Michael Roberts' Blog -San Jose Homes, Real Estate and Houses for Sale

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Last month BofA chose to work with REOtrans, a leading transaction vendor to the mortgage industry, to advance and streamline foreclosure solutions by reducing them all together.

They are working to move the short sale idea into the mainstream RE sale arena. This is great news no matter what side of the Real Estate market you find yourself standing in.

The traditional Short Sale process has led to immense frustration and outright anger, not only here in California, but throughout the nation for all parties involved. As a Real Estate professional, having to negotiate short sales on behalf of distressed homeowners, I have learned that many people charged with Short Sale approvals agree…the short sale process, as it is implemented now, is ridiculous even archaic.

B of A has been the penultimate banking institution in the United States for decades and it goes without saying their agreement to work with REOtrans is a window into Real Estate sales for the near term. Read the rest of this entry »

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Short Sales with Countrywide B of A WaMu JPMorgan Chase are going to become more relevant in the coming year. I just got off the phone with Bof A regarding a short sale I am working to a close.  Word has it the short sale departments, at many mortgage lenders, are expanding and preparing for a bumpy 2-3 years.

UPDATE: 12/09 Changes are being implemented, on-line submission is one interesting change.

It may change the outlook in the foreclosure market as these institutions become more aware of their losses with REO’s.  It is obvious they are learning that the Short Sale option is the better answer.

This B of A employee was quite talkative and shared a few things we all need to know.  Fannie Mae (the government agency)  is causing the most trouble for everyone.   I  do not want to absolve all short sale departments from some responsibility here, yet.   Similar to trying to open a bank safe without a combo the banks have seen massive delays and required information changes coming from Fannie Mae in the form of more…..’forms’.

Have you ever been flustered by those pesky government forms?  You may be sympathetic to the bank….I am not!  I want to call a department speak to a ‘person’ and get the business done…Do you agree?

I have read tons of material from people who claim to have the golden key to helping people with short sales.  The problem is that each and every bank and each and every home/seller is different.  There is no one golden key.

Short Sale departments receive over 100000 faxes a day and most of the specialists have  well over a thousand files each.  Hire more specialists ever occur to anyone?  Each person considering a short sale option has very different financial needs, assets and goals.  Not to mention, different mortgage companies.

It is important to know where and how to make your short sale more visible with the mortgage servicer and understand how people work.  Hiring a short sale professional is strongly recommended one with experience and a temperament to fit.

Do banks lie?  Yes and No. The contact numbers are constantly changed, staff is moved around and responsibilities are adjusted all the time from the client bank (the one who hired the servicer i.e. Wells Fargo).  The client bank delegates directives to the servicer to create guidelines used to gain their short sale approval.  Changing the rules of the game.  Is that lying?

This link takes you to my FOX News Interview broadcast Video

Being prepared for these guideline changes, before they are implemented,  will reduce the anxiety in this very frustrating process.  Your chosen professional should have a strategy to employ.

When you are willing to change, bend, search, use good practices and LISTEN the ordeal will come to an acceptable close.

Find a professional to represent you, employ them and prepare for a few bumps.

Hold on turbulence are ahead as change is sometimes not easy.  I am preparing everyday for the next bump.   I have my seatbelt drawn tight.

Update 12/22/2009 New FHA lender rules for short sales

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• Fannie Mae offers borrowers option to foreclosure (sfgate.com)
• Fewer short sales are coming up short (sfgate.com)
• Fannie Mae offers borrowers option to foreclosure (seattletimes.nwsource.com)
• Mortgage Debt Relief (odellrealtygroup.com)

Buying a short sale is like being a miner…A miner will dig and dig, for months, until they find gold right?  Buying a short sale can be very much like mining for gold.  You need to have a miner’s mindset and use better tools than the others.

“How many months is this going to take?”   This question is being asked with great regularity… too much really.   The answer…It depends on who has the mine.  Period.  If the Listing agent  (who has the mine or short sale) is not proactive then it doesn’t matter how hard your Realtor works or how high your offer is…you won’t find any gold.

Your Realtor is your mining pick.   They need to know how to qualify the listing agent’s knowledge, experience and ability or, at least, be willing to work to help the listing agent make progress with the bank who is ultimately going to approve the short sale and…shine the light on the gold.

A successful gold miner will have a map of the gold mine and know how to navigate it.   Your Realtor of choice will need to have a good map and understand the best way to navigate their way to the gold and extract it.   This map is developed through representing sellers AND buyers of  short sale properties, understanding all the pitfalls  and the best practices to avoid them.

More and more short sales will be coming to the market and,  the best homes and best buys available, will likely be short sales.   This is the market condition reality for the next year or longer according to Banking industry experts and Real Estate professionals based on market statistics and economic conditions.

The extremely low interest rates are bringing droves of buyers out and multiple offers on the best homes are the norm in San Jose as well as Los Gatos and all around Santa Clara County, for that matter.  Too many miners and not enough mines.  You can avoid having to compete with these buyers if you realize they are overlooking the opportunity in front of them.  The Short Sale properties.    Agents are avoiding them because they think  that most of them will never close.    Ahhaa!    The key!   Find other mines!  Be a good miner and have the sharpest pick!