The proposed rate freeze has frozen my brain.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I'm confused!!!!Hi folks. I've been trying to get my head around the proposed rate freeze. Rosemary Brooks wrote a post yesterday expressing her concerns about this program and how it will exclude too many folks. After going back and forth with her in the comments we both agreed that if you can't help everyone then don't help anyone. Here are my thoughts.

I closed on 60 properties in 2005. I don't know the exact number but my guess would be 90% of these were sub-prime 100% deals with the seller contributing 6% towards closing costs.

Being as how I am in the thick of the mortgage crisis, I talk with sellers everyday that are in dire straights. This is what I hear:

Mostly, "I bought my house in late 2005 and was planning to move into it but my situation changed with my job and now I need to sell" Ok first, they bought to flip and probably lied on their loan application to say it would be their primary residence. Now they are trying to cover their asses. They paid $225,000 for a house now worth $170,000 if they are lucky. They've been trying to sell at $299,000 for a year. Still holding on to the dream while they use the equity from their homestead to carry a losing "investment". Now they feel they are entitled to a short sale. I cannot help them and neither should "Big Gov".

The second scenario, is the young couple who bought their house in 2003 for $85,000. They have refinanced three times since then and now owe $200,000 on a house worth $170,000. They do however have beautiful furniture, plasma TVs and new cars. These folks may very well want to stay in their house. Where else would they keep their TVs? These folks need to sit tight and try to keep up with their payments. I can't help them and they should not be "bailed out".

The third seller I speak with is the family who purchased in 2000 for $95,000. They did refinance in 2005 but only pulled out $30,000 to pay some medical bills and do some improvements on their home so the kids would have a little more room. Their house is now worth $150,000 but will be very difficult to sell because it's "old". Homes built before 2004 in Poinciana are now "old" because of all the vacant new homes that are just sitting. These folks I want to help desperately. Unfortunately, with the saturation of homes on the market from the first two scenarios, we may have to reduce to the $130s to have a shot at getting it sold. This would be enough to cover their mortgages but won't give them any money to move forward, so we leave it at $150,000 and hope we get lucky. These folks really need to decide if they need to move or not. If they need to move I may be able to help but "Big Gov." should not.

Now my favorite Sellers and the ones I look for, have lived in Poinciana for many years and either have no mortgage or a very small mortgage. They are looking to downsize or move out of State. These folks can sell because they are in a position to price low enough to beat out the competition. Most understand the market and are willing to price it right. Together we will be able to get their homes sold.

So my questions are, who exactly is this "rate freeze" designed to help and why should these folks be helped? Does declining property values have any effect on the payments they agreed to make when they purchased their home? If folks bought using an ARM, with the hope that they would be able to refinance out of it before it adjusted, then didn't they take a risk? And if they took a risk and lost why should they now be bailed out?

Am I missing something here? If so please clue me in.

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

Conflict of interest OR business as usual?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I just listed a couple of REO(bank owned) properties today and I’m a little conflicted. Here’s why. I have had a beautiful 4 bedroom 2.5 bath with 2887 sq ft living area on the market for about 4 months priced at $219,000. The Seller cannot go any lower on price because of the mortgage on the property. This is an excellent property and the price is very good. Plenty of activity but no offers yet. It’s one of the best priced houses of it’s size in Poinciana. The Seller really needs to sell.

Today I listed a 4 bedroom 2.5 bath with 2812 sq ft living area at $179,000!!! This is a bank owned property and the bank can go as low as necessary to get it sold quickly. The bank also needs to sell.

Even though these houses are on different sides of Poinciana, one in Polk County and the other in Osceola County, they are very similar properties and only a mile or so apart.

I may have just blown my first listing out of the water. Of course if I hadn’t listed the REO it would still be on the market, just with another Broker. By not listing it I would not have eliminated the competition.

I certainly haven’t done any thing wrong. Especially since I am a Transaction Broker not a Single Agent. I also rarely work with Buyers so the chance of me showing a Buyer both properties is slim to none.

So is this a conflict or just business as usual? What say you?

Sell Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://www.brokerbryant.com
***The content of this blog is my opinion***

Want to buy a home in Poinciana FL?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Hi folks. As you know my market, Poinciana Fl, is brutal right now. So, today, I decided to get very proactive with trying to locate some Buyers for homes in Poinciana Fl. Anyway………watch this.


Online Videos by Veoh.com

 

If you’re looking to sell or buy a home in Poinciana Fl, give me a call. I’ll be waiting for you. Are you dialing yet?

Video property of TLW and ROAR Productions!!!! Hands off.

Sell Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://www.brokerbryant.com/
***The content of this blog is solely my opinion*** 

As a listing broker….how do you justify your high commission?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Can I have some more coffee?OK, here I go again, jumping into the Lion’s Den. In today’s post I want to take another shot at answering the question “As a listing broker, how do you justify your high commission?” My goal is to answer this question in a way that will satisfy, “the Sultan’s of Short Sales, the Crusaders of Capitalism, and the Prophet’s of Profit…Barry Cunningham and Barry Johnson” over at Real Estate Radio USA . I know, your probably thinking, “Broker Bryant, why are you wasting you’re time with these guys?” Well…..it could be because I’m stubborn or…..maybe I’m just an idiot!! 

But, the real reason, is that I feel it’s an important question and it deserves an answer. I had written a post on this topic back in November of ‘06 titled, “So what do you do to justify your high commission?” and in March of this year I went on Real Estate Radio USA to attempt to answer the question again. I wrote about it here, “Real Estate Radio USA and Broker Bryant Solve World Peace! Or Not!!”  I, also wrote, “Compensation or performance. Which one will it be?”  back in December of 2006.

Yesterday, Jennifer Allan of “Sell with Soul” fame went on the show to try and answer the same question. You can listen to her interview here. Jennifer had the same problem I did, trying to explain to the Barries how we justify our commission, without placing a dollar amount on every little thing that we do. 

In this day, of disintermediation and transparency, I truly believe that it is the intangibles that will make or break us. There is no doubt that Sellers can find everything they need, to sell their property on their own, online. Heck, they can even get their property placed in the MLS for just a few hundred bucks. And the reality is MOST properties, by far, sell through the MLS. I think the figure is about 85%. 

They do not need me to “market” their property and that’s a fact. So why pay me x% to market their property? They shouldn’t. If all they needed me for was marketing their property then I agree completely they are wasting their money. Hire a marketing company like “For Sale by Owner” and have at it. Just….. 

  • Be prepared to pay them upfront. 
  • Be prepared to arrive at your own pricing.
  • Be prepared to arrange all of you own showings. 
  • Be prepared to screen potential Buyers. 
  • Be prepared to negotiate your own deal. 
  • Be prepared to complete all contracts and disclosures required by law. 
  • Be prepared to deal with inspection issues. 
  • Be prepared to deal with unscrupulous REALTORS®, lenders and Buyers. 
  • Be prepared to deal with your own emotional issues with no one to turn to for advice and comfort. 
  • Be prepared to dispute a bad appraisal. 
  • Be prepared to find another Buyer when yours decides to walk at the last minute because you lost your temper with them over a $100 washing machine. 

All of these things sound very simple. However, anyone who has been in the business long enough knows that it’s the small things that can blow a deal out of the water. Especially when emotions are involved. 

Of course, all of this assumes that you priced the property right from the beginning and that it was market ready. If not…then none of this other stuff even matters. A property is sold at time of listing. 

BUT….there are Sellers that are prepared to handle these things and if they are able….then they should. They do not need a REALTOR®. And they may very well be successful. I truly hope they are and wish them well. These folks are not my “market” and justifying my commission to them, is a waste of my time. And without a doubt….this group includes the Barries.

Now, if you are not in this group….give me a call and let’s get together. We can then sit down, look at your situation and arrive at the best plan for you and your individual situation. I will then justify my commission to you. Fair enough?

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR POINCIANA REAL ESTATE

Sell Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved

I Will NEVER Show That REALTORS(R) Listings!!!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Yes you will!!!Hi folks. Have you ever had such a bad experience, working with another REALTOR(R), that you swore you would never work with them again? I know I have. It can be difficult but we must remember that our job is to help Buyers and Sellers achieve their objectives.

It’s tempting to not show a REALTOR’S(R) listings or suggest to your Seller not to accept a deal from a particular REALTOR(R) who we have had a bad experience with. However, as difficult as it is, we must not  hold the Buyer or Seller responsible for their REALTOR’S(R) incompetence.

The reality is, the Seller just wants to sale and the Buyer just wants to buy. Work towards helping them achieve these goals. This may require dealing with unprofessional and rude REALTORS(R) on occasion.

Bite your tongue, put on a smile and muddle through it. Take charge of the transaction. Be the one person in this stressful and difficult deal to hold it together and get the job done. Not only will your customer/client be impressed but the other REALTOR’S(R) customer/client will also become your biggest fan. This is how you build a long term successful business.

Anybody can handle a smooth transaction it is getting through the difficult situations that set you apart and make people remember you. Maybe your professionalism will rub off on the other REALTOR(R). One thing is for sure, the problems and issues we have, with unprofessional REALTORS(R), will always be a part of our business. It’s our job to rise above it and keep moving forward with a good attitude. That’s something we can control. It’s why we make the big bucks.  What say you?

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR POINCIANA REAL ESTATE

Sell Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved 

 

Great short sale information from Richard Zaretsky, Attorney at Law in Florida.

 

Via Richard Zaretsky, Florida Real Estate Attorney (Richard P. Zaretsky P.A. ):

A Monthly Updated Listing of Articles by Richard P. Zaretsky, Esq  —  Richard Zaretsky‘s Short Sale Blog Articles

———————————————-

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@Florida-Counsel.comFLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW – We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com

———————————————

Foreclosure is NOT a Remedy – 2nd in a Series

In the preceding blog article I addressed the issues when a borrower waits until they get before a judge to determine that they may want an attorney to represent them.  Foreclosure is NOT a Remedy deals with the issues when a borrower has been served with a foreclosure complaint (sometimes mistakenly called a “lis pendens”) and more than the time allowed for a response to be filed with the court has come and gone, and no attorney is involved on the borrower’s behalf to pursue any available defenses to the foreclosure proceeding.  But don’t lose sight of the caveat that the borrower should always be looking for alternatives to foreclosure.

Foreclosure? When is the Best Time to See an Attorney?

First in a series:My law practice encompasses assisting and guiding many borrowers that are in financial distress and we take the position that Foreclosure is NOT a Solution.  Most borrowers come into the office for guidance and if they are lucky, planning for solution options once they realize that financial distress is a likely scenario.  However there is a significant trend this third quarter of the year where we are seeing many more people coming to us with foreclosure suits that were filed many months ago, and now it may be too late to discuss all of the solutions that may have been available to the borrower had they come into the office for a consultation before or at least at the beginning of the process. 

LOAN AUDITS – FORECLOSURE DEFENSE FALLACY?

The concepts of foreclosure defense preparation have started a cottage industry, unregulated as with most of the home saving concepts, called “loan audits”.

 

WALK AWAY FROM THE PROPERTY – STRATEGIC MORTGAGE DEFAULTS GROW TO 26%

A mortgaged homeowner is likely to “walk from the property” or “give it back to the bank” based more on loss of equity than the ability to make the mortgage payments, a recent research paper emanating from the University of Chicago says. The paper researches and analyzes when American homeowners are likely to “walk away from their mortgages”  These actions by mortgaged homeowners when the indebtedness substantially exceeds the equity value of the property, is called a “strategic default“.  The study found that 26% of all homeowner defaults today are strategic defaults.

SHOULD I PAY MY MORTGAGE?

This seems to be THE NUMBER ONE question I get.  Unfortunately there are several answers and which  is correct for you depends on the Circumstances.  I will address the common scenarios in this article.

Your Property is Underwater – What is the solution?

The Distressed Property Owner’s “Goal” is an interesting situation for each individual and for each individual experiencing this event, it is different.  I like to help my client visualize creating a solution or “goal” by telling a visualization story.

SHORT SALE FLIPS – TITLE INSURANCE PROHIBITED 

The short sale flip apparently is alive and well for some investors – and it is causing havoc with title insurance underwriters.  Now the title insurance underwriters are making their case simply by declaring that they won’t insure such transactions.

BUYING A FORECLOSURE – DUE DILIGENCE AND STATUS OF TITLE 

More and more I have been receiving telephone calls and emails wanting me to discuss issues relating to buyer foreclosures and short sales and REO properties.  Everyone (both qualified but usually unqualified) seems is writing or buying books on the process, so I figured it may be time to put in my two cents and talk about title issues and due diligence

MOTION FOR SUMMARY JUDGMENT OF FORECLOSURE – DEFEATED! AND HOW I DID IT

Today I used a new technical defense to successfully defeat a motion for summary judgment for foreclosure and I wanted to pass it on to other attorneys (or those who know attorneys) helping homeowners in foreclosure.

SHORT SALE BUYER CANCELLED CONTRACT EPIDEMIC – DIAGNOSIS AND CURE

This past week my office had 5 short sale buyer’s walk from their contracts!  Although I use an exclamation mark, it is not an unusual occurrence.  In fact it seems that it takes 4 contact buyers to make a short sale finally happen.  If that was an average for a traditional sale situation, Realtors and title agencies would be climbing the walls. 

MORTGAGE FORECLOSURE RESCUE – THE BAD GUYS DON’T WEAR BLACK!

In last week’s New York Times an article focuses on how Home Savers Consulting is accused of committing fraud and profited handsomely at the expense of the former homeowner. Worse, the former homeowner thought she still owned the home – she did not.

FORECLOSURE RESCUE AND MORTGAGE MODIFICATION FRAUD – ALERT ISSUED

This week the Florida Bar made public the outlandish and misleading representations that have recently plagued the mortgage modification industry in this state and probably nationwide.  The mortgage modification industry has sprung up faster than mushrooms – mostly through mortgage brokers that have seen their ability to make loans dry up in this recession and are applying net office sales techniques to the mortgage modification boom.  The problem is that many states have enacted new laws to put them out of business.

SHORT SALES PRIMER – BACK TO BASICS UPDATED

Short Sale Primer For Brokers, Sellers and Buyers – A Primer –

Since I wrote the Short Sale Primer the short sale methodology used by lenders has morphed several times.  It is a different animal than it was almost 10 months ago.  The passage of time requires that the original article, which was very popular (thank you) be revised to reflect new policies by the lenders.  I have also added several pertinent links to more detailed discussions on the various subjects in this article.

SHORT SALE AND FIRPTA TAX WITHHOLDING – IRS ISSUES PRIVATE GUIDANCE

Back around Christmas, 2008 I co-authored a blog with Miami tax attorney Shawn Wolf, Esq. on the issue of a FIRPTA transaction coupled with a short sale.  The analysis showed that there were no specific IRS regulations and no rulings regarding a short sale transaction that was subject to FIRPTA.  See FIRPTA and SHORT SALES – DANGEROUS LIABILITY TO BUYER AND CLOSING AGENT.

Last month a communication came through from the IRS that confirmed the conclusion made in that article.  I am providing to you the question that was posed to the IRS and the answer received from the IRS for those of you that meet this type of situation

TENANT RIGHTS AND FORECLOSURE – A DISCUSSION OF SAFEGUARDS

The unintended victims of the foreclosure process are often the occupant of the home that is a tenant.  The landlord is a borrower under a mortgage that has gone into default and is now being foreclosed.  What is going to happen to the tenant as a result of the foreclosure?  How can a tenant or future tenant be protected from the ill effects of a foreclosure?  This article will attempt to address these issues.

MORTGAGE MODIFICATIONS TEND TO FAIL

Here is an interesting article from the Washington Post that describes the difficultiy many homeowners have with modified mortgages.

LENDER SHORT SALE ACCEPTANCE LETTER EXAMPLES – READ WITH CAUTION!

What is a short sale?  When giving lectures I like to use the definition as follows:  The sale of a real estate property for a price that is less than the total amount necessary to fully satisfy the actual present encumbrance (mortgage) indebtedness on the real estate property.Often I see a different description, one that says, The sale of real estate when the lender accepts less than its mortgage amount and forgives borrower from paying the deficiency.

MULTIPLE SHORT SALE CONTRACTS AND HOW TO AVOID THEM

Why does it take 3.8 contracts to sell a short sale property?  Why do Realtors insist on spinning their wheels and getting nowhere selling short sale properties?

FORECLOSURE DEFICIENCY JUDGMENT or SHORT SALE PROMISSORY NOTE or BANKRUPTCY – REVISITED

Whether to agree to a negotiated promissory note in a short sale or allow the house to go to foreclosure is one of the most discussed topics around.  It deserves a simple comparison

FLORIDA REAL ESTATE MARKET CONDITIONS RELEASED TODAY

Today one of the state’s largest title insurance underwriters release its 2009 Real Estate Forecast and Southeast Florida focus.  To those of us that live here it is no surprise that the numbers are grim. To those outside of Florida the numbers are shocking!  The report, issued by Attorneys Title Insurance Fund, makes several projections and findings.

FIRPTA and SHORT SALES – DANGEROUS LIABILITY TO BUYER AND CLOSING AGENT

It is critical for Realtors, Buyers, Closing Agents and Lenders to understand the important issues of the short sale when applied to the Internal Revenue Code’s Foreign Investment in Real Property Tax Act of 1980 or FIRPTA transaction because disregard for following the FIRPTA rules will make the Buyer and Closing Agent and possibly the Lender liable to the IRS for the Seller’s Tax Liability!!!!!  The problem is that right now there is NO RULE by the Internal Revenue Service (“IRS”) for FIRPTA Short Sales.

Hope For Homeowners Act a Failure

I have many desperate homeowners coming to my office begging for ways to save their homes.  Often times the homeowners qualify under the published criteria for the hyped Hope For Homeowners program also called H4H by the FHA.  The program, passed by Congress in July 2008 was to save the homes of 400,000 homeowners.  So far only 300 or so have applied!  Why?

A LAWYER’S EXPLANATION OF THE FORECLOSURE PROCESS

As an attorney I often consult with homeowners that are in distress along with the Realtors that represent them in trying to accomplish a short sale.  Often a detailed explanation of the foreclosure process would be very worth while for my client to have a thorough understanding of what they may be facing as the lender seeks to enforce the promissory note and mortgage.  We usually don’t have enough time to explain the process in full, so here is an article that should help non-lawyers understand what is happening according to rules of procedure in the court system and what options lenders have for enforcing the money they loaned to the homeowner.

IS THE FORECLOSURE FINAL? – AND HOW DOES IT AFFECT MARKETING A SHORT SALE?

As an attorney involved in the procedure of foreclosures and short sales I have been asked this question an increasing number of times – which tells me the legal process is confusing when it comes to the full run of the foreclosure process.  So this article will set it out from way in the beginning to the very end and hopefully it will answer your question.

WHAT’S WRONG WITH THE FAR SHORT SALE LISTING AND CONTRACT ADDENDA – AND HOW YOU CAN FIX IT

The Florida Association of Realtors took the lead in making some semblance of consistency, order, and standardized forms for use by Realtors for Short Sale transactions. I doubt many Sellers or brokers realize the draconian conditions of the documents they are using. If you are among them, this article may open your eyes. Because the evolution of Short Sales in 2007 and 2008 has been so dramatic, the forms became problematic at the outset.

FORECLOSURE DEFENSE FALLACY

If you are a listingRealtor or a person who has just gotten foreclosure notice from your lender(s), no doubt you have heard about a myriad of “Foreclosure Defense” firms that promise to delay or prevent foreclosure or even prevent the enforcement of the mortgage because if irregularities in the loan.  What in fact are foreclosure defenses?

SHORT SALE DEFICIENCY DEMANDS AND DEFENSES – The Interstate Highway Analogy

 “What chance is there that the bank is going to make me pay the difference (or deficiency) when we are through?”  This is the most often asked question I get as an attorney that specializes in residential mortgage loan workouts and (avoiding foreclosure through short sales or modification).  If you need basic information to understand the short sale and deficiency issue, see Back to Basics – a Review on Short Sales.

BAILOUT BOGDOWN

It is only 3 weeks since the new bailout programs “started” but don’t ask for any testimonials from any homeowner whose home has been saved.

BANK REJECTS SHORT SALE OPPORTUNITY AND MAKES BIGGER LOSS

Here is more proof that the loss mitigators used by some banks just don’t quite “get it”.  In an article this morning in the Palm Beach Post, by staff writer Eve Samples, Wells Fargo is targeted for its botched handling of a short sale opportunity, resulting in a loss to the bank of at least $40,000 more than it would have experienced in the short sale opportunity. 

BAILOUT MISREPRESENTATIONS AND MISCONCEPTIONS

The government bail out of the housing crisis has created wonderfully conceived programs to keep homeowners in their homes with re-negotiated mortgages or refinanced mortgages.  The specific programs for the home saving legislation are the HOPE for Homeowners (H4H) and FHASecure programs.

I THOUGHT IT OUTRAGEOUS THAT ANYBODY HAS TO STEP IN TO BAIL OUT A BUNCH OF 29 YEAR OLDS DRIVING MASERATIS

Sometimes you get a frank speaking knowledgable person that sums up the day’s thought succintly and in one sentence.  Speaking on the Financial Crisis, legenday investor Jim Rogers, in an interview reported on CNBC this morning said the irresponsible people need to go bankrupt if necessary.  Here is the quote – you’ll love it since it is So True!

ARE WE IN SHUT DOWN MODE?

The stock market is at equivalent lows to times dating back to the Great Depression (which for those of you needed date measurements is almost 75 years ago).

TOP TEN LIST OF SHORT SALE OBSERVATIONS  

For all you short sale Realtors – Here is my list of the top ten short sale rules when dealing with sellers and buyers.  What is your top ten list for YOUR favorite category involved in the short sale process (lender, buyer, seller, buyer Realtor, Seller Realtor, processor, loss mitigator and servicing agent, etc.)?

YOUR Ticket to Normalcy? THE BAILOUT BILL

The Emergency Economic Stabilization Act just passed on October 3rd is not the cure-all you might hope for.  The Act authorizes the creation or expansion of governmental entities and departments to deal with the housing crisis.  Implimenting these provision is what will create the “cures”.  Assuming the “cures” are in place, there are going to be effects upon Realtors, Mortgage Brokers and Distressed Homeowners.  This is how I see the Act helping each group.

EMERGENCY ECONOMIC STABILIZATION ACT – WHAT IT MEANS FOR YOU

My wife asked a very important question this morning – so what does this new Act do for the housing market?

NUTSHELL VERSION – EMERGENCY ECONOMIC STABILIZATION ACT

The BIG news this week is the passage on Friday of the Emergency Economic Stabilization Act of 2008 – or more formally called “Secure Rural Schools and Community Self-Determination Act of 2000”.  Yes, that is how it started and it is known as H.R. 1424.  What it says will change our economic horizon for decades and this article will discuss its major imports for the real estate buyer and seller and homeowners.

BAILOUT FOR HOMEOWNERS – WITHOUT WALL STREET

149 years ago today, Abraham Lincoln stated an important fact for today’s financial crisis.  But first a word of hope.  It is human to think that when times are good, they will stay good. And when times are bad we all hope for good times.  King Solomon went on a quest to find one item that would remind him to realize that good times or bad times, neither is permanent and to be prepared for the other.  He found a ring imprinted with the saying, “this too shall pass“.

FLORIDA FORECLOSURE FRAUD BILL – UPDATE

Government can react positively when enough people raise their voice – and the law is clearly against public policy.  This post updates my article on the Florida Foreclosure Fraud Bill

Second Mortgage Short Sale – Holding Up the Railroad Loot

The Second Mortgage Dilemma can ruin your short sale – Like the old West, the stagecoach holding the railroad’s payroll was always getting held up by the bad guys – at least in the movies.  Has much changed in the Wild West environment of short sales and the fight between primary and secondary mortgage holders?

BANKS CREATE BILLIONS (MORE) IN LOSSES

Short Sale Buyers are increasingly investors seeking to buy and flip or buy and rent for positive cash flow.  Missing from the field are homebuyers seeking a place to live.  Why?

Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios

Basic Primer – the Mechanics of a Mortgage Foreclosure Deficiency Judgment Compared to Deed In Lieu and Short Sale Scenarios – We get so many questions about having a “deficiency judgment” entered and how it differs from other possibilities in a deed in lieu of foreclosure or short sale, that a refresher article seems appropriate for Activerain.  If you are unsure of what a Short Sale is, then first read the Back to Basics – a Review on Short Sales

Back to Basics – a Review of Short Sales

Short Sale Primer – Back Room Lender Decisions – Short sales are nothing new.  When I represented a national lender for all of their foreclosures in the State of Florida several years ago, we negotiated “loan workouts” which are now called “short sales”.  Since they have been around so long, I did some digging with my old pals that were the executives I worked with in the loan workout and REO department of this national lender (the lender has since been merged into Bank of America).

THE BANK CHANGED THE LOCKS!

There is discussion on Active Rain from time to time on whether in a short sale it is advisable to move out of the house. The real issue is the clause in the mortgage that says the bank can change the locks on the house if it is “abandoned”. 

A-T-T-O-R-N-E-Y Spells T-R-O-U-B-L-E in Short Sale  –

Sad Facts about Attorney Misconduct in a Short Sale

FLORIDA FORECLOSURE FRAUD BILL – MY LETTER TO GOV. CRIST  

See UPDATE to this blog and how it was resolved – at FLORIDA FORECLOSURE FRAUD BILL – UPDATE

SHORT SELLER STILL MUST DECLARE INCOME ON SALE!  –

The Mystery of income you can’t spend – but do you have to declare it?  When DON’T you have to report forgiven debt (from a short sale, deed in lieu or foreclosure with release from the lender) as income?

CALLING ALL ETHICAL LOAN OFFICERS – HELLO? ANYONE THERE?

CREDIT REPORTING AND SHORT SALES / FORECLOSURES – REVISITED

I received an email on my quest to find the real answers to the incessant question of how a foreclosure vs. short sale vs. deed in lieu all affect the credit report of the borrower.

1099 REPORTING – IT’S THE LAW! – OR IS IT???  –

1099 SHORT SALE REPORTING – IT’S THE LAW! – OR IS IT???  Since I have developed my SHORT SALE law practice I have a lot of clients that are in foreclosure or close to it.  They all ask me about 1099 reporting and if the bank can forgive the debt and not issue a 1099.  Now let’s see what the law really says.

DIVORCE – CHAINS TO THE UPSIDE DOWN HOUSE VALUE CAN BE BROKEN!!!  –

Chained to your home and can’t get a divorce?  You are not alone! 

SHORT SALE FLIP – QUESTIONABLE METHODS  –

SHORT SALE FLIP – QUESTIONABLE METHODS – This article is a follow up to an issue discussed in December titled Short Sales and Title Insurance – Critical Look at Hybrid Closing Schemes.

FORECLOSURE DEFICIENCY ORDER VS SHORT SALE NEGOTIATED PAYBACK  –

  I was negotiating on a very large problem mortgage today with a high-up executive at the servicing firm.  He made a comment that I thought peculiar and I called him to task on the matter. The comment was that “after the foreclosure sale, lenders seldom bother to get a court ordered deficiency judgment”.  I knew this to be false, because lenders today – more than in the past – are investing a few hundred more in attorney fees to get a deficiency judgment.  I will tell you why.

REAL QUESTIONS – HOW DOES A SHORT SALE AFFECT CREDIT SCORES???  

In a discussion today with a client we addressed the question of credit scores and short sales.  This is a hot topic and there is information everywhere on what happens and when and for how long. 

FORM RELEASED BY IRS FOR DEBT RELIEF ACT FILING

New IRS Form for Filing for Debt Relief

No-Conflict Considerations in Short Sale Fees

As short sales and pre-foreclosure assistance servicers proliferate, the type, style and amount of fees that these individuals and companies charge has become ingenious and varied.  This article discusses the rights and wrongs regarding the most popular of the charging methods.

TOO MUCH MONEY IN THE BANK TO DO A SHORT SALE? – ECONOMIC LOGIC  – 

This week I spoke with several people that wanted to do a short sale of investment property that is upside down in value.  They are sick and tired of the short fall on rental income (if they are lucky to have a renter that actually pays rent) vs the mortgage payment, taxes, insurance and maintenance costs.

Who Says Owner Doesn’t Have Time To Do a Short Sale?

Some writers to my blogs have commented that “they don’t have time to do a short sale”. 

WHAT DO I DO? — I’M UNABLE TO PAY MY MORTGAGE  –

As an attorney, I receive plenty of telephone calls and visits from people that are no longer able to pay their mortgage on their home or investment property.  They all have endless questions and usually tell me they are getting all sorts of advice that they don’t like.  They come to me to find their BEST solution.

SHORT SALE TRILOGY  –

It is really amazing how many people – professionals as well as potential sellers – do not even know what the term “short sale” means.  This blog assumes you have actually worked a short sale already — if you have — or if you are curious — read on!

Mortgage Forgiveness Debt Relief Act of 2007- Another Look

I have been getting a lot of calls and emails about the Mortgage Forgiveness Debt Relief Act of 2007.  The new law became effective today, and applies to 1099’s on short sales or foreclosures retroactive to January 1, 2007.

MORTGAGE RELIEF ACT – CHRISTMAS PRESENT TO PRIMARY HOMEOWNERS

On Thursday the President signed into law – effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.

Underwater – The Cycle Repeats Itself

I cannot be surprised at the stories in the newspapers about homeowners, investors and even commercial property owners being “Underwater” with today’s depressed real estate market values.  Many people that own real estate today were just pre-teens when the last deep cycle occurred.  Or if they are older, they were not in the real estate market at that previous time.

Short Sales and Title Insurance – Critical Look at Hybrid Closing Schemes

Recently I have seen various schemes for streamlining the short sale process for the buyer/investor.  Some discussions have been somewhat heated and involved concepts like dual contracts or even insolvent borrower creating a Land Trust for use by the investor/buyer.  At best, the agreement amongst the blog commentors has been to agree to disagree.

WHO CONTROLS THE SHORT SALE?

In this environment of the short sale it seems apparent that the bank controls the sale.  Some might say the buyer controls the sale.  My opinion is that both statements are primarily incorrect.  The seller owns the house.  The seller must sign the contract.  The seller must sign the deed. 

TAX DEEDS – COURT DEVELOPMENTS NIX SALE!

Tax Deed purchases are popular in many states as a way to acquire real estate at truly rock bottom prices.  Generally a tax deed purchase is first in line after just a few significant “super” lienholders: (1) God, and (2) Code Enforcement Liens.  Practically all others having an interest in the property are wiped out in a tax deed sale.

LOW BALL SHORT SALES – PLAYING THE ODDS?

Short Sales are the buyer road to riches – if you believe the promo advertising that is all over the place.  But the road is not a short one nor is it a smooth one. It is best covered with professional help and guidance.

BORROWERS FACING FORECLOSURE OFTEN OVERPAY – STUDY FINDS

Is our system of foreclosure out of control?  Are the banks acting fiduciarily to their borrowers in the loan management process – are they requred to?

Beware the White Knight!

Apparently there are lots of “White Knight Claims” being made against title insurance policies.  Here are some of the fact patterns:

SHORT SALES AND IRS LIENS

In my law practice we see a lot of short sales.  Indeed, we offer a service to Realtors and Sellers to process their short sale material with the lenders (without the downward pressure and lowball influence from an investor handling the process).  I have worked statewide with lenders – visiting their loss mitigation departments and sitting in on committee meetings.  Knowing the process is key knowledge to improving the percent of short sale lender approval.

TRUE STORY – Renter forges deed, then conspires to sell house and pocket mortgage proceeds

It is a day past Halloween, but here is a scary TRUE story

Some Sellers Think They Are ENTITLED To A SHORT SALE

I had just too many borrowers that “should have known better” in the office this week – so I feel very conservative just now

All Articles Copyright 2007 / 2008 / 2009 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@Florida-Counsel.comFLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW – We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com

Foreign Investors Buying Foreclosures in Florida.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Florida Real Estate Broker 407-873-2747Purchasing a property over here is pretty straight forward. When you see something you like I prepare a 5 page written purchase offer with the price and terms you want to offer. This is presented to the sellers agent with proof of your ability to purchase i.e. bank statements, letter of credit or mortgage approval letter.

Once the transaction is negotiated you will sign the final contact and place a deposit, usually $1,000 to $5,000 in escrow. That can be handled by wiring funds to the closing agent(title company) in Florida.

All foreclosure properties are purchased “As Is” with right to inspect. This means that within 7 to 10 days of contract date you can have the property inspected(surveyed) to make sure it is structurally sound.

The seller makes no warranties and and after the inspection you can either move forward or cancel the transaction and get your deposit back. This right to inspect is called a contingency to the contract.   Once this contingency has been removed we move towards closing.

The Title Company will do a title search and provide a title insurance policy guaranteeing you equitable title. This search and policy is normally paid for by the seller but with some of the foreclosure properties the seller(bank) will not pay for this and it becomes your cost. For a property priced below $100,000 the search and policy will be less than $1,000.  

Once all the contingencies have been removed from the contract and the title has been cleared to close(settle) closing documents are sent to all parties by the Title Company either via email or FedEx. Some of the documents will require a notarized signature so you may need a solicitor for this. After you have signed and the documents have been notarized you pop them back in the FedEx to the Title Company while also wiring the funds to close. Once the Title Company receives the documents back, from both buyer and seller, the transaction is closed and funded. The house now belongs to you.   

As your Broker, I will assist you with:  

  1. Finding the right property
  2. Preparing the offer
  3. Negotiations
  4. Arranging inspections
  5. Connecting you with an Insurance Company
  6. Making sure all contracts are proper
  7. Reviewing the closing documents
  8. Arranging property management if needed
  9. And what ever else needs to be done to make sure it is a smooth transaction for you. 

I think this is all for now. Did I miss anything?  

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

POINCIANA FLORIDA REAL ESTATE MARKET REPORTS

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

MAKE AN OFFER ON ANY OF MY FLORIDA PROPERTY LISTINGS HERE

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR POINCIANA REAL ESTATE

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

 

Is telling the truth being negative?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I thought this was a bunny suit!!Hi folks. Here it is Easter weekend and I’m still working! How about you?

By the way…..I couldn’t find my damn Bunny suit!!!!

Such is life. Anyway, I want to talk a little bit about listing presentations. As most of you, know I am mainly a listing Broker and have been for 15 years. I’ve sold hundreds of homes in Central Florida and consider myself an expert when it comes to pricing and getting Sellers to hire me to sell their properties. It’s what I do and I take it very serious.

Currently, my market is very difficult. Regular listings are just not selling and needless to say this makes my job more difficult. I can’t walk into a listing presentation being Mr. Optimistic any more. Actually….I guess I could….but I won’t. Giving Sellers “false hope” is the worst thing we as REALTORS® can do. Sellers, need to know, that selling their house is going to be very difficult even at the right price. If it’s over priced…well forget about it. They will not get lucky in this market.

So my listing “pitch” has changed. I no longer go in with the attitude, “that if you list with me I will sell your house in 90 days guaranteed”. Because chances are I won’t. And Sellers need to know this. I can’t make promises that I can’t keep. If I did, my Sellers would be very unhappy when I start making excuses for why I didn’t get their home sold as promised. Personally, I don’t do excuses.

“But, Broker Bryant, why be so negative? Why would people list with you if you can’t promise you will sell their house?” Well that’s a good question. Folks list with me because I am 100% honest when it comes to market conditions. The market “is what it is”. There is nothing I can say or do that will change that.

If I painted a rosy picture of the market, when in reality, it sucks, I would be doing my Sellers a disservice. I have more respect for my Seller’s intelligence than that. They know the market is bad and because I tell them this they trust me. I’m not trying to sell them on my services. Instead I’m giving them the truth so together we can devise a plan that will give us the best shot at getting their home sold.

By having this attitude and using this approach I am able to keep properties listed until they do sell. My Sellers are also more receptive to making adjustments when necessary. They know, without a doubt, that I am doing everything I can to get their properties sold.

In this more difficult market, Sellers need a REALTOR® that is able to be brutally honest about current market conditions and pricing. Now having said that, there are still many Sellers out there who are living in la la land. And that’s OK. It’s their property and they can do what they want with it. It’s their right to “hold out” so they don’t have to “give their house away”. They just won’t be doing it with me.

I can assure you, there are many REALTORS® who will be happy to work with them. Of course they will be damaging their reputation and they won’t get paid. But hey, maybe they’ll get a Buyer or two off the yard sign. I wish them luck. 
 
As for me, I will continue to be brutally honest and will continue to under promise and over deliver. I hope you will too. Will you?

Are you a Florida REALTOR(R) looking for a change? Check it out. http://TTRealtyNet.com

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

 Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved   

Advice for the Brand New Real Estate Agent.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Florida BrokerHi folks. On Saturday I participated in a Webinar hosted by Jennifer Alan. I thought it went very well. If you attended I hope you feel the same. Anyway, there was one more question that Jennifer wanted me to answer. Since I didn’t do it on the Webinar I’ll do it here.

What’s the best advice you can give to a brand new agent…?”
 
Hmmmmm……let me see……uhhhh……. Nope. I got nothin’ for ya. I’ve been stumped!!!

OK…..not really. I DO have something for ya. In fact, I have a bunch of somethings for ya.

Brokers are obligated by law to train and supervise their agents. This is not a choice, this is law. At a minimum, new and old agents should be able to properly complete a legible and binding purchase contract and listing agreement. They should be able to prepare an accurate Market Analysis and be able to justify market value to their Sellers and Buyers. They should know when to provide the proper Agency Disclosure.

New agents should be able to intelligently discuss financing, appraisals, inspections, repairs and the closing process. These things need to be taught and learned prior to conducting the services of Real Estate. It is the Broker’s responsibility to make sure all Realtors are receiving this very minimum amount of training prior to holding themselves out to the public as being a professional capable of handling their Real Estate transaction. To be any less qualified than this is probably illegal and definitely unethical.

To be an experienced agent comes later. This is learned by trial and error. Learning how to handle closing issues, negotiating techniques, people skills, preparing marketing plans, having a feel for a deal, being able to confidently counsel your customer/clients and many other skills that can only come from being involved in transactions. Hopefully, the more deals you do the more experienced you will become. One thing for sure about this business is you will never know it all.

My advice to new agents is to take as many training classes as you can. Learn the basic skills required to conduct your business. Read everything you can related to Real Estate. Find a Mentor. Hook up with a great mortgage Broker. Take the GRI classes. Take a seasoned REALTOR(R) with you on your first listing or buyer appointment. Have your Broker review all your contracts prior to presenting them. Read and understand the purchase contact including the standards. Practice preparing a Market Analysis before your first listing.

And most important find a Brokerage that offers training. You can always switch to a higher commission split office later once you know what you are doing. Treat this business as a profession and dedicate your time to learning and you will find this a very rewarding business to be in.

And because I’m a nice guy……I’ll get you started.

MARKETING:

LISTING PRESENTATION:

WORKING WITH BUYERS:

PRESENTING AN EFFECTIVE CONTRACT:

PROPER PRICING:

COMMUNICATION SKILLS:

So how did I do? Did I answer the question?

Are you a Florida REALTOR(R) looking for a change? Check it out. http://TTRealtyNet.com

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

 Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

Agent Short Sale Training

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

SHORT SALE TRAINING

Taught by Wendy Rulnick and Bryant Tutas

$97

 

YOU WILL SUCCEED with this 5 part Webinar with over 8 hours of guaranteed, real-world training taught by Bryant and Wendy. We’ll take you through the short sale transaction from start to finish! Listen at your leisure and soak up all the knowledge you will need to be a Short Sale Superstar! Includes short sale package, forms, approval letters, more.

Listen to a sample of the webinar:

“This is by far the best step by step instruction that I have received in my over 10 years experience in real estate”

CLICK HERE FOR MORE INFORMATION

Click here to read what our Students say.

                                                            www.ShortSaleSuperStars.com

                                                                 

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.