Short Sales 60 Days Later
My last blog on the Short Sale transaction was in mid May right after the NAR meetings in Washington, DC. Although the banks prefer a Short Sale transaction over a Foreclosure, there are still many hurdles required to complete a Short Sale transaction.
While in Washington, DC and in a subsequent conference call with the Department of the Treasury, both Fannie Mae and Freddie Mac rejected the idea of increasing the amount that a negotiator could offer a second trust deed or junior lien holder on HAFA-approved Short Sales. On proprietary Short Sales, the bank may offer more to the junior lien holders — more than the $6,000.00 maximum required under a HAFA Short Sale. The second trust deed or junior lien holder must agree with the bank’s approved settlement offer for a Short Sale transaction to work.
One of the biggest problems while negotiating a Short Sale is the banks value and the true market value of the asset. The bank is trying to recover a percentage of the debt while they should be trying to recover a percentage of the value.
Please do not forget your MARS Disclosures once you discover you have a Short Sale. The Short Sale transaction may save your career so spend some time on understanding the process. The negotiator plays a very important roll in this process; they are not always right so be patient with them, submit your documentation, and know their system.
AUTHOR: LeFrancis Arnold, CAR 2011 President-Elect, LACBOR Past President — www.LeFrancisArnold.com and LeFrancis’ On The Move (blog) …
Get Involved – Help CAR Develop Policy Issues
Being the President-Elect of the California Association of REALTORS® (CAR) is no easy function. The 2012 officers met on Thursday and Friday (June 30th and July 1st, 2011) at CAR’s Los Angeles headquarters. We spent the entire two days working on CAR Leadership appointments. The talent pool is tremendous — a group of very successful and highly educated professionals across the State of California offering as volunteers to represent Policy Committees for our member organization.
There are four officers: 2012 CAR President LeFrancis Arnold, 2012 President-Elect Don Faught, newly-elected 2012 Treasurer Chris Kutzkey, and Executive Vice President Joel Singer. This year’s team chose leadership appointments with the organization in mind. We struggled with many appointments. Who would be the right person to lead? Who had earned the right? Staff input weighed-in heavily on the choice as well as recommendations from Past Presidents, Liaisons, and peers. We looked at the players from last year, 2011, and tried to be fair. Which Vice Chair should ascend to the Chair and why?
Our great State organization, CAR, must help lead the Real Estate industry back to prosperity. Since our member benefits help the REALTOR® stay at the center of the Real Estate transaction, we must continue to support REALTOR® politics and get involved. I fought hard for you, my REALTOR® friends, and I placed you in leadership wherever I could. CAR does have policy that requires you to be on a committee before you chair that committee or issue. My recommendation is for you to hang in there and help CAR develop policy issues.
AUTHOR: LeFrancis Arnold, CAR 2011 President-Elect, LACBOR Past President — www.LeFrancisArnold.com and LeFrancis’ On The Move (blog) …
Loan Mod or Short Sale?
Friends,
I have been spending a lot of time on the Short Sale issue. I feel that some progress is being made in this arena; however, we have to keep up the pressure by really looking at our customer’s circumstances. Are they really a loan modification or are they really a short sale? Our job is to look out for the clients best interest and get the answers they want!
AUTHOR: LeFrancis Arnold, CAR 2011 President-Elect, LACBOR Past President — http://www.LeFrancisArnold.com
