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Rich Hudson Information Technology, San Diego, CA

Date: August 1, 2008

I am sorry to hear what you and your client are going through. Short sales are among some of the most frustrating, time-eating, soul-sucking transactions out there. Unfortunately, there are no signs they are going away. I know some agents now just avoid them all together. Lenders need to wake up and realize if they continue to make this process so difficult, they may as well do away with short sales and go straight to foreclosure because agents and buyers alike will begin to understand that the short sales are sometimes just not worth it. I just closed one that went very smoothly and it still took three months of no communication and last minute headaches. This was after the offer was accepted!

Kat

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Harris Real Estate University is one of our new sponsors. They specialize in short sale education. You might want to check them out at http://ShortSaleSecrets.realtown.com

Rich Hudson
Director of PR/Marketing
InternetCrusade
(619) 283-7302 Ext. 602
Rich@InternetCrusade.com

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David Melford Licensed Real Estate Agent, Pasadena, CA

Date: August 1, 2008

Hi Catherine,

Yes "Short Pay" sale are frustrating. I closed one recently where everything went as planned with a small bank, but I am sure large banks that can't see the left & right hands are extremely disconnected. In any event I would do the same. Letter of Authorization (signed by the seller with the loan #) faxed and emailed. Then call back many time to get to the manager and then get your manager to confrence in. List high on the commission to drop no lower than 5% on both sides. Make sure the hardship package includes the hand written letter from the seller and the seller information sheet that bank approves with your BPO with color photos of the home's condition and the highest offer. When the bank responds, they normally approve subject to the seller signing a new note (unsecured) for some of the loss; like closing costs. I know for sure the banks don't pay any outstanding vendor bills or reimbursments that are not secured by a lien.

Here's my question how many of the Teal Town members have successfully closed short pay sales that have 3 and 4 loans on title, even if the other loans are lines of credit or business loans from American Express?

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Catherine Myers Licensed Real Estate Agent, Walnut Creek, CA

Date: August 1, 2008

many of the Teal Town members have successfully closed short pay sales that have 3 and 4 loans on title, even if the other loans are lines of credit or business loans from American Express?>>>>

Not Amex, but I just closed a short sale with 3 loans. Geez, in some ways maybe we can see a glimpse into Countrywide's problems, they were the third on an already over encumbered property. GEEESH.. but we settled it with 3 banks and closed last week.

Catherine Myers, REALTOR

GRI, CRS, ABR, SRES

Alain Pinel Realtors

1646 No. California Blvd., Suite 101

Walnut Creek, CA 94596

925-683-2125 cell

925-465-1593 fax

www.DiabloValley.net

www.CCShortSales.com

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Catherine Myers Licensed Real Estate Agent, Walnut Creek, CA

Date: August 1, 2008

Re: Harris, and other short sale designation and teaching companies....

If anyone could call themselves a "short sale specialist" it would be me and others who have done MANY.. .I am very very wary of "classes" and "seminars" and "designations" that make agents believe they can do this. In fact, it was Harris University I saw quoted that said due to the new bush law most people will not owe taxes after a short sale. Now SOME people won't owe taxes.. but that is a dangerous way to "teach" agents. I'm sorry , I just don't buy into all this stuff. Yes, you can always learn something and I'm sure (and hope) Harris is bringing in seasoned short sale experts and not just teaching classroom junk, because there is ABSOLUTELY NO SUBSTITUTE for doing it! For knowing what you're doing from first hand experience. Half the stuff I've seen taught at seminars does not apply in real life.. so I look back and realize that short sale seminar teacher really had no idea. Problem is they teach to people who know less than them so no one is the wiser.

I say , if you're going to do short sales, team up on your first couple with an agent who does know what they're doing from real life experience, not a seminar, not a series of tele seminars, not some letters behind their name that says they're designated.

My two cents...

Catherine Myers, REALTOR

GRI, CRS, ABR, SRES

Alain Pinel Realtors

1646 No. California Blvd., Suite 101

Walnut Creek, CA 94596

925-683-2125 cell

925-465-1593 fax

www.DiabloValley.net

www.CCShortSales.com

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Katheryn "kat" Gardner Licensed Real Estate Agent, Hilton Head Island, SC

Date: August 1, 2008

Kat - we agree Short Sales are not going away in fact in some areas they are as much as 80%+ of the closed.

Hi, Cadey!

I appreciate the note about the short sale seminar. The problem is not that agents don't understand the process. Some don't but also a lot of us do understand. The issue is with the process itself. I understand most of these lenders are overwhelmed with sheer numbers of short sales and foreclosures. The biggest problem I see is the time issue. The lender needs to streamline the process so that it can be started and finished in a timely manner. Three to six months and longer is not an acceptable time frame for a property facing foreclosure. Because communication is so difficult and the lender has different departments that don't necessarily talk to each other, the longer the property stays in a short sale situation, the more problems are likely to occur. For example, it is not unheard of that a buyer is approved for a short sale and a closing date is set and at the same time the property is being sold on the courthouse steps. Also, if the property in question is a condominium, the condo or regime fees can be piling up. The same goes for any home that may have association fees. Also, taxes are not being paid. These often have nothing to do with the bank and the buyer only becomes aware of them at the closing table. Unless the buyers agent knows to ask these questions beforehand, of course J! If the short sale process could be streamlined so that the process could be completed in no more than six to eight weeks, I believe this would take a burden off everyone concerned. We would still need to have agents educated in the process and also trained as to what questions to ask about other fees that can be attached to properties, but there could be a conformity that would make this easier. What does the bank have to gain by dragging out the process? As in my example, CountryWide has stated they will not respond to any offers for at least eight to ten weeks, if then. This includes full price, cash offers. Offers that can close in days, not weeks. What possible reason could a lender have for not settling this issue as soon as possible? Each month finds the seller further behind and the lender still holding a debt. It is just not good business!

And yes, I do realize that I am screaming in the wind! I don't see this process changing anytime soon and we will all have to do the best we can. This includes learning as much as we can about the process and the property we are working on as well as educating our clients.

Kat

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Terri White Licensed Real Estate Broker, Las Vegas, NV

Date: August 1, 2008

WAMU is the worst lender to try to work with; I have stopped trying to sell short sales, knowing that WAMU and Countrywide are not at all interested in helping close a transaction; the buyers generally blame the real estate broker, even with disclosures and disclaimers that I have them sign. And, with miltiple offers, I have found in the Las Vegas market, that is is far better to find listings that are not "short" and make reasonable offers that have a chance of being accepted or countered in a timely manner. I can see that most of the short sales in our area will be REO properties very soon. And, there is no secret as to why. The lenders have no interest in responding to us, and there is really no reason that I can think of for brokers to work so hard and buyers to stress so much when there are really some great "bargains" to buy. The brokers/agents do not need to take classes or be certified in short sales; the lenders should take the classes and become certified! I continue to find the best "deals" for my buyers without including short sales in the mix. Hopefully, we will all see the end of this problem before too long. Terri White Broker/Owner Las Vegas Properties

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Catherine Myers Licensed Real Estate Agent, Walnut Creek, CA

Date: August 2, 2008

I have stopped trying to sell short sales, knowing that WAMU and Countrywide are not at all interested in helping close a transaction; the buyers generally blame the real estate broker, even with disclosures and disclaimers that I have them sign. And>>>

I'm actually a little sad to hear that. And I will agree that of all short sales I've done, and all I am doing, WaMu is - hands down, the WORST! BUT, Countrywide, has gotten MUCH MUCH better. I got two approvals from them this week, two different files and they were submitted 40 days ago. Not bad. We will now close this month. Another file with CW has been submitted for management approval, so that will be three approvals in two weeks, all submitted in mid to late June.

B of A. Also, 40 days or so , start to finish.

Citimortgage. Again - average 45 days or so.

WaMu - is bad.

Wells Fargo - mixed reviews. I have one approved in LESS THAN 30 DAYS! Another couple almost approved... and one taking 6 months. Though I think they've streamlined their process since 6 months ago, which may be why the newer submissions are going better.

I want you buyer agents to show my listings. I provide a write up on the MLS you can print out with tips on how to help us streamline the process. I want you to be confident in MY ABILITY to get this done. Besides the banks and their own issues, I will say that the NUMBER ONE reason a short sale is not approved or doesn't beat a foreclosure sale is the listing agent. Sorry, but it is. And, I am starting to REALLY question these third party negotiation services. Sorry, but I have had much better luck than anyone I've heard that is using one. I started using one at the beginning of the year - disaster. He's almost cost us a couple deals.. and in fact, I'm worried about relinquishing *MY* fiduciary duty to MY clients by handing over this important deal to someone else. SO be careful. THat will be a whole 'nother topic I'll rant about someday.

Though I will say... when I work with buyers, I am VERY VERY careful about which short sales we may write on. I want to talk to the listing agent. I can tell in 3 minutes as to whether they know anything of what they are doing. If not, I warn my client of the potential pitfalls and share my experiences.. then I let them decide. I do not hesitate to show certain agent's short sales because I know they know the process. So if you were here, I'd want you to show my listings. I keep the process transparent as I don't want you and your client to be always wondering what in the world is happening. You should see my conversation logs on these.. and if the buyers agents want them, I am happy to send them (absent any personal data re: seller).

Ok, off my soap box :)

Catherine Myers, REALTOR

GRI, CRS, ABR, SRES

Alain Pinel Realtors

1646 No. California Blvd., Suite 101

Walnut Creek, CA 94596

925-683-2125 cell

925-465-1593 fax

www.DiabloValley.net

www.CCShortSales.com

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Cadey Charfen Licensed Real Estate Broker, Boca Raton, FL

Date: August 3, 2008

If anyone could call themselves a "short sale specialist" it would be me and others who have done MANY..

Catherine:

We are all entitled to our opinions however you should be careful when indicting all educational courses on short sales or distressed properties. 100s of agents have earned the CDPE Designation and it has been endorsed by National Brokerages, the State of Florida, Howard Brinton's Star Power and many more. Take a look at the testimonials it has received (http://www.cdpenow.com/cdpe_testimonials.html) also 100% of the agents who have attended to course say they would recommend it to another agent of their broker. I could not agree with you more - there is a TON of bad information in the market today. HR 3648 is a specific area of wrong info, you are right only some homeowners will be alleviated form cancellation of debt tax. The CDPE contains a detailed presentation and written explanation of exactly what the Mortgage Forgiveness Debt Relief Act of 2007 does for homeowners.

In a market were agents need education and information now more than ever we need to encourage them to get it.

The same way that the GRI is like a graduate degree in real estate, the Certified Distressed Property Expert Designation is like a major in Distressed Properties. It is the only course of its kind that I have seen that has a 100% money back guarantee. Perhaps before you dismiss all educational products you should give it a shot - you have nothing to lose and no risk. You can register here http://www.cdpenow.com or call 800-482-0335 for more info.

The proof is in the agents who have taken the course, listed the short sales and are closing them! CDPEs are doing better this year than last - there are not too many people who can say that in this market!

Cadey Charfen

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Ruth Wise

Date: August 3, 2008

Terri White writes: WAMU is the worst lendert to .......

I am also doing my first short sale with WAMU, this is taking over three months to close. Something I don't understand is that when the papers were sent my commission was going to be 5% of the purchase price , recently I received a fax from WAMU and they have lowered my commission to 3% of purchase price. What should I do in a case like this? Is there an internet class on Short Sales? I'm interested in taking it.

Ruth Wise

WISE CHOICE REAL ESTATE

614 N Main

Roswell, NM 88201

575-625-6935 Office

575-625-6932 Cellular

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Catherine Myers Licensed Real Estate Agent, Walnut Creek, CA

Date: August 3, 2008

same way that the GRI is like a graduate degree in real estate, the Certified Distressed Property Expert Designation is like a major in Distressed Properties. It is the only course of its kind that I have seen that has a 100% money back guarantee. Perhaps before you dismiss all educational products you should give it a shot - you have nothing to lose and >>>

Actually, my post clearly said you can learn something in every class you take. I'm all about education as is evidenced by the alphabet soup I am proud to say I've "earned." But just like the licensing class for our state tests was in no way enough to have us ready to sell homes, a class needs to be supplemented by real life experience. Just like it would be hard to learn Powerpoint from a class and not doing it. There are always fabulous tips and educational value in classes, seminars, and designations. That's great. But until you've done some I don't think anyone could say they are a "specialist" and that is what some people say. People rely on that, and if you fail them based on your lack of experience, they will be looking to their "specialist" as to why. That's all I'm saying. You have to do it too. Not just take a class. Do you disagree? All those testimonials. . . have all those people now had successes at "distressed properties." No matter what my designation says, and no matter even what my experience level is I would whole heartedly resist EVER calling myself an expert.. that is my opinion. .if you call yourself an expert, you are held to a higher standard by the public, period. Are you really an "expert" after the class? That's all I'm asking you and others to consider. Be careful ...

I'm doing 60% more business this year than last, all short sales, and no designation for it. Yes, I've taken seminars, and classes and I loved them, learned something at every one. But I tell ya, I'm learning something new every day actually doing it. Every day I learn something that makes me better at it, know how to submit it better or differently, know better how to coach clients and other agents. No experience for real life, that's what I'm saying.

Catherine Myers, REALTOR

GRI, CRS, ABR, SRES

Alain Pinel Realtors

1646 No. California Blvd., Suite 101

Walnut Creek, CA 94596

925-683-2125 cell

925-465-1593 fax

www.DiabloValley.net

www.CCShortSales.com

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