As a homeowner considering a short sale, it is important you understand the process. Following are some of the most common mistakes agents and homeowners make when handling a short sale.
Your Property is Priced Incorrectly
Pitfall: Your Property is Priced IncorrectlyThis is the most common mistake made with all properties, and the most common reason a property doesn’t sell.
Solution: Agent Providing Understanding and Transparency Your real estate agent will go through a detailed listing price strategy with you, allowing you to see exactly where your property should be priced based on its current condition, sales in your area, and most importantly, how much time you have left to sell.
Your Short Sale Proposal is Incomplete
Pitfall: Your Short Sale Proposal is IncompleteThis is one of the most frequently seen causes for the rejection of short sales proposals. Most agents do not understand the short sale process and what your lender will be looking for.
Solution: Understand All Aspects of the ProcessYour agent should understand the short sale process in detail and be able to explain it clearly. The agent should also be able to communicate effectively with both you and lenders to produce a complete and cohesive proposal.
There has been Inadequate Follow-up and Communication
Pitfall: There has been Inadequate Follow-up and CommunicationAs your property goes through each stage of the short sale process, an agent can jeopardize the transaction by not properly communicating with everyone involved. As the homeowner, you may not know that your file has been delayed, and that you again may run out of time to close and avoid foreclosure.
Solution: Select an Agent With ExperienceThe right agent knows exactly how to follow up to ensure that your lender’s issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.
Not Enough Time
Pitfall: There Isn’t Enough TimeIt is critical that your agent understands the foreclosure laws in your area. They should be able to show you an estimated timeline for the process, from start to closing. In addition, they should know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.
Solution: Provide Accurate and Useful InformationMake sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.
Your Deal is Not Submitted Properly
Pitfall: Your Deal is Not Submitted ProperlyIf you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.
Solution: Follow Instructions CloselyIf you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.
The Buyer’s Offer is Too Low
Pitfall: The Buyer’s Offer is Too LowMany agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure.
Solution: Proper NegotiationThe right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each potential buyer. This ensures you are presenting the best possible solution to your lender.
The Buyer’s Contract is Not Strong Enough
Pitfall: The Buyer’s Contract is Not Strong EnoughEspecially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.
Solution: An Agent Familiar with Qualifying BuyersYour agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don’t risk this process with an uneducated agent who does not appreciate this aspect of short sales.
In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don’t endanger your financial future and the potential sale of your home with an agent who does not fully understand the process.
ZOOM! Loss Mitigaton works with many CDPE-designated agents have completed extensive training in the short sale process, and in assisting struggling homeowners who need real solutions. They understand what you are going through, and are here to serve and help save your family’s interests.
For more information contact us directly at 1-800-480-1917 or e-mail us at Questions@ZOOMLossMitigation.com.
Sunday, May 31, 2009
Tuesday, May 26, 2009
Please join us at the REBAR Camp SLC June 5th
http://rebarcamp.com/slc/
RE Bar Camp is an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos, and interaction from attendees.
When: 9 a.m. - 4:30 p.m. on Friday, June 5th, 2009
Where: Salt Lake Board of Realtors Campus
230 W. Towne Ridge Parkway, #200 Sandy, UT 84070
Why: To learn from each other, to network with each other, to encourage each other, to challenge each other, to help make each one of us better at what we do.
RE BarCamp is a fabulous FREE day of sharing and learning.
What makes a BarCamp the best event you’ll attend this year? YOU set the agenda. YOU come to learn and to share only the things YOU are interested in!
The main focus of the Salt Lake BarCamp on June 5th is Social Media & Technology.
Topics Include:
Blogging
Twitter
You Tube
Facebook
Search Engine Optimization
Podcasting
Web Marketing
Google
and MORE!
Come learn about the tools and technologies successful agents are using in this economy. You can’t afford NOT to come to this FREE event if you want your business to thrive like never before, even in this economy!
ZOOM! Loss Mitigation
Official Sponsor
Monday, May 4, 2009
Lender Approved Short Sale Properties Available!
**NOW AVAILABLE** Lender Approved Short Sale Properties!
Do you have buyers looking for a great deal? Several agents currently working with ZOOM! have "Lender Approved" Short Sale bargains now available, which can be purchased below market value. Many of these properties have cosmetic problems which can be quickly remedied by the new owner. If a new home buyer is willing to put in a little bit of sweat equity, these homes often represent outstanding value. With our online service, you'll receive a FREE weekly list of lender approved bargains in your buyer's price range and area of preference.
Get the edge on other agents and home buyers by accessing this valuable insider information!
Free Weekly Hot List delivered to you! To begin receiving your weekly hot list, simply go to www.LenderApprovedShortSale.com and complete the form at the bottom of the page and click the 'Submit' button.
To your success,
ZOOM! Loss Mitigation Specialists
Toll-Free: 1.800.480.1917
Direct: 801.527.2011
Website: www.ZOOMLossMitigation.com
Do you have buyers looking for a great deal? Several agents currently working with ZOOM! have "Lender Approved" Short Sale bargains now available, which can be purchased below market value. Many of these properties have cosmetic problems which can be quickly remedied by the new owner. If a new home buyer is willing to put in a little bit of sweat equity, these homes often represent outstanding value. With our online service, you'll receive a FREE weekly list of lender approved bargains in your buyer's price range and area of preference.
Get the edge on other agents and home buyers by accessing this valuable insider information!
Free Weekly Hot List delivered to you! To begin receiving your weekly hot list, simply go to www.LenderApprovedShortSale.com and complete the form at the bottom of the page and click the 'Submit' button.
To your success,
ZOOM! Loss Mitigation Specialists
Toll-Free: 1.800.480.1917
Direct: 801.527.2011
Website: www.ZOOMLossMitigation.com
Sunday, May 3, 2009
A Special Gift
Dear Friend,We are pleased to send you a special gift – a complimentary summary of Billion Dollar Agent – Lessons Learned. You may also be eligible to receive a 30 minute business brainstorming session courtesy of ZOOM! Loss Mitigation Specialists.
To receive your complimentary book summary or to schedule your brainstorming session with the author, please go to http://www.ZOOMShortSale.com and click on the link "A Special Gift" or call our office at 1-800-480-1917. Times available are usually Tue-Fri, 8-9am, 11am-12pm, and 4-6pm EST.
Billion Dollar Agent – Lessons Learned is based on interviews with 70 top agents who have sold over $1 billion in their career, or are on track to do so. It is the only book available with interviews from top national coaches/trainers like Howard Brinton, Mike Ferry, Ken Goodfellow, Walter Sanford, and Floyd Wickman. If you liked Millionaire Real Estate Agent, you will love Billion Dollar Agent – Lessons Learned!
We hope you enjoy this gift of knowledge!
To your success,
Client Care
ZOOM! Loss Mitigation Specialists
Saturday, May 2, 2009
H.R. 3221 Housing and Economic Recovery Act of 2008
Status:
Introduced - Jul 30, 2007
Reported by Committee - Sep 5, 2007
Passed House - Aug 4, 2007
Passed Senate - Apr 10, 2008
Signed by President - Jul 30, 2008
This bill became law.
Cost: $4 per American over the 2008-2012 period.
Other Titles:
-- Building American Homeownership Act of 2008
-- Federal Housing Finance Regulatory Reform Act of 2008
-- FHA Manufactured Housing Loan Modernization Act of 2008
-- FHA Modernization Act of 2008
-- Foreclosure Prevention Act of 2008
-- HOPE for Homeowners Act of 2008
-- Housing Assistance Tax Act of 2008
-- Housing Tax Credit Coordination Act of 2008
-- Mortgage Disclosure Improvement Act of 2008
-- S.A.F.E. Mortgage Licensing Act of 2008
-- Secure and Fair Enforcement for Mortgage Licensing Act of 2008
-- Small Public Housing Authorities Paperwork Reduction Act
Highlights for the bill, generously made available by Project Vote Smart:
The following summary was for the Concurrence Vote for this bill on 2008-07-26. The bill may have changed since then.
-Increases the national debt limit from $9.82 trillion to $10.62 trillion (Sec. 3083).
-Establishes the Home Ownership Preservation Entity Fund to fund the HOPE (Home Ownership Preservation Entity) for Homeowners Program, which will insure up to $300 billion for 30 year refinanced loans for distressed borrowers between October 1, 2008-September 30, 2011 (Sec. 1402).
-Provides that the mortgagor and the Secretary for Housing and Urban Development each receive 50 percent of the appreciation value for each eligible mortgage insured under the HOPE program if changes occur to the property value 5 years after the loan is taken over by HOPE (Sec. 1402).
-Allocates $3.92 billion in grants to States and other units of local government to redevelop abandoned and foreclosed property and $180 million to the Neighborhood Reinvestment Corporation, given that at least 15 percent of the $180 million be provided to housing counseling organizations that provide services for loss mitigation to minority and low-income homeowners (Sec. 2305).
-Establishes a Housing Trust Fund to be used to increase and preserve the supply of rental housing for extremely low and very low-income families (Sec. 1131).
-Establishes the Federal Housing Finance Agency, with regulatory authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance (Sec. 1101).
-Sets conforming loan limitations for Fannie Mae and Freddie Mac at a maximum of $417,000 for a single-family residence up to $801,950 for a 4-family residence, adjusted annually (Sec. 1124).
-Raises the limits on the size of the principle mortgage obligation that is eligible for insurance for most homeowners, up to 115 percent of the local area median house price for single-family homes (Sec. 2112).
-Increases conforming loan limitations in areas where the average house price is over 115 percent of the housing price index (Sec. 1124).
-Increases appropriations under the McKinney-Vento Homeless Assistance Act from $70 million to $100 million for the fiscal year 2009 (Sec. 2901).
-Increases housing benefits for specially adapted houses for disabled veterans from $10,000 to $12,000, with increases each year tied to the residential home cost-of-construction index (Sec. 2605).
-Changes the limitation on the sale, foreclosure, or seizure of property owned by service members from 90 days to nine months after their return from military service, and limits their interest rates to 6 percent during service and one year after their return (Sec. 2203).
-Provides first-time home buyers with a tax credit of up to $7,500 for residences purchased on or after April 9, 2008, which the homebuyers will repay over fifteen years following their purchase (Sec. 3011).
-Expands home ownership counseling eligibility to include people who have a reduction in income due to divorce or death, or who have an increase in expenses due to medical expenses, divorce, unexpected property damages not covered by insurance, or a large property tax increase (Sec. 2127).
-Allows a real property tax deduction on the amount of state and local real property taxes paid during the taxable year of up to $500 for individuals and $1,000 for joint returns, applicable to taxable years beginning in 2008 (Sec. 3012).
Please send an e-mail to Questions@ZOOMLossMitigation.com or call 1-800-480-1917 for a complete summary or a full PDF version of this bill.
Introduced - Jul 30, 2007
Reported by Committee - Sep 5, 2007
Passed House - Aug 4, 2007
Passed Senate - Apr 10, 2008
Signed by President - Jul 30, 2008
This bill became law.
Cost: $4 per American over the 2008-2012 period.
Other Titles:
-- Building American Homeownership Act of 2008
-- Federal Housing Finance Regulatory Reform Act of 2008
-- FHA Manufactured Housing Loan Modernization Act of 2008
-- FHA Modernization Act of 2008
-- Foreclosure Prevention Act of 2008
-- HOPE for Homeowners Act of 2008
-- Housing Assistance Tax Act of 2008
-- Housing Tax Credit Coordination Act of 2008
-- Mortgage Disclosure Improvement Act of 2008
-- S.A.F.E. Mortgage Licensing Act of 2008
-- Secure and Fair Enforcement for Mortgage Licensing Act of 2008
-- Small Public Housing Authorities Paperwork Reduction Act
Highlights for the bill, generously made available by Project Vote Smart:
The following summary was for the Concurrence Vote for this bill on 2008-07-26. The bill may have changed since then.
-Increases the national debt limit from $9.82 trillion to $10.62 trillion (Sec. 3083).
-Establishes the Home Ownership Preservation Entity Fund to fund the HOPE (Home Ownership Preservation Entity) for Homeowners Program, which will insure up to $300 billion for 30 year refinanced loans for distressed borrowers between October 1, 2008-September 30, 2011 (Sec. 1402).
-Provides that the mortgagor and the Secretary for Housing and Urban Development each receive 50 percent of the appreciation value for each eligible mortgage insured under the HOPE program if changes occur to the property value 5 years after the loan is taken over by HOPE (Sec. 1402).
-Allocates $3.92 billion in grants to States and other units of local government to redevelop abandoned and foreclosed property and $180 million to the Neighborhood Reinvestment Corporation, given that at least 15 percent of the $180 million be provided to housing counseling organizations that provide services for loss mitigation to minority and low-income homeowners (Sec. 2305).
-Establishes a Housing Trust Fund to be used to increase and preserve the supply of rental housing for extremely low and very low-income families (Sec. 1131).
-Establishes the Federal Housing Finance Agency, with regulatory authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance (Sec. 1101).
-Sets conforming loan limitations for Fannie Mae and Freddie Mac at a maximum of $417,000 for a single-family residence up to $801,950 for a 4-family residence, adjusted annually (Sec. 1124).
-Raises the limits on the size of the principle mortgage obligation that is eligible for insurance for most homeowners, up to 115 percent of the local area median house price for single-family homes (Sec. 2112).
-Increases conforming loan limitations in areas where the average house price is over 115 percent of the housing price index (Sec. 1124).
-Increases appropriations under the McKinney-Vento Homeless Assistance Act from $70 million to $100 million for the fiscal year 2009 (Sec. 2901).
-Increases housing benefits for specially adapted houses for disabled veterans from $10,000 to $12,000, with increases each year tied to the residential home cost-of-construction index (Sec. 2605).
-Changes the limitation on the sale, foreclosure, or seizure of property owned by service members from 90 days to nine months after their return from military service, and limits their interest rates to 6 percent during service and one year after their return (Sec. 2203).
-Provides first-time home buyers with a tax credit of up to $7,500 for residences purchased on or after April 9, 2008, which the homebuyers will repay over fifteen years following their purchase (Sec. 3011).
-Expands home ownership counseling eligibility to include people who have a reduction in income due to divorce or death, or who have an increase in expenses due to medical expenses, divorce, unexpected property damages not covered by insurance, or a large property tax increase (Sec. 2127).
-Allows a real property tax deduction on the amount of state and local real property taxes paid during the taxable year of up to $500 for individuals and $1,000 for joint returns, applicable to taxable years beginning in 2008 (Sec. 3012).
Please send an e-mail to Questions@ZOOMLossMitigation.com or call 1-800-480-1917 for a complete summary or a full PDF version of this bill.
Friday, May 1, 2009
Treasury Announces TARP Capital Purchase Program Description
We have had several agents recently ask about the TARP program and exactly what it is.
The summary is posted below:
October 14, 2008
HP-1207
Treasury Announces TARP Capital Purchase Program Description
Washington- Treasury today announced a voluntary Capital Purchase Program to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy.
Under the program, Treasury will purchase up to $250 billion of senior preferred shares on standardized terms as described in the program's term sheet. The program will be available to qualifying U.S. controlled banks, savings associations, and certain bank and savings and loan holding companies engaged only in financial activities that elect to participate before 5:00 pm (EDT) on November 14, 2008. Treasury will determine eligibility and allocations for interested parties after consultation with the appropriate federal banking agency.
The minimum subscription amount available to a participating institution is 1 percent of risk-weighted assets. The maximum subscription amount is the lesser of $25 billion or 3 percent of risk-weighted assets. Treasury will fund the senior preferred shares purchased under the program by year-end 2008. Institutions interested in participating in the program should contact their primary federal regulator for specific enrollment details.
The senior preferred shares will qualify as Tier 1 capital and will rank senior to common stock and pari passu, which is at an equal level in the capital structure, with existing preferred shares, other than preferred shares which by their terms rank junior to any other existing preferred shares. The senior preferred shares will pay a cumulative dividend rate of 5 percent per annum for the first five years and will reset to a rate of 9 percent per annum after year five. The senior preferred shares will be non-voting, other than class voting rights on matters that could adversely affect the shares. The senior preferred shares will be callable at par after three years. Prior to the end of three years, the senior preferred may be redeemed with the proceeds from a qualifying equity offering of any Tier 1 perpetual preferred or common stock. Treasury may also transfer the senior preferred shares to a third party at any time. In conjunction with the purchase of senior preferred shares, Treasury will receive warrants to purchase common stock with an aggregate market price equal to 15 percent of the senior preferred investment. The exercise price on the warrants will be the market price of the participating institution's common stock at the time of issuance, calculated on a 20-trading day trailing average.
Companies participating in the program must adopt the Treasury Department's standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this program. These standards generally apply to the chief executive officer, chief financial officer, plus the next three most highly compensated executive officers.
The financial institution must meet certain standards, including: (1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on the financial institution from making any golden parachute payment to a senior executive based on the Internal Revenue Code provision; and (4) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive. Treasury has issued interim final rules for these executive compensation standards.
Nine large financial institutions already have agreed to participate in this program, moving quickly and collectively to signal the importance of the program for the system. These healthy institutions have voluntarily agreed to participate on the same terms that will be available to small and medium-sized banks and thrifts across the nation.
Please e-mail us at Questions@ZOOMLossMitigation.com or 1-800-480-1917 for a complimentary copy of the public terms sheet.
The summary is posted below:
October 14, 2008
HP-1207
Treasury Announces TARP Capital Purchase Program Description
Washington- Treasury today announced a voluntary Capital Purchase Program to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy.
Under the program, Treasury will purchase up to $250 billion of senior preferred shares on standardized terms as described in the program's term sheet. The program will be available to qualifying U.S. controlled banks, savings associations, and certain bank and savings and loan holding companies engaged only in financial activities that elect to participate before 5:00 pm (EDT) on November 14, 2008. Treasury will determine eligibility and allocations for interested parties after consultation with the appropriate federal banking agency.
The minimum subscription amount available to a participating institution is 1 percent of risk-weighted assets. The maximum subscription amount is the lesser of $25 billion or 3 percent of risk-weighted assets. Treasury will fund the senior preferred shares purchased under the program by year-end 2008. Institutions interested in participating in the program should contact their primary federal regulator for specific enrollment details.
The senior preferred shares will qualify as Tier 1 capital and will rank senior to common stock and pari passu, which is at an equal level in the capital structure, with existing preferred shares, other than preferred shares which by their terms rank junior to any other existing preferred shares. The senior preferred shares will pay a cumulative dividend rate of 5 percent per annum for the first five years and will reset to a rate of 9 percent per annum after year five. The senior preferred shares will be non-voting, other than class voting rights on matters that could adversely affect the shares. The senior preferred shares will be callable at par after three years. Prior to the end of three years, the senior preferred may be redeemed with the proceeds from a qualifying equity offering of any Tier 1 perpetual preferred or common stock. Treasury may also transfer the senior preferred shares to a third party at any time. In conjunction with the purchase of senior preferred shares, Treasury will receive warrants to purchase common stock with an aggregate market price equal to 15 percent of the senior preferred investment. The exercise price on the warrants will be the market price of the participating institution's common stock at the time of issuance, calculated on a 20-trading day trailing average.
Companies participating in the program must adopt the Treasury Department's standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this program. These standards generally apply to the chief executive officer, chief financial officer, plus the next three most highly compensated executive officers.
The financial institution must meet certain standards, including: (1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on the financial institution from making any golden parachute payment to a senior executive based on the Internal Revenue Code provision; and (4) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive. Treasury has issued interim final rules for these executive compensation standards.
Nine large financial institutions already have agreed to participate in this program, moving quickly and collectively to signal the importance of the program for the system. These healthy institutions have voluntarily agreed to participate on the same terms that will be available to small and medium-sized banks and thrifts across the nation.
Please e-mail us at Questions@ZOOMLossMitigation.com or 1-800-480-1917 for a complimentary copy of the public terms sheet.
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