Hi folks. I’ve been having a discussion over at www.ShortSaleSuperStars.com on whether or not having the Buyer of a Short Sale pay off part of a junior lien “outside of closing” without disclosing to the 1st lien holder and without placing the payment as a P.O.C. (paid out of closing) item on the HUD is Mortgage Fraud and/or a violation of RESPA.

The article is presenting a scenario where the 1st lender does not agree to pay the 2nd $7,000 from the sale. They only agree to pay $3,000. So to skirt around this the agent suggest having the buyer pay the additional $4,000 needed to remove the 2nd lien outside of closing. It’s my opinion, that this $4,000 is compensation to the seller for the purchase of the property. This fact, that is pertinent to the sale, is being withheld from the 1st lender. Therefore, in my opinion, it is both Mortgage Fraud and a violation of RESPA.

The definition of Mortgage Fraud as per the FBI is:material misstatement, misrepresentation, or omission of information relied upon by an underwriter or lender to fund, purchase or insure a loan. “.

Also, a Title company that does this without placing these funds on the HUD could very well be breaking the law. Title Companies exist to protect lenders and borrowers. The lien is a title issue and therefore the monies needed to “clear title” need to be shown on the HUD.

THE HUD-1 MUST STATE, WITH COMPLETE ACCURACY, THE FULL FINANCIAL ACCOUNTING OF THE TRANSACTION. Read the rest of the article here.

Not disclosing this $4,000 payment to the first lien holder is fraud. If it weren’t ….then disclosing it would not be an issue. Would it?

Now having said all of that I know these types of transactions happen every day. The chance of being caught and prosecuted are probably slim to none. BUT…..it’s still fraudulent and it’s still wrong. Of course I am NOT an Attorney and this is just my opinion.

Here’s some more great info:

HUD promulgates regulations to enforce RESPA, known as Regulation X (24 C.F.R. section 3500, et seq.). Regulation X includes the requirement that settlement statements be prepared in the form of the HUD-1. The regs include line-by-line instructions and rules as to how the HUD-1 is to be completed. The following is from the “General Instructions” (24 C.F.R section 3500, Appendix A):

“The settlement agent shall complete the HUD-1 to itemize all charges imposed upon the Borrower and the Seller by the Lender and all sales commissions, whether to be paid at settlement or outside of settlement, and any other charges which either the Borrower or the Seller will pay for at settlement. Charges to be paid outside of settlement, including cases where a non-settlement agent (i.e., attorneys, title companies, escrow agents, real estate agents or brokers) holds the Borrower’s deposit against the sales price (earnest money) and applies the entire deposit towards the charge for the settlement service it is rendering, shall be included on the HUD-1 but marked `P.O.C.’ for “Paid Outside of Closing” (settlement) and shall not be included in computing totals. P.O.C. items should not be placed in the Borrower or Seller columns, but rather on the appropriate line next to the columns.”

The “P.O.C.” requirement is also set forth in the upper part of the first page of the HUD-1 form.

Above info was taken from this article

So what do you think? Fraud? RESPA Violation? Or neither?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV.

Has your “flip flopped?”

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

Had one of my Investor customers call me last week wanting advice. He has a $30,000 deposit on a house that will be completed next month. At that time he must come up with another $50,000 to close. He bought this house with the sole intention of “Flipping it for a profit. Thankfully I wasn’t the one who sold him this house. He made the mistake of getting in on this subdivision to late in the game. He also bought the largest model in the community. Never a good thing.

I pulled up the community of about 600 homes and found almost 100 active listings 1 pending and only 7 sales since January 1st. Needless to say he has a problem. He can afford to close but he can’t afford the payments and the rentals in this area will leave him with almost a $1,500 per month negative cash flow. So what are his options? The way I see it if he closes he is going to be throwing good money after bad. If he doesn’t close he will lose his $30,000. A very difficult position to be in. In my area I am expecting to get a lot of these calls over the next few months. The Realtor that sold him the houses loses, the builder loses, the mortgage company loses, the Investor loses and the subdivision loses. The only “winner” in this case is the infomercial guy who sold the “Can’t lose get rich quick in real estate or die trying six weeks to becoming a millionaire information pack available on cd or cassette tape guaranteed to work or your money back we promise” scheme.

Just another example of how investing in real estate is a serious business. The experienced Investors that I work with rarely sell anything. They make their money going in, cover the mortgage by the rent and wait. Flipping is great when it works and can wipe you out when it doesn’t. So, has your “flip flopped?”

Short Sales got you long in the face?

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

FIND A SHORT SALE AGENT BY CLICKING ON THE MAP

Come join us at www.ShortSaleSuperStars.com

Hi Folks. Whether you’re an agent, buyer, seller or investor you really need to come check us out over at www.ShortSaleSuperStars.com.  Our members are the best Short Sale Professionals in the business and are sharing what they know for FREE!! You do NOT have to go it alone. Pop on over and tell us what we can do to assist you.

Here’s what a couple of our Short Sale Buyer members had to say this week:

  • Thank you Bryant, it’s good to know this is going to (hopefully) be an easy transaction. By the way, great site. Very informative and it’s helped me understand what a Short Sale is, as a Buyer it’s nice to know some of the “terminology” and wording in the short sale process. God Bless. DC 
  • First I have to say, I absolutely love this website! It is a great site to come to get immediate responses from people who clearly have done their research and are professionals. I am an anxious Buyer. Vicki

We also have many other great conversations taking place. Our Short Sale Professionals are discussing…..

Home Affordable Foreclosure Alternative H.A.F.A

  • We submitted a “traditional” short sale package about a month ago.  My clients asked me on Wednesday (April 7th) about HAFA – would they qualify and be guaranteed no deficiency?  Well, I called up WF and asked them. READ THE FULL POST HERE  

Equator.com

  • I am currently attempting to buy a listed short sale home.  The contract was initiated on 1/28/10 which I offered the listed price; however, I requested 3% to closing costs.  The listing agent informed my realtor….READ THE FULL POST HERE

Bank of America

  • Has anyone been successful in getting BOFA to rescind/reverse a foreclosure while it was in short sale review? FIND THE ANSWER HERE

Got a deal we can help you with?

  • I am negotiating a short sale with GREEN TREE (second loan) The negotiation is turning into a nightmare. First Green Tree ( second lender) asked for 5% of the amount the first lender in going to net to review the file now after file has been review the investor came back asking for $25,000. CLICK HERE TO SEE WHAT OUR SHORT SALE PROFESSIONALS CAME UP WITH

Maybe you’re new to Short Sales and need affordable Short Sale Agent Training?

Folks, 2010 is going to be the year of the Short Sale. It’s up to us to help as many folks as we can to avoid foreclosure. Please take advantage of all of the tools that we are making available to you at www.ShortSaleSuperStars.com. We now have almost 2,000 members and our site is THE place for all things Short Sales. Come join us. OK?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

 

Short Sales got you down?

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

http://shortsalesuperstars.comNo problem. We’re here to give you everything you need to become a Short Sale Superstar.


Foreclosures are rampant across the U.S. More and more banks and homeowners are turning to short sales as a mutually beneficial solution. The problem? Short sales seem to be what everyone needs – but you never had to do many short sales before.

That’s where we come in. We’ve been working in short sales for years, even before the economy tanked, and we know the strategies that work best to make the banks, the lenders, and most of all your clients come out on top.

Share our knowledge and make sure you have all the tools you need to become an expert in short sales – so you can reap all the rewards of getting your clients just what they need.

What’s standing between you and Short Sale Superstardom? Nothing but the click of a button.

Join our Short Sale Superstars network to get the benefit of a worldwide community of short sale experts, or get in on our 8-hour ultimate seminar in Short Sale Agent Training. From know-nothing to seasoned expert in just 8 hours – there’s no faster route to expertise in short sales.

Get started right now, and say goodbye to that feeling of uncertainty when someone mentions a short sale.

Say hello to the confident feeling of a great close and a happy client.

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Copyright © 2010 REGrow, LLC | All Rights Reserved

Another Successful Bank of America Short Sale

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

Avoid Florida Foreclosure www.CentralFloridaShortSales.com

Hardship: Financial and medical. The Seller is in his 80s and had never made a late payment on anything his entire life until he missed 3 payments on this property. He had lived here for almost 20 years. The property was refinanced to help pay the medical expenses of his terminally ill wife who recently passed away. 

1st Lien with Bank of America for $179,000

No other liens

Property was listed on 12/05/2009 at $95,000. It was slowly reduced and on 1/18/2010 went pending for $75,000 all cash.

The challenge: I wanted to avoid going through the Equator system due to the sellers age and the fact that he was confined to an assisted living facility. I felt that the Equator system would be confusing to him since he did not have access to email or a computer.

After a couple of days of begging negotiating I was able to get the file directly into the hands of a supervisor. The complete file was submitted on 1/22/2010 and we had written approval on 3/11/2010. That was 48 days after submission. Closing was today 4/22/2010. Or 138 days from listing to closing.

Bank of America accepted $68,700 or 38% of what was owed.

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

How to “man up” with Short Sales!

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

I really don’t have anything to say after watching that video except for OUCH!!! Here are a few links to some stuff you may like.

Have you submitted a Short Sale through the Equator system yet?

Bank of America brought up on charges

Twitter? Facebook? Google Buzz?

Speed painting is very cool

Short Sales Suck and I Ain’t Doin’ Them!!

He who has overcome his fears will truly be free.” Aristotle

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

Bank of America and Equator.com make it personal.

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

Hi Folks. Recently I have had two Buyers balk at providing me personal info I need if they want to purchase a Bank of America Short Sale. I really do understand where they coming from but….most of the big lenders including Bank of America and GMAC are now running most of their short sales through http://www.Equator.com.

Supposedly the Equator system will help to shorten the time involved with getting these Short Sales approved. From what I’m hearing Bank of America is giving approvals in 60-90 days as opposed to the 6-9 months they were taking. That’s a good thing.

The Equator system is asking for some personal Buyer info. I assume this is to make sure transactions are “arms length”. If the Buyers want to purchase a Bank of America Short Sale then we have to enter the data.

The reality is it’s less data than what the closing agent will want and far less than they would have to provide if getting financing.  What Equator is requiring is simply:

  • Date of birth
  • The first 5 digits of their social security number.
  • The Buyer’s address.

That’s all we need. No big deal. Of course the Buyers always have the option of just not buying a Bank of America Short Sale. I just hate to see them miss out on a good deal over something so minor. What say you?


Here’s the screen shot from Equator.

Broker Bryant www.CentralFloridaShortSales.com

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

Short Sales Suck and I Ain’t Doin’ Them!!

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

http://shortsalesuperstars.comDoes this sound familiar? You’ve never had to deal with a short sale in your life – until about a year ago, when foreclosures became so common it was rare that you had a seller without one. You’re not even sure you have a real grasp on what a short sale is, much less how to go through the process. And no one seems to be able to tell you how to do it quickly, with no stress.


Well, except us.


Short sales have become the norm. They’re often treacherous, and they can be extremely painful for buyers, sellers, and agents alike.


But they don’t have to be. We’ve spent years figuring out how to make short sales less painful all around. You need to know how to handle a short sale, and we’re more than happy to share everything we’ve learned the hard way – so that you can learn the easy way.


This training series walks you through an entire short sale, from the very moment you realize you need one to the final signature on the deal. We’ve included every single trick, technique, and time-saver in our book to make short sales easy on you and on your seller.

 

You’ll have all the time in the world to learn at your leisure, too, with audio files, Q&A sessions, worksheets, and sample documents. Learn how you want, when you want, the way you want.

Ready to get rid of short sale stress and get yourself into short sale superstardom?

What Do You Get?


· Two experts in the short sale industry walk you through an entire short sale from start to finish

· 8 hours of easy-to-follow instructions along with insider tips and secrets for an extra edge

· All the forms, approval letters, and sample documents you need for your next short sale

· mP3 audio files of all seminars so you can listen at your leisure or refresh your knowledge later

· Q&A for as long as you need to get all your questions answered


We’re here to help you. We’ve been dealing with short sales for several years, and we know it can be rough on homeowners and agents alike. We want to make sure this process is as easy for you as possible, and that starts with getting you the education and short sale training you need to make the right deal.

The best part? It’s only $97. You’ll get to listen in as two short sale industry experts walk you through the process of making a short sale happen, and then get the extra support you need, when you need it, by having direct access to Wendy and Bryant via www.ShortSaleSuperStars.com (By the way…..the site membership is FREE!)

That’s 8 hours of training for one low price– and a real bargain at less than $10 an hour for the best consulting on short sales available in the market.

What Do We Talk About?


If you’re wondering exactly what we cover in each of the short sale training sessions, here’s a quick layout of what we’ll talk about and the specific strategies you’ll learn:


Session One: Short Sale Basics


· What is a short sale?

· How do short sales affect the seller?

· Why would the lender consider a short sale?

· What’s my role as an agent in a short sale?


Session Two: Taking the Listing


· How to qualify the seller

· Questions to be sure to ask (they’re not what you think)

· Documents you’ll need to make a solid short sale

· Disclosures and addenda you MUST have on the listing contract


Session Three: Placing the Property on the Market


· Proper pricing for a short sale

· Our price reduction strategy

· How to market your property for the best leverage

· How to qualify the right buyer for the sale

· How to negotiate the contract that puts you ahead


Session Four: Preparing the Package


· How to check the HUD1

· How to prepare and submit the package properly


Session Five: Presenting the Short Sale


· Making your case to the lender

· The secrets to following up the right way

· How to negotiate the final payoff


Start to finish, the perfect short sale. You’ll receive audio files of the course so you can listen to them as many times as it takes for you to feel comfortable that you can pull off a short sale as perfect as ours.

 

We know you can – all it takes is a little training, and the help of a few seasoned experts.

Becoming a short sale superstar is just that easy.

Who Are These Experts?


We’re Wendy Rulnick and Bryant Tutas, and we have 35 years combined experience in real estate and short sales.


Wendy is the award-winning Broker/Owner of Rulnick Realty, and she’s been selling real estate for 20 years. She’s been featured in Kiplinger Personal Finance Magazine and Florida Realtor Magazine as a short sale
specialist.


Bryant is the Broker/Owner of Tutas Towne Realty, and he’s been in the real estate business for 15 years. Some of his happiest clients are sellers who have been through the short sale process with him and are grateful for how painless he made it for them.


We know firsthand just how rough the short sale process can be on sellers, and we’ve been working for years to fine-tune a process that’s easier on them – and on us.

Now we’re making it easier on you. We’re just that kind of people.

What If I Don’t Like It?

Then you get your money back. It’s just that simple. We know we have the knowledge that helps you become a short sale superstar, but if you don’t feel the same for any reason, then we’re happy to refund your money. We want everyone who takes this course to feel they got their money’s worth.

After we refund your money, we’ll ask you how we can improve for others. We’re that devoted to making sure this is the best training course on short sales out there.

Ready to become a short sale superstar?

SHORT SALE AGENT TRAINING

ONLY $97

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Copyright © 2010 REGrow, LLC | All Rights Reserved

 

Bank of America Short Sales Require More Than Just Waiting Around.

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

Pissed off Broker BI have a Short Sale with Bank of America that I have been working on for a very long time. In fact we are on our 4th Buyer. This Buyer has been under contract since August and has been very patient. I won’t bore you with the details but just suffice it to say that today was the day I needed to get some answers. So I fired off this email to a whole bunch of people in high places.

To who it may concern,

Bank of America’s lack of response to this short sale is disheartening to say the least. My seller has been jumping through hoops for over a year trying to work something out with your bank. We now have the FOURTH buyer that is willing and able to close on this property at market value yet your bank has now closed the file for “Insufficient offer”.

The call center states the file was closed on 4 February even though I have emails from X on the 17th of February stating it was still at the Investors. Was she lying? Or just out of the loop? In fact a new BPO was ordered and done on February 5th.

Back in November I had a long email thread with L who had asked the buyer to raise the contract price from $65,000 to $67,500. They did.  She then asked the seller to contribute $2,700 in cash. He agreed. We thought at this time that we were close to getting an approval. 

The transaction went dead until I heard from L on 12-21-09 telling me the file had been switched over to X

At this time I started trying get an update from X. I was told by her on 2-1-10 that the file was with the investor and had been submitted on 1-8-10. I was again told by her on 2-17-10 that it was still with the investor.

On 3-5-10 the call center told me the file was approved by Freddie Mac on 3-3-10 and that I should be getting the letter at any time. I called back in on 3-09-10 and was told the file was closed. Since then I have sent numerous emails to X and a couple of emails to her supervisor and have not received a response from either. I have also left several messages on X’s voice mail that have not  been returned.

Today I am filing a complaint with the OCC and the BBB. Of course I’m sure you have a very long list of complaints so one more probably means nothing to you. 

I have been working short sales for several years and understand the frustrations on all sides of the transaction. What I don’t understand is the complete lack of communication on this file. If you are not going to approve the short sale then tell us so. Ignoring us is just wasting our time.

I am the co-owner and founder of a network of Short Sale agents throughout the country called www.ShortSaleSuperStars.com  From what I have read on our site, agents and consumers everywhere are pissed off with your complete incompetence. But that’s an issue for a media interview and has nothing to do with this email.

So back on topic. What can I do to HELP you get this file approved and off your desk? THE END

I received a response in 15 minutes and should have my approval tomorrow. Life is good. If you are facing foreclsoure please give ma a call. I may be bale to help.

 

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

 

GMAC Short Sale Verbiage is Stealing MY Money!

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

Fluckers!!!Hi Folks. Richard Zaretsky wrote apost earlier this week titled SHORT SALE MARKET EVOLUTION – GMAC SOLUTION TO FALSE BUYERS  If you haven’t read it pop over and do so.

Richard’s post spawned an article by Bill J Archambault titled Successful REALTOR Or Failed Social Reformer.

Bill’s post got me thinking about this one. Funny how that works!

Here is the language GMAC wants if you have a short sale with them as the lender:

2-3% earnest money must be agreeable to buyer. Contingencies must be removed 14 days after we issue approval letter and earnest money becomes non-refundable. If buyer walks, buyer and seller must agree in writing that earnest money will be wired to GMAC.

GMAC is interfering with my listing agreement and interfering with a purchase agreement.  This is, in my opinion***, Tortious interference. They are NOT a party to either of these contracts and have no right dictating the terms.

GMAC’s new “deposit language” is interfering with my contractual right, as per my listing agreement, to a percentage of the deposit when a buyer walks. Why? I didn’t do anything wrong. In fact, I spent time, effort and money during the pending status of the contract and have the right to be compensated if the deal kicks due to the buyer walking. GMAC wants to steal my money.

And what about the fully qualified buyer that doesn’t have 2% to 3% to put up as a deposit? They could be purchasing the home using VA or USDA (100%) financing but may not be in a position to place 2% to 3% down as a deposit. Now due to this GMAC requirement they are blown out of the water. And of course these are exactly the buyers that are willing to pay a premium for a property.

Make no mistake about it this is just one more step towards banks dictating the real estate market.

Banks are now:

  • Limitting how much I can charge for my services.
  • Preventing me from being compensated for my time and effort.
  • Dragging property values down even further by limitting the buyer pool.

You can be sure I will work the system to my advantage. BUT…dictating how I can charge for my services is a violation of anti trust laws. GMAC can certainly choose to not accept a short sale. That is their decision. How I get paid is my business and they are interfering with my contract. GMAC is not losing money. They are the servicer. They get paid whether payments are made or not. This new verbiage is not to lesson their losses it is to increase their profits.

I wonder if they pass the claimed deposit off to the investor? I doubt it.

Short Sales Suck and I Ain’t Doin’ Them!! Agent Training.

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

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.