The most common concerns and questions regarding a short sale is commission. Who pays the commission?
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday, July 21, 2009
Charlottesville and Central Virginia Short Sale Information - Commission
The most common concerns and questions regarding a short sale is commission. Who pays the commission?
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Rates Charlottesville
Monday's bond market has opened down slightly following stronger than expected economic news and minor gains in stocks. The stock markets are starting the week in positive territory with the Dow up 22 points and the Nasdaq up 5 points. The bond market is currently down 2/32, which should keep this morning's mortgage rates at Friday's levels.
The Conference Board, who is a New York-based business research group, reported that their Leading Economic Indicators (LEI) rose 0.7% last month. Analysts were expecting a 0.5% increase, meaning that the index is predicting more economic activity over the next three to six months than many had thought. That news is considered bad for bonds, but fortunately this index is considered to be only moderately important to bonds and mortgage rates.
There is no relevant economic data scheduled for release tomorrow, but Fed Chairman Bernanke will speak before the House Financial Services Committee. This is day one hi s semi-annual testimony on the Fed's monetary policy and the status of the economy. He will speak to the Senate Banking Committee Wednesday morning. Analysts and traders will be watching his words closely for any hint of the Fed's next move with key interest rates. They will likely create a great deal of volatility in the markets during the testimony and the question and answer session that follows.
If his testimony indicates that inflation is a point of concern or that the economy looks to recover sooner than thought, we will likely see the bond market tank and mortgage rates rise. We usually see the most movement in rates during the first day of testimony as the Chairman's prepared words for both appearances are quite similar to each other, meaning that the second day rarely gives us anything we did not hear during the first day.
Overall, this is a moderately significant week for the bond market and mortgage rates. If we get weaker than expected ec onomic results and Chairman Bernanke's words do not surprise the markets, we may see mortgage rates move lower for the week. However, if Mr. Bernanke's testimony raises inflation concerns- rates may again move higher on the week.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
The Conference Board, who is a New York-based business research group, reported that their Leading Economic Indicators (LEI) rose 0.7% last month. Analysts were expecting a 0.5% increase, meaning that the index is predicting more economic activity over the next three to six months than many had thought. That news is considered bad for bonds, but fortunately this index is considered to be only moderately important to bonds and mortgage rates.
There is no relevant economic data scheduled for release tomorrow, but Fed Chairman Bernanke will speak before the House Financial Services Committee. This is day one hi s semi-annual testimony on the Fed's monetary policy and the status of the economy. He will speak to the Senate Banking Committee Wednesday morning. Analysts and traders will be watching his words closely for any hint of the Fed's next move with key interest rates. They will likely create a great deal of volatility in the markets during the testimony and the question and answer session that follows.
If his testimony indicates that inflation is a point of concern or that the economy looks to recover sooner than thought, we will likely see the bond market tank and mortgage rates rise. We usually see the most movement in rates during the first day of testimony as the Chairman's prepared words for both appearances are quite similar to each other, meaning that the second day rarely gives us anything we did not hear during the first day.
Overall, this is a moderately significant week for the bond market and mortgage rates. If we get weaker than expected ec onomic results and Chairman Bernanke's words do not surprise the markets, we may see mortgage rates move lower for the week. However, if Mr. Bernanke's testimony raises inflation concerns- rates may again move higher on the week.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Rates Charlottesville
Monday's bond market has opened down slightly following stronger than expected economic news and minor gains in stocks. The stock markets are starting the week in positive territory with the Dow up 22 points and the Nasdaq up 5 points. The bond market is currently down 2/32, which should keep this morning's mortgage rates at Friday's levels.
The Conference Board, who is a New York-based business research group, reported that their Leading Economic Indicators (LEI) rose 0.7% last month. Analysts were expecting a 0.5% increase, meaning that the index is predicting more economic activity over the next three to six months than many had thought. That news is considered bad for bonds, but fortunately this index is considered to be only moderately important to bonds and mortgage rates.
There is no relevant economic data scheduled for release tomorrow, but Fed Chairman Bernanke will speak before the House Financial Services Committee. This is day one hi s semi-annual testimony on the Fed's monetary policy and the status of the economy. He will speak to the Senate Banking Committee Wednesday morning. Analysts and traders will be watching his words closely for any hint of the Fed's next move with key interest rates. They will likely create a great deal of volatility in the markets during the testimony and the question and answer session that follows.
If his testimony indicates that inflation is a point of concern or that the economy looks to recover sooner than thought, we will likely see the bond market tank and mortgage rates rise. We usually see the most movement in rates during the first day of testimony as the Chairman's prepared words for both appearances are quite similar to each other, meaning that the second day rarely gives us anything we did not hear during the first day.
Overall, this is a moderately significant week for the bond market and mortgage rates. If we get weaker than expected ec onomic results and Chairman Bernanke's words do not surprise the markets, we may see mortgage rates move lower for the week. However, if Mr. Bernanke's testimony raises inflation concerns- rates may again move higher on the week.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
The Conference Board, who is a New York-based business research group, reported that their Leading Economic Indicators (LEI) rose 0.7% last month. Analysts were expecting a 0.5% increase, meaning that the index is predicting more economic activity over the next three to six months than many had thought. That news is considered bad for bonds, but fortunately this index is considered to be only moderately important to bonds and mortgage rates.
There is no relevant economic data scheduled for release tomorrow, but Fed Chairman Bernanke will speak before the House Financial Services Committee. This is day one hi s semi-annual testimony on the Fed's monetary policy and the status of the economy. He will speak to the Senate Banking Committee Wednesday morning. Analysts and traders will be watching his words closely for any hint of the Fed's next move with key interest rates. They will likely create a great deal of volatility in the markets during the testimony and the question and answer session that follows.
If his testimony indicates that inflation is a point of concern or that the economy looks to recover sooner than thought, we will likely see the bond market tank and mortgage rates rise. We usually see the most movement in rates during the first day of testimony as the Chairman's prepared words for both appearances are quite similar to each other, meaning that the second day rarely gives us anything we did not hear during the first day.
Overall, this is a moderately significant week for the bond market and mortgage rates. If we get weaker than expected ec onomic results and Chairman Bernanke's words do not surprise the markets, we may see mortgage rates move lower for the week. However, if Mr. Bernanke's testimony raises inflation concerns- rates may again move higher on the week.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Short Sales - General How to Guide for Realtors and Consumers
Short Sale How To Phone Call Rules:
1) Listen to the Homeowner: Some Realtors/Investors are so excited to offer services that they just talk and talk. Make the homeowner feel that they're understood by you before you start talking. However, don't let this progress too far because some people start crying. When they expose themselves, it hurts your ability to deal with the homeowner's situation. On the phone; listen 70% and speak 30% of the time.
2) Project Confidence: Homeowners will want to deal with professionals who know what they're doing. Project confidence on the phone when discussing preforeclosure marketing and short sales.
3) Be honest: Don't make unrealistic promises. Ask the homeowner to take a look at their other options before signing on with you. If the person wants to keep their house, look at the avenues through which that might be possible, either in renting or leasing to own with you.
Always use a "two-call approach." Never solidify an entire preforeclosure deal on the first call. It shows the customer that you need to check to see if this will be a fit and gives you control over the situation. They immediately know that you are a business and that they may not qualify for your services, when you say that you'll look at the deal and call them back.
8 Short Sale How To Steps:
You'll have to work to keep the homeowner's interest in a preforeclosure deal. There are eight short sale how to steps to make the first phone call work for you:
1) Make Introductions: Often on the phone Realtors and Investors are so anxious to offer their services that they don't take the time to introduce themselves. Tell the homeowner that you are a preforeclosure specialist giving people help in tough situations.
2) Ask for More: Ask the customer to tell you more about their story. Don't ask direct questions. Also, take the responsibility off of them and put it onto the house. Tell the homeowner you may not be able to help them out, but you will give them their best option.
3) Qualify the deal: You can't accept every deal and neither should you. It's best that you don't take any deals less than $100,000 or from people with bad attitudes. Avoid people who are angry, upset, have a "poor me" mentality. Also look at the amount owed on the mortgage. Banks work on percentages, so take this into account.
4) Asking for More Short Sale How To Information: There's more to the preforeclosure marketing deal than equity and location. Ask the homeowner if they have FHA loans or VA loans. You can get huge discounts on FHA loans and have more time to close, sometimes up to 90 days to close rather than 30 days. Make sure there are enough repairs to get a great discount but not so many that no one will look at the property. Ask about their mortgage holders. Different banks have special docs that are often required. Divorce often comes up in these foreclosure situations so ask about their family situation. Ask when they are moving? The system is becoming so fast that you can often have short sale negotiations completed in 30-60 days.
5) Explain Yourself: Use the previous step to move into talking about your preforeclosure services. You specialize in working with folks who are behind in payments. You don't charge anything for your services no matter the cost of the house or the preforeclosure deal. On the downside there are a lot of people who need your services, so you can't accept everyone.
6) Let's pretend: This is a very powerful system because it doesn't hold you accountable for everything. Say, "Let's pretend we're able to help you out. Does this sound like it would be a fit for you?" This is a very loose question that doesn't put them on the spot or make you sound like a shyster. If they say yes, go over all the documents.
7) Explain the Documentation: Go over exactly what the homeowner will need for your first meeting and later for the short sale package. Let the homeowner know that the bank needs copies of these too. There are six documents:
• 2 months of bank statements • 2 recent pay stubs • 2 years of tax returns
• Financial hardship letter describing what's going on with their house and why they are unable to pay, such as bankruptcy.
• Mortgage statements from the lender of the past due loan. You'll need copies of these to know where to start the short sale.
• Financial statement listing the homeowner's income at its lowest and all monthly expenses at their highest. Show the bank that the homeowner's expenses are higher than their income.
8) A Second Call: You can have a second person follow up with the homeowner. Make sure you edify this second person by raising the influence of something or someone. The homeowner will have a respect for him or her when they call. If it's just you, get another person who can call back the homeowners ASAP. For now, set yourself up and say you have other folks you need to check with to make sure this is a deal you can do.
Short Sale How To: The Second Phone Call
The first call is very important to a preforeclosure marketing deal. Your second call will be a breeze if you handle the first call well. There are four steps in the second call:
1) Offer Congratulations: Tell the homeowner that you'll be able to take the deal and congratulate them. Your services are much better than the others out there. The homeowners should feel good that they have chosen you rather than bad competition.
2) Go Over Documents: Go through all the documents that you will need again. Make sure the clients understand it and everything is clear.
3) Set up a Meeting: Pick a time to meet with the homeowners either at their house or at your office. Ask them if they have a pen to write it down when you state the time and place of the meeting. The last thing you want is to have them forget the appointment.
4) Confirm the Meeting: Your time is valuable so emphasize that strongly to the homeowner. Many clients are in this situation because they have trouble meeting obligations. They may not have the best scheduling or organization skills.
Follow these short sale how to steps-the first call, second call, and meeting-flow as seamlessly as possible and your preforeclosure marketing plans will go smoothly. Each completed call ensuring that you have a successful short sale package and a homeowner willing to sign on with you.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
1) Listen to the Homeowner: Some Realtors/Investors are so excited to offer services that they just talk and talk. Make the homeowner feel that they're understood by you before you start talking. However, don't let this progress too far because some people start crying. When they expose themselves, it hurts your ability to deal with the homeowner's situation. On the phone; listen 70% and speak 30% of the time.
2) Project Confidence: Homeowners will want to deal with professionals who know what they're doing. Project confidence on the phone when discussing preforeclosure marketing and short sales.
3) Be honest: Don't make unrealistic promises. Ask the homeowner to take a look at their other options before signing on with you. If the person wants to keep their house, look at the avenues through which that might be possible, either in renting or leasing to own with you.
Always use a "two-call approach." Never solidify an entire preforeclosure deal on the first call. It shows the customer that you need to check to see if this will be a fit and gives you control over the situation. They immediately know that you are a business and that they may not qualify for your services, when you say that you'll look at the deal and call them back.
8 Short Sale How To Steps:
You'll have to work to keep the homeowner's interest in a preforeclosure deal. There are eight short sale how to steps to make the first phone call work for you:
1) Make Introductions: Often on the phone Realtors and Investors are so anxious to offer their services that they don't take the time to introduce themselves. Tell the homeowner that you are a preforeclosure specialist giving people help in tough situations.
2) Ask for More: Ask the customer to tell you more about their story. Don't ask direct questions. Also, take the responsibility off of them and put it onto the house. Tell the homeowner you may not be able to help them out, but you will give them their best option.
3) Qualify the deal: You can't accept every deal and neither should you. It's best that you don't take any deals less than $100,000 or from people with bad attitudes. Avoid people who are angry, upset, have a "poor me" mentality. Also look at the amount owed on the mortgage. Banks work on percentages, so take this into account.
4) Asking for More Short Sale How To Information: There's more to the preforeclosure marketing deal than equity and location. Ask the homeowner if they have FHA loans or VA loans. You can get huge discounts on FHA loans and have more time to close, sometimes up to 90 days to close rather than 30 days. Make sure there are enough repairs to get a great discount but not so many that no one will look at the property. Ask about their mortgage holders. Different banks have special docs that are often required. Divorce often comes up in these foreclosure situations so ask about their family situation. Ask when they are moving? The system is becoming so fast that you can often have short sale negotiations completed in 30-60 days.
5) Explain Yourself: Use the previous step to move into talking about your preforeclosure services. You specialize in working with folks who are behind in payments. You don't charge anything for your services no matter the cost of the house or the preforeclosure deal. On the downside there are a lot of people who need your services, so you can't accept everyone.
6) Let's pretend: This is a very powerful system because it doesn't hold you accountable for everything. Say, "Let's pretend we're able to help you out. Does this sound like it would be a fit for you?" This is a very loose question that doesn't put them on the spot or make you sound like a shyster. If they say yes, go over all the documents.
7) Explain the Documentation: Go over exactly what the homeowner will need for your first meeting and later for the short sale package. Let the homeowner know that the bank needs copies of these too. There are six documents:
• 2 months of bank statements • 2 recent pay stubs • 2 years of tax returns
• Financial hardship letter describing what's going on with their house and why they are unable to pay, such as bankruptcy.
• Mortgage statements from the lender of the past due loan. You'll need copies of these to know where to start the short sale.
• Financial statement listing the homeowner's income at its lowest and all monthly expenses at their highest. Show the bank that the homeowner's expenses are higher than their income.
8) A Second Call: You can have a second person follow up with the homeowner. Make sure you edify this second person by raising the influence of something or someone. The homeowner will have a respect for him or her when they call. If it's just you, get another person who can call back the homeowners ASAP. For now, set yourself up and say you have other folks you need to check with to make sure this is a deal you can do.
Short Sale How To: The Second Phone Call
The first call is very important to a preforeclosure marketing deal. Your second call will be a breeze if you handle the first call well. There are four steps in the second call:
1) Offer Congratulations: Tell the homeowner that you'll be able to take the deal and congratulate them. Your services are much better than the others out there. The homeowners should feel good that they have chosen you rather than bad competition.
2) Go Over Documents: Go through all the documents that you will need again. Make sure the clients understand it and everything is clear.
3) Set up a Meeting: Pick a time to meet with the homeowners either at their house or at your office. Ask them if they have a pen to write it down when you state the time and place of the meeting. The last thing you want is to have them forget the appointment.
4) Confirm the Meeting: Your time is valuable so emphasize that strongly to the homeowner. Many clients are in this situation because they have trouble meeting obligations. They may not have the best scheduling or organization skills.
Follow these short sale how to steps-the first call, second call, and meeting-flow as seamlessly as possible and your preforeclosure marketing plans will go smoothly. Each completed call ensuring that you have a successful short sale package and a homeowner willing to sign on with you.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Short Sales - General How to Guide for Realtors and Consumers
Short Sale How To Phone Call Rules:
1) Listen to the Homeowner: Some Realtors/Investors are so excited to offer services that they just talk and talk. Make the homeowner feel that they're understood by you before you start talking. However, don't let this progress too far because some people start crying. When they expose themselves, it hurts your ability to deal with the homeowner's situation. On the phone; listen 70% and speak 30% of the time.
2) Project Confidence: Homeowners will want to deal with professionals who know what they're doing. Project confidence on the phone when discussing preforeclosure marketing and short sales.
3) Be honest: Don't make unrealistic promises. Ask the homeowner to take a look at their other options before signing on with you. If the person wants to keep their house, look at the avenues through which that might be possible, either in renting or leasing to own with you.
Always use a "two-call approach." Never solidify an entire preforeclosure deal on the first call. It shows the customer that you need to check to see if this will be a fit and gives you control over the situation. They immediately know that you are a business and that they may not qualify for your services, when you say that you'll look at the deal and call them back.
8 Short Sale How To Steps:
You'll have to work to keep the homeowner's interest in a preforeclosure deal. There are eight short sale how to steps to make the first phone call work for you:
1) Make Introductions: Often on the phone Realtors and Investors are so anxious to offer their services that they don't take the time to introduce themselves. Tell the homeowner that you are a preforeclosure specialist giving people help in tough situations.
2) Ask for More: Ask the customer to tell you more about their story. Don't ask direct questions. Also, take the responsibility off of them and put it onto the house. Tell the homeowner you may not be able to help them out, but you will give them their best option.
3) Qualify the deal: You can't accept every deal and neither should you. It's best that you don't take any deals less than $100,000 or from people with bad attitudes. Avoid people who are angry, upset, have a "poor me" mentality. Also look at the amount owed on the mortgage. Banks work on percentages, so take this into account.
4) Asking for More Short Sale How To Information: There's more to the preforeclosure marketing deal than equity and location. Ask the homeowner if they have FHA loans or VA loans. You can get huge discounts on FHA loans and have more time to close, sometimes up to 90 days to close rather than 30 days. Make sure there are enough repairs to get a great discount but not so many that no one will look at the property. Ask about their mortgage holders. Different banks have special docs that are often required. Divorce often comes up in these foreclosure situations so ask about their family situation. Ask when they are moving? The system is becoming so fast that you can often have short sale negotiations completed in 30-60 days.
5) Explain Yourself: Use the previous step to move into talking about your preforeclosure services. You specialize in working with folks who are behind in payments. You don't charge anything for your services no matter the cost of the house or the preforeclosure deal. On the downside there are a lot of people who need your services, so you can't accept everyone.
6) Let's pretend: This is a very powerful system because it doesn't hold you accountable for everything. Say, "Let's pretend we're able to help you out. Does this sound like it would be a fit for you?" This is a very loose question that doesn't put them on the spot or make you sound like a shyster. If they say yes, go over all the documents.
7) Explain the Documentation: Go over exactly what the homeowner will need for your first meeting and later for the short sale package. Let the homeowner know that the bank needs copies of these too. There are six documents:
• 2 months of bank statements • 2 recent pay stubs • 2 years of tax returns
• Financial hardship letter describing what's going on with their house and why they are unable to pay, such as bankruptcy.
• Mortgage statements from the lender of the past due loan. You'll need copies of these to know where to start the short sale.
• Financial statement listing the homeowner's income at its lowest and all monthly expenses at their highest. Show the bank that the homeowner's expenses are higher than their income.
8) A Second Call: You can have a second person follow up with the homeowner. Make sure you edify this second person by raising the influence of something or someone. The homeowner will have a respect for him or her when they call. If it's just you, get another person who can call back the homeowners ASAP. For now, set yourself up and say you have other folks you need to check with to make sure this is a deal you can do.
Short Sale How To: The Second Phone Call
The first call is very important to a preforeclosure marketing deal. Your second call will be a breeze if you handle the first call well. There are four steps in the second call:
1) Offer Congratulations: Tell the homeowner that you'll be able to take the deal and congratulate them. Your services are much better than the others out there. The homeowners should feel good that they have chosen you rather than bad competition.
2) Go Over Documents: Go through all the documents that you will need again. Make sure the clients understand it and everything is clear.
3) Set up a Meeting: Pick a time to meet with the homeowners either at their house or at your office. Ask them if they have a pen to write it down when you state the time and place of the meeting. The last thing you want is to have them forget the appointment.
4) Confirm the Meeting: Your time is valuable so emphasize that strongly to the homeowner. Many clients are in this situation because they have trouble meeting obligations. They may not have the best scheduling or organization skills.
Follow these short sale how to steps-the first call, second call, and meeting-flow as seamlessly as possible and your preforeclosure marketing plans will go smoothly. Each completed call ensuring that you have a successful short sale package and a homeowner willing to sign on with you.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
1) Listen to the Homeowner: Some Realtors/Investors are so excited to offer services that they just talk and talk. Make the homeowner feel that they're understood by you before you start talking. However, don't let this progress too far because some people start crying. When they expose themselves, it hurts your ability to deal with the homeowner's situation. On the phone; listen 70% and speak 30% of the time.
2) Project Confidence: Homeowners will want to deal with professionals who know what they're doing. Project confidence on the phone when discussing preforeclosure marketing and short sales.
3) Be honest: Don't make unrealistic promises. Ask the homeowner to take a look at their other options before signing on with you. If the person wants to keep their house, look at the avenues through which that might be possible, either in renting or leasing to own with you.
Always use a "two-call approach." Never solidify an entire preforeclosure deal on the first call. It shows the customer that you need to check to see if this will be a fit and gives you control over the situation. They immediately know that you are a business and that they may not qualify for your services, when you say that you'll look at the deal and call them back.
8 Short Sale How To Steps:
You'll have to work to keep the homeowner's interest in a preforeclosure deal. There are eight short sale how to steps to make the first phone call work for you:
1) Make Introductions: Often on the phone Realtors and Investors are so anxious to offer their services that they don't take the time to introduce themselves. Tell the homeowner that you are a preforeclosure specialist giving people help in tough situations.
2) Ask for More: Ask the customer to tell you more about their story. Don't ask direct questions. Also, take the responsibility off of them and put it onto the house. Tell the homeowner you may not be able to help them out, but you will give them their best option.
3) Qualify the deal: You can't accept every deal and neither should you. It's best that you don't take any deals less than $100,000 or from people with bad attitudes. Avoid people who are angry, upset, have a "poor me" mentality. Also look at the amount owed on the mortgage. Banks work on percentages, so take this into account.
4) Asking for More Short Sale How To Information: There's more to the preforeclosure marketing deal than equity and location. Ask the homeowner if they have FHA loans or VA loans. You can get huge discounts on FHA loans and have more time to close, sometimes up to 90 days to close rather than 30 days. Make sure there are enough repairs to get a great discount but not so many that no one will look at the property. Ask about their mortgage holders. Different banks have special docs that are often required. Divorce often comes up in these foreclosure situations so ask about their family situation. Ask when they are moving? The system is becoming so fast that you can often have short sale negotiations completed in 30-60 days.
5) Explain Yourself: Use the previous step to move into talking about your preforeclosure services. You specialize in working with folks who are behind in payments. You don't charge anything for your services no matter the cost of the house or the preforeclosure deal. On the downside there are a lot of people who need your services, so you can't accept everyone.
6) Let's pretend: This is a very powerful system because it doesn't hold you accountable for everything. Say, "Let's pretend we're able to help you out. Does this sound like it would be a fit for you?" This is a very loose question that doesn't put them on the spot or make you sound like a shyster. If they say yes, go over all the documents.
7) Explain the Documentation: Go over exactly what the homeowner will need for your first meeting and later for the short sale package. Let the homeowner know that the bank needs copies of these too. There are six documents:
• 2 months of bank statements • 2 recent pay stubs • 2 years of tax returns
• Financial hardship letter describing what's going on with their house and why they are unable to pay, such as bankruptcy.
• Mortgage statements from the lender of the past due loan. You'll need copies of these to know where to start the short sale.
• Financial statement listing the homeowner's income at its lowest and all monthly expenses at their highest. Show the bank that the homeowner's expenses are higher than their income.
8) A Second Call: You can have a second person follow up with the homeowner. Make sure you edify this second person by raising the influence of something or someone. The homeowner will have a respect for him or her when they call. If it's just you, get another person who can call back the homeowners ASAP. For now, set yourself up and say you have other folks you need to check with to make sure this is a deal you can do.
Short Sale How To: The Second Phone Call
The first call is very important to a preforeclosure marketing deal. Your second call will be a breeze if you handle the first call well. There are four steps in the second call:
1) Offer Congratulations: Tell the homeowner that you'll be able to take the deal and congratulate them. Your services are much better than the others out there. The homeowners should feel good that they have chosen you rather than bad competition.
2) Go Over Documents: Go through all the documents that you will need again. Make sure the clients understand it and everything is clear.
3) Set up a Meeting: Pick a time to meet with the homeowners either at their house or at your office. Ask them if they have a pen to write it down when you state the time and place of the meeting. The last thing you want is to have them forget the appointment.
4) Confirm the Meeting: Your time is valuable so emphasize that strongly to the homeowner. Many clients are in this situation because they have trouble meeting obligations. They may not have the best scheduling or organization skills.
Follow these short sale how to steps-the first call, second call, and meeting-flow as seamlessly as possible and your preforeclosure marketing plans will go smoothly. Each completed call ensuring that you have a successful short sale package and a homeowner willing to sign on with you.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Monday, July 20, 2009
Anti Deficiency Laws - Virginia Has None
Anti Deficiency Laws
Some states have anti-deficiency laws. These are laws that protect purchasers of residential real property used for his/her primary residence pursuant to a purchase money mortgage. In the event that the purchaser fails to make the mortgage payment and the property is foreclosed and sold to pay the mortgage, a deficiency between the sale price and the outstanding balance of the mortgage could occur. Under anti-deficiency laws, the purchaser will not be held responsible for any deficiency the lender can only recover the property and the proceeds of a subsequent sale; the purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance.
What the Lender Can Recover
The lender can only recover the property and the proceeds of a subsequent sale. The purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance. This allows the purchaser to walk away from a property without owing a deficiency judgment amount. Anti-deficiency laws typically provide no protection for second mortgages or home equity lines. Also, there is no protection when the property is not used as the primary residence of the purchaser.
Anti-Deficiency Laws
While anti-deficiency laws can protect a homeowner in some cases, the majority of Americans have recently obtained two loans in the purchase of homes, often referred to as a "piggy-back mortgage." The first mortgage would have been for 80 % of the purchase price with all or a portion of the balance of the purchase price obtained by means of a home equity line of credit or second mortgage. If the first loan is foreclosed and the amount of the sale is enough to only pay off the first lender, the second lender will be entitled to sue the owner for the value of its loan. Many anti-deficiency laws won’t protect the homeowner for amount owed on the second loan.
State Foreclosure Deficiency Laws (Virginia Does Not Have an Anti Deficiency Law)
ALASKA: Alaska has a broad form of anti-deficiency statute that precludes a deficiency judgment following the completion of a no judicial foreclosure.
ARIZONA: Arizona's anti-deficiency statutes prevent a lender from suing a person for any losses on a home after foreclosure.
CALIFORNIA: California's anti-deficiency law applies only to funds used to purchase a residence. The anti-deficiency law does not apply to additional financing such as second mortgages or home-equity loans.
FLORIDA: In Florida, mortgages must be foreclosed by filing a lawsuit in court. Florida is unusual in that the state has passed few statues regulating foreclosures.
MASSACHUSETTS: A proper sale prevents the borrower from exercising any right to reclaim the property through redemption. If the foreclosure sale proceeds are not enough to pay off the lender, then the borrower is liable for the deficiency.
NORTH DAKOTA: The lender may not ask for a deficiency in the foreclosure suit if it has already brought another suit just to collect on the loan. Any cash surplus from the sale, beyond that needed to pay off the mortgage and the foreclosure costs must be paid to the borrower.
OREGON: A deficiency judgment cannot be obtained through a non-judicial deed of trust foreclosure by advertisement.
SOUTH CAROLINA: Deficiency judgments are permitted.
TEXAS: Deficiency judgments can only be for the difference between FAIR MARKET VALUE and the balance owed on the loan. There is no right of redemption.
Some states have anti-deficiency laws. These are laws that protect purchasers of residential real property used for his/her primary residence pursuant to a purchase money mortgage. In the event that the purchaser fails to make the mortgage payment and the property is foreclosed and sold to pay the mortgage, a deficiency between the sale price and the outstanding balance of the mortgage could occur. Under anti-deficiency laws, the purchaser will not be held responsible for any deficiency the lender can only recover the property and the proceeds of a subsequent sale; the purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance.
What the Lender Can Recover
The lender can only recover the property and the proceeds of a subsequent sale. The purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance. This allows the purchaser to walk away from a property without owing a deficiency judgment amount. Anti-deficiency laws typically provide no protection for second mortgages or home equity lines. Also, there is no protection when the property is not used as the primary residence of the purchaser.
Anti-Deficiency Laws
While anti-deficiency laws can protect a homeowner in some cases, the majority of Americans have recently obtained two loans in the purchase of homes, often referred to as a "piggy-back mortgage." The first mortgage would have been for 80 % of the purchase price with all or a portion of the balance of the purchase price obtained by means of a home equity line of credit or second mortgage. If the first loan is foreclosed and the amount of the sale is enough to only pay off the first lender, the second lender will be entitled to sue the owner for the value of its loan. Many anti-deficiency laws won’t protect the homeowner for amount owed on the second loan.
State Foreclosure Deficiency Laws (Virginia Does Not Have an Anti Deficiency Law)
ALASKA: Alaska has a broad form of anti-deficiency statute that precludes a deficiency judgment following the completion of a no judicial foreclosure.
ARIZONA: Arizona's anti-deficiency statutes prevent a lender from suing a person for any losses on a home after foreclosure.
CALIFORNIA: California's anti-deficiency law applies only to funds used to purchase a residence. The anti-deficiency law does not apply to additional financing such as second mortgages or home-equity loans.
FLORIDA: In Florida, mortgages must be foreclosed by filing a lawsuit in court. Florida is unusual in that the state has passed few statues regulating foreclosures.
MASSACHUSETTS: A proper sale prevents the borrower from exercising any right to reclaim the property through redemption. If the foreclosure sale proceeds are not enough to pay off the lender, then the borrower is liable for the deficiency.
NORTH DAKOTA: The lender may not ask for a deficiency in the foreclosure suit if it has already brought another suit just to collect on the loan. Any cash surplus from the sale, beyond that needed to pay off the mortgage and the foreclosure costs must be paid to the borrower.
OREGON: A deficiency judgment cannot be obtained through a non-judicial deed of trust foreclosure by advertisement.
SOUTH CAROLINA: Deficiency judgments are permitted.
TEXAS: Deficiency judgments can only be for the difference between FAIR MARKET VALUE and the balance owed on the loan. There is no right of redemption.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/
If you are in the process of Foreclosure or maybe facing Foreclosure soon, Consult Your Case for Free with a local Charlottesville Certified Short Sale Specialist to see which legal options you have available.
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