Shortsalenurse's HAFA Blog

October 26, 2010

CHS, HAFA TRAINING IS IT IMPORTANT ?

I am asked all the time about Training Certificates for Realtors and the need for the Certs.  I think  the two tier licensing system that the  State of California uses there are some great protections.  Brokers are required to have more professional experience and education related to our industry.  Most Brokers are working full-time at their profession.   The reality is that some Realtors are trying to break into a hard industry and are not conducting daily client activities.

Recently the President of the San Diego Association of Realtors was quoted in the San Diego news paper that Short Sales were not for the inexperienced.  With that I agree.  In fact from time to time very important training comes along.  Our industry changes all the time, HAFA is just that type of change, and although you can in some cases train yourself, well, how many people really ever read the Ca. Civil Code.  Dry reading?

The California Association of Realtors, reviewed and Certified the HAFA training by Asset Plan USA, and if you read the credentials of the people that wrote the training, you will understand why they were selected.   In fact it is my understanding that about 4000 agents now have received this training.  So when you see this logo, it  means one thing at a minimum.  The Realtor invested in his and his clients future.   We post this Logo & LINK at our information site http://www.HAFA.us  We believe it is important not only our clients see it, but fellow professionals see it.  We think industry participation is more of a telling sign  of profession expectation but training is very important in the world today.  What can the agent your selecting tell you about HAFA Short Sales and how long has he been in the industry… Time , time time , time on your side yes it is.                  Look for this logo

George Kenner, Broker Associate, Ca. Lic.# 01229951 (619) 723-5714

“Good Night Mrs. Kalabash where ever you are.”

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March 9, 2010

Short Sales are Going to Be Controled by HAFA

The “Short Sale” story is continuing and the main stream media is following the action.  In just the last few days what has been known to the Real Estate Industry since October of 2009 is now working its ways into print and our computer screens.  The news is all centered on the “HAFA” Program.  (link to offical document)

HAFA will go into effect on April 05, 2009 and the major Banks are all preparing to deal with the program.  The important protocols  are,  all mortgages  will be evaluated for a loan modification and if that is not possible they will be offered and opportunity to short sell their property.

Ten of the most popular questions about HAFA / HAMP  have been posted at www.HAFA.us and the answers to the program are taken right from  Supplemental Directive 09 -09 that are the rules written by the Treasury Department.  There are also some news links about the HAFA program at this www.HAFA.us  ( news link ) I have found that links to the media are very valuable to people that are evaluating the program.  Mistrust is running rampant with all the hollow promises / or statements of things are getting better.   I have seen some bright rays but when your losing your home or are dealing with a situation that you had no way of seeing coming you want one thing,  the TRUTH.  Now that I think about it you may want two thing, the second being, the help of the professionals at Short Sale Nurse. Com

 Article was written by George Kenner , Lic. 01229952

All Markeing is done with the assistance of Kalabash Marketing.

good night Mrs. Kalabash where ever you are!

August 10, 2009

Magnets, A Home In Point Loma, Little Gray Men

aircraft_carrierThe other day a few friends of mine met at our favorite San Diego taco stand over looking the Bay. From the vantage point of our table we could see one of the Aircraft Carriers coming into the bay. Our respective careers took us in different directions so three industries were represented. Real Estate Broker, Medicine (MRI TEC) and Banker.

The MRI TEC is always interesting to talk to because he follows advances in science and the Banker and I have educations that were science based. Last time we met he was discussing Cold Fusion as a source of energy, and how someone right here  in San Diego may have worked it out, but our discussions always seen to come back to the ecomony.

Looking out over the bay to the aircraft carrier the MRI Tec told us that he saw a special where the Navy is working on launching planes off Aircraft Carriers with Magnets. I mentioned that I had seen something recently where they believe it is possible that Crop Circles are being created with magnetic forces and the Banker had to chime looking for humor and said, “Money is getting a little easier to borrow but we are not giving it to the little gray men that are making crop circles, yet. ” We all laughed and though about things that had nothing to do with the ecomony for a few minutes.

The Banker started humming a song that had to be inspired by the theme of our discussion and looking to Point Loma he stopped humming and said “Someday I will buy a home on that hill right over there” pointing in the direction of Cabrillo Monument. Well I hope everything gets worked out, the Navy figures out the magnets, little gray men from where ever find a way to borrow money and my friend buys his home in Point Loma, if its a short sale or a foreclosure and he saves a ton of money, even better.

I guess there is that bond of friendship that makes us all want our friends to find what they are searching for. In contemplation , I guess  what brought me to Real Estate,  was the feeling gained by helping people in their search for a home, chase their dreams and solve their problems. The Real Estate Market is going to spin forward and I don’t want to predict when but I bet it is before they find out what is making crop circles. If mankind finds out aliens are making crop circles, I bet people quit buying and selling property,,,,,,, Na.. I guess there is nothing to worry about, I’ll bet you crop circles (2) are being made by unemployed English Bankers or are they?

George Kenner is a Broker Associate with Prudential California Realty, in La Mesa California. He can also be found at NumberOneInSanDiego.com or contacted at 619-723-5714. George Kenner is also the owner of Kalabash Marketing.

August 6, 2009

Deutsche Bank Describes Underwater Ratio

sail boats #2I can remember when “under water” meant that you were swimming but now it could mean that you owe more on your home than it is worth. Today Deutsche Bank predicted that almost half of the homes in the United States will notbe worth the value of the mortgage in 2011. In California the prediction is more dire, they say that in 2011 in parts of our fine State that the ratio underwater will be 90%.

What does this mean and is it even possible? Many people are countering this figure and prediction by the fact that home sales are up Nation Wide for the last 5 months. But in certain price ranges and zip codes there is no activity in the high end. In one El Cajon Zip in the $800,000.00 price range not one home has sold for a year.

This seems largely due to both interest in the high end homes and availability of loans in this price range. Don’t think it is only bad in El Cajon. This problem is National and is even impacting our leaders. Our Treasury Secretary, Tim Geithner can not sell his home and resorted to renting it. President Obama’s home has lost a few hundred thousand in value also.

Keeping your chin up and realizing we are all in the same boat is important. Don’t feel isolated everyone is impacted. It is encouraging to see that people are trying new things and are keeping a sence of humor as much as possible.

The number one rule of buying and selling anything is knowing the market. For that reason I provide to my clients both MLS and Public Records Search options. Real Estate professionals not only have to be able to point you to what is available in the Market but what is going to happen to future supply, if it is possible.

I will say this if prices go down any more the market will only continue to get better. Can you imange not wanting to live in San Diego if you could afford to. Our Community could easily lead the Nation out of this slump, we have it all including sun and surf.

July 3, 2009

Short Sales in San Diego’s East County, Jamul

 

This  week  I was speaking to a  friend that has fallen behind in his mortgage and does not see a way to get clear of the problem.  He has selected to try and sell his home and find something that more closely fits his needs.  The problem is that he does not have enough value in the property.   Thus he thinks that a short sale is the way to solve his problem if he can get the approval of the bank.

 

He told me he was feeling terrible having a hard time sleeping and was not eating well,  trying to save every penny he could.  He even told me that he was taking cold showers and was not watering his trees or washing his car to save on his water bill.  He told me that he wondered why he was living.  

 

At this point I told him to come with me.  We walked over to the computer and I opened one of the foreclosure data support sites and put in his zip code.  Then I made a circle around his home of about a  3 and a half mile radius.   I clicked on populate data and the pins on the map showed up.  There were 48 other people in the same situation.   He could graphically see the problem and said to me I had no idea the problem was this bad in Jamul.

 

Him seeing that he was not the only person struggling in a way made him feel better.  He asked me to print the map so he could send it to his Congressman to show him what is happening in our communities.  I did as he requested and then printed the President’s Foreclosure Alternative Plan and gave it to him.  I showed him some people are working on this issue.   I told him to hold his head high, he had good reasons to live, his children wife and community are just a few of the reasons.  

 

If your in a similar situation and want to see what is happening in your area please contact one of us at Short Sale Nurse,  we may just have the medicine that will make you feel better.

 

Written by George Kenner,   George is a California Real Estate Broker with 19 years of industry experience.

June 18, 2009

Short Sales The Numbers Don’t Lie! But do they tell the whole story?

It is almost impossible to pick up a national newspaper and not real about the Real Estate Market.  The pace of foreclosures and the move to “Short Sales” seems to have changed the mantra of , “it started with Housing it will end with housing”.   If that comment had a truthful ring to it before,   it could be quite some time  before we really recover.

 

In many main stream media sources they are saying we are about 9 to 12 Percent of the mortgages in the United States are late in paying their bill and are prime to enter into foreclosure.  In the Wall Street Journal on Wednesday, June 17, 2009 they published some other numbers,  in what is  almost a full page article, they write about the attempts banks are making to keep up with this problem.  Some of these numbers are very interesting.

 

They say approximately 4 million loans were delinquent in the first quarter of 2009.  Then they say that Chase has 3500 employees working on just loan modifications.  This number may be a reason to give a little thought to the size of the problem in relation to the number of people working on it.    The files that are being addressed by the lenders is like a mountain and the workers trained to do the work is tiny in relationship to the problem.

 

The problem is greater than the number of mortgages being written and just a fraction of the people who had any mortgage experience are working on it.  I expect that the scope of the problem and the ability to respond to it by the banks will encourage them to continue to look harder and harder at short sales. 

 

One interesting comment in the article is that the loan modification process is free.  They also speak of firms being criticized for cheating people who do not know they have a right to ask for the help for free.   This is a great feature of the President’s “Foreclosure Alternative Program” it is started with a look at a Loan Modification and then goes to Short Sale.   Learn about the Presidents Plan it could make a big difference in your future.

 

This article was written by George Kenner, a Ca. Broker with 19 years Real Estate Experience.  He will answer questions with a private response if written to him at http://www.shortsalenurse.com

June 17, 2009

Short Sale Referral Companies I don’t recommend using one. In fact I see them as worthless to the Public and Dangerous for Agents.

New industries pop up in times of need and some of them are not in the best interest of the “Public”.    Bulk consolidators of “Short Sales” is one of them.   I am contacted daily by outside firms to take referrals from them and pay a fee.   To me this is unacceptable and here is why.

 

One of the biggest reasons is I have no idea what they have promised the seller of the home.  I do not even know if they have advised the seller to contact an attorney or tax professional.   In theory I could even suffer at the hands of the Department of Real Estate for doing business with an unlicensed agent.  One company that contacted me was located in Texas and was using a Real Estate License out of Oregon.  They would never see the eyes of the seller,  all they would see is some dollars transferred into their account if I did my job correctly.

 

Also I do not know if they offered to direct you to other avenues of assistance.  I feel a professional and moral obligation to see if there is a way to save your home.  That is why I like the President’s Program.   The flow chart of that program is LOAN MODIFICATION then Short Sale then Deed in Lieu..   Again if a home owner can get a loan modified,  I consider it a victory for every Realtor.  Realtors are an important part of every community and we want a return to a normal market and we want our neighbors to stay where they are if that is possible.

 

I see no reason for anyone to pay thousands of dollars to someone who is only involved in your transaction from the standpoint of setting up an internet site making a phone call and sending you to the professional that can and will truly help you.

 

So if your called by someone from outside of your community or you find an Internet site that is making claims to good to be true.  Look at it with caution.   If your selecting a Realtor why not give a few a call.  Trust that gut feeling, you will know if you have the right person there to help you.

 

George Kenner is the author of this article.  He is a Broker Associate for Prudential California Realty in La Mesa, Ca.   His Real Estate experience  includes approximately 10 years working as a Mortgage Loan Officer in a Federal Saving Bank.  He is happy to answer questions in private that are sent to his e mail at http://www.shortsalenurse.com.

June 16, 2009

The California Foreclosure Moratorium, 90 more days, Really? I want the Federal Plan!

In February of 2009 as part of the California budget package, California State Senator Ellen Corbett a Democrat from San Leandon with good intentions added a 90 day foreclosure moratorium to the bill.  This will effect owner occupied mortgages that went in place from January 2003 and January 2008.

I have read this information and it seems like there is lots of wiggle room in the bill that makes it so the lender can ignore the intent of the law if they wish.  All they need to do is prove that they have a “Loan Modification Program” in place.

As a Realtor my job is to aid people buy and sell property.  When I look at the new California Moratorium and try and reconcile it with President Obama’s “Foreclosure Alternative Program” I see a possible avenue of communication to demonstrate to the lender a Short Sale with Marketing time is the correct way forward.  After all the Presidents Plan has incentives that the California Plan does not. I guess the simple approach here is most of my client’s would find the Federal Plan more to their liking, so way not request the Federal Plan.  The Federal Plan came out after the California Plan did.

No one and I mean no one benefits from empty properties, swimming pools turning green and angry homeowners taking their frustration out on the property. Calm heads need to prevail, good can be found in almost everything.  This is a time when  someone (a Realtor) aware of the entire picture needs to be consulted.  I hope Californians quickly come to know about the Presidents plan and  focus on getting relief under that program.

I have talked to lenders who are so busy trying to do things the old way they do not even know of the incentives the President has offered to the lenders to attempt a “Short Sale”.  Again I will say talk to a Realtor, ask me for a referral to someone if your out of the San Diego County Area.  But above all else stay calm, your family and loved ones are counting on your sound judgment.

The author of this article is George Kenner, he is a Broker Associate with 19 years of Real Estate Experience in Southern California.  You can contact him at Short Sale Nurse. Com    George believes that it is not the books in the Library but what you do with all the information.

Short sales should only have speed bumps, not land mines!

Today I got a written request for information from someone out side of the San Diego area at Short Sale Nurse dot com.   I am going to respond here on the blog so others get to see the question and answer also.

Here is the question.  If I am buying a condo in a short sale what do I need to watch out for?   Here is what I had to say.   (This is not a complete list and you should consult with your Realtor in your situation but this is what I believe to be important.)

In most cases buying a condo is the same as buying a single family residence.  One part of the process that is very important is gathering together all of the information relative to expenses to transfer title.  The listing Realtor will normally gather this information together and give it to the lender who is going to approve the short sale.  This is done on a form called the HUD 1. (estimated closing statement)

It lists all the fees related to the sale including but not limited to the payoff of the loans, liens, taxes and closing costs like escrow title and Realtor commissions.  The lenders want these to be as accurate as possible.  They are using this as a tool to determine a sale price and if the offer being made is a good one.

One fee that I have seen over looked during the process is the Home Owners Association fee.  Many times the seller has not paid those fees for a year or more and the fee is due to the Association.  Sometimes penalties are due for a lack of payment.  Getting a demand for these fees are important.  Some Home Owners Associations also have upfront fees to provide this demand.  Sometimes the cost (fee) to prepare the statement is in the hundreds of dollars.  I saw one case where the late HOA dues were over 5 thousand dollars, this was to big an figure for the lender to overcome based upon the offer that was made.

When I am listing a property I do all I can to minimize surprises like this. Many distressed homeowners don’t have the money to pay to the Home Owners Associations and it is better to prepare for this than let it become a transaction killer.  I will try and work with the HOA to get this fee deferred until closing but it does not always work.

Many of the Homeowners Associations in San Diego will work with us on this issue but the fee structure is set in the HOA rules. 

Please visit us at Short Sale Nurse dot Com to see more about short sales and how we work as a team to aid our community through these difficult economic times.  We try an answer all the questions that are asked of us.

June 15, 2009

HOW TO SELECT A SHORT SALE REALTOR

Being faced with selecting a professional in a less that positive situation can be stressful.  I strongly suggest that you consider several things, with “RESPECT” for your difficult situation being  the most important.  Leaving a home is never an easy thing and someone sensitive to your situation can make all the difference in the world.

 

In years past I had a friend who went thought some hard times that were not of his making.  He struggled as hard as he could to keep his home but he lost it in foreclosure.  He was not only able to get back on his feet he was able to buy a better home than the one he had  just a few years later. 

 

Today in this down economic cycle he is doing fine.  No one should judge you a failure in these hard times,  transitions happen in life there can be no highs with out the lows to compare them to.  Our human feeling for one another build hope and lead us to succeed once again.   I guess what I am trying to say is find someone with true compassion for your situation and it will be easier.

 

Communication is  important in a  short sale transaction,  there is an additional branch of communication so to speak, normally the bank is not involved,  but in a “Short Sale” the bank is very involved.  For that reason I would strongly suggest that if possible you find a Realtor with prior banking experience.  This is not mandatory but it is a real good idea.  Bankers use a special “Jargon”  they have their own language and they will test you to see if your up to speed.  If the Realtor you like does not have this experience I say go with your intuitive feelings, your gut will not lie to you.

 

In the market today you will find Realtors form teams to support each other.  The demands on a good agent can remove any private or family life and that is not good for the agent or the client.  If your going with a team, look at who the leader of the team is.  Ask about the team leaders level of professional experience,  that can be a good guide.  I for one am always happy to talk to or meet with a client if I could be called upon to help.

 

This is the same thing that is frequently done for me when I am talking to lender clients.  It is not unusual for the Corporate Vice President of our national company to come to a lender meeting with me.  This instills confidence and provides a link in the case of an emergency situation.  No one in real estate is better than the support that is provided to them. More frequently than not information about both the Realtor and his support staff can be found on their web sites. 

 

 

Know who to call if you have a problem.  Even thou I am a Broker with 19 years of experience I still tell my clients that there is someone else they can talk to if there is a communication problem.

 

Be cautious of anyone that is more focused on claiming they are an expert or specialist Chest pounding about how good they are and how worthless their competition is  will not help anyone.  Look for the person that has an understanding of your situation and takes the time to listen to you and your concerns.  No two short sales are the same, you want an expert,  an expert who will listen to you and try to accommodate your needs.

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