Shortsalenurse's HAFA Blog

March 19, 2013

Selling Short Sales by Auction, IS that in anyones best interest?

Filed under: Uncategorized — shortsalenurse @ 2:19 am

THIS POST WAS BUILT TO BE VIEWED ON THE NEW SYSTEM

Please visit:   WWW.SHORTSALENURSE.COM for a Better System.

Is selling Short Sales by auction in anyones best interest?

Recently while talking to my Realtor peers they asked me how I felt about Nations Star and Auction.com joining forces to market Short Sales.  At first I was thinking it had to be a mistake and here is the reason why.  To legally advertise you have to be a licenced Broker in the State of California.  For two Brokers to be doing the same thing seems, well just bizarre.  I believe there is an implied exclusivity to selling the home.  There is a required form established in Ca. Law, it is called the Agency Disclosure. (see copy of form, <a href=”http://shortsalenurse.com/?attachment_id=193” rel=”attachment wp-att-193″>AD-1 – Disclosure (1) Regarding RE Relationship (Listing Firm to Seller)</a> It is the first from that is provided to the “Seller or the Buyer”  It notes the quality of “representation” and gives it a legal label, and quality,  that  being a fiduciary duty.  What is an auction companies duty and to whom?  Is it to the BANK?  Is this an interesting question for the Department of Real Estate.  How do you take a commission for selling a property without making and upfront declaration of your Agency?

Let me paint a picture or a possible situation. The listing broker “Realtor”, advertises the home, accepts an offer and presents it.  The terms are acceptable to the Seller and they sign the contact to sell the home,  with the “Buyer.”  At the same time the Auction company is offering the home for sale and someone bids for the home and is the winner?   Do we now have two Buyers?  Who do we give the property to?

Most Real Estate Brokers charge 6% Commission when doing short sales.  6% is the total allowed commission for a HAFA short sale.   It appears that Auction.Com charges another 5%.   Now with two Brokers involved you could – will  have inflated the commission to a total of 11 percent.  Most buyers would balk at this.  Also this system could make it so that FHA and VA loan buyers would not have the money to buy this home.  How wise is it to eliminate these buyers from the market?  Will this not suppress property values and limit investor returns.  Does this meet the Fair Housing Standards that most Brokers adhere to?  I don’t know but I bet someone asks that question soon.

Is it possible, I am not the only one that thought this way?  According to business week.com  (see link) some investors are suing Nations Star for using Auction.com. This interested me so I ran a search on Auction.com and found this consumer comment (see link)  I think it is fair to say this person is not impressed with the system that they use.

As best I could tell and I welcome you to view the Auction.com’s site.  But first you bid and then you see their contract.  I could not find a copy of the “winning bidders contact” at their site.  At least in California if my client wants to see a draft copy of any contact before signing or bidding on a home, it is their’s to view ASAP.  In fact I go over the contract with buyers  before they even start shopping, as do all of my peers.

I know I am repeating myself but the elephant in the room has to do with “Fair Housing.”  If the Buyer pays the commission of 5% are we not hurting veterans and those meeting FHA loan requirements. In markets with limited inventory are we cutting them right out of the ability to buy?  I bet this will have to be  resolved before any major Bank uses an Auction Company for short sales.   How fair is it to cut V.A and FHA buyers out of the ability to buy.  Most of these people are struggling to obtain the down payments necessary to buy let alone pay an auction company 5%.  Why would a major Bank do this?  Well, frankly I have not seen it happen yet, but  it is being rumored Bank of America is considering it.

Any questions or comments on this evolving story please send them to me. I want to follow this.

<a href=”http://shortsalenurse.com/?attachment_id=13” rel=”attachment wp-att-13″><img alt=”kw_stack_color” src=”http://shortsalenurse.com/wp-content/uploads/2013/01/kw_stack_color-300×202.jpg” width=”300″ height=”202″ /></a> <p style=”text-align: center;”>George Kenner, Broker Associate Keller Williams Realty</p> <p style=”text-align: center;”>2060 Otay Lakes Road, Suite 200,  Chula Vista, Ca. 91915</p> <p style=”text-align: center;”>619-723-5714  —  <a href=”mailto:g.kenner@yahoo.com”>g.kenner@yahoo.com</a></p>

November 14, 2012

Fannie Mae Cuts the MARKET SHARE by Refusing to Pay Closing Costs….. REALLY?

You will find Fannie Mae Servicing Guide Announcement SVC – 2012-19 in  the PDF Attachment below which supports this statement.    On page 6, you will see  under the sub heading Unacceptable Short  Sale Transaction Costs, and I quote “buyers discount points or mortgage loan origination costs.”

This means that if your shopping for a new home and the loan is held by Fannie Mae , you can not ask for the Traditional closing costs credit even if you exceed the asking price of the home.   This will cut the NUMBER of people who can buy the home.    At least to me this lacks some logic.   Do we and when I say “WE”  I mean the Tax Payers who still control “Fannie Mae and Freddie  Mac”, want to limit the number of people who can buy a home before it goes into foreclosure?    The old saying that “Common Sense is not that common” just keeps rushing into my mind.    Who did the math on this and compared the facts that FHA and Fannie Mae policy should be in alignment.   What is even more odd is,  Fannie Mae will  allow for this type of closing cost credit on the loans they still invest in everyday in the  marketplace.   Really!   I just called a Bank and confirmed that this is still the policy.

The complexity of short sales transactions is growing.  Dealing with professionals that know where the rules are and how to apply them is very important to achieve success. You don’t want to spend a few months waiting to  find out  Fannie Mae will not allow for Traditional closing cost consideration, as is standard in a FHA Transaction.  Will this rule change?  I sure hope so!  Realtors talking about this rule impact will / could change it.   Fannie can you hear us?

CLICK ON THE LINK BELOW TO GO TO THE RULES IN PDF

Servicing Guide Announcement SVC – 2012- 19

George Kenner Broker Associate – Keller Williams Realty – Ca. Lic. Number 01229951

619-723-5715 – g.kenner@yahoo.com

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November 6, 2012

Realtors Speak out on Election Day…. CAR. Calls for Removal of Demarco at FHFA and George says Tell him about The Bush Tax Forgiveness Law… Do we Get an Extension or NOT?

First let me share a news release with you.  This is from the California Association of Realtors, whoever planned this to be let this go on Election Day…. BRAVO!

C.A.R. calls for change of leadership at FHFA
LOS ANGELES (Nov. 5) – The following is a statement by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) on last week’s announced REO bulk sale transaction between Fannie Mae, the Federal Housing Finance Agency (FHFA) and Colony Capital:
“Fannie Mae and FHFA’s decision to move forward with the REO bulk sale in California amounts to another gift to Wall Street at the expense of taxpayers,” said C.A.R. President LeFrancis Arnold.  “The deal, which calls for the sale of more than 400 foreclosed homes in Los Angeles and the Inland Empire, not only hurts taxpayers and prospective home buyers, but will also delay a full recovery in the housing market.”
“The implementation of this ill-conceived program highlights the failure of FHFA to appropriately address this issue despite C.A.R. and others outlining alternatives,” said Arnold.  “The botched execution of the REO bulk sales, and Home Affordable Foreclosure Alternatives (HAFA) and Home Affordable Refinance Program (HARP) under FHFA’s oversight and leadership has demonstrated a lack of understanding of the housing market.  Given these and other missteps, C.A.R. believes it is time for a change in leadership at the FHFA.”
C.A.R. opposes bulk sales in California because the state is experiencing a severe shortage of available housing, which will negatively impact the state’s housing market.  The median home price in the Inland Empire is up 15 percent from $172,000 in February 2012 to $198,270 in September, and unsold inventory is down from 5.3 months to 3.8 months during the same period.  The median home price in Los Angeles has risen 37 percent from $272,920 in February 2012 to $373,020 in September, and inventory is down from 5.7 months to 3.7 months.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Now to George’s Video Address.
George Kenner, Broker Associate –  Keller Williams Realty – Chula Vista / Eastlake 
2060 Otay Lake Road, Suite 200 – Chula Vista, Ca. 91915
619-723-5714 – g.kenner@yahoo.com

November 1, 2012

SHORT SALE WARS – Or just a Great Idea- FHA SHORT SALES , Are they logicial?

Filed under: Uncategorized — shortsalenurse @ 9:52 pm

In this video George shares what could be a “Catch 22″ in the FHA Short Sale Rules.   The timeline (rule)  to remove an “IRS” Tax Lien may not be long enough to obtain the approval.  The IRS takes some time and has some rules to remove the lien that are not in sync.  Without an approval Buyers do not fully commit to the loan process to and get and  Appraisal.   The IRS makes it necessary to provide proof there is no equity in the transaction before they will remove the lien.    Is there a way to fix this?    FHA requires an appraisal be done to prove the lack of equity and a title report to prove the transaction can close but sharing the Lien information and getting a speedy release, well that is what this video is all about.   Will a Government Employee hear the logic and make a small change in the system that will create a saving benefit and save the FHA insurance pool, and thus the taxpayers  millions.   Will this change make it easier for people to transition out of their homes when they have to leave?   Watch the video and see how you feel!  Do you know some one who may be able to fix this, and get the well deserved credit?   Share this video with them!   George wants nothing for this idea, the benefit to his client to finish this short sale, and make a more comfortable move will be more than enough.

Update –  No Word from the Government –  But the Bank worked with the Problem!  See the Video Below for Detail

George Kenner, Broker Associate  Keller Williams Realty,  Lic. 01229951

2060 Otay Lakes Road, Chula Vista, Ca. 91915  * 619-723-5714 * G.kenner@yahoo.com

September 17, 2012

Foreclosure Numbers for 91915 and I HAVE A BUYER THAT WANTS A HOME in this zip

This video will give a quick overview of the state of Distressed Property in the 91915 Zip code as of September 17, 2012.  Plus we have a Buyer that is ready to buy but has not found the right property.  He is more than willing to wait for a short sale.  His “Roots” will have him in this area for what will likely be a long Government Career.  Yes, he is a very stable buyer.    Give us a call if you are ready to discuss selling your home in a short sale to already approved buyers.

Here is the link to  91915 foreclosures for SSN Blog   PDF that I mention would be posted to support the numbers that I give in the video.  If you need to see how the numbers effect you please call me.

George Kenner , Broker Associate – Keller Williams Realty  Chula Vista – East Lake 

2060 Otay Lakes Road, Chula Vista  Calif.  91915

619-723-5714

Lic. 01229951

September 13, 2012

Is this a case of Freddie Mac vs. Common Sense or NOT ????

Filed under: Uncategorized — shortsalenurse @ 8:00 pm

THIS IS AN EXCHANGE OF CORRESPONDENCE BETWEEN A WELLS FARGO LOSS MITIGATION OFFICER AND I.  THE LETTER TELLS THE WHOLE STORY…. STUPID SYSTEMS BRING ABOUT STUPID RESULTS.

M. W. (Loss Mitigation officer’s name deleted for privacy) sent to him and others at Wells Fargo in blind copy.
I want to first say that I have no personal ax to grind with you however the processing of this “Short Sale Transaction” for the investor “Freddie Mac” has lacked logic. Were I to use “street language” I would call this STUPID with a capital “S” Logic has been totally lacking as has reasonable time periods.
But Mr. W, I must respond to your last comment and I will quote it here (blue font)
“I have been informed by the investor that they will not provide any further extensions on this approval for the HAFA program. If you would like to proceed under the traditional short sale program as I discussed earlier in this email chain, please provide the fully completed Short Sale Affidavit that I provided you with in my last email.
 
Thanks,”
As you know a delay was created by having Wells Fargo / Freddie Mac refuse to allow for “buyers” closing cost credit in this transaction. This is the first “STUPID” thing that took place. Freddie Mac allows for closing cost credits when you buy a home and obtain a loan from “Freddie Mac” but will not allow for this when they sell a home. Really?
This practice does not allow for the advancement of prices in fact it logically suppresses them. Also it denies the local tax base the opportunity to collect at just a slightly higher price. Real good for the local economy! NOT! And of course there is some convoluted logic for this but if it is “valid logic” why would they allow for the practice when Freddie Mac is making loans? Again “Stupid Systems” do stupid things.
We are now at a point of needing an few days extension to this short sale approval. The loan docs are in escrow being signed today and I can not get an extention to close for a few days without this form, and I have to wait to move to a new system? Really? I have been asking for over an extention for over a week (while you were on vacation) WHY does Freddie Mac have more than one system? What is the penalty my buyer will be expect to take? I am attaching this newly required form to this correspondence for others to see, as it appears that Freddie Mac has made you powerless to do it any other way.
You will notice that the form must be signed and notarized by all parties. This is no easy task. The buyer is in Law Enforcement and can not just drop his “public safety duties” at the drop of a pen. We are fighting things like loan rate locks. If you do not know the importance of rate locks ask FREDDIE MAC or your mortgage division as they can explain them.
Also this newly required form the “Short Sale Affidavit” largely contains the same terms of the HAFA transaction and that paperwork is already done! To me this is no more than busy work, duplicating items already done. How is this in any ones best interest? You place this as a condition to obtaining the extension of the approval, or move this transaction to a new program instead of making it a closing document. This means everyone , Buyer and Seller (husbands and wives), Both Brokers, and about anyone else including closing agents sign this file. Let me ask Freddie Mac this question. How does this form change the value of this home and thus protect the loss they will take by short selling? Does Freddie really want to foreclose so they can do another bulk sale that Realtor Associations and Congressman in California are protesting. It needs to be noted that Freddie Mac reviewed the price (value) of this home twice once at approval and once when we tried to obtain a closing cost credit which would have allowed for “value growth” and increased tax revenues. BUT NO!
I am going to post this correspondence on my Blog at http://www.shortsalenurse.wordpress.com/ it is high time that the public know what all Realtors go through. Our clients think that we are not doing our job. They are presented with non sensical form after none senceical form and think we do not know what we are doing. Just my opinion but it is not Realtors it is Freddie Mac or large servicers that are purposely frustrating the system, or they would change it! Tell the public that is not the truth!
A video follow up to this will be done and posted at the Blog and I plan on sending a notice of the posting to a few thousand Realtors is San Diego. I am also going to ask that the Ca. Association of Realtors and National Association of Realtors do all they can with “Freddie Mac” liaisons to bring the current stupidity to an end. Freddie Mac is still controlled by the FHFA and with practices like this, I would say there are good reasons for them to still be supervised.
As a note to potential audience for this correspondence, I want it known I have asked for the contact point at Freddie Mac to discuss this directly but to this point, it was denied by Wells Fargo Bank. This of course makes one wonder where the real disconnect is. If Freddie Mac is doing this to Realtors, Buyers, Sellers and everyone else in the home buying process, are they doing it to Wells Fargo Bank? If so, that is also unfair. Making this a victim perpetrator situation is not my goal, the goals is to come up with reasonable systems that make sense. To this point, as a Community of Real Estate Professionals we have failed to see the effects of the current system and how foolish it really is.
I think many people may be interested in this most recent study of the situation by the Federal Reserve, seems I am not the only one still seeing major problem. Let’s fix this for my clients and the community!
Anyone that is trying to get ahold of me.. it maybe difficult, I am out trying to meet the needs of Freddie Mac and get this foolish document signed. But this could take days to get everyone to a NOTARY, while the loss just keeps getting bigger. It is not just signatures, this is proven signatures. Really!
Respectfully,
George Kenner
Broker Associate
Keller Williams Realty / Eastlake -Chula Vista, Ca.
2060 Otay Lakes Road
Chula Vista, Ca. 91915
619-723-5714
Lic. 01229951

August 31, 2012

Mortgage Settlement Report, Are the Banks Doing this for YOU?

Filed under: Uncategorized — shortsalenurse @ 9:34 pm

As many of you know there was a settlement with the major lenders that was inspired by ROBO Signing.   As part of this agreement the Banks were  to develop a more streamline process for mortgage servicing.  (Bill Collection on Real Estate)  This is not a required version of the report rather, it is the warm up to the report required by the Attorney General of the United States.  The official report is required to be presented to a Federal Judge in the first quarter of 2013.  Few people will even know that this exists and fewer still will read it, but there are “Jewels” in this which can aid ” short sale professionals” tell some Bank Employees what their CEO’S agreed to.

CLICK ON THE LINK BELOW FOR THE REPORT

AG Settlement Monitor’s First Progress Report August 2012

George Kenner, Broker Associate

Keller Williams Realty – Chula Vista, Ca. 

Lic. 01229951-  Phone 619-723-5714  e mail.    G.kenner@yahoo.com

August 21, 2012

Secret BULK Sale to the HEDGE FUNDS? Sure looks like Companies are getting RICH!

HERE IS THE E MAIL LETTER THAT I MENTION IN THE VIDEO

Dear REALTOR

As I’ve been communicating to you over the past year about the Federal Housing Finance Administration’s (FHFA) REO “bulk sales” initiative, I have an important update to share with you.

Despite vehement opposition from C.A.R. and California Congressional members, the negative economic impact to the state’s housing market, and cost to taxpayers, FHFA is moving ahead with its REO bulk sales pilot initiative, which calls for the sale of nearly 500 Fannie Mae-owned foreclosed homes in the Los Angeles and Inland Empire areas to undisclosed institutional investors.

Not only are Fannie Mae and FHFA moving forward with the plan, they are doing it in a secretive manner and are refusing to disclose any details. We are disappointed they fail to understand that this initiative will harm the communities in which it will be implemented and are carrying out this ill-conceived plan.

In response to FHFA’s failure to implement the REO initiative in an open and transparent manner, C.A.R. is filing a request for details through the Freedom of Information Act.

FHFA, Fannie Mae’s conservator, announced earlier this summer that winning bidders in the foreclosure auction had been chosen, with transactions expected to close in the third quarter. But FHFA didn’t release any details of the transactions, such as property locations, final property count, sales price, or names of winning bidders.

While FHFA and Fannie will not provide details of the transaction, C.A.R. has confirmed that Fannie Mae has created an LLC in California, called SFR 2012-1 US West LLC, to transfer the foreclosed properties from Fannie Mae to the LLC. It is unknown whether the winning bidders will purchase the full LLC or only a share, thus splitting the ownership between Fannie Mae and the winning bidders.

This REO initiative poses a direct threat to the Inland Empire housing market. According to C.A.R. statistics, the targeted properties are in markets that have seen significant stabilization over the last three years. Not only is the Inland Empire experiencing a severe lack of available housing, demand is also strong, and REO listings are selling in less than 30 days. In fact, the unsold inventory currently stands at a 3.1- and 3.8-month supply in Riverside County and San Bernardino County, respectively, half of the long-run average of 6 to 7 months.

C.A.R. is also concerned that FHFA and Fannie may have used antiquated market data, perhaps as old as 2011, to determine property valuations. Because the bulk sales initiative is only now in the process of closing, these dated valuations will drag down comparables and harm the Inland Empire housing market, which has shown strong signs of stabilization. Additionally, because of this price discrepancy and the very nature of bulk sales, we believe Fannie Mae is assured to not receive fair market value of the properties, thereby saddling taxpayers with their loss.

We have voiced our opposition to the bulk sales program with Acting Director Edward J. DeMarco on numerous occasions advising him that investors don’t need government incentives to purchase properties by offering REOs at a discount price and that home prices will be further depressed in affected areas.

C.A.R. also has provided FHFA with multiple updates on California’s housing market conditions over the past year, which it has clearly ignored. FHFA has provided no rationale or supporting evidence to C.A.R. leadership explaining why it is moving forward with the sale of unmarketed REO properties, despite the overwhelming evidence C.A.R. has provided why bulk sales shouldn’t be pursued.

In May, California Congressmen Gary Miller (R-Brea) and seven other California congressional members introduced a bill that called for FHFA to cease its bulk sales plan in California. H.R. 5823, the “Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of 2012,” prevents the FHFA from implementing the sale of Fannie Mae real estate-owned (REO) properties in California to institutional investors.

The introduction of H.R. 5823 followed on the heels of a letter Congressman Gary Miller and 18 other California Congressional members sent to the FHFA in April asking the agency to refrain from implementing its “REO Initiative” pilot program in California. The letter stated, “We are concerned that including California counties in this initiative is in direct conflict with your duty as conservator to preserve and conserve the Company’s assets… In California, there is no question that disposing properties through bulk sales will yield a lower return for the GSEs and taxpayers than through traditional disposition methods. This means that such a program will increase losses to the taxpayer and GSEs,” the letter concludes.

C.A.R. will continue to fight the implementation of bulk sales in California, and I will continue to keep you updated on this important topic as it unfolds.

Sincerely,

LeFrancis Arnold

END OF THE LETTER

 George Kenner, Broker Associate   2060 Otay Lakes Road, Chula Vista  CA. 619-723-5714

Ca. Brokers Lic. # 01229951     G.kenner@yahoo.com

May 18, 2012

Sitting on the Doc of the Bay Hoping this Short Sale will go away!

Sitting by the dock at the bay hoping this short sale will go away.  This week my problem file is with GMAC Mortgage who states they are servicing a loan for IMPAC Mortgage.  The NOTICE OF DEFAULT however does not clearly name IMPAC as the owner.  But I have lots of E Mails that say IMPAC.  It is my understanding the true owners name is supposed to be on the NOD.

There are two issues with this file one is that there is no relocation funds for the Seller / Homeowner and the other is they waited till they presented the approval to take commission dollars away from the real estate agents.  This may or may not be legal but I for one do not think it is MORAL.   As many great men have said doing what is legal is not always the best standard to follow.   Even this very week Bank of America announced relocation fees on some transactions that will go as high as $30,000.00 and HAFA is set at $3000.00.   3000 times by the current approval I hold still comes out to ZERO dollars for my client.  Is that an error.   Well that is what I am trying to find out.  In my view I have a duty to my client to try to make sure there is not some mistake.  How do you feel.   Here are two videos that I hve posted to try to put a human face on the subject.  If I get as satisfactory correction to this I will post it, and if I do not, well excuse me I do not even what to think to think negative.   Some higher power will not allow my unemployed client to hit the streets without having something in his pockets.   San Diego and California Mortgage Lenders at not that cold hearted!

http://wp.me/pyduj-if

George Kenner, Broker Associate  Lic. 01229951 619-723-5714  g.kenner@yahoo.com

March 23, 2012

Are you a Realtor, Title or Escrow Professional that feels you have been EXTORTED by a Second Trust Deed Holder? Especially PNC BANK?

Filed under: Uncategorized — shortsalenurse @ 2:39 am

 MESSAGE TO LENDERS, WE CAN NOT WORK FOR FREE!

BE CAREFUL WE {REALTORS, TITLE AND ESCROW PROFESSIONALS}

ARE  ABOUT TO JOIN FORCES,

If  under the current “Loss Mitigation Systems” you have had to deal with an unreasonable requirement from

2nd Trust Deed Holders you will want to see this video.

Change is not that hard to achieve.  All we have to do is e mail the Treasury Department and tell them to follow this suggestion of come up with something even better to make lenders declare the rules they are using.  Are the First and Second Trust Deed holder going to process on  HAFA or are they NOT?   Also is there an incentive (Perverse Bonus) for the loss mitigaion officer?  Are they on a commission structure.? Everyone knows how Realtors, loan officers, Title Companies and Escrow Companies are  paid, there compensation is disclosed.   How is that Loss Mitgation Officer paid?  Is it ethical to have a bonus paid to someone that is blocking economic recovery?  I think at a minimum we should know that if we are dealing with a commissioned agent, their motivations may not be in sync with the community goals, of avoiding a foreclosure.  Even in a Car Dealership you can talk to the Manager and there you know everyone is on commission.  Why do we allow the manangment structure of a Federal Savings Bank  Loss Mitgation Department hide?

George Kenner, Broker Associate Keller Williams Realty,  Ca. Lic Number 01229951  G.kenner@yahoo.com  619-723-5714

4700 Spring Steet, La Mesa Ca. 91941

 

All Marketing done with the Assistance of Kalabash Marketing, Good Night Mrs. Kalabash where ever you are!

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