Central Florida Short Sales

Hi Folks. I’ve ran across agents, several times this week, not sure how to handle a Short Sale when the property is owned by a trust. So I thought I’d take a minute to explain how this works. Actually I can do it in about 1 second........

 

…......exactly the same as you would handle any other Short Sale!!

 

Here’s why.

 

Short Sales are done for Borrowers. Even though the property is owned by a Trust the note was more than likely signed by an individual. The individual is the one you are doing the Short Sale for. He is the Borrower.

 

The ownership of the property was probably placed in a Trust after it was purchased. Usually this is done for estate and/or tax purposes.

 

So.....your listing agreement and the purchase contract would be in the name of the owner of record. This could be a Trust, LLC, INC or a person(s). You would need a copy of the Declaration page for the Trust, LLC or INC to see who is authorized to sign and act on the entity’s behalf. This is the person who signs the agreements.

The Borrower(s) is the person that took out the loan and signed the Note. This could be the same person that is authorized by the Trust or it could be someone else. Whoever it is, this is the person who must go through the Short Sale process. Simple.

 

Any questions?

Are you facing foreclosure in Florida?

 

 

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

1. Do I have to be behind on my mortgage payments to qualify for a Short Sale?

• Not necessarily. Some lenders will negotiate a settlement if you are current on payments. You won’t really know until you go through the process. If you are current on payments the lender may very well require you to “participate in the loss” by making a cash contribution, signing a promissory note or both.

1. What is a deficiency and how do I avoid it?

• A deficiency is the difference between the amount of money you owe and the amount of money paid to or collected by the lender. The deficiency is the “Short” in a Short Sale. A deficiency ALWAYS exist with a short sale. You cannot avoid it unless you just keep paying on your mortgage obligation. The real question is..........

1. What happens to the deficiency?

• The deficiency can be waived, written off, paid later, settled or the lender can, at least in Florida, choose to go in front of a Judge and ask for a Deficiency Judgment against you.

1. What is a Deficiency Judgment?

• A Deficiency Judgment is when a Judge issues a Judgment making you personally responsible for the deficiency and giving the creditor the right to go after you for the money you owe. In Florida the creditor has 5 years from the creation of the deficiency*** to ask for the Judgment and another 20 years to collect on it if granted. To collect they may take assets, levy bank accounts and garnish wages. ***Please seek legal advice on this matter.

1. Will I have to pay taxes related to the short sale?

• Maybe. A short sale IS a tax event. Just as with any real estate transaction the sale is reported to the IRS. In addition the “Short” may be written off as a loss to the lender. A loss to the lender is income to you. How this income is taxed is a question for your tax professional. You may also refer to the Debt Relief Act. Unless extended the Debt Relief Act is set to expire at the end of 2012.

1. How will a Short Sale affect my credit?

• How credit scoring works is one of the great mysteries of the universe! The Short Sale itself is not reported as “Short Sale”. Missed and late payments are reported. Also, how the transaction is reported makes a difference. Is it reported as “settled..”, “paid...”, “charged off..”? And have you been paying your other bills? There are just too many variables to be able to give you a precise answer. If your credit score is important to you then my advice is to make your mortgage payments.

1. What advantage is there to doing a Short Sale over just letting the lender foreclose?

• Credit scoring aside....on average you can get another mortgage within 2-3 years assuming you pay all of your bills after a Short Sale. A foreclosure will affect your ability to get a new mortgage for 5-7 years. A Short Sale also gives you the opportunity to negotiate a settlement. It gives you some control over the situation. With a foreclosure you are 100% at the mercy of the lender.

1. How long will the Short Sale process take?

• A normal Short Sale with no complications will take on average 2-3 months from time of contract. Some go much quicker and some take much longer.

 

1. Will my Short Sale be approved and closed or am I wasting my time?

• We close more than 90% of our Short Sales. As long as you participate, by providing me what I need, when I need it, then yes, your Short Sale will be approved and get closed.

1. When will I have to vacate the property?

• Unless we are able to negotiate something different the day of closing belongs to the Buyer. Most lenders will not allow you to rent the property back after closing so plan on moving. You will normally have 30-45 days notice prior to closing.

1. Who pays your commission?

• The listing agreement is between you and I. So legally you are responsible for paying my commission. However, just as in a regular transaction, the costs of the sale are deducted from the purchase price. This means the buyer brings money to purchase the property and we pay everything out of that. The lender gets whats left. You pay nothing. Unless it is required by the lender and you agree to do so.
  

Additional information:


• CDPE Site
• Contact Bryant
• FannieMae/HAFA Program
• FHA Preforeclosure Sale
• From The Lawyer's Mouth
• HAFA FAQ
• HAFA Guidelines
• IRS Debt Relief Act
• Is Your Loan Owned By FNMA?
• Military HAP Program
• My Short Sale Story
• Property Search Map
• Sample Approval Letters
• Short or Stay?
• Short Sale Approvals
• Short Sale FAQ
• Short Sale Network
• Strategic Short Sales
• Testimonials

 

I hope this helps. Please feel free to contact me with any additional questions you may have.

Are you facing foreclosure in Florida?

 



 

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

Want to find out more? www.CentralFloridaShortSales.com

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



Copyright © 2011 http://www.brokerbryant.com/ | All Rights Reserved

Customer Testimonials

Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.

Chase Short Sale,Sun Trust Short Sale, GMAC Short Sale, Wells Fargo Short Sale,Bank of America Short Sale,USA Bank Short Sale,PNC Bank Short Sale,Citi Short Sale,HomeEq Short Sale,Fifth Third Bank Short Sale,ING Direct Short Sale,GreenTree Short Sale,Capital One Short Sale,ASC Short Sale,First Horizon Short Sale,E-Trade Short Sale,Transland Financial Short Sale,US Bank Short Sale,IBM LBPS Short Sale,
Nationstar Short Sale,BAC Florida Short Sale,Real Time Solutions Short Sale,Fannie Mae Short Sale
FHA Short Sale,Selene Finance Short Sale,DTA Solutions LLC Short sale,Flagstar Short Sale,IndyMac Short Sale

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Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

Hi folks. Recently I was asked by a short sale agent when should they request a “Waiver of Deficiency” for their Seller. My response was to ask at time of submission and then in all lender correspondence thereafter.

An easy way to ask is to use a Short Sale Submission Letter. Below is the format I use. Use this Short Sale Submission letter to outline the terms of the deal and provide any info you want the Lender to consider. I want this letter to be the first thing the lender sees. If you are faxing or emailing your short sale submission package just use this as the first page.

If you are submitting through the Equator system then just add this letter to the front of your contract. That way the lender will be sure to see it.

Here’s mine. I hope it helps.

 

TUTAS TOWNE REALTY, INC

628 Grand Canal Dr Poinciana, FL 34759

PH:407-873-2747 FX: 407-358-5472

www.CentralFloridaShortSales.com

Email: BrokerBryant@gmail.com

======================================================

3 November 2011

 

LN# xxxxxxxxxxx  

 

250 Anywhere Dr FL 33880

Borrower: Mr and Mrs Help Me Please

 

To who it may concern,

Please find following a complete short sale request with supporting documentation. The borrowers are not able to make payments and have no way of keeping the property. Therefore, we humbly request that this transaction is expedited so we can move towards closing and get this file closed and off the books prior to the new year.

Attached are the following documents:

• Letter of Authorization

• Listing Agreement

• MLS Sheet

• Listing History

• Showing History

• Market Analysis

• Sales/Purchase Contract

• Buyer’s Proof of Funds

• Preliminary HUD 1

• Financial Form

• Hardship Letter

• 30 Days Pay Stubs

• Last 2 Months Bank Statements

• 2010 Tax Return

• 2009 Tax Return

• 4506-T

• Dodd Frank

My comments:

Mr and Mrs Help Me Please hired my company in October 2011 to assist with their short sale. The property was placed in the MLS and fully marketed on over 500 websites including Realtor.com, Zillow.com, Trulia.com and Homes.com

The property is currently vacant, however, it is being maintained by the borrower. Property values in this area are continuing to decline. The agreed contract price of $140,000.00 is spot on with current market values. Please see the attached Market Analysis.

The buyer is paying cash and can close quickly. We can close this transaction in November if you can give a quick  approval. 

So…on behalf of the Mr and Mrs Help Me Please, I humbly request that Wells Fargo accept this short sale request and relieve them of any future liability.

We are requesting a full Waiver of Deficiency and that this sale be reported to the credit agencies as “Full Satisfaction of Debt”.

Please feel free to contact me with any questions or additional information that you may need.  Thank you in advance for you attention to this matter.

Sincerely,

Bryant Tutas

 

Bryant Tutas

Broker/owner

Tutas Towne Realty, Inc

407-873-2747

BrokerBryant@gmail.com

DO YOU NEED SHORT SALE TRANING?

Are you facing foreclosure in Florida?

 

 

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

 

Tutas Towne Realty and Bryant Tutas just had another successful Kissimmee Florida Short Sale closing with GMAC Mortgage.

The property:

Primary Residence. 4 bedroom 2 bath single family home located in Forest Edge in Kissimmee  Florida. This home has 2,190 sq ft of living area. It was purchased new in June of 2004 for $218,500. It Sold 1/17/2012 for $155,000. That's a decline in value of 29% in 7.5 years. 

Liens:

• 1st Mortgage with GMAC Mortgage for $281,000

Hardship:

• Loss of income.

Summary:

I placed the property on the market 8 September 2011 for $165,000. We negotiated a deal at $155,000, 7 days later. The deal was submitted for HAFA but was denied. It was resubmitted as a regular short sale and was approved.

Tutas Towne Realty closed the transaction on 17 January 2012. 128 days from listing to closing!!

GMAC Mortgage accepted $138,250 or .49 cents on the dollar for the 1st mortgage. 

***The Seller received FULL WAIVER OF DEFICIENCY with no contributions. GMAC paid 6% commission and paid 3% in buyer closing costs.

Do you need help with your Florida Short Sale?

 Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.

• Chase Short Sale
• Sun Trust Short Sale
• GMAC Short Sale
• Wells Fargo Short Sale
• Bank of America Short Sale
• USA Bank Short Sale
• PNC Bank Short Sale
• Citi Short Sale
• HomeEq Short Sale
• Fifth Third Bank Short Sale
• ING Direct Short Sale
• GreenTree Short Sale
• Capital One Short Sale
• ASC Short Sale
• First Horizon Short Sale
• E-Trade Short Sale
• Transland Financial Short Sale
• US Bank Short Sale
• IBM LBPS Short Sale
• Nationstar Short Sale
• BAC Florida Short Sale
• Real Time Solutions Short Sale
• Fannie Mae Short Sale
• FHA Short Sale
• Selene Finance Short Sale
• Indy Mac
• One West Bank
• DTA Solutions LLC Short sale

Can we add you to our list of successful Short Sales?

Are you facing foreclosure in Florida?

 

 

 

 

Tutas Towne Realty and Bryant Tutas just had another successful Winter Haven Florida Short Sale closing with Wells Fargo.

The property:

Investment property. 3 bedroom 2 bath home located in Winter Haven Florida. This home has 2,222 sq ft of living area and is direct lake front with baot house and private beach. It was purchased in March of 2006 for $390,000. It Sold 1/20/2012 for $140,200. That's a decline in value of 64% in just under 5 years! 

Liens:

• 1st Mortgage with Wells Fargo for $295,000

Hardship:

• Loss of rental income. Reduction in value.

Summary:

I placed the property on the market 10/10/2010 for $225,000. After several price reductions we finally found a buyer at $150,000. Unfortunately we then spent almost 4 months trying to get an approval and were finally denied the short sale due to lack of hardship. The buyer didn't want to wait while we resubmitted so.....

.....I placed it back on the market and found another buyer at the same price. 2 months later we had an approval only to find out we lost the buyer due to a major illness being diagnosed. So....

....once again we started over. Luckily we found another cash buyer at $140,000. My son Nathan was working with this buyer so we knew the buyer would give us time to get the short sale approved again.

We received another aproval in about 60 days and closed on the transaction. The 3rd time was a charm!!

Wells Fargo accepted $149,000 or .51 cents on the dollar for the 1st mortgage. 

***The Seller received FULL WAIVER OF DEFICIENCY on an investment property. He did have to participate in the loss by making a $20,000 cash contribution. He was happy to do so to be rid of almost $300,000 or debt.

This transaction was a referral from an Active Rain member. Thanks Judy!! That makes 3 successful referrals.

Do you need help with your Florida Short Sale?

 Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.

• Chase Short Sale
• Sun Trust Short Sale
• GMAC Short Sale
• Wells Fargo Short Sale
• Bank of America Short Sale
• USA Bank Short Sale
• PNC Bank Short Sale
• Citi Short Sale
• HomeEq Short Sale
• Fifth Third Bank Short Sale
• ING Direct Short Sale
• GreenTree Short Sale
• Capital One Short Sale
• ASC Short Sale
• First Horizon Short Sale
• E-Trade Short Sale
• Transland Financial Short Sale
• US Bank Short Sale
• IBM LBPS Short Sale
• Nationstar Short Sale
• BAC Florida Short Sale
• Real Time Solutions Short Sale
• Fannie Mae Short Sale
• FHA Short Sale
• Selene Finance Short Sale
• Indy Mac
• One West Bank
• DTA Solutions LLC Short sale

Can we add you to our list of successful Short Sales?

Are you facing foreclosure in Florida?

 

 

 

 

Hi folks. Do You Want To Close More Short Sales? Of course you do. Here are some tips that may help.

• Educate the Sellers at time of listing. Make sure they fully understand the process and what is expected of them. Be sure they understand cash contributions, promissory notes, tax ramifications and what happens to the deficiency.

• Price the property at market value or more. Negotiate the cleanest contract you can get with a price that you can defend to the lender.

• Know the type of short sale i.e. FHA, VA, HAFA Non GSE, HAFA Fannie, HAFA Freddie, USDA..... and know why this is important.

• Be sure any major repair issues are addressed at time of listing. These could put limitations on the type of Buyer you are looking for. For example: If it needs a new HVAC system a Buyer will not be able to use FHA financing.

• Be in complete charge of the transaction. Know what you can and can’t do then make sure the lender understands that you know.

• Make sure the BPO agent has the information you need them to have PRIOR to them doing the BPO. And know what that information is.

• Make sure you are aware of ALL liens on the property prior to taking the listing.

• Understand that the Seller is not always the Borrower. That works both ways. Example: Child owns the property but the borrowers are the parents. Or...the Seller assumed a mortgage when they purchased the property but the loan is still in the original borrower’s name.

• Stay focused on the transaction. Don’t let “drama” cloud your vision.

• And most importantly, understand that “Short Sale Denied” means....this time. Find a new buyer and try again. And keep trying until you get the job done.

This is in no way a comprehensive list but it will give you some things to think about. Any questions?

DO YOU NEED SHORT SALE TRANING?

Are you facing foreclosure in Florida?

 

 

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

Hey...I didn’t write it. I’m just sharing it as I received it.

Buyer testimonial received 1-18-2012

As a first time home buyer I did the one thing everyone tells you not to do – I fell head over heels in love – with a house.  This house had me written all over it – everything I wanted in a house, from location to size and everything in between was me.  But it had one major problem… it was in foreclosure for two years and at the point I found Bryant it had been taken off the market completely.  Everyone told me I had no chance.

I found Broker Bryant by googling “find me the best agent in Florida that handles short sales” and Bryant Tutas was first on the list.  From our first conversation I could tell he has what it takes – he is extremely professional, knows the foreclosure process inside and out, and just as importantly, he knows how to work with people in a way that makes them enjoy what they are doing.  He’s approachable, understanding, knows how to make their job easier – and he’s a joy to work with.  Most importantly to me – he got me my house!  In 31 days!!!

I could not believe it.  Bryant has a true gift of understanding his profession, knowing how to work with people, knowing when to push a little and when to back off a little.  He gets it done!!!  And he made the entire process a joy for me.

He’s funny and he’s brilliant and I am so grateful that I found him… I would highly recommend him to anyone that is looking to purchase a home.

Stephanie Whittemore

A very happy home owner in Dunedin, FL

Are you facing foreclosure in Florida?

 

 

How do we get the banks and asset managers to notice us?

This was a question asked on the CDPE forum site from this morning. It was part of a forum post wanting to know if the Short Sale lenders prefer the CDPE designation over the NAR SFR designation.

Here’s a clue: The lender doesn’t give a squat about your designations! Nor should they.

So.....how DO we get the banks and asset mangers to notice us?

Here are a 10 tips that will help.

 

1. Submit complete and organized short sale packages with contracts that make sense.

 

1. Fully understand the Short Sale process and treat the negotiators with respect.

 

1. Only escalate when all other avenues have been exhausted.

 

1. If you are a blogger, or spend time on Facebook or Twitter, be sure to write POSITIVE stuff about short sales. Lenders do “Google” agents. If you are constantly writing about negative short sale experiences they will notice you...just in a bad way.

 

1. Be a “step above”. Help the negotiator have a good experience working with you. If you do have to escalate don’t bash the negotiator. Make them look good in the eyes of their superiors.

 

1. Be a problem solver not a problem creator.

 

1. Be able to support your stance with facts and in writing.

 

1. Work WITH the lenders to get the short sale approved.

 

1. Build a reputation as one who gets deals closed.

 

1. Never stop learning and being open for new ways to handle short sales. Know the difference between a regulation or law and a rule or company policy. And know why this matters.

Remember, contrary to popular belief, Lenders prefer doing a short sale over foreclosing. Our job is to make sure we are giving them what they need to make the decision we want them to make for the advantage of our sellers.

If you do these things often enough you WILL get noticed by the banks and asset managers. And when they start dishing out short sale listing this year you will be in a better position to get you some of that business. I know I will.

Do you need Advanced Short Sale Training?

 

Are you facing foreclosure in Florida?

 

 

 

 

A while back Baby Bear called Broker Bear to see about placing his home on the market as a Short Sale. Baby Bear had not made payments in about a year.

Being the good little Broker that he is Broker Bear went over and met with Baby Bear. During the meeting Baby Bear mentioned that Papa Bear lived next door and Grandma Bear lived two caves down. Baby Bear wanted to know if either Grandma Bear of Papa Bear could purchase his cave at a reduced Short Sale price.

Hmmmm......it sounded like a great idea but unfortunately the Lender, Bank of Caves, said "No, they can't do that. It must be an Arms Length Transaction".

Oh well....Country Cave Bank sucks!!!

So Broker Bear placed the cave on the market and worked towards finding a Buyer. After a few price reductions and several months later a Buyer Bear made an offer on the cave. Bank of Caves had a mortgage on the property for $175,000 and Buyer Bear made an offer of $50,000!

This offer was very much in line with what caves on this side of the mountain were selling for so Broker Bear suggested to Baby Bear that he should accept Buyer Bear's offer.

BUT......Baby Bear said "NO". Baby Bear, after talking to Papa Bear, decided to take the cave off  the market and let it be foreclosed on. Then once it comes back on the market at a  foreclosure price Papa Bear will buy it back for Baby Bear.

Broker Bear gets squat. Bank of Caves will lose more money. Baby Bear, Grandma Bear and Papa Bear can live happily ever after on their side of the mountain.

I wish I could say this was a fairy tale....but it's not. Smart Bears or Tricky Bears? What say Pooh?

Are you facing foreclosure in Florida?

 

 

 

Tutas Towne Realty and Bryant Tutas just had another successful Kissimmee/Poinciana Florida Short Sale closing with Fifth Third Bank.

The property:

Investment property. 4 bedroom 2 bath townhouse located in Kissimmee Poinciana Florida. This home has 2,234 sq ft of living area. It was purchased new in May of 2005 for $234,000. It Sold 12/28/2011 for $72,200. That's a decline in value of 70% in 6.5 years! 

Liens:

• 1st Mortgage with Fifth Third Bank for $230,000

Hardship:

• Loss of rental income. Reduction in value.

Summary:

I placed the property on the market 29 April for $75,000. Negotiated a cash deal at $72,200 on 19 May. It took until 18 December to get the approval from Fifth Third. Most of this time was negotiating promissory notes that were required form Fifth Third and the Mortgage Insurance Company. After almost 3 months of trying to make these go away the seller agreed to pay Fifth Third $15,000 over 15 years and the MI Company $23,000 over 15 years. After finally receiving the written approval on the 18th of December the buyer decided to walk!!!

Even though the Buyer and his agent had been updated weekly for 7 months he still walked. Anyway I placed it back on the market as an "approved" short sale and we found a Buyer the same day for $72,200. We scheduled the closing for 2 days later and this Buyer made it to the closing table before getting cold feet and walking.

So...I placed it back on the market and found another cash buyer on 22 December. We closed and funded on 28 December.

Tutas Towne Realty placed the property on the market 20 April 2011.  The transaction closed on 28 December 2011. 243 days from listing to closing!!

Fifth Third Bank accepted $65,500 or .28 cents on the dollar for the 1st mortgage. 

***The Seller received FULL WAIVER OF DEFICIENCY on an investment property. He did have to participate in the loss by signing two promissory notes.

Do you need help with your Florida Short Sale?

 Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.

• Chase Short Sale
• Sun Trust Short Sale
• GMAC Short Sale
• Wells Fargo Short Sale
• Bank of America Short Sale
• USA Bank Short Sale
• PNC Bank Short Sale
• Citi Short Sale
• HomeEq Short Sale
• Fifth Third Bank Short Sale
• ING Direct Short Sale
• GreenTree Short Sale
• Capital One Short Sale
• ASC Short Sale
• First Horizon Short Sale
• E-Trade Short Sale
• Transland Financial Short Sale
• US Bank Short Sale
• IBM LBPS Short Sale
• Nationstar Short Sale
• BAC Florida Short Sale
• Real Time Solutions Short Sale
• Fannie Mae Short Sale
• FHA Short Sale
• Selene Finance Short Sale
• Indy Mac
• One West Bank
• DTA Solutions LLC Short sale

Can we add you to our list of successful Short Sales?

Are you facing foreclosure in Florida?