Short Sale Realtors: Bloomfield / Birmingham / Novi / Troy / Rochester / Beverly Hills / West Bloomfield / Franklin / Royal Oak / Huntington Woods / Oakland County / Detroit Metro Area The Mike Realtor Team! : August 2009

Short Sale Realtor Tip #23, Top 20 questions you should ask the Short Sale/Loss Mitigation Dept, Birmingham Michigan! Mike Sher

I have recently expanded my team to an additional processor to call on the banks. She asked me if I could include a list of pertinent questions to ask the Short Sale or Loss Mitigation Departments. So here they are in no specific order of importance.

1. Where do we fax the 3rd party Authorization? What is the best # to call back to ask if they got it?

2. Who is the investor?

3. What does the investor offer 2nd liens?

4. Is their a Mortgage Insurance (MI/PMI) company?

5. What is your short sale process?

6. Do you want the hardship package now, or wait til we get an offer?  What documents do you rewuire in your Hardship Package?

7. Is this a FHA loan?

8. Has a BPO/Appraisal been done, what did it come back at?

9. When will a BPO/Appraisal be ordered?

10. From offer to approval, on average how much time does it take?

11. What Dept processes Short Sales? What is the best fax number, phone and email for your dept? (seldom do you get the email).

12. Did you get our last fax? How long shoot we wait until we refax?

13. Do we have a negotiator? When can we expect get a negotiator? Has anyone update the notes since last we called?

14. What is our negotiator's contact info plus email?

15. What is the best way to expedite the process?

16. Has a Sheriff Sale been scheduled and if yes, how can we postpone it?

17. Is the borrower in default?

18. Has the borrower's file been put into another program that will slow down the short sale process, like HOPE or loan modification?

19. Can the home owner make partial payments to slow down the process of default, i.e. Forbearance?

20. Can you escalate this file?

 

Mike Sher, CDPE: http://hosted.cdpe.com/MikeRealtor/

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer Max Brook and Real Estate One Short Sale Specialist.

The Mike Realtor Team Blog - Metro Detroit/Oakland County Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City But, We Can Help! This is a competitive real estate market. If you have to sell and can not, perhaps it is time to look at a Short Sale. The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

1 comment • Mike Sher • August 28 2009 11:55AM

Top 10 Reasons Why Your Short Sale Will Not Close, Birmingham Michigan

This is a great blog.  Many listing agents plan to fail, because they failed to plan and getting a good education in our market is vital.  Plus they need to keep with all of the updates from Fannie Mae to Freddie Mac and FHA.  Read every post that you can find, look up new guidelines in your local board and stay ahead of the curve. 

But if you want to really help people, short sales are the way to do it!!!

Bravo Noel for such a good post.

 

Via Noel Padilla, CDPE (Surreal Properties, LLC.):

10.) You sent in multiple offers to the bank. Put yourself in the bank's shoes, what would you do if you got 3,4,5 or 6 offers on your property? That's right you would wait to see if you get more at higher prices. We all know short sale departments at banks are extremely organized and they can surely keep track of multiple offers (Yes I'm being sarcastic). Oh did I mention accepting and having your seller sign multiple offers is probably a little against the law and at the very least unethically? Third party approval is just a contingency just like an inspection or financing. You wouldn't keep accepting offers if there was an only and inspection contingency right?

9.) You don't call the bank periodically for updates, you rely on them calling you. With literally thousands of short sale offers coming in, you need to keep your file fresh on their minds. Files are always being lost or misplaced, yes even in this digital age they get lost in cyberspace. A file goes to a negotiator via email and the pdf gets deleted accidentally. Do actually think the negotiator is going to remember let alone try and recover that info when he/she has another 100 or so to work on? They just say NEXT.

8.) You don't bother to lower the price periodically. Do I really need to explain this one, this is real estate selling 101.

7.) Your marketing, well sucks! No pictures, no virtual tours, poor description, etc. Again real estate selling 101.

6.) You don't know what the hell you're doing and are too pigeoned minded to actually take formal training to get better because of course you've been in business 28 years or that's what your broker told you to do. Formal training is not some 2 hour course given by your local board nor is it a 2 hour webinar. I'm talking at least 8 hours of classroom instruction or distance learning curriculum. Nothing substitutes for a live instructor if you have a choice chose the classroom.

5.) You don't submit an offer you feel is too low. WHAT? Let the lender tell you it's too low. Get the process going and hopefully you can get a hard number from the bank on what they'll take.

4.) You don't check this property's status and the bank forecloses. The short sale department does not communicate with the foreclosure/legal department. You don't know how many times I've called and informed the S/S department about an impending sale date and they reply, "Oh let me send them a message to delay the sale." This doesn't stop the process but in my neck of the woods if you delay a sale, you just bought yourself 60 days. It takes 30 days to get in front of the judge to schedule another sale date and that date is usually another 30 days out.

3.) Poor communication with the buyers/buyers agent and they walk. Mindset is crucial here. You need to prepare the agent and/or buyer for a long wait at least 90 days before you can go into the sales phase. You also need to let them know that not a whole lot will happen in the first 30 days and to expect updates every two weeks or sooner if developments occur.

2.) You're disorganized. If your the type that gets overwhelm at times (Like me) you need to systematize your business. You should have already done this but this is even more crucial in short sales. I designed an excel spread sheet that holds all my listings. I note whether they are active, pending , short sale, etc. It contains all the info I need in the notes boxes of the spreadsheet and I note every time I call with date and name of person. If you want a copy of it send me an e-mail.

...........drum-roll please........and the number one reason your short will not close is:

1.) Your short sale package is incomplete. A bank will not call you and say hey your package was incomplete. It will go in the round file cabinet. The more info you send them the better. I always call the lender first and ask for their specifics. I then send them what they ask and then some. A complete package should be at least 50 pages. I've seen some that are 100 pages. These servicers do not have a clue about your market. The more you send them pertaining to the market value the better chance you have at getting your package looked at sooner. You come across as a professional that really knows what you are doing, perception is the key here. (Who cares if you just took the Short Sale class 24 hours ago, you're a pro act like it!)

Good luck and happy short selling

Noel Padilla, CDPE

0 comments • Mike Sher • August 22 2009 11:42AM

Short Sale Realtor Tip #22, I will be on a Short Sale Panel Real Estate Investor’s Association (REIA) Of Oakland, On Thursday August 13th 2009 from 7-9:30pm in Troy Michigan! Mike Sher

See the information below or just click the link.  This should be a good opportunity for those of you who would like to hear three different professionals who are all working on short sales.  Hope some of you can make it.  If you can come, please come up to me and introduce yourself, like to know someone is reading my blog.

Mike 

http://www.reiaofoakland.com/home.html

Proudly Presents
August 13, 2009
  

Short Sale Panel   

"Short Sales Aren't Worth My Time"
"Short Sales Never Close"
"Short Sales Take Too Long"
"The Banks Take Too Long"

Have We Covered All Of The Excuses Why You Don't Like Short Sales?

How About The Real Reason?

You Don't Know How To Do Short Sales The Right Way!  We have assembled some of the best and brightest Short Sale Wizards from the Detroit Area to give you the inside story on how to do a short sale.  They have agreed to a no-holds barred expose of their tried and true secrets to getting a short sale done.    If you have ever done a short sale, you know how frustrating it is, and how the lenders all seem to have some secret code that you can't break.  Given the hundreds and hundreds of short sales these Wizards have performed, they're sure to answer the hardest question you can throw at them.

Bring your impossible case, and let these experts tell you what they would do in your shoes.  Join us for an informative meeting this month!    

Join us for an informative meeting this month!    

 _________________________________
Meeting Location Michigan State University Management Education Center 811 W. Square Lake Road Troy, MI 48098

_________________________________

Meeting Schedule 5:30pm - 7:15pm Early Bird Q&A and Vendor Expo 7:15pm - 9:30pm General Membership Meeting and Guest Speaker
         The public is welcome to attend at any of the above times.  
It is not necessary to attend all night.
       _________________________________   Cost  REIA of Oakland Member - FREE Non-member - $20.00 

_________________________________

 

 About REIA of Oakland 

Thank you for your interest in the Real Estate Investors Association of Oakland.  REIA of Oakland is a non-profit organization founded in 1981 run entirely by volunteers.  Our goals include providing education to our members, providing professional networking, and monitoring the political and legislative environment as it affects the real estate investment business.  Our meetings are held on the second Thursday of each month at the MSU Management Education Center in Troy, 811 West Square Lake Road Troy, MI 48098  Click here for a map.

The meetings begin at 6:00pm with an hour of networking and an informal Early Bird Q&A session.  The seminar portion of the meeting runs from 7:15-9:30pm. Each month we have a different guest speaker, including national speakers on topics useful to  real estate investors. The formal presentation is followed by a question and answer session.

In addition to free admission to our monthly meetings, joining REIA has many benefits for real estate investors from novice to pro.  Visit our membership page here for more details about the benefits of membership.

Non-Members are welcome at the monthly meetings.  The monthly seminars are free for members and $20.00 for non-members.

 

Mike Sher

 

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

 

 

1 comment • Mike Sher • August 12 2009 10:20AM

Short Sale Realtor Tip #21, To Become a Short Sale Expert, you Need to Be a Short Sale Expert, Troy, Michigan! Mike Sher

Experts become experts when others seek their advice.  What does that mean?  Well, it is like the old saying, "if a tree falls in the woods and no one is there to witness it, did it really happen?"  The answer is if no one saw it or heard it, then it never happened.  Like that tree, if no one sees or hears you, you might not be an expert.

I am a Short Sale Expert because; I have, and continue to, offer my advice and guidance through my blogs, my Short Sale classes through our area board of Realtors and through serving on expert panels. Like the panel I will be on Thursday August 13th at the Real Estate Investors Association of Oakland: http://www.reiaofoakland.com/home.html  I also openly lend my time to help other Realtorsor short sale sellers that have an agent who can not answer their questions.

So, if you have any short sale knowledge,  and if you have read my blogs then have tons (harder-har-har), then become and expert.  Ask you broker to speak about short sales to your office, write a blog, speak on the subject to all of the associations that you belong to, professional, charitable and social.

If you are speaking about short sales in the woods and someone is listening then you are an expert!!!

GO GET'EM TIGER!!!

Mike Sher

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

0 comments • Mike Sher • August 12 2009 10:01AM

Waterford Short Sale Realtor Tip #20, Whose Turn is it to Call the Bank?, Bloomfield Hills, Michigan! Mike Sher

 

I was talking to a Birmingham Short Sale Seller who happened to be listed with another Realtor (no one is perfect :) ).  The Seller happened to have read my blog and was calling me for advice.  His/her agent, a well known and accomplished local Realtor, was not as proficient in Short Sale negotiations as the seller thought they would be.  The Seller became aware of this after signing a six month listing agreement.   The problem was the listing Realtor was barley communicating to the bank at all with an offer that was 2 months old and getting older.  The seller had picked up the slack and was calling the bank in hopes to get the Short Sale through.    

In theory the Seller calling the bank is a good idea, especially if the listing agent is with out a team and lacks the people power needed to get a short sale through.

I have a team of people who in conjunction with my efforts are all calling the bank.  But the difference between The Mike Realtor Team calling the bank instead of the Seller is:

1.      We log our calls, I know exactly: what the last team member did;

a.       What number they called?

b.      Who they called, name, extension, ID#, Dept...

c.       What was said, so we can quote them later...

d.      When was it said, date, time?

e.       What does the time line look like?

f.        What is the next action for this file?

g.       Do we have a negotiator?

h.       What is his/her name?

i.         How can I reach them?

j.        Has a BPO been completed?

2.      If the seller talks to the bank, they could be pressured into a commitment that they would like to avoid.

a.       Since we our not principals of the Short Sale, we are able to avoid;

           i.       The banks efforts to pressure or threaten the seller.

           ii.      Give the Seller the opportunity of time to consider all of the bank requests.

3.      The Mike Realtor Team does this for a living;

a.       We never get angry.

b.      We never get frustrated.

c.       We know the right questions to ask.

d.      We know when we are getting the run around.

e.       We keep our Eye on the Ball and focus on the closing!!

f.        And we are aware of all aspects of the Real Estate Transaction.

 

In short, whose job is it to call the banks, the party best suited for success.  This may be the Realtor, the Seller, or an Attorney.    BUT, before you sign the listing ticket, make sure you know what to expect, what will be expected and who will be calling the bank?

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

 

7 comments • Mike Sher • August 09 2009 01:06PM

Short Sale Realtor Tip #19, Read This Great Article From USA TODAY About Never Giving Up, Beverly Hills MIchigan! Mike Sher

 Here is a recent article about short sales in USA Today.  

http://www.facebook.com/ext/share.php?sid=108582182695&h=sVpXU&u=n4t8k&ref=nf

This article really talks about how hard it is to do a short sale and the importance of having professional working with you who know what they are doing.  Make sure that who ever is working on your short sale knows what to do, how to do and will not give up

Mike Sher

 Some facts from the article to be aware of:

  1. 11% of sales in June were short sales. (says NAR)
  2. In March of 2008 the average short sale acceptance time was 4.5 weeks and while the last survey done in June 2009 averages 9.5 weeks from offer to acceptance.  The surveys were sponsored by Inside Mortgage Finance, an industry publication.
  3. Just 23% of short-sale offers that homeowners receive from potential buyers actually close, according to a February study of 1,300 real estate agents by Campbell Communications.

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

3 comments • Mike Sher • August 05 2009 09:38AM

Mike Sher Short Sale Realtor Tip #18, Tell the Seller, Best & Worst Case Scenario to Start, Or you may never reach The End! Birmingham Michigan!

 

As some of you Short Sale Realtors have found, many banks are not as open minded to releasing deficiencies (difference between what is owed and what the lender collects) as they were in the past.  (Countrywide who is now BOA) Bank Of America recently established a zero tolerance towards negotiating their Short Sale approval letters.  The new language is a follows: "BAC Home Loans Servicing, LP and/or its investor may pursue a deficiency judgment for the difference in the payment received and the total balance due,..."

 

This language is a little unsettling for sellers who were told that they would owe nothing after closing.  Well, for all of you Short Sale seller's out their, you might end up owing money after closing.  I know this is not what you want to hear but better now then at the end of the long process of a Short Sale. 

A seller who is already demoralized from the start, who has waited months,  sending bank statements, tax returns and keeping their home in show ready condition while writing groveling letters to the bank begging for help, are not in the best moods.   That is why they just walk away when they find out that they are stuck with the deficiency.  They were unprepared for that outcome and Rage replaces Sound Judgment.

The fact is that in many states, like Michigan, if the bank forecloses, the seller will still owe as much or more because of legal fees, penalties and interest then they would with the short sale + deficiency.  I know this is a bitter pill but those are the facts.  We are trying to make the Best out of the Worst.

Short Sale Seller's out there, before you rip up that short sale agreement that you have worked so hard to get, call a local Real Estate Attorney and make sure that your rejection is based what's best for you not on what you think will hurt the bank the most.  The bank does not want to foreclose but is not afraid to do so.

"Whether the Glass hits the Rock or the Rock hits the glass, things end poorly for the Glass", Man of La Mancha

 

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

2 comments • Mike Sher • August 03 2009 10:25AM