Do I Need a Short Sale Agent?

Do I Need a Short Sale Agent?

 

                 Selling your home as a Short Sale by no means requires that you find a Short Sale Agent but, it is likely one of the smartest things you can do. Agents that specialize in Short Sales can definitely make the process much easier and a lot smoother. However, don’t be fooled, just because an agent takes a course in Short Sales and/or receives a certificate for completing a course by  no means defines them as a Short Sale Specialist.

                The benefits of hiring an experienced Short Sale specialist surmount the benefits of hiring a regular agent or an agent that just completes a course. What can an experienced Short Sale agent do for a seller that a regular agent cannot? A Short Sale Agent that has sold other homes in your area can assist you in pricing your Short Sale correctly. Pricing your home for the right price is extremely important. If not priced within reason, there is a better chance your lender will deny your application for Short Sale. Short Sale Agents are most likely familiar with the Short Sale processes of the major banks in your area (even though they are frequently changing) and they tend to have a better understanding of what is going to be required to complete the Short Sale process.

If the Short Sale Agent has sold other homes in your area, they should have the knowledge to best market your home and the “know how” to keep a potential buyer interested during the approval process. An experienced Short Sale agent should also be able to identify potential problems that may arise quickly and resolve the issue before becoming an issue. A good Short Sale Agent will be able to answer your questions, usually by heart as well as provide you with all of the important details such as fees that you will be required to pay and may also be able to get you money back at closing. Generally, an experienced agent will have gained the respect of other Realtors® who trust that they will handle the process quickly and efficiently; trust in an agent can go a long way.

Your San Jose Short Sale Agent

For the best service and local information for San Jose California, feel free to visit or call anytime. I not only know the area, but know the real estate market and can help you buy, sell, invest or quickly get out of any home or property. I am a short sale expert but can also help you purchase or sell any home or property in the entire San Jose area.

CalHFA Debacle with San Jose Short Sale

CalHFA Debacle with San Jose Short Sale

My client requested a loan modification from CalHFA and was denied.

The reason stated was “large surplus of funds.”

Client contacted me to assist with a San Jose short sale.  Value of property is $180,000.

 Loans on property:

  • 1st with CalHFA in the amount of $309,000
  • 2nd with CalHFA in the amount of $15,000
  • 3rd with CalHFA in the amount of $15,000
  • 4th with the City of San Jose in the amount of $65,000
  • 5th with the Housing Trust of Santa Clara County in the amount of $6,500

    • Total Loans = $410,500

 Property was listed and short sale package submitted.  Short sale DENIED.  Reason: “large surplus of funds.”

I don’t know what financial documents the person was looking at because the package I submitted clearly shows a shortage of funds. 

The clown said to me, and I quote: “Often times borrowers overstate their financials. We go by the bank statements. The borrower over stated food costs.”  Huh?

My response:  Really.  If there is a large surplus of funds, and you go by the bank statements, then why are there numerous over draft fees showing on the bank statements? 

The more questions I asked the more I realized I was speaking with an idiot! 

Not uncommon when working with lenders and servicers.  The problem is the people working the files don’t have a clue what they are doing. San Jose short sale agents know more than the people assigned to work the files.

After twenty plus minutes going over the financial documents I uncovered the fact that he failed to factor in $1,210.00 which was listed on the financial statement under credit cards/loans.  The borrower has been paying this amount on a debt consolidation for nearly one year.

Drum roll please!  This amount clearly shows on the bank statements, which “they go by.”  However, because Mr. Bright One did not see it on the credit report, he unilaterally decided it was “overstated” and denied the short sale.

After sending him more “proof” of the debt consolidation he reopened the file and sent it to the loan modification department (again)!

Now that they are factoring in the $1,210 payment for debt consolidation, the borrower qualifies for a loan modification

They recommend that the borrower work with Keep Your Home California to get a $50,000 principal reduction.

You do the math!

CalHFA states that they will not approve a short sale if a borrower qualifies for a loan modification.  If the borrower does not want a loan modification they will foreclose.

I was told by another Bright One at CalHFA “we are human and we make mistakes.”

Yes, indeed you do. You made two of them back to back and you were paid to do it!  You had all the documentation in your possession and you still could not connect the dots. Adding insult to injury, rather than picking up the phone and asking a few questions, you simply DENY and close the file. 

The bottom line:  I have spun my wheels working a short sale only to discover that the two people who have touched my clients file can’t find their ass with both hands.

The borrower did all the right things.  The San Jose short sale agent did all the right things.  Is it any wonder why some people simply walk away and let their home foreclose? It’s no wonder in this case.  CalHFA left the homeowners with no viable option other than the forced foreclosure which CalHFA will proceed with.

CalHFA Debacle with San Jose Short Sale – CalHFA opts to foreclose rather than cooperate with a San Jose short sale!

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