Short Sales - From the Lender's View

[reibroker]

@tiborzkarate if PMI was a factor it does not necessarily render a benefit in a short sale or default situation and never at the moment of default. PMI companies are insurance companies. Just like when you deal with your insurance company after an event you consider to be a "covered event" so must the lender negotiate with the PMI company. A default is not an automatic payment. Errors in paperwork, bad lending practices and other attributes can prevent PMI payout.

[violettapapa]

Very good video.Very informative.

Violetta-Papa-your-friendly-We­idel-Realtor from NJ

[dave4tampabay]

deatbeat sale pay your bills thats why there was a bail out deadbeats

[LGLG69]

We just finished our short sale. It took 6 months for the bank to finally agree to the short sale. We bought it for $500,000 3 years ago and it sold for $260,000; that's how bad the housing market is in California.

[dave2005staffing]

Sounds like our situation. We bought a house 3 years ago for 500 K in Ca. (East Bay) and are considering a short sale.

[Mandoman99]

I made an offer on a short sale. I am putting 40% down. Bottom line if the bank does not take my offer i walk away & say call me if you change your mind. The economy is going south! it is my money. take it or leave it. it is that simple!

[LouieFrias]

Great information! Thank you for helping educate people. Here's another resource to consider. FederalHomeLoanMods(dot)com

[THEREIZNOGOD]

send him an email and he'll ask you for the property address and the lender

[reibroker]

Emilio I asked YOU for the property address and the name of the lender because you said you told the lender you were intending to live in the property so you could get a lower rate when you never had any intention of living in the property and now you're facing foreclosure. The hundreds of others who have emailed me have each had an individual response based on their situation. In your case I wanted to see if there is an Interthinx or MARI report due to the occupancy which can complicate

[webaroos]

You poor bastards, who allowed these eventual mortgage problems to develop, your economy is obviously uncontrolled and backward, this does not happen in any other country around the world, I think it is a deliberate system where money is quickly removed from part of the population to benefit others, a free economy which is out of control. Many yanks after many generations still have not attained any assets, it's crazy and unfair.

[Anothercoilgun]

I bumped up your -1 rating to 0. Who other than the 1% thieves them selfs would disagree with you. Good comment but not in order for this clip.

A good clip no doubt. They are becoming common these days. Had the country been notified off all the trickery and whimsical b.s. associated with real estate prior to this crisis, there would be no crisis. Just like if a platoon had a map of a land mind field before entering, they would have little to no casualties.

ACG out.

[reibroker]

"this does not happen in any other country" O RLY? See the "Info" section for this video for just 3 samples from Australia, Britain and Spain. No, it doesn't happen in countries where people are not free to own their own property or where the people are property of the state - that is correct!

[webaroos]

We don't have wholesale, uncontrolled havoc in the mortgage market, neither do our prices drop like a rock because the mortgagee is always responsible for the debt, you cannot just walk out and leave the keys, and you seem ignorant of Australia's situation.

[reibroker]

"and you seem ignorant of Australia's situation" enlighten me Oh Great One. By the way - when you make statements you hope will sway opinion or correct news reports cite someone with credentials or provide your own. The mortgagee is always responsible for the debt? The mortgagee is the lender you know - I'm going to trust you simply misstated the positioning. The title of the article in the UK Telegraph is "Australia faces worse crisis than America" (linked in the info section).

[webaroos]

The UK Telegraph, is an English paper (12k miles away) and if you believe the envious drivel meted out by that publication I have a bridge you might be interested in. Look really you make money from the misfortune of others, why don't you have some decency and get a job.

[reibroker]

"Look really you make money from the misfortune of others, why don't you have some decency and get a job" Wow: judge, jury and executioner. Now we see we really need your all knowing wisdom here. Please, please tell us more about what fools and sluggards we ignorant people are. How exactly is it that I earn a living? What is it that I do? We are awed by your presence here and I feel so enlightened by your input. Please, do tell us how to act and the real truth of all things.

[markclark5]

a small taste of australian hypocrasy, are you surprised? many americans arn't aware of the ignorance, arrogance and ingratitude out there. with the advent of the internet contact has been made. Europeans arn't much better by the way.

[tulsarealestate]

Nice video. I will use it as a time saver for my clients who need to understand what this process will be for them.

[jackinla8]

you were very informative -- thank you!

[apaykin]

I work for OptionNext. We are a nationwide loss mitigation company as well. We can process and mitigate your short-sale, and we never charge the homeowner a cent! We're paid by the bank, out of the real estate commission. We cosult to realtors and mortgage brokers as well, and make sure that everyone gets paid a fair commission at closing...

[sckryde]

my dad is going through hell right now.

we have a women who is interested in buying the house in a short sale are the banks motivated in short sales right now?

the house was bought at 440,000.00 but all the homes in area are valued at 185-220,000.00

now and shes offering 200 do u think the bank will take it ? other wise we're screwd :(

[realtyutube]

Nice job. Good overview of short sales. I especially liked how you included a scenario to walk the viewer through the process.

[shweamel]

Wonderful. Clearly informative. I've been doing short sales in California for 3 years. It is easier to negotiate a short sale now than it was 3 years ago. Agents: Don't be intimidated to try a short sale. I had my best training by asking Loss Mitigators themselves. I'm always available for questions.

[palmajav]

hello shweamel, what do you do when the lender wants the sellers to sign a promissory note in the amount of let's say $10,000.00 to approve the short sale?

[reibroker]

This is becoming a very popular tactic. If you have a strong case that the sellers simply cannot afford to repay AND the property value is declined/still declining enough to where the lender is going to lose more than the promissory note amount at sale then simply refuse to sign it. WF and CW are especially using this tactic to try and recover some of the loss for their depositors and investors.

[bicepsca]

Great video. I am a real estate agent in Montreal Canada and I will folow your videos. I also do international real estate and wondering if you would be interested in doing buisness together?

[Click2u]

I don't feel silly about not understanding short sale...Thank you

[ForeclosureHelp2008]

We offer FREE advice on foreclosures and short sales. We are a Christian run business and never charge you a penny. We have a network of investors who buy in CASH which the lenders prefer in short sales if you need to go that route.

You can figure out our website from my screen name....

[jeffreybcam]

is it possible, if i got a forclosed house, and i take out the equity of the house or refinance, then use the money i get from the equity or refinance, to pay the house for 2 years, then after 1 year and half, i put the house up for sale? please let me know if thats a smart move

[reibroker]

Jeffrey - without knowing anything else about the deal it is impossible to say whether you are looking at a "smart move". Theoretically yes, what you are describing can be a smart move. Whether or not "smart move" is applicable in your specific instance is only a guess. Feel free to contact me with more details and I will help as much as possible. Regards, Ken

[CheCheFromDaA]

I thought it was a excellent video.I'am considering using this person as my agent.

Thank You,

D

[ljcramerproperties]

Excellent video. Very informative.

[ttippmann]

Can I post your videos on my website? What do you think?

[reibroker]

Yes, you may post the video on your site. Thank you for asking.

[reibroker]

I have never blocked anyone. Freeskies is so far off base it's not even funny. Freeskies, create your own blog, post your own evidence. You obviously don't know what NON RECOURSE means and your statement that "there is no risk to banks in doing loans" is either a statement of complete ignorance or some personal agenda to create a disdain for banking.

[AtlantaNewHomes]

Very informative. Thanks Ken. I enjoyed watching your video.

[elliselove]

that means irs will charge me the tax for the difference amounts... and i have to call a tax lawyer to break down as payments? (shivering)

[reibroker]

Probably not. President Bush is calling for this to be lifted.

[reibroker]

The payment of fees is evidenced in the sales agreement. Chances are it simply indicates the fees will come from the proceeds of the sale which means they will come "off the top" and increase your liability (check with an attorney in your area). Generally the 1099 will reflect the full amount of loss to the lender if that is the method they use to show a loss. In your case if the agency fees come "off the top" of the sales amount that means your 1099 will include the agency fees.

[elliselove]

oh and i forgot this question... how about irs tax return? will i be charged all the fee to 1099? any input will be appreciated..

[elliselove]

hi reibroker, i'm going through shortsale of my homes right now. question... i got 1st/2nd loans involved and the 2nd lender wants at least 10 percent of the total bal. paid to move forward. the appraised value is 30k higher than the buyer offered. does the lender pay realtor commissions/costs as i am behind/filled the hardship letter previously?

thanks

[reibroker]

Okay - last comment from Freeskies before we exercise the right. I AM a bank. If there is no risk to the bank then I NEVER lose money. Right? No risk when a borrower fails to repay their loan, right? So according to Freeskie's quote from Dr. King (which had nothing to do with banks or finance or real estate) banks are evil which, it would follow, bankers are evil. Nice comments with no fact behind them Freeskies. Seriously, if you comment again without citing facts you're done here.

[Freeskies]

The bank never loses money when creating a "loan".

There is no risk to the bank.

Rev. Dr. Martin Luther King Jr. quote - "To ignore evil is to become an accomplice to it"

[reibroker]

Okay ladies and gentlemen. Not sure where freeskies is coming from but for the time being we'll just leave his/her comments as they are. But keep in mind boys and girls, the information he/she is citing is somewhat irratic and I'm not sure what his/her point is. This is, after all, a video about SHORT SALES, where the BANK LOSES MONEY.

[Freeskies]

Furthermore..reibroker summed it Nicely - "The only time it isn't a risk to the bank is when the property is purchased not using the bank's money" -- The bank may not have the title..but they sure used the Promissory note - "not using the bank's money" ...By George I think he's got it - in other words -Exchange and Fraud come to mind

[Freeskies]

You- Personally, have to go to the foreclosure files in the county courthouse, because You-Personally, are not in position to see the "Without Recourse, Pay To The Order Of" stamp... What does "Without Recourse, Pay To The Order Of" mean? Why Does the Bank ALTER the Promissory Note with the Stamp "Without Recourse, Pay To The Order Of"..Don't spin my terms - "Without Recourse" with your Non Recourse..There is no risk to the bank in doing "loans"

[Freeskies]

"Without Recourse, Pay To The Order Of" is a Stamp put on the Promissory Note By The Lender - unfortunately You-Personally do not see this because after the Promissory Note passes through your hands it goes onto the actual loosely termed "lender". Research Black Law's Dictionary for the definition-"Without Recourse" and locate an already processed promissory note for the stamp- "Without Recourse, Pay To The Order Of" of which is signed by the Vice President of the Bank.

[reibroker]

Non recourse is BAD for the bank. That means the bank cannot take the PROPERTY. Are you in the US talking about US banking rules? There is a LOT of risk to the lender. Are you a banker?

[Freeskies]

If he only knew how banks Really do business..he would find out the Banks never took a risk in the first place.

[reibroker]

He as in me? I am a banker. That's what I do. Everything we do has a level of risk - it's ALL risk. The only time it isn't a risk to the bank is when the property is purchased not using the bank's money.

[Freeskies]

There is no risk..Explain to everyone - what is meant by "Without Recourse, Pay To The Order Of" found on the promissory note

[ljohnson79]

nicely summed up!

[lenderwatch]

Great explanation! How do I get the full interview?