My New Blog

There are many corporations in the residential real estate sector and commercial sector of real estate who have made the decision to perform short sales or let the banks take back the properties...  Many say it is a smart business decision on their part.

However, a homeowner or investor of real estate walks away, that person is called names but some...

In this market more than ever, you need to look at your personal finances and figure out what your game plan is both for short term and long term.

I tell many people who call me on short sale advice to just try to take all emotion out of this and put pen to paper and logically work your numbers.  It may be a very good decision to let some bad investments go - And in some cases it may be your primary residence...

I suggest to all people to talk to others, talk with you family and really put you first if you have gotten into certain projects that have not panned out well...

Here is a start:

Put pen to paper:

• Total monthly income.
• Your total monthyl expenses (ALL EXPENSES - ie - gas, food, entertainment) - Realistically...
• Your bad assets (IE- negative cash flowing real estate).
• Your good assets
• Your future assets / retirement

Life is short and these decisions now may make life less stressful in your future. 

My primary concentration is sucessfully performingn short sales on a residential and commerical basis.  If you or someone you know needs help or advise, call me for a no obligation meeting.

As always, we are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

VIDEO BELOW:

Are You Looking To Modify Your Loan Instead of Short Sale??  Be Prepared!

If you are serious about keeping your home but need a little help with the monthly payments, then I encourage you to try and modify your loan with your currrent lender...  This short video below will assist you in being prepared with the pertinent documents needed to provide to your lender so they can make a sound decision.

Watch This UTube Video compliments of the Government Entity Freddie Mac:

FreddieMac

If the modification does not work out, call me so we can discuss a short sale to avoid foreclosure.  By hiring an experienced real estate broker, like myself, it will not cost you anything and has a good chance to prevent you from foreclosing leading to a quicker rebuild.  Call Steve R. Daria for more details.... 

As always, we are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Short Sales + Tolerance + 2010

Short sales have been a grueling process in many cases in my experience… Some have been so timely and we actually closed in less than 10 days… Others have taken 3-4 months…

What does this year have for us in 2010 for short sales?

I think it should get better… With the new guidelines (see blogs below with full 44 page report) that are supposed to take in effect in April 2010 it should streamline the short sale process within every bank.

I am optimistic that this will happen even though staffing within these banks, I believe, has been a huge issue. Not enough man power for the job.

I spoke to a Bank of America negotiator the other day. She told me there were over 3,000 representatives attending a workshop for new trainees just for short sales.

We will see how it goes… I deal with some reps who are not very good and then others that know what to do. We will actually call the line multiple times to get someone that we feel confident will provide us decent results in a timely manner.

Seller:

The strategy for your agent representing you on the sale:

1. Ensure they have a full package.

2. Aggressively call to ensure they are moving along (We call every Monday and Thursday)

3. Seller - Be tolerant – Some may be quick, others may take some time – But, hey – You may have just avoided a foreclosure.

Buyer:

The strategy in buying a short sale:

1. Be sure the listing agent knows what they are doing with a short sale. If not valuable time could be wasted on a property that you may never purchase.

2. Be sure you have a good buyer’s agent interviewing the listing agents that have the properties to ensure they are experienced.

3. Be tolerant on getting a good deal - In our Southwest Florida market, if you make a short sale or foreclosure purchase, you are doing well. As there is A LOT of buying activity!

As always, we are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria

Maxim Realtors, LLC

(239) 425-5671

shortshortsale@gmail.com

Are banks logical with Short Sales & Loan Modifications??

Answer: NO

But I can give some banks credit that they are trying.

You think about the family that just needs a small reduction in their mortgage to help them save their home but are denied. Why? They have to fit in strict guidelines – Cannot make too less or too much money, show hardship, etc.

Why? It is estimated over 50% of people who are modified will end back up in foreclosure… So people must meet these strict guidelines.

Now short sales are no easy ride either. It is a process but many banks are streamlining the process. Thankfully.

There are some banks that will still take 120 days to close but hopefully the new treasury guidelines ensure a more efficient process for everyone (see our past blog with the entire 44 page doc on that).

My suggestion: If you are looking to save your home and need a modification, do not give up. Provide them everything they need and see what comes up. You do stand a chance.

If you are:

· Facing foreclosure

· Denied modification

· Modification presented still does not help

· Losing money because the rent does not cover the expenses

· Completely upside down and this is a bad asset

A Short Sale may be an option. We are dealing with most major banks, many small banks and even FDIC in short sale transactions in Lee, Collier and Charlotte Counties of Southwest Florida. Every day is a learning experience for me and my staff. However we do not give up and we are successfully saving people from foreclosure on their records.

I have many clients that will express their thoughts of our service. And we hope to do the same for you!! Please be aware of those charging upfront money.

As always, we are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria

Maxim Realtors, LLC

(239) 425-5671

shortshortsale@gmail.com

Fed housing program encourages short sales!!

Well Here it is - I have attached the full 43 page guidelines from the US Treasury Dept to better help the public with their housing situation.  Please look below at the highlights of this!!  I am sure this will be very enticing for many!!

NewGuidelines.pdf

• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).

• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed.)

• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors.

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on Dec. 31, 2012.

As always

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

Treasury sets guidance to simplify "short sales"

GR8 Article:

Check it out -

http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales 

Remember...

Please spread the word about our short sale services.  We are saving people from foreclosure on a daily basis by means of a short sale.

Servicing Lee, Collier and Charlotte counties in Florida.

Call to talk: (239) 425-5671

Email to write:  shortshortsale@gmail.com

Short Sale Highlights

Good morning!

Please refer to all short sale blogs below for more short sale details on many of the highlights below.

As always, if you have questions regarding short sales, I can be contact direct at (239) 425-5671 or at shortshortsale@gmail.com

We are aggressively and successfully performing short sales thus helping hundreds of people to avoid foreclosure in Charlotte, Lee and Collier counties. No worries if your property is not located in these areas. We are trained and certified short sale specialists with direct contact to other short sale specialists nationwide!!

With that said – Here are some short sale highlights!!

· A short sale can have a much less negative effect on your credit than a foreclosure or deed in lieu of foreclosure

· A short sale acts as a traditional closing with specified close date once we get an approval

· In most cases a short sale approval will have the language for a waiver of deficiency.

· If you maintain your credit you may be able to purchase a home in 24 months or less.

· We have other affiliates who have sold homes to people who have short sold their home 90 days from the short sale date. They kept current on their payment all the way to close and bought 3 months later!!

· Banks are more willing to do a short sale than foreclose on you. The time is now when things are so lenient and the government encourages it.

· Banks are making the short sale process even easier!

· It is estimated that there will be another 3,000,000 short sales, deed in lieu of foreclosure and foreclosures combined nationwide before we see this slow down. Why foreclose when you do not have to?

· A short sale will cost you NOTHING! If anyone is charging you money to do a short sale, RUN!

· A short sale is a means to a quicker recovery for you and your family.

· This can be time to relieve a bad asset for you! IE – negative every month b/c the rental market is so low!

· The short sale process is fairly easy for you – There are certain documents that are required. Once we get them from you, it is all up to us!

· We do not guarantee a short sale but we have a strong closing percentage –

· Short sales can be done with 2 mortgages on the property.

· A short sale will clean up all past liens – Back taxes, HOA fees, etc – All are paid by your lender at closing.

· We average 7 days on the market for short sales.

· You do not have to be delinquent on your mortgage to do a short sale. It is a personal decision.

· Depending on how the property is held, you may not be taxed on the deficient amount! Speak with your accountant.

· Timelines for short sale approval are becoming quicker and quicker.

I am sure I am forgetting some other things, but feel free to call me, write me or set a time to meet so we can discuss your options.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

"Lis Pendens" How many have been filed in Lee and Collier Counties??

Despite what I hear from some media, things are not necessarily getting better in the real estate market.

Some think - Wow... There has been a lot of foreclosures and short sales and the properties must be drying up and we should get back to a stabilizing market...

I beg to differ. There are many people in trouble due to job loss, decrease in income, maturing loans and the inability refinance or work out with the lender...

Below is just a quick sample of why I believe the foreclosure market will continue to climb as well as the short sale market (for those proactive individuals).

Lis Pendens is a pending lawsuit.

When a Lis Pendens is filed by a lender it is basically the formal notice to inaugurate the foreclosure process…  Go to your local county clerk of courts and you will find these staggering numbers.

Lee County:

From {November 1^st 2009 – November 12^th 2009} there were 631 Lis Pendens filed.

Collier County:

From {November 1^st 2009 – November 12^th 2009} there were 282 Lis Pendens filed.

Between two counties, that is estimated 76 per day!! Not all are bank related but majority of them are.

We are aggressively helping people to avoid foreclosure. Let me know if I can answer questions and be of service to you. At NO cost.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

Is it still possible to hold on for that short sale or foreclosure or a slow seller?

Here is an article on the tax extension for first time homebuyers.  This has stimulated homes sales across the country.

The extension will help thousands get into homes comfortably...

http://www.realtor.org/press_room/news_releases/2009/11/extension_positive

Are you purchasing?  We have buyer agents busy at work scoring the right properties for our clients.  First time home buyer, investor, second homes, etc. 

We are aggressively helping people to avoid foreclosure. Let me know if I can answer questions and be of service to you. At NO cost.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

What Happens to the Deficient Amount in a Short Sale??

This is one of the top questions we receive from people who are looking at the option of a short sale.

Our goal is to get a short sale approval stating that the bank waives any deficiency rights. I have included in this message two recent sample “Short Sale Approvals” for your review. These are by two large well known banks.  One of which is an investor. 

The literature we are looking for:

“This letter will confirm our acceptance of the short payoff on the above referenced property.”

“We agree to accept the proceeds as full and final satisfaction on the mortgage indebtedness”

“Approval to sell the property which will result in a short payoff of the mortgage of the mortgage… agreed settlement short of full payment and waive any deficiency rights.”

Here are two recent short sale approvals that we received (October 27^th 2009)

#1:  ShortSaleApproval1.pdf

#2:  ShortSaleApproval2.pdf 

We are aggressively helping people to avoid foreclosure. Let me know if I can answer questions and be of service to you. At NO cost.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

We provide short sale help -

Short sales have become a common name in the real estate market for the past few years.  Ray Martin explains back in 2007 the summary of a short sale on CBS NEWS. 

Watch CBS News Videos Online

For short sale help:

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

Last Chance – Free Short Sale Seminar

There has been A LOT of response from the public and I want to ensure no one misses the chance to learn more about short sales.

There are only a few seats left for this free short sale seminar!! RSVP a must - shortshortsale@gmail.com

Thursday October 15th 2009 @ 7:00pm

Our special guest will be Mark Makara from Makara & Associates. An accounting firm that has experience in dealing with shorts sales and the tax consequence associated with them.

· The tax consequences based on how the property is held.

· Tax relief on certain property due to new law.

· Investment property and how it can be structured with your personal situation.

· Ability to set your own private meeting with Mark to go over your specific scenario as everyone’s scenario is different and there is no general solution.

Here is the overall general outline:

· What is a short sale?

· What do we do for you as a real estate firm?

· Will this cost me anything?

· What is the structure of the short sale process?

· How will this affect my credit?

· What are the tax implications for different kinds of properties?

· What do I need to do to get started?

· Q&A

If you cannot make this and you are interested in speaking with us, call me direct at 239-425-5671.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog Steve R. Daria (239) 425-5671

Be Careful with a Seller Contribution and a Short Sale!!

One short sale we are working on in Fort Myers has been a first for me…

We have a negotiator in place and have been going back and forth and I had a verbal approval from the negotiator at purchase price of $208,000.

Keep reading!

I went to the buyer, revised the contract and added the pertinent language for the seller contribution toward the buyers closing costs in which we had to change the price to around $220,000.

My mistake and shame on me for acting on anything less than something in writing… Prior to obtaining an actual written approval with the net amount that the banks needs, I submitted the revised short sale contract with the $220K price and the language of $12,000 as a seller contribution toward buyers closing costs.

The negotiator did provide a written approval.

Yeah. Well it was for the new price of $220K and NO contribution! I tried everything to fight this and talk with supervisors , etc – Nothing worked. And a take it or leave attitude was established.

We are still moving forward but had to increase the purchase price even further and now may deal with an appraisal issue.

I put this out if you are a buyer, seller or a representing short sale agent. Be sure to get a written approval with the net amount that the banks needs (even on your initial offer). Then submit the revised contract with any necessary contributions.

Another thing you will need to watch out for…

Now if this buyer backs out of this Fort Myers short sale because a denial in financing we may be in trouble. They may now look at the supplemented price as their new “approved” price which may kill any potential future buyer of the short sale if it is not a competitive price in the market. Also, some lenders will ensure the approved price to stay in place for a certain duration 30, 60 days…

I have not and will not give up until this property is sold one way or the other!! But – Just be aware of the scandalous activities that take place. Watch out and learn from my mistake!! I am sure to have more to come just keep checking back… Things are always changing and evolving. We just all need to be prepared and educated.

If you are interested in learning more –

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco… http://www.maximrealtors.com/MyBlog Steve R. Daria (239) 425-5671

Housing – A long Road to Recovery. Short Sale An Option for many.

Please note – We are not trying to bring down the public or persuade individuals that a short sale is their only way out. However, I think it is important for many to know that some options will not work and sometime government entities should just not be relied on. It is on the public to seek out education and the right professionals to assist them. It is survival and figuring out the best options for you and your family.

I have many friends, associates and others that have contacted us about information on short sales in South Florida as kind of a last resort before foreclosure… I encourage many to try and renegotiate the loan(s) that they have to see if they can come up with a more affordable scenario even if it is a rental property to a break even scenario. Unfortunately these individuals are coming back 60-90 days later and exercising their right of a potential short sale due to a denial of a modification.

Here are some quick quotes from the article out by Bloomberg by Fannie Mae CEO (Michael Williams) - Sept 9^th 2009 (Source – Bloomberg)

· Foreclosures will continue to climb this year, Williams said, putting pressure on home prices as mortgage companies work through a backlog of property seizures that had been suspended earlier this year as part of efforts to provide struggling homeowners with relief. While homes are selling faster, the inventory of foreclosed properties and unsold homes remain at “exceptionally high levels,” he said.

· One in every 10 mortgage borrowers is behind on their payments and one in every 25 homes is in foreclosure, he said.

· Homeowners have lost 40 percent of their equity, making it difficult for many to refinance, he said.

· Some borrowers, as a result, are ineligible for government programs to refinance into lower rates. More than 1 million delinquent loans are ineligible for President Barack Obama’s loan modification program because the debt was used to finance second homes or exceeds the program’s loan limits of $729,750.

· “And not every borrower is taking advantage of the program,” he said. Only 29 percent of the people who have received solicitation letters have responded, according to Williams. He said borrowers who aren’t participating are skeptical of the program, have only just learned about it, have lost their jobs or have already abandoned their homes.

· Regulators seized Fannie Mae and smaller rival Freddie Mac one year ago amid concern that their capital wasn’t sufficient to withstand a surge in mortgage delinquencies. The companies, surviving off a $400 billion lifeline from the U.S. Treasury Department, have since been thrust into a leading role in Obama’s homeowner rescue plans, which include offering low-cost mortgage refinancing and waiving some loan standards.

· The companies, responsible for $5.2 trillion in U.S. residential mortgage debt, have booked a combined $165.3 billion in quarterly net losses in the past two years and have received or requested $95.6 billion in taxpayer aid since November.

Full Bloomberg article: http://www.bloomberg.com/

I am sometimes at a loss for words. I think we are headed into a long period of downturn even with media talking about “Housing market stabilizing” and “House pricing increasing” –What they do not say in big print is home prices have increased due to an acute period of time for a high demand of real estate in particular areas. And yes people are buying – And there are buying frenzies in Southwest Florida foreclosures and short sales. However, I expect we will see more abundant foreclosures and short sales especially in South Florida.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco…

I can say that I personally got caught up in making purchases and selling for a profit when real estate values where sky rocketing in South Florida. I also am stuck with some negative performing rental properties.

The 1920’s real estate boom and doom especially in South Florida can be compared to the 2000’s – Massive amounts of people waiting in lines, filling hotels, traveling major distances to the sunshine state in order to purchase preconstruction real estate betting on a profit. The 2000’s was a nationwide disaster, however, the state of Florida has been one the fastest growth, appreciating market and also the fastest falling.

So what happened in 2000?

There was a lot of access to money. Individuals were getting loans that should not have traditionally been able to get. No documentation & 100% financing allowed the average pizza delivery guy to “state his income” and make a real estate purchase with no money.

The level of greed and quick money skyrocketed not just by the home buyer but also government and Wall street. Check out the “House of Cards” video by CNBC: http://www.cnbc.com/id/28892719/ Very, very interested…

So now what? It is a matter of learning and rebuilding. I speak to some people who initially contact us about short sales and I hear “get me out of this house, I will never purchase real estate again.” This is unfortunate and it was bad timing for many. However, there is time to start over and rebuild. Learning from the past and not dwelling on it will ensure a brighter future.

Consult your local real estate professional on rebuilding your future in real estate. It will and has proven to be an equity / asset builder over the long term. There are steps you can take if you are in a bad position with your current real estate portfolio such as a short sale. Being proactive now will help a quicker recovery for your future.

We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco…

Foreclosure Date has been set… My Short Sale is RUINED!!

One of our Short Sale customers in Fort Myers, Florida came to us a little late. 10 months of nonpayment and the date was set…

Is it all over for this family?

With some effort and proactive action, we were able to delay foreclosure 60 days and are now set with a short sale approval. We should close in a few days.

This is why you need to take action right now. The short sale process will not cost you anything. However, if you elect to be delinquent and decide to exercise you option of a short sale too late, then it may cost you. Keep reading…

This family was delinquent for 10 months but were trying to do the right thing. Modify their loan with the bank and save their home. Unfortunately this lender, as per their discussion with us, gave them the run around leading them to believe they would have a modified loan that would be suitable to their financial position.

They were denied a modification.

They called me and provided me all the bank / attorney notices immediately upon request.

I instructed them to hire an attorney to see if they could delay the foreclosure in which we got 60 days which cost them a few hundred bucks… On top of it, the negotiator has assisted in providing direct communications with the foreclosure attorneys on the progression. He was a great negotiator to work with in ensuring we would not be bypassed to foreclosure.

This does not go as well with all banks. However, it is never too late. Make sure you are being proactive in speaking to an experienced short sale real estate agent even while you are trying to modify your loan as back up…

We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco…

Please Mark Your Calendars!!

Free Short Sale Seminar Thursday, October 15th 2009 @ 7:00pm in Fort Myers Florida.

Limited seating!! Please RSVP shortshortsale@gmail.com or (239) 425-5671 -

If you are experiencing difficulty making the mortgage payments, loss of income, your investment property has negative cash flow, the bank will not modify your loan, etc - Come join us for this casual short sale session in Fort Myers, Florida.

Maybe you have a friend or family member that is in need - Come and get information for them. Or tell them about it!!

We will keep it simple - Go over the main points and then open it to the floor with questions. We are licensed real estate professionals aggressively selling short sale properties thus relieving many families / individuals from foreclosure.

We will also have an experienced accountant standing by to answer any questions regarding tax implications.

Snacks and refreshments will be served. Please RSVP - Limited seating. shortshortsale@gmail.com or (239) 425-5671

We look forward to seeing you there -

This short sale Q & A will be located at: 5235 Ramsey Way #14 Fort Myers Florida 33907 - We are servicing all of Lee, Collier and Charlotte counties including Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco…

Please note:

Before I get into the subject of this write up, I want to make a couple things clear…

When the market was hot, seller’s really did not need the assistance of Realtors in selling their properties. They most likely needed us for negotiations, contracts, etc. But to sell the property was fairly easy in the Southwest Florida market. They put a sign in the yard and they had 10 offers the next day.

This market is in demand of great real estate professionals who know what to do in selling a short sale.

· To the consumer, I encourage you to seek out the best of the best in your market place if you are considering selling your house via a short sale or buying a foreclosure / short sale.

· To the real estate professional, please ensure you know what you are doing before you think about taking that short sale listing. There is no reason why an uninformed agent should take a listing which can significantly delay a closing, assist in the foreclosure on that property due to their negligence and / or make it more difficult for a new listing agent to take over after it expired. This includes any attorneys who are reading this and push off the file to their paralegals.

With that said…

When I first started taking short sale listings and selling them, I immediately was taught a valuable lesson on a short sale property in Naples, Florida. I priced a listing below market. I had plenty of activity for buyers and put it into contract immediately. I submitted the full package, the BPO was ordered and I was assigned a negotiator. The bank came back with a certain net amount which increased the contract price $40,000. I informed the buyers and they elected to back out.

Bummer right?? Not necessarily. I had plenty of other interested parties and was able to get the property back into contract at a bank approved price and closed shortly after. No big deal. However, it was my mistake by not scrutinizing the market more in detail and price it more accurate. The initial buyer was a bit upset and we eventually sold them something else. That buyer was great to work with however, it was not necessarily a good experience for them as they thought they would have gotten that property.  It can appear misleading if we do not price the property to reflect the market correctly.

If we are priced too high, the property sits on the market, there are limited showing and the short sale real estate becomes stagnant. If you are priced too high it is imperative to monitor your market place and see what recent sales are and what new inventory on the market is going for– Be sure to immediately adjust accordingly (price reductions).

Our market in Southwest Florida is so volatile that we are consistently monitoring our available inventory but also our inventory that is in contract in which we strive for back up offers.

When dealing with short sales please consult a real estate professional in your area who knows market conditions and how to successfully perform a short sale-sale.

We service short sale properties in Lee, Collier and Charlotte counties of Florida.

Lender Cover / Intro Letter

This is basically an introduction and index of all items in a complete short sale package. A check list if you will… When we do our extensive follow up we ensure the lender has every item on this check list to ensure they have a full short sale package to make a timely decision.

Executed Contract w/addendum(s)

This is the agreement between buyer and seller. This is the executed contract with all necessary addendums. This is the only contract to be submitted to the lender for short sale (unless otherwise requested from the lender). All other offers / contracts after this will be held as backups. If multiple offers are presented at one, we consult with sellers and choose one (the strongest one) in which we expect to close on their Southwest Florida property.

Buyers proof of funds /or qualification for financing

This show us (Broker and Seller) as well as the seller’s lender we have a qualified purchaser for this short sale property. We also follow up with the buyer’s lender (if financing) to ensure they are qualified for this purchase.

Authorization to Release information

This is submitted right away once we have the paperwork to list and sell the property. This is also sent with the full package which allows us to speak and negotiate direct with the bank on behalf of the borrower.

Borrower Financial Statement

This is where the seller will list all their assets and liabilities. It will give an clear idea to the bank of their financial hardship, etc.

Listing Contract

This is the contract between Seller and Broker (ie – Maxim Realtors, LLC / Short Sale division – Fort Myers, Lehigh Acres, Cape Coral, Naples, Bonita, Estero)

MLS report and property history

This is the report off of the Multiple Listing System showing the short sale property for sale in Southwest Florida as well as how long it has been on the market, price reductions, etc.

Borrower last two pay stub / or explanation

This shows all the seller’s income. If there is no income, explain otherwise – ie – unemployed, social security, etc.

Borrower 2 months bank statement /or explanation

This will show all the debits and credits of all of their bank accounts which should coincide with what is stated on the financial statement.

Prior 2 year tax returns / or explanation

This is self explanatory –

Hardship Letter

There should be a reason for your short sale. This is where the seller wants to state everything that is working against them to keep this property. Keep in mind, this could be as simple as the rents are lower in the complex and the property is negative cash flow every month. It can be as severe as death, loss of job, etc. Get detailed. Support your story. We suggest this to be handwritten.

Our own BPO / Updated Appraisal

As a real estate professional located in Fort Myers, Fl, it is imperative that I know my market in order to sell short sales correctly. This is my own “Broker’s Price Opinion” that I provide to ensure that our contract price reflects market value. I suggest to all seller’s if they have the money to order a professional appraisal to show the lender an unbiased valuation. They will still order an appraisal or BPO regardless - However this will help the bank in making a decision quicker.

Estimated HUD from title company

This is the settlement statement (see the short sale blog from last week with a sample) which will help indicate to the bank all costs associated with the short sale including any liens. This is prepared at no cost to our seller’s by a professional title company.

This is via a phone call from a disturbed homeowner of a property located in Fort Myers.

It was a civilized conversation and good debate. This person is in no way in default or looking to do a short sale. They are upside down on the mortgage, however they can and will maintain their payments...

We directly market communities in which we know people are upside down and may / may not be able to afford their payments. Some of which have lost value of over 60%.

Here is the question from that homeowner:

"Steve, don't you think you are assisting to the reduction to values of real estate further down in our community of Fort Myers by promotion of short sales?"

I think this is a very valid concern on his part. We are aggressively moving properties for individuals who need to short sale their property and selling them at discounted “foreclosure pricing.”

However...

My question to him was -

Do you think a foreclosure is better for your community??

He was unsure how to respond…

My points to him:

There are many people who are affected by this market and are unable to keep up with their mortgages. We are being proactive by marketing our short sale services in Lee and Collier counties to provide, I think, the reverse outcome of his initial question.

If certain individuals do not decide to short sale and rather just foreclose then the property can be subject to high grass, vandalism, squatters, etc and a possible long duration of it being vacant. ** Also keep in mind some banks are holding a lot of inventory before it goes to market.

Prices still diminish and sometimes even further due to condition of the property (Some owners have even stripped everything including appliances, cabinets, vanities, floors, etc).

Here is one foreclosure for example:

          This was the kitchen   

      This was the AC system

Now, this guy specifically lives in an association which an abandoned or foreclosure in turn may be even worse for him. In Fort Myers and many areas of southwest Florida there are communities with mandatory monthly or quarterly fees. When people walk from their properties they will tend to not pay their dues to the association. This in turn can increase their neighbor's fees to make up for delinquencies.

With a short sale, we try to be proactive to those that need our help and sell the property as quickly as possible in the Southwest Florida areas.

This is beneficial not just for the person that was relieved of foreclosure but also his neighbor.

Your thoughts??

Respectfully,

Steve R. Daria

shortshortsale@gmail.com

This is a question and real short sale example we are currently working on in Fort Myers, Florida.

If there are 2 mortgages, will the second lien holder ruin or complicate the short sale??

The answer is YES, IF the short sale process if not done correctly... 

It is imperative when your agent submits your short sale package that it includes a complete and correct HUD (Department of Housing and Urban Development Settlement Statement) showing a "payoff" to the second lien holder. 

The HUD is your settlement statement which shows ALL costs, prorations, credits between buyer and seller.  You actually reviewed one of these (below)and signed off on it when you initially made your purchase.

Now this form (usually drafted by a title company or attorney) acts as a net sheet to show what your lender will net after all costs in order to move forward with the short sale.

In this, needs to be a "payoff" to the second lien holder (which is paid by the first lien holder).  This payoff amount is usually a small percentage of the second lien say 3-5%.

EXAMPLE:

Here is an example of a current short sale file for a Fort Myers, Fl property:  (Names Changed/ Info not disclosed for privacy)

Billy owes a total of $350,000 ($280,000 first mortgage and $70,000 second mortgage).

The value for this short sale is $200,000 and we have a ready and willing buyer for this price. 

The settlement statement below shows the complete breakdown and as you can see there is a "payoff" amount (line 505) to the second lien holder in the amount of $3,000 to satisfy that lien.

 SampleHUD.pdf

Most second lien holders are aware that if they do not accept a short sale they will get nothing if the property forecloses.  The old saying "something is better than nothing" rains true...  This Fort Myers property (like many others we have transacted in Lee and Collier County) is approved and should close shortly. 

This is a great question by Scott.  I am unsure exactly where his location is in Lee County or Collier County.  He asks:  "Problem is, there is about 15 houses for sale on my block and I don't even think ours would even sell in a short sale?"

Yes, there are short sale inventory that sit on the market for long period of time in Southwest Florida.  And in some cases, unfortunately turns into a foreclosure because they were not competitive and the property did not short sell.    

Answer:  It is imperative to have a team of professionals who know what they are doing in terms of how to handle a short sale correctly and know market conditions and trends in order to price correctly as well as act quickly if values continue to diminish. 

Other tips for the seller include:  Treat your property as if it is a normal, traditional sale.  That means, keep your the inside clean and tidy, maintain your lawn and shrubs and make sure you electricity is always ON.

There is a lot of inventory on the market that you will compete with but will must have an edge as long as you maintain your property.  Drive by your competition of short sales and foreclosures in your southwest Florida market.  Or get your agent to show you the real estate in direct competition with you.  You will see houses with high grass, vandalism, missing AC units, busted water softners, a bunch of trash, etc...  When you walk into these properties they are hot and uncomfortable to be in - Some of which you have to literally have a flashlight to walk the property. 

Even though it is a bad time for your situation, you must consider your purchaser in order to have an edge.  If you were making a purchase wouldn't you want to walk into a well groomed, frigid, nice smelling home??

Not all buyers are "investors" trying to make a buck on your home.  Many are first time homebuyers. 

Bottom Line...  You will make it beneficial for everyone including yourself by maintaining your property. 

Thank you Scott for the great question to benefit you and the many others who read our daily blog messages...

If you are considering a short sale, we are servicing Fort Myers, Lehigh Acres, Cape Coral, Estero, Bonita Springs, Naples, Marco Island, Ft. Myers Beach, Sanibel - Anywhere in Southwest Florida.  Call Steve R. Daria direct at (239) 425-5671

Please Note:  Please be weary of any real estate corporation charging you an upfront fee of any kind for a short sale.  If you need guidance you can write me any time at shortshortsale@gmail.com

All costs associated with the short sale are taken care of by the seller's lender.  This means our commission, title closing fee, title search, title insurance, docs stamps on the deed, unpaid taxes, back association fees, 2nd lien holder buyout (will be in another blog) and other liens, etc - All will be paid at closing by the seller's lender.

When we submit a complete package to the bank it will include a HUD1 (settlement statement) which acts as a net sheet to the bank so they can see what the bank will net after ALL costs associated with the closing.

We service all of lee and collier counties for our short sale services. 

Please note: We are not accountants nor attorneys. We advise you to seek professional advice regarding the tax implications and legal matters.

There may or may not be tax consequences regarding a short sale on the deficient amount depending on how the property is held (ie - primary residence, secondary, investment, etc).

Example: Bill owes $200,000 to Wells Fargo and sells the house for $125,000. He could potentially be taxes on $75,000 as income.

Keep in mind that even if you are taxed it can still be a better option than a foreclosure on your record, thus a quicker recovery time.

Here is some information you may find useful from the IRS website:

I have also found the information below on the IRS website in regards to taxes: http://www.irs.gov/newsroom/article/0,,id=174034,00.html

TAS toll-free case intake line at 1-877-777-4778, TTY/TDD 1-800-829-4059.

Form 982 - http://www.irs.gov/pub/irs-pdf/f982.pdf

Do you have a home in Southwest Florida (Fort Myers, Cape Coral, Lehigh Acres, Estero, Bonita Springs, Fort Myers Beach, North Fort Myers, Naples, Golden Gate Estates, Marco Island...) that you are thinkign of short selling?  Call me direct for a confidential meeting at 239-425-5671 / Steve R. Daria - Licensed Real Estate Broker BK3030453

To answer a few of your questions -

There is a time line and structure associated with the short sale process which should be carefully documented and kept track of.

Here is an example of what we do from beginning to end:

The Jones family has decided to sell their home as a short sale.

1.  First thing we do is meet in the office to review and provide our documentation (or if out of area email / mail all the pertinent documentation).  PS -I will send another blog with all documentation needed to successfully perform a short sale.

2.  We get all the signed docs and information back from the seller. 

3.  We immediately provide the "Release Form" to your lender which allows us to talk and negotiate on your behalf.  The release form traditionally will take 72 hours to get into their system in which we relentlessly follow up to ensure they have it.  For without it, we cannot move forward.

4.  We aggressively market your home and get it into contract with a qualified purchaser. 

5.  We then submit the FULL package to the lender and ensure the bank is not missing any items.  This is extremely important.  Most of the time items lost or missing when the package is sent to the lender (which it happens all the time - Keep in mind we are not the only file.  They are receiving hundreds of short sale files daily).

6.  We follow up every day (up to 3 times a day) until we know they have a full package in their system.  If the package is not complete and we do not follow up, they put the file in the what we call "neglected pile" - Will do not let this happen.  Please note:  If you are currently represented by a real estate professional that may not know what they are doing, please tell them to read these blogs.

7.  When we know they have the full package, we follow up a minimum of 2 times per week until the assign us a negotiator.

8.  Depending on the bank, they will order a BPO (Broker's Price Opinion - For valuations purposes) before or after a negotiator is assigned.

9.  Depending on the bank, they may have additional in-house addendums / forms to be signed off on. 

10.  They may also ask for updated bank statements, pay stubs, etc depending on how long it has been since submission / on the market.

11.  Once they have everything and we have a negotiator they either accept or counter offer.

12.  Once agreed they provide an approval of a settlement amount short of what is owed.  It then goes to the title company to close out and have buyer and seller sign off on all the closing documentation. 

13.  You then refer us to all our your friends and family who may need our services :)

Unfortunately, I have listened to both sellers and buyers of real estate in Southwest Florida with negative feedback concerning Short Sales.  

Some buyers state they have waited 6 months to find out that they never got their dream home.  Some sellers claim before hiring me on that they hired a "short sale negotiator" or just an inexperienced real estate agent and never sold the home and now the clock is truly ticking for those families (which we have saved from foreclosure).

There is a system that must be followed in order to successfully sell your home short of the amount owed even if you think it is too late...

The next blog tomorrow I will go into detail the system and timeline associated with the short sale process and if done correctly you will be closed on average in 45 days.

Again -  Thank you for reading this information and I appreciate all of our support clients who have referred other friends and family who are in trouble.

Respectfully,  

Steve R. Daria

Most lenders are not necessarily excited about settling for an amount short of what is owed.  However, they are aware that a foreclosure is usually a far more time consuming and costly option. In a real estate market like South Florida where housing values are going down it is in the best interests of the lender to liquidate their problem loans as quickly as possible.

With a short sale, a property can be sold and the loan taken off their books fairly quickly. If they pursue a foreclosure they run the risk of the process taking a substantial amount of time and legal costs during which the value of the property is depreciating.

Other factors they consider are low offers from buyers when it is known that is it a foreclosure, vandalism when the property sits, maintenance associated with holding and keeping the property up to par and costs associated with hiring a firm to sell the property...

19690 Marino Lake Cir #2301

2 bed 2 bath 2 car garage. Lots of storage, large lanai, granite tops, lake views, brick paver driveway, Tile and carpet, separate large tub and shower in master bath, large closets. 2160 sq ft under air / 2806 total sq ft. Clubhouse, pool, fitness center… Price $171K

A short sale is the process of selling a piece of real estate short of what is owed to the bank...

Example:

The falling values in southwest Florida has had a detrimental effect on many real estate owners (primary users and investors). Values have continued to diminish resulting in the debt to be much larger than the real market value of the real estate.

Mr. Smith purchased a home for $500,000 and put down 20%. His debt currently is approximately $400,000. Things are a bit tight for this investor, rents have drastically dropped and it unfortunately lost a lot of value. It became a bad debt and difficult to sustain. The value is now $225,000.

He is clearly upside down and decided to sell his property short of the amount owed in the amount of $175,000 ($400,000 - $225,000).

Are you aware that you may be able to purchase another home 2 years or less after you have performed a short sale under new legislation guidelines as long as you have maintained if not improved your credit...