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Tag: short sales (page 1 of 1)

December 1, 2009

HAFA, HAMP and other assorted worthless acronyms….

by

Mortgage Officer

Author website

Okay, I’ve got to admit, it’s been one of those days, but I can’t stand by and not say what I’m thinking about this new “short sale” program.    I’m already hearing a lot of Realtors and others saying, “This is great news!”    Well, hold on a minute…..

I’m going to go through some of the main points of the HAMP Update that was issued yesterday and that our President spoke about today.    You can find the entire thing at Hamp Update if you want to read it for yourself.  If you want to read the entire directive, you can find that at Directive.   The bold and italicized portions are quotes from the official documents.   The regular print is my thoughts…….

Supplemental Directive 09-09 provides guidance to servicers
There’s the first clue that something’s not going to go well.   It provides guidance. 

The definition of guidance according to Wikipedia is: Advice (opinion), an opinion or recommendation offered as a guide to action, conduct. 

See where the problem is?   It’s guidance, it’s not mandatory.   So, Uncle Sam can say, “Now, Mr. Banker, you really should do this……”    And the Banker can say, “(Well, we really shouldn’t print that.)”

provides servicers with the option to determine the extent to which short sales or deeds-in-lieu will be offered under this program.  (This is actually from the Directive).    

It provides options.   It allows the servicer to determine the extent to which they offer them under this program.

So, once again, what do we have?   We have Uncle Sam saying, “Now, Mr. Banker, it would be really nice if you did this……”   And the Banker can say, “____________________.”

The effective date of this Supplemental Directive is April 5, 2010.
Excuse me, but what the heck is the rush for?   I mean, they rolled out the HASP refi program to lenders the day that they made it public to consumers so we were getting calls on it before we even knew what was what.    Now they are giving the banks four months to decide whether they want to participate?    Why not next Monday?

With either the HAFA short sale or DIL, the servicer may not Read more

April 8, 2009

IF (…for the real estate crowd)

by

Real Estate Renaissance Man

Author website

A little Hump-Day fun.  (Apologies to Rudyard Kipling.)

If you can keep your deal when all about you
Are losing theirs and talking of failure to you;
If you can trust your client when all clients doubt you,
And understand their doubting too;
If you can wait and not be tired of writing offers,
Or, being lied to, don’t deal in lies,
Or, being rejected, don’t deal in scoffers,
And yet don’t look too good, nor talk too wise;

If you can dream of clients – and not make clients your master;
If you can think of volume – and not make volume your aim;
If you can meet with REO agents and short sale specialists
And take pride in what you do just the same;
If you can bear to hear the comps you’ve spoken
Twisted by appraisers to make agents fools,
Or watch the escrow you gave your all to broken,
And start again with new marketing tools.

If you can save 10% of all your winnings
And run through a prospecting plan,
And gain nothing, and start again at your beginnings
And never make complaint or show you ran;
If you can force your assistant and lender and staging pro
To serve your turn after they want to be gone,
And so hold on to that open escrow
With nothing but the Will to say: “Hold on”;

If you can talk with banks and keep your virtue,
Or walk with Brokers – nor lose the common touch;
If neither real estate coaches nor time vampires can hurt you;
If all clients count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds’ of marketing done;
Yours is the farm and all the transactions in it,
And – which is more – this profession will be fun!

March 8, 2008

A Deficiency Judgement? In Arizona? Not Likely.

by

Realtor, Audio Engineer

Author website

Hello again!

Have clients asking you about short sales? I know I certainly do! In fact, it’s become a big part of my business. In fact, I am conducting short sale negotiations for 3 different REALTORS, as well as 5 different clients. Unfortunately, a lot of questions have arisen lately about Arizona’s Deficiency Statutes regarding foreclosure. I say “unfortunately” because I feel somewhat less than qualified to definitively answer these questions. Greater legal minds than mine (and mine is decidedly NOT legal) will be required to put the issue to rest. I will, in spite of the danger of blatantly misrepresenting the facts, case law, and statutes, attempt to answer one (NON-) simple question:

“If I do a short sale, or my property is taken from me by foreclosure, can the bank ‘come after me’ for the difference between what the property eventually sells for, and what I owe them, including sale costs, legal fees, etc?”

First, let me point the reader in the general direction of actual legal minds on this issue. Here is a rather esoteric treatise on the subject of getting sued for a deficiency judgement. Very good read, and fairly definitive on the issue.

Here is another article, that is more user-friendly on the same subject. Now, because I have a public education, and am somewhat literate, I will attempt to provide a synopsis of the above:

In Arizona, there are two types of “notes” given for real property: a “Deed of Trust” or a “Mortgage”. Despite the common parlance of the term “mortgage,” most people in most states do not actually have Mortgages. They have Deeds of Trust. I won’t go into the differences here, but suffice to say that a Deed of Trust has three parties to the agreement, and an actual Mortgage has only two. Actual mortgages are very uncommon in most states.

Now, the remedy of a lender for a home in default depends on what type of note was used to secure the property. If there is a true mortgage in place, the lender must sue in civil court in a process known as “judicial foreclosure.” The particulars of a Read more

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