Richmond Foreclosure Prevention has already received dozens of approvals this year on behalf of clients AND had our fee approved out of the proceeds of sale. That means that dozens of Realtors just this past quarter have had a full-time team of expert short sale negotiators working for them and their clients....FOR FREE!!!!
Don't do your next short sale alone. Contact R.F.P. Inc. for more information
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| Battle-Tested Scripts
How to Say it Better
| I get a lot of requests from Realtors to speak with their clients regarding short sales to explain the process and answer their questions. Although, I am more than happy to do so, I thought I would supply some scripts or outlines of how I address certain issues and commonly asked questions by both the sellers and buyers or buyer's agents in a short sale transaction.
The attached Battle-tested scripts address questions like:
"Should I keep paying my mortgage?"-Seller
"Am I going to owe the bank anything?"-Seller
READ MORE
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| New 45 Day Short Sale Bill
Prompt Decision for Qualification for Short Sale Act of 2011
| Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey), introduced their new, concisely dubbed "Prompt Decision for Qualification for Short Sale Act of 2011" recently in an attempt to require ALL servicers to either approve, deny or otherwise respond to all complete short sale applications within 45 days of receipt by the bank. It is essentially the same as the "Prompt Decision for Qualification for Short Sale Act of 2010" which never made it to a vote.....but they wisely changed the year in the name.
The National Association of Realtors is apparently prepared to back the bill, which should indicate it is not completely misconceived. Among the questions I have are; What triggers the 45 days response time? READ MORE |
| 2011 Foreclosure Time Frames
Know How Long Your Clients Have
| I wanted to let you know that I am "efforting" getting my hands on a new Standard and Poor's market study that reveals the actual, up to the minute, time it takes on a state by state basis to foreclose on a home. The purpose of the study was to compare foreclosure time frames and costs between judicial and non-judicial states and compare that data with the relative success, frequency and savings of other loss mitigation efforts like modifications and short sales. The question it seeks to answer is basically, are banks better of completing modifications and short sales in judicial states especially due to the long time frame for foreclosure. As soon as I read the report I'll write about it here.
In the meantime, I came across some Fannie Mae servicer guidelines that detail exactly what Fannie Mae expects from its servicers in terms of how long it takes for them to foreclose on a delinquent borrower.....on a state by state basis. This information is important to our industry and our clients so be sure to review your state's timelines for Fannie Mae.
Four notes I'll add before I introduce the data:
1. Keep in mind that these time frames begin from the date on which the loan was assigned to a substitute trustee or referred to an attorney for foreclosure. This typically does not happen until the borrower is AT LEAST 90+ days delinquent on the loan and in most cases does not happen until much later. READ MORE
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| Multiple Liens Revisited
Handling Them the Right way
| In a previous post, we addressed the myth that short sales cannot be completed on homes with multiple liens. You can read that post here.
In that post I noted that second lien releases often do not take as long as first liens and can often be procured in a few business days. I want to clarify that comment and detail how we handle second liens in an efficient manner.
First, We always send the second (and/or third) lien-holders a short sale application package concurrent with our transmittal to the first lien-holder. Although, depending on the investor that owns the first, we may not know our final offer to the second lien-holder until much later in the process, this informs the lien-holder of our intent to short sell the property and provides them with the financial disclosures they may require to approve our transaction. Once we have approval from the first lien-holder, this step accelerates the process to get the second lien approval.
Second, We try to always determine the investor of the first lien up-front READ MORE |
| Tips, Tricks and Myths
Getting to The Right Price for Your Short Sale Listings
|  One key, and often overlooked, component of the short sale process is the listing price. When short sales first "boomed", (I put it in quotes because all available data indicates that short sales have not yet peaked) several fables materialized regarding short sale pricing.
The purpose of this post is to dissolve some of the myths and replace them with some methods I have seen work over the past few years.
Myth #1: The bank wants to see the home listed at a price that will cover their mortgage. Not true. If it is going to be a short sale, your listing the home at an inflated price does not serve anyone's best interest, including the bank. Myth #2: I need to get the bank's approval to list the property. False. The homeowner READ MORE |
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Sincerely,
Matt James
Richmond Foreclosure Prevention
(M) 804.833.9188
(F) 804.368.1114
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