{"id":408,"date":"2014-10-13T10:38:44","date_gmt":"2014-10-13T14:38:44","guid":{"rendered":"http:\/\/www.realestatejunkie.com\/blog\/?p=408"},"modified":"2014-10-13T10:38:44","modified_gmt":"2014-10-13T14:38:44","slug":"changes-in-short-sales-are-you-keeping-up","status":"publish","type":"post","link":"https:\/\/www.realestatejunkie.com\/blog\/changes-in-short-sales-are-you-keeping-up\/","title":{"rendered":"Changes in Short Sales \u2013 Are you keeping up?"},"content":{"rendered":"

\"shortsales_keepup\"<\/a>Every day the Banks are making minor and\/or major changes on how they do short sales.\u00a0 What was once an easy short sale system now varies depending upon each Lender.\u00a0 Many lenders will want the Sellers to use their own in-house short sale package, even though my detailed generic package pushes the deals forward.\u00a0 Sellers really don\u2019t have a true concept of how much debt that they have when it comes to reporting all of their debts.\u00a0 Many of them will not even include a debt on their financial statement to the lender, just because they are choosing not to pay it.\u00a0 In my short sale system, I have created a detailed short sale package with forms that are used to help my Sellers make sure that everything is included and maximize their chances of short sale approval.<\/p>\n

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In January of 2014, Florida allowed a law to be passed that the Short Sale Lender may receive a Deficiency Judgment at the time of the Foreclosure while the Lender still has the asset (property) in their portfolio and didn\u2019t even sell it yet.\u00a0 Before this law was passed, the Short Sale Lenders could foreclose on the property and then they have a choice whether or not to either forgive the debt or pursue the Sellers.\u00a0 If they forgive the debt, they still issue a 1099 (Forgiveness of Debt Form) which means the Sellers would have to pay taxes on the amount that the bank has forgiven. Or the Lender could go after the Sellers again by filing a new lawsuit for a Deficiency Judgment on the balance that is owed AFTER the Lender sells the property and releases it from their portfolio. Many Short Sale Lenders are amending their complaints to request this immediate deficiency judgment.\u00a0 Sellers are blind to the new changes and they are burying their heads in the sand, thinking they are living in the house for free and then letting the property go to foreclosure with no repercussions.<\/p>\n

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As Investors and Realtors, we need to inform the Sellers of all of these changes.\u00a0 I can\u2019t even believe that Florida would allow such a law to pass, as the Short Sale Lenders have no accurate clue how much they have as a deficiency because they have to hold the property which costs them interest, maintenance, taxes, insurance, management, and realtor fees.\u00a0 This amount could even be more if the Short Sale Lenders decide that they want to fix up the property and then sell it.\u00a0 So \u2026 what amount have they added to the deficiency judgment amount against our Sellers for all of these fees????\u00a0 I am assuming they are using the SWAG theory\u2026.a Scientific Wild Axx Guess!!!\u00a0 This is an amount \u201cguess-timated\u201d by the Lenders, and the Sellers are not arguing that amount.\u00a0 Therefore, the Short Sale Lenders are getting paid more and more money. This amount, even with a deficiency judgment issued, can be written off by the Lender at any time by passing the buck to the Sellers with the 1099 Forgiveness of Debt.<\/p>\n

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For the short sale deals that I am working, I am finding that the Short Sale Lenders who have Fannie Mae as their investor underneath are inflating the value of the home by an additional 20% of what it is actually worth.\u00a0 What does this mean for the negotiator?\u00a0 It means you have to make changes on how you are arguing over value.\u00a0 I have gone at this in two different ways, buying notes and also providing appraisals.\u00a0 I am getting deals approved and closed that nobody else is able to do.<\/p>\n

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If you are dealing with Nationstar, you will be working with Homesearch.com which is their new auction site.\u00a0 This is a pain in the butt!!!\u00a0 No matter what the offer, Nationstar is never, and I mean never, happy with the offer; it is never high enough for them.\u00a0 Therefore, this means that on these deals you need to be ready to fight.\u00a0 Nationstar makes promises to Listing Agents that if the buyer doesn\u2019t have a Realtor then the Realtor can double dip and get the commission on both sides.\u00a0 I have written lots of articles about Nationstar who is just a servicer for other lenders.\u00a0 I have also called and complained to the National Association of Realtors about all of the false advertising where Nationstar is stating \u201cShort Sale Approved,\u201d on their auction site.\u00a0 Well, if it was truly approved, then what about giving me the approval letter for the existing buyer that I presently have on the property?<\/p>\n

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I love short sales and to fight, as I do it, on behalf of my Sellers.\u00a0 There is no voice for the Sellers; however, when they do a short sale with me, they get control of the outcome instead of the Short Sale Lender.<\/p>\n

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Stay tuned for new tips on how to work around Short Sales by purchasing Notes and providing Appraisals for values.\u00a0 I will keep you all informed monthly.\u00a0 However, if you are working on a short sale NOW, you need to be able to maneuver through all of these changes so you can close your deals.<\/p>\n

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I am speaking at IRC on October 16, 2014<\/a> and holding a One Day Training on November 8, 2014<\/a> to teach you how to get through your deals, still help the Sellers and also make money.\u00a0 Make sure that you attend, as the tips and the secrets that I will be providing you will not only help you on short sales but on any type of transaction that you are attempting to do, wholesale, lease, lease option, option, subject to and more.\u00a0 Get ready to move forward in your real estate business and I will see you then!!!<\/p>\n

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Happy Negotiating!<\/strong><\/p>\n

Kimberlee Frank<\/strong><\/p>\n

www.ForeclosuresGoneWild.com<\/a><\/p>\n

www.RealEstateJunkie.com<\/a><\/p>\n

www.ShortSaleNegotiating.com<\/a><\/p>\n

www.SellFastRealty.com<\/a><\/p>\n

Like me on www.facebook.com\/foreclosuresgonewild<\/a><\/p>\n

Like me on www.facebook.com\/sellfastrealty<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Every day the Banks are making minor and\/or major changes on how they do short sales.\u00a0 What was once an easy short sale system now varies depending upon each Lender.\u00a0 Many lenders will want the Sellers to use their own in-house short sale package, even though my detailed generic package pushes the deals forward.\u00a0 Sellers […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,11],"tags":[78],"class_list":["post-408","post","type-post","status-publish","format-standard","hentry","category-local-guru","category-free-articles","tag-short-sales-florida"],"_links":{"self":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/comments?post=408"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/408\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/media?parent=408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/categories?post=408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/tags?post=408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}