Tag Archives: short sale agents

Why the big banks are doing more short sales

Why the big banks are doing more short sales

“San Diego County’s level of housing distress took a pivotal turn this year. Short sales, once rare deals in the real estate world, now make up a bigger share of the residential market compared to foreclosed homes that have been resold.

Short sales allow homeowners who can’t afford their mortgages to sell their homes for less than what they still owe, as long as the lender says OK. One in five homes resold in the county were short sales, based on August numbers from local real estate tracker DataQuick. Compare that to single-digit percentages seen while the housing bubble began to percolate in 2007.

Short SaleShort sales are expected to become even more common and easier to close as Freddie Mac, which owns or guarantees a sizable chunk of mortgages in California, will make it easier for borrowers to complete them starting next month. Borrowers will see that the process is considerably shorter and that it will leave less of a financial black mark on their credit histories.

Already boosting the number of short sales is a $25 billion mortgage deal between the nation’s biggest banks and 49 states that settled foreclosure abuse allegations and was signed earlier this year. The agreement essentially forces banks to do more short sales and provide relief to borrowers on expedited terms. Some banks are even offering cash as incentives to get more people to short sell.

“Banks are really motivated to do short sales,” said Matt Battiata, who owns Del Mar-based Battiata Real Estate. “…Banks have decided and learned over the last several years that short sales are a much better way to mitigate loss.”

The end result appears to be good for the housing market.

The increase in short sales means a more dynamic real estate market, fewer losses for banks and increased chances that short sellers could buy homes again after a shorter hiatus…”

Read the rest of this article by SignonSanDiego.com here: “Why the big banks are doing more short sales”.

Do you need help in selling your home as a short sale? Give me a call–I have experience in closing over 150 short sales in San Diego county.  – John A. Silva (619) 890-3648 | www.JohnASilva.com

How to Interview a Short Sale Agent

Before I give my opinion on the best questions to ask an agent when selling a short sale, it is prudent to ask one question: were all the sellers whose properties were lost or failed trying to short sale their house? The answer would be that 90%-plus of why the short sale did not go through and the foreclosure did, was because the listing agent had insufficient experience or hired a short sale negotiator with the same problem. 

hiring a short sale agentAny agent who hires a short sale negotiator after taking the listing and does not interview for the job at the same time the listing is taken should not be hired. The agent can say they hire negotiators because they do excess volume, or use them for all their sales so they are fine while they don’t have the time to come to the appointment or the agent says they don’t have the time to do the work because they are busy getting new business, but the bottom line for a seller is to know exactly what the game plan will be for their particular situation, while meeting the pertinent parties face-to-face.

Wouldn’t you want to meet the doctor doing heart or brain surgery on you, the attorney handling an extremely important case for you, or the carpenter/contractor remodeling or building your home? I can’t tell you how many times I have seen the so-called gurus fail in a short sale because they do not get involved.  Or worse, they really don’t know how to handle certain situations that come up.  Since every transaction is unique in its own right, especially in a short sale, that is the simple reason why there is an unlimited price you can put on experience and handling business successfully.

Why do you think that I don’t care for agents who hire short sale negotiators even though they close a high percentage of their transactions? The answer is that, as a seller, you are hiring the person you sign up with on the listing agreement to handle all facets of your sale, correct? Actually, when a negotiator is hired in a short sale, the seller is not charged their fee which can run 1% of the purchase price, nor will the short sale lender pay it, so it should be charged to the agent taking the listing because they can’t or don’t want to do the work. But instead, it is charged to the buyer’s agent which is totally wrong. The market is getting extremely ugly with these circumstances after a buyer’s agent gets knocked out of getting properties time after time.

Now the question that comes to mind is: what do I do with this circumstance?  Do I believe the agent when he says everything will be fine or interview the negotiator–what is their experience and do they have a real estate license (since this is required)?

The only questions to ask are:

1. Do you negotiate the short sale yourself? Must be a yes.

2. How many short sales have you closed in the last 10 years? Should be an average of 20 closed per year, per agent or negotiator. Did you know most negotiators are agents who did not do enough business to survive in the real estate agent industry in the recent past?

3. What is your ratio of closed short sales? Minimum standard should be 10 a year for the past 10 years, minimum.

4. What knowledge do you have in settling liens?  These include liens such as: IRS, HOA, child support, credit cards, etc.

5. If the laws are changed in the near future back to the way they were before the law was in place, how many transactions did you close as short sales then? Should be a minimum of 20 per year for the previous 5 years. These are just some of the questions to be asked, so to be completely confident, you would want to call me to help you with your particular situation.

6. Do you know how much your home is worth?

7. What do you do if the property might be upside down?

Do you know how your agent or negotiator would answer these questions? If not, call me for honest, expert short sale advice.

– John A. Silva  |  (619) 890-3648

How Can a Seller Get More Money in Their Pocket Out of a Short Sale?

How Can a Seller Get More Money in Their Pocket Out of a Short Sale?

Is the subject of this blog even a possibility or are you thinking this is too good to be true!? Maybe you think this is a funny blog post?  I am serious as can be!  The question is, does your agent know this?

How to get more money out of a short sale with a short sale expert agentEveryone knows there are government short sale and internal bank-approved short sale programs that pay the seller anywhere from $3,000 to $30,000. This is NOT all the money a seller CAN get, there is more money in addition to what the bank will pay directly, and there are very nearly NO agents who actually know how to do this.

There are ways to accomplish this feat, whether through the proceeds approved by the bank to getting money paid from a buyer for liens ranging from: credit cards, child support, alimony, and home owner association dues just to name a few and lastly, there is personal property. Personal property can be sold at closing outside of escrow legally between a buyer and seller.  State and federal tax liens can also be removed and funds applied as well, but usually are released with no money towards them in order to sell the property.

In the case of personal property, there would have to be specific circumstances for a seller to have optimum results and as always, I would recommend an attorney to draw up any paperwork. These certain circumstances could allow a sale for more than what their present value is, to accommodate a particular buyer in the case of multiple offers. 

How does one get multiple offers on a property that is a short sale and get it approved by the lien holders at the price accepted by the seller with little to no market time?  Only an agent with experience can do this, and if the seller needs more time in the property to recoup finances, then this also can be accomplished only with an experienced agent.  Most agents out there use short sale negotiators and DO NOT have experience in handling your short sale because the actual negotiations with the bank are done before the offer is even submitted, based on the seller’s circumstances. 

There are many facets to a short sale that can be done to the benefit of the seller, especially getting extra money that can legally be paid to or for the seller.  A short sale negotiator’s only job is to submit paperwork to the bank for a hefty fee, while the listing agent just gives them and bank an offer.  The listing agent should be setting up the sale by determining the hardship, even if they have assets or free and clear real estate in their portfolio, then setting up to pay down or off any other qualified debts.  The question I get every day from agents wanting to know how to negotiate with buyers and banks for their specific situation is: why should only experienced agents handle these sales?  I get referrals from other agents to handle their short sales.

Always ask your agent: How many short sales have you closed and negotiated on your own?

100 short sales closed and negotiated on their own should be the minimum bar requirements.

This is a very complex transaction; do you want a friend or relative for your agent or an EXPERT?

Are you facing this issue yourself? Please, give me a call and see what I can do for you! – John A Silva (619) 890-3648