really frustrating for banks as they are short changed the full amount of a loan they agreed would be paid in full (with interest) but compared to someone foreclosing on their mortgage and going bankrupt I am sure teh bank would rather get as much money they can.
.-= mortgage freeu00c2u00b4s last blog ..Mortgage Equity Withdrawal u00e2u0080u0093 The Refinancing Trend =-.

I understand that many banks are in the process of rolling out streamlined short sale processing. This is supposed to take as little as 2 weeks. I'm not sure if they can pull it off, but time will tell.

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.Susanhttp://mariahcareylyrics.net

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.Susanhttp://mariahcareylyrics.net

To San Jose Buuyer - Once the seller passed close of escrow, you had no contract. A contract is an agreement between both parties to do such and such by a specific date. They could only take your earnest if you agreed - in writing- to extend the date of closing - OR - you agreed - in writing - that your earnest money was non-refundable under any circumstance. The seller's agent is bullying and b.s. ing you - which gives all of us agents a bad name.

This is sick but sometimes I like to read this article. Only because it makes me feel better that someone else is going through what I have gone through.

Sorry Jay.

**Jeff Buettneru00c2u00b4s last blog post..Arizona Short Sales Rise With Unemployment</abbr></abbr>

Great short sale article, and an especially great website!! Your site pulled up #1 on Google with all of your organic Search Engine Optimization through your interesting articles and reader feedback. I think its awesome that people can log-in to your site through Facebook as well. Congrats!!!

I'm wondering if anyone had any experience with attorneys in Arizona that handle foreclosures and short sale issues. I would love to have someone to refer my clients that are having major problems with their short sale/pre foreclosure dealings with mortgage companies.

Beware when the sellers agent says its an "Approved Short Sale"

I put a bid out on house listed as that and a month went by with no reply. Finally my agent found out that the bank requested and appraisal order. It turns out that the bank had approved that they can sell it short but never decided how much. Basically meaning that my bid sat in some dusty file cabnet for over a month and was never even thought about. Another month later my offer was rejected and teh price of the house was jacked up from 245,000 to 278,000. So basically I wasted over two month of my life on a house I thought had been approved at around (or at least close to) 245. Oddly enough that house has been sitting on the market ever since. If your going to bid on a short make damn sure that the sellersellers agent has done all their paper work.

great information, I think people that can get informed correctly can make a lot of money for themselves and family...

Short sales have become very common place in an area like Florida. Since home values have dropped so significantly it has been necessary for homeowners who want to sell to list their homes as short sales.

That story makes me not want to do short sales. Congrats on finally closing it!

Check out IShortSale.com, they enable me to close about 5-10 deals a month! Wait to price your properties at the smoking hot price UNTIL you have the BPO completed and then you don't have to hope and pray that the Buyer holds on. Because so many people don't do it this way, they are forced in to taking multiple offers in order to try and hold on to just one decent Buyer...how about getting just 1 great offer and locking it in...allowing all those other Buyers to go actually buy another home. I would say close to 50% of the Active Phoenix listings under $250,000 have multiple offers...do you now how much the market would change if it were one offer to a property...one good offer?! STOP TAKING LOW BALLS!

Hi Frank - Yes, it closed. I posted a follow up post here:

http://www.phoenixrealestateguy.com/short-sale-fr...

And don't get me started on the "fake priced" short sale listings. They are rampant here.

Hey Jay,

I tried to look for an update, did you ever close?

I just wrote a post on Short Sales and all the tricks the banks do. My favorite is "Keep making payments, and we might consider a short sale." Then they... delay it 3 months to make that extra cash, and let it go into foreclosure.

So as a Buyer's agent, do you avoid showing the "sexy, FAKE priced" short sales?

Short Sales Are "Fake Listings." Only 5% Close!
http://blog.franklyrealty.com/2008/02/va-short-sa...

Frank

The tax on the lender's portion of the write-off (debt forgiveness) gets a lot of publicity, but from my experience the majority of the short sales we're coming across are from investors who bought near the top of the market. These people will most likely get to write off the loss taken on the sale of the property against the income earned in the form of debt forgiveness, so there shouldn't be much of a tax bite. (disclaimer - I'm not a CPA, nor am I licensed to give tax advice. You may want to ask your tax professional about this topic, however. I'm just putting it out there as a heads up..) ;-)

Joel - not all lenders require borrowers to sign Promissory notes for the deficiency. Many do not. They will 1099 the borrowers, and Uncle Sam will tax this as ordinary income. There is a bill currently in the Senate to end this practice.

How come everyone including get rich overnight using short-sales material tell you can make a boatload of money but NEVER has anyone said that the borrower ends up having to make up the defiency or what's left owed to the lender known as the "Promissory Not Modification". I've just successfully negotiated a short-sale and the lender will take 92K on a property possibly worth 155K. 130K is owed and their willing to accept a 30K loss. Unfortunately, the borrower will have monthly payments of $280 for 30yrs. Am i missing something here??? What gives? I need help. I've done research, studied books, publications, websites on short sales and no ones ever mentioned they the borrower ends up LOSING in the end. If there is a way to do this. I'd be happy to to Mentorship arrangement. torojd@yahoo.com

Joel

Jay:

In the San Diego short sale market, we are finding short sale pricing needs to be under market, because many agents and buyers don't want to waste time and opportunity with non-responsive lenders.

That non-responsiveness is costing lenders and their investors real money.

516 minutes on hold? They're also costing you real money.