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ShortSaleNJ.comFrank Wible - Foreclosure Services |
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13 March www.NewLoanPackage.com - Modify Your Loan/Mortgage Today! PEOPLE! … THERE IS NO SECRET TO DOING A LOAN MODIFICATION! – Over 9 Million People Will Qualify! Doing a loan modification is easy. All you need is the right instructions and the forms the lender will require. Frank Wible, the nation’s number one short sale realtor has performed hundreds of these loan modifications for his clients. NOW, the same documents and instructions that have been used by his staff are now available for download. You will not believe how easy it is to modify your own loan. It’s time to take advantage of this governmental opportunity to reduce your payments and possibly, your entire loan amount.
Take a look at the website we have setup for you and you will see what we mean…
Frank Wible, LLC
PS: Realtors and Agents are welcome to use this package to provide Loan Modification Services for their clients 10 September Offers: Don't Waste Your, or My Time!Don't Waste Your, or My Time! (more importantly--our buyers and sellers time) When you are looking to place an offer on a short sale, give real consideration to what your offer will be! Don't just assume because it's a short sale you can make some crazy offer on the property. Agents, please advise your clients in the right direction. Don't try and be the hero and say, "yeah, let's put that low offer in!" Here is the deal. A short sale, as we all know is when a lender accepts less than the amount owed on the house. But remember, they still look at market value. A $250,000 offer on a $389,000 listing tells me two things; one, the agent that made the offer has no idea what they are doing, and did no homework at all before making the offer, and two, the buyers are just out to steal something, and are not really serious about buying this property. (Three, the listing agent is way off on the list price). The graphic I made below gives guidelines on how to present an offer on a short sale based on fact, not the hype of trying to steal it. The market value argument is something short sale agents have to fight over and over again, so I sort of know what I am talking about. Different areas of the country may have different market fluctuations, so your percent may change a little, but you get the general idea. A good agent knows how much his or her market has dropped and anticipates the drop or increase in the near future. This will help when formulating your offer on that short sale. Use recent sold comps, and explain to your buyer what you feel market value should be at. I speak from experience when I say that anything other than fair market value; you're wasting everyone's time. Again, under full disclosure on my part, I don't know the situation in your area, but I bet this guideline will work in most places in our country. Market value is the moving target, but I can assure you it's not that big of a target. By the way, repair value decreases should be valid and not insignificant. The toilet paper holder missing does not constitute a $10,000 drop in price! Please try to understand that this is not a slap to people wanting to put low offers in on short sales. Sometimes things are just not understood. This is why I created this graphic so that everyone could understand visually. Short sales are quite a bit of work for all parties involved. It's emotional for the buyer and the seller, and to proceed forward on an offer that will never fly is just silly. When calculating offers for your clients, or if you are the buyer, please have "reason" behind your offer and make it make sense. Provide your comps to the listing agent if you think we're wrong on our evaluation. FRANK WIBLE 30 July Countrywide: I can honestly say this is a first for me!In February, I successfully completed and closed a short sale with Countrywide. The process was a nightmare and it took almost 6 months to get completed (many complicated issues on this one). I represented the buyer and the seller in this transaction. Although I was able to keep it together, the buyer was frustrated by the time it closed. But, all is good now, they are happy with their purchase. Now almost August, the new owner calls me today (6 months after he closed) FREEKING out. Why? Because he has a notice on the door that the home was just sold in Sherriff sale! After the call from the new owner, I ran to the office. I pulled the file and reviewed everything...it was all fine. I called Countrywide immediately. After reviewing the documents with the person on the phone we discover the loss mitigation representative reversed a digit in the account number on the approval letter and closing instructions. OMG!! So OK, how are we going to fix it!?? That loss mitigation representative and their boss no longer work at Countywide. The account we wired the money to is a Bank of America account (we closed right in the middle of the merger), and the person I had on the phone had no idea what to do. The highest person I could get to; the regional director also had no idea what happened and what to do about it. They told me they will start an investigation! WHAT DO I TELL THIS HOMEOWNER RIGHT NOW? The moral of this story, and it is a true one, verify everything on your approval letters. Do not leave anything to chance! I have no idea how this is going to turn out, but it's a big mess!! I can honestly say this is a first for me! Good Luck! Frank Wible 08 July Short Sale System Level Flaws Are Identified.If you read 100 different agent blogs about foreclosures and short sales and you undoubtedly will have 100 different opinions about how to successfully achieve and complete one. You will also hear to (1) avoid them if possible; (2) tasks to complete when you have a short sale listing; (3) what you should do first; (4) what lenders to avoid and which to work with; (5) and what to do as a buyer or seller stuck in a short sale scenario. All good advice by the way…and there really are no wrong opinions. This is a business that truly has no rules, and as much as "the experts" would like to give you advice to this problem, it really is a "learn as you go approach." Each problem and situation is unique. Providing advice via a blog like ActiveRain, seminars or training classes; criticizing or bashing lenders about the short sale process; and giving our own personal direction and secrets on doing short sales all seem to be a tactical and misguided approach to the overall inflating foreclosure problem. As agents and legal professionals, what is our strategic approach to resolve this problem? Tactical vs. strategic defined as: If you no longer want milk in this world, do you take on the overwhelming task of killing every dairy cow in the world? (Tactical approach), or do you simply destroy the few dairy farms that are producing the milk? (Strategic approach) It's fairly obvious that a tactical approach to our nation's short sale problem is never going to get the job done. We, as professionals need to define a strategy that does not include facing this major systems flaw one short sale at a time. I've completed so many short sales I've lost count. I've trained agents across the country on every facet of short sales, and I've done radio, television and blogged until my fingers hurt to help and assist homeowners and agents facilitate and streamline the short sale process. Overall, I feel great on the work that I have done, so why does the situation seem to be getting worse? Like most, I did not focus on the strategic problem, only the tactical solution. Recently, my focus and energies have been to create a group of professionals and with the help of some of the top consulting firms, address these lender process issues from a more strategic approach. This goes way beyond me trying to create a short sale business selling homes; it's more of a 911 call to the lenders. (If you've completed quite a few short sales in your area, and would like to be an professional associate in this venture, you can email me directly fwible@remax.net). For example, a hedge fund buys the paper (a mortgage note) from the lender. The purchase price for this note is thirty seven to forty five cents ($0.37) on the dollar. The lender sells 500 notes to this hedge fund, and they are paid "today", in advance for these notes. However, the hedge fund requires the lender to continue to service the note until a short sale or REO sale is complete. When money is ultimately collected, all proceeds go the hedge fund. Remember, the lender already took the loss and got their money back at the beginning! Have you ever heard as a short sale agent, the "investor" has to approve this? Now you know what that statement means. In some cases, it's the initial investor of the loan, but lately, not often. What motivation does a lender president or CEO have to implement a streamline process in order to facilitate a quick short sale? They have already taken a loss on the note when they sold it to the hedge fund, received their money upfront, and now are nothing more than collection agents for the hedge fund. And remember, in most case they do not receive any additional money once the loan is closed with the borrower (via a short sale or payoff). Have you recently receive a counter offer on your short sale that you thought was crazy? That could be the lender trying to receive a bonus for collecting more than the hedge fund was expecting on the return. Additionally, lenders are paid, (almost as commissioned agents), from the hedge fund if they have to take the property back and sell it through their REO department. In other words, they get paid more to take it back! If you as a short sale agent ever thought you were fighting an uphill battle, you're right. This is big business and huge profits are made on these hedge fund levels. I personally never have a shortage of hedge funds calling me asking if I have REO tapes (lists) for purchase. Now we all know why. So, the lender collects the money they need fast (to stay afloat and pay margins), the hedge fund makes a ton of profits for their investors, and the collateral damage is well worth the return. The major flaw is simply that the damage it is creating is more than just collateral. We see the damages continuing and starting to worsen and dig deeper as these hedge funds continue to get rich. The real estate market is never going to correct itself as long as qualified buyers continue chasing the fantasy of this foreclosure inventory. If this continues, traditional inventory will sit much longer and become stale. It could even force traditional listing into short sale or foreclosure scenario. This circle will never end until this is cleaned up. As we see it, this will eventually affect more people than they can call collateral. Just FYI, quite a few politicians have money in these hedge funds! Don't believe that greed cannot blind! The amount of money being made at levels is more than you and I may never understand…is amazing. Let's face it, if that was my/your money in the hedge fund we would not see the flaw either, or maybe we would not want to (blind by greed). The example above is only one of the process flaws we've identified in the lender short sale systems. So I ask, helping sellers on an individual short sale basis does help, but how much? We are so focused on the tactical planning, training, education and assistance of the short sale that we never thought about if we were really helping the overall situation. And do we care? We as agents have to make a living, so knowing how to do a short sale is not a bad thing and it keeps us going. However, overall, I would rather focus my talents and knowledge to assist in the normalization of this insane market. My opinion is that it does not, or did not, have to be this bad, but studies show it will get worse before it gets better. Thanks for reading! Frank Wible
05 July Foreclosures from State to State.Jack Broad wrote a very compelling article about the time lines from State to State. I would never post his entire article, however I will post some of his data. (His website: http://www.theticasystems.com/) Jack wrote: In this article, I want to convey some thoughts about foreclosure timelines. What they are and how they can impact various market participants. Recently I performed an analysis of state-level foreclosure timelines. Here's some of what I found. ---- Fastest Foreclosure States (listed alphabetically) State #Months Slowest Foreclosure States State #Months Since I started serious blogging about foreclosure and short sales, my national referral business has exploded. I have given out quite a few referrals nationwide. Yet, to this day, I still have no idea how a short sale or foreclosure agent can help a client that let's say lives in Maryland where the process before a client is on the streets is less than three months. We all know (for those of us that do short sales), that it takes much longer than three months simply to get a short sale approval. What can you tell these clients and how can you help them? Being that my national referral business is really starting to climb, I would like to know what your process is to help these people in the states where the foreclosure process is so quick. Please post your comments on what can be done and what you do to help. Thanks for your feedback. Part of this post is for my business research, but most of it is because I feel the stress my clients have (and put me through) when we in New Jersey have quite a bit of time, I can only imagine how your clients (and yourself) feel when the time line is such a crunch!! Frank Wible |
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