San Jose Short Sales – Agent Short a Full Deck

San Jose Short Sales

Agent Short a Full Deck? 

 

It makes perfect sense that a seller or home buyer may not clearly understand short sales.  It seems that I find myself explaining short sales on a daily basis.

What baffles my mind are the Agents who write offers on short sales and believe that because the offer is ALL CASH the Banks will allow the property to be sold significantly below market value.

Adding to my confusion is why an agent would submit an ALL CASH offer in December 2010 and provide a letter from the bank dated 6-25-2010 which verifies LESS funds than the all cash offer price.   Not only is the verification of funds letter nearly 6 months stale … I’m wondering if the agent understands San Jose short sales.

To be clear, when a lender approves a short sale, the lender agrees to accept less than what the seller/borrower owes on the property provided the offer to purchase is a fair market value offer and is supported by a loan approval letter and proof of funds to close the transaction.

It appears the agent who wrote the offer may simply be short a full deck in her understanding of real estate and short sales.

Short Sales are not a Real Estate Board Game. Short Sales are designed to help homeowners avoid foreclosure.  Most homeowners choose short sales among the foreclosure alternatives.

Buyers making offers on short sales need to choose an agent who understands the short sale process. and how to write an offer.

San Jose Short Sales Listing Agent, Kathleen Daniels is committed to helping homeowners avoid foreclosure.  It is important that only strong offers be considered and that the buyer and the buyer’s agent understands the process … short sales are no joking matter.

Facing Foreclosure?

Call 1-800-972-1822 for a free consultation to discuss your options!


San Jose Brickyard


San Jose Condos for Sale


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Neighborhood
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$220,000
Condominium
Main Features
2 Bedrooms
2 Bathrooms
Interior: 1000 sqft
Lot: 750 sqft
Location
1060 S. 3rd St
161
San Jose, CA 95112
USA
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Kathleen Daniels, CDPE, CHS, RDCPro

Kathleen Daniels, CDPE, CHS, RDCPro

Intero Real Estate
(800) 972-1822
Kathleen@ExclusiveSanJoseHomes.com
http://www.ExclusiveSanJoseHomes.com

Listed by: Exclusive San Jose Homes

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San Jose Short Sales – Borrowers Sue Wells Fargo

San Jose Short Sales – Borrowers Sue Wells Fargo

One of my morning routines is to spend an hour or so reading updates on what’s happening in the world of banks, lenders, servicers, Robo-Signing, foreclosures, short sales, etc. This is what I refer to as “The Land of Oz” because when dealing with Big-Bad-Banks we are often dealing with people without hearts or brains.

As I was perusing DSNews, one headline caught my eye:

Defaulted Borrowers file Lawsuit against Wells Fargo.

After working San Jose Short Sales for over two years, I am intrigued by reading that borrowers are taking action against their beloved banks and loan servicers and attempting to hold them accountable for their dubious business practices. There is rarely a day that goes by that I do not hear about yet another way a borrower is screwed-over by their BIG-BAD-BANK.

This morning a DSNews article reported that a law firm filed a class action suit against one of the Biggest of the Badest Banks – Wells Fargo Bank and America’s Servicing Company (“ASC”), its servicer.

The premise of the lawsuit is that America’s Servicing Company told borrowers they would not be eligible for a loan modification as long as they were current on their payment. The effect of this advice was to encourage borrowers to default on their mortgages if they wanted a loan modification.

The claim in the class action lawsuit is that America’s Servicing Company induced borrowers to default on their mortgages in order to charge penalty and fees associated with the late payments. Bad-Bad-Bad!

“As a loan servicer, ASC generates a significant portion of its revenue from fees, penalties, and interest collected on the non-performing loans it services. Consequently, it is in ASC’s financial interest to avoid, delay, and deny loan modifications and to pursue foreclosures because doing so will lead to increased revenue.”

OUCH – Truth Hurts those Big-Bad-Banks!

A Borrower, who has not defaulted, yet is financially distressed and facing imminent default may be eligible for a loan modification if financial hardship can be demonstrated, according to the Home Affordable Modification Program guidelines. Guess who determines financial hardship? BIG-BAD-BANKS!

Alleged in the class action lawsuit: “By making loan default a prerequisite for modification, without regard to whether a borrower otherwise qualified for a modification due to financial hardship, ASC caused borrowers to unnecessarily suffer ruined credit and subjected them to significant fees, penalties and interest.”

Wells Fargo said: “We believe, as we have from the beginning of this crisis that it is in our customers’ and the country’s best interests to assist customers who can afford their homes – with some help – to remain in them. And, it is our goal to exhaust all options before moving a home to foreclosure sale.”

I say the proof is in the number of successful loan modifications – which relatively speaking – are very few indeed!

Are you facing foreclosure? You can avoid foreclosure. There are foreclosure alternatives that can help save your credit.

Call 1-800-972-1822 or visit San Jose Short Sales and request a free consultation to discuss foreclosure alternatives.

Search San Jose Homes for Sale – including short sales.

San Jose Short Sales – Borrowers Sue Wells Fargo Bank – by Kathleen Daniels, San Jose Real Estate Agent

San Jose Short Sales – $300 buys Short Sale Approval

San Jose Short Sales – $300 buys Short Sale Approval

San Jose Short Sales kicks some Short Sales Bootie! When to going gets tough – the tough get going!

The Short Sale saga continues San Jose Short Sales – When Best Efforts Fall short

We got a third buyer into contract; submitted the offer to the new servicer (RCSI); and got the Trustee Sale date postponed for the third time.

RCSI declined the file and closed the file.

WHAT!?

We were told that the notes say that the offer needed to be at $XXX,000 to be considered. A message was sent to the negotiator to DISCUSS the file with us.  It’s so easy for them to just close a file and move on.  Negotiator did respond.

We just don’t give up. When the going gets touch … the tough get going, tough, tough.  When the going get tough, the tough get ready …

We escalated the file. We spoke with a manager whose brain activity measured above “brain dead.”  We got the file re-opened with a counter offer $50,000 over the offer price.  This was $30,000 less than the first counter offer which was $80,000 above market value.  Make sense? Of course is doesn’t make any sense. Add to that, prior to getting the trustee sale date postponed … the opening bid was over $120,000 LESS than the counter offer.

The buyers needed to come up $50,000 OR we needed to get an appraisal to support the buyers offer. No buyer would pay what the bank was demanding. If a buyer were “brain-dead” enough to offer that much, the buyers appraisal would, shall we say, have some issues.

We asked the sellers to pay $300 for an appraisal which was our only hope of getting the short sale approved and the sellers desire to avoid foreclosure.  The sellers agree to make the investment as their last hope to avoid foreclosure.

I called my appraiser who completed a rush appraisal on Saturday afternoon and had the written report to us that evening. It certainly helps to know appraisers who are willing to work weekends and do what is necessary knowing time is of the essence.  We uploaded the appraisal on Sunday so the negotiator would have it first thing Monday morning.

Sellers paid $300 for a full appraisal which did support the purchase price of $50,000 less than the banks counter offer.  Short sale was approved at the offer price.

Next phase of the San Jose Short Sales challenge – Will the Buyer stick and close?

San Jose Short Sales – $300 Buys Short Sale Approval – by Kathleen Daniels, San Jose Real Estate Agent

Berryessa Homes


Berryessa Homes
San Jose Short Sales
Overview

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$411,000
Single Family Home
Main Features
3 Bedrooms
3 Bathrooms
Interior: 1583 sqft
Lot: 5,663 sqft
Location
1414 Donohue Drive
San Jose, CA 95131
USA

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Kathleen Daniels, CDPE, CHS, RDCProKathleen Daniels, CDPE, CHS, RDCPro

Intero Real Estate
(800) 972-1822
Kathleen@ExclusiveSanJoseHomes.com
http://www.ExclusiveSanJoseHomes.com

Listed by: Intero Real Estate – Kathleen Daniels

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San Jose Homes for Sale

1414 Donohue Drive

San Jose Short Sales – San Jose Condos


2br/2ba + Loft & Garage Condo in Berryessa – San Jose CA


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$285,000
Condominium
Main Features
2 Bedrooms
2 Bathrooms
Interior: 1178 sqft
Lot: 871 sqft
Location
2573 Alveswood Circle
San Jose, CA 95131
USA
To get updates on open home dates and other property events, please click the “Like” button below:


Kathleen Daniels, CDPE, CHS, RDCPro

Kathleen Daniels, CDPE, CHS, RDCPro

Intero Real Estate
(800) 972-1822
Kathleen@ExclusiveSanJoseHomes.com
http://www.ExclusiveSanJoseHomes.com

Listed by: Intero Real Estate – Kathleen Daniels

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San Jose Short Sales – Duty to Disclose

San Jose Short Sales –Duty to Disclose

A buyer sued his California listing agent for negligence, negligent misrepresentation, and deceit (fraud) based on misrepresentation and a failure to disclose.  The case was dismissed by the trial court. The buyer appealed. The appellate court had to decide if the listing agent owed a duty of disclosure to the buyer.

In October 2010 the Court of Appeal reversed a trial court’s judgment holding that “a real estate broker who lists a property that is so over-encumbered that it can only be sold by short sale or if the seller deposits a substantial sum of cash into escrow, the broker must disclose this state of affairs to the buyer.”  [emphasis added]

If a San Jose Realty listing agent is aware that the amount of existing liens exceeds the sales price then the listing agent has a duty to disclose this fact to the buyer. A broker can be held liable for failing to disclose any facts that materially affect the value or desirability of the property which is not known or easily observable to the buyer. This duty helps protect buyers from harm by providing information which allows buyers to make informed buying decisions.

The absence of a San Jose short sales contingency and/or disclosure indicating that the seller agrees to deposit cash into escrow may actually subject the seller to liability to the buyer for breach of contract when the seller cannot perform as promised.

A San Jose Real Estate Agent has a duty to disclose short sale status including when sellers cover the shortfall and lender approval is not required.

San Jose Short Sales –Duty to Disclose – by Kathleen Daniels, San Jose Real Estate Agent.

Time Bombs – San Jose Short Sales

Time Bombs – San Jose Short Sales

It’s what we don’t know that can cause San Jose Short Sales to catapult straight into foreclose. The real challenge is to discover what we don’t know before the foreclosure time bomb explodes.

San Jose Short Sales – Time Bombs in Escrow

We recently had the unfortunate experience of working with an untrained escrow officer at Old Republic Title Company. She became aware of an IRS tax lien on July 29, 2010 and failed to take action to ensure the lien was released so we could close on October 21, 2010.  The escrow officer also did not send the updated preliminary title report to the agents. Therefore, the time bomb ticking in escrow remained unknown to the agents, the buyers and the seller.

We had short sale lender approvals and were ready to close on October 21, 2010.  Buyers and Seller had signed off in escrow. Buyers’ funds were wired to escrow in the morning on October 18, 2010.

  • October 18, 2010 @ 3:11pm, Escrow Officer Rosa Avila sends an urgent email with the subject line: Delay in close of escrow.

Email message: IRS informed me today that they will not provide a release or any kind of written confirmation of release for their liens until approx. 11/30/10. I am currently contacting the short sale lenders to request an extension.

Ka-Boom!!!!

San Jose Real Estate & San Jose short sale agents must understand that importance of choosing a title and escrow company. Failing to choose a title company that is trained in short sales may result in the reason San Jose Short Sales do not close; their buyers and sellers are damaged; and after working 4-6 months they do not receive their hard-earned paycheck.

Time Bombs- San Jose Short Sales by San Jose Real Estate Agent – Kathleen Daniels

Sellers Personal Property – San Jose Short Sales

Sellers Personal Property – San Jose Short Sales

I received an email from the buyer’s agent on one of my San Jose Short Sales which stated:

“My client says he has faithfully hung in there for a very long time and could probably have gotten a better deal if he would have looked elsewhere. He therefore feels he should get something for his faithfulness and what he wants is the washer/dryer/fridge.

Personal Property

Personal PropertyPersonal PropertyHe feels 6 months of waiting should at least get him this. He really feels he should get something for his long suffering. Please at least approach your client on this.  If she has any kind of “counter” please advise that too.”

The buyer has patiently waited out the process while his agent continues to work on getting FHA site approval for the condominium complex which must happen before the buyer’s lender will fund the loan.

Seller’s response to Buyer’s agent: The appliances are not included in the purchase contract. The items your client feels he deserves for waiting for FHA site approval are the seller’s personal property. The seller is willing to sell the appliances to the Buyer. She has no obligation to give the buyer her personal property as a condition of the sale given the appliances are not included in the purchase agreement.

San Jose California homes for sale

Sellers Personal Property – San Jose Short Sales by San Jose Real Estate Agent Kathleen Daniels

San Jose Short Sales: When Best Efforts Fall Short

San Jose Short Sales: When Best Efforts Fall Short

I have been working San Jose Short Sales for over two years.  There is one component that all short sales have in common.  The common link to all short sales is the short sale fingerprint. No two short sales are alike – all short sales have a unique fingerprint.

Despite the best efforts of San Jose homeowners and their certified San Jose Short Sale Specialist, unpredictable and unforeseen events occur that are virtually out of our control.

American Home Mortgage Servicing, Inc. (AHMSI) claims to have: “A higher level of mortgage services. A higher level of customer satisfaction.”

AHMSI certainly has not provided any level of customer service to my San Jose homeowners who have fully cooperated with the short sale process from the moment they contacted me to discuss a short sale.

  • After waiting months to get a response on the first offer submitted, AHMSI presented a counter offer $70,000 higher than the fair market value offer.
  • The buyers released contract.
  • Within ten days we submitted another offer slightly higher than the first offer.
  • AHMSI countered that offer $15,000 higher than the first counter offer … resulting in a counter offer $85,000 higher than fair market value.
  • Buyers submitted a counter offer back to AHMSI. We were told week over week the file was with the negotiator and under review.
  • On 9-15-2010 AHMSI negotiator advised us “this loan is being service released to another servicer on 10/1. Here is the contact info for: RCSI at 800-737-1192. You can work with them on the offer presented. Thanks.”
  • We responded: “What if we can close before then? We are knee deep in this and 10/1 is weeks away! Please help.”
  • AHMSI negotiator’s response: “Sorry, you would have to secure an approval from the new servicer effective 10/1.”
  • Second buyer released contract saying: “My clients have been closely watching the market over the last few weeks and it now seems there are so many better opportunities for price.  We have submitted an offer on a larger home, 4 bedrooms, a regular sale, preferred location and will need less work. We are terribly sorry the bank has been difficult in negotiations and wish the home owners the best of luck.”
  • On 9-21-2010 – 6 days after we received notice that the loan is being service released AHMSI posted a Notice of Trustee Sale on my clients’ door.
  • Date of Trustee Sale is October 12, 2010.

Has AHMSI acted in Good Faith?  The concept of “good faith” is important in law, especially equitable matters.

Has AMMSI acted in Bad Faith?

I am not an attorney, judge or licensed to make a good faith or bad faith determination.

I am a licensed California Real Estate Broker and Certified Short Sale Specialist who has worked tirelessly on the AHMSI short sale for nearly six months. My clients have fully cooperated with the short sale process and have done all the right things to avoid foreclosure.

It is my professional opinion and the sentiments of my clients that AHMSI

OUCH - That hurts!

the San Jose Short Sale homeowners who may now likely experience a foreclosure despite their efforts and the efforts of a team of professionals who worked tirelessly week over week for nearly six months to help the homeowners avoid foreclosure.

Even the top professionals in the industry cannot guarantee results when the lender or servicer does what AHMSI did to my San Jose Short Sale clients. We are definitely not giving up. We will now take other steps to get the trustee sale postponed.

If you, or someone you know are having difficulty making your mortgage payment(s) and don’t know what to do, visit San Jose Short Sale Specialist and schedule a free, no-obligation consultation or call 1-800-972-1822 today!

San Jose Homes for Sale

Certified San Jose Short Sale Specialist

Certified HAFA Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels, Certified Distressed Property Expert, Certified HAFA Specialist, RDCPro *San Jose Short Sales: When Best Efforts Fall Short*

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