I couldn’t believe my ears when I heard that, I started laughing uncontrollably!

I see 3 different types of agents in the field right now…

First: those that sit around and hope something happens
Second: those that go out and make something happen, and
Third: those that wonder what just happened!

Let me explain my self, and I’m actually going to lump 1 and 3 together.  This morning I was at a closing at a “Traditional” real estate office, and since I was running a little early, I sat in the lobby and “observed” the activity.  You know those little vacuum robots that go in a straight line until they hit a wall or furniture and then they change direction until they hit something else? Well, one guy reminded me of that, except with WAY less energy!  He was just walking around the office, probably waiting on the magical phone call that was going to change his life (or at least his Tuesday morning!).  A few others were milling around, some with cell phones to their heads, and a few looked like they were actually doing something important.  It actually reminded me of the person that made the comment that I am “Lucky” who just sits around the office waiting for the phone to ring.  He once asked me how I got so much business and I quickly answered: “do you ever see me sitting in the office waiting on the phone to ring?” Which brings me to number 2:

Let me explain the “luck” involved in these 3 closings:

#1: was a short sale where every time I turned around the buyer was talking about walking away… this would be the same buyer that I actually found but then all of a sudden had a “buyers agent” who wanted 3%.  But that’s OK, the deal was what was best for the seller, so I made it happen.

#2 was a short sale with Countrywide/B of A that I’ve been working on since about January, need I say more? (there is NO luck in drawing a Cwide/BofA shortsale deal, unless you believe in BAD luck!)

#3 was a transaction where I represented the buyers, a friend from college and his new, pregnant wife.  I guess it was lucky that I negotiated for the seller to install a new roof based on the home inspection, and lucky that I could call in a favor from my roofer to get it done, and lucky that it took the seller a week to sign the NOC so we could get the permit, and lucky that I’m a notary so I could drive across town and get the release signed, and lucky that I was able to track down the buyer at the Altamonte Mall because the title company forgot to have them sign something and we couldn’t get the funding number

#4 (hey, someone as lucky as me has more than just 3 things going on!) I got a new listing in Casselberry (nice waterfront condo) from an out of town seller that I’ve been conversing with for about 4 months (lucky I was able to stay in touch until he was ready to list his mom’s condo!)

#5 Got another short sale listing under contract today… lucky my sellers were smart enough to know what documents I would need for the submission, and finally

#6 & 7: Lucky enough to be open on Thursday to set 2 more appointments to meet with sellers about listing their short sales

By the way, out of these 7, 6 were referrals from my sphere of influence, and one was someone I overheard talking about short selling their house at Sonny’s BBQ and handed a business card to.  I sure am lucky that so many people trust me enough to refer their friends to!

So which one are you?  Are you sitting around the office waiting for the phone to ring and when someone in your office has some closings you say they’re just “lucky”? Or are you out at networking groups, Chambers, real estate investment associations, and even Sonny’s BBQ, beating the bush for your next deal?

I can’t wait until the 4th of July when Tim & I will be volunteering for the Sanford Rotary at the fireworks in downtown Sanford.  I’ll be working my tail off all day in the Beer Booth (stop by and say Hi!) to help raise money for Rotary, and maybe if I’m lucky, someone will notice my REALTOR pin on my shirt and will ask me about real estate!

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I’ve been coming across several resources that I’m going to be using in my business, so I thought I’d share some of them with you!

Today’s 2 are:

FIRST:  A link to a self-analysis of whether you have “Chinese Drywall” in your home.  It asks several yes or no questions and also has good pictures of “normal” and “problem” systems.  (this would be a good link to send out to your farm list)  CLICK HERE

SECOND: By now, I KNOW you’ve heard of loan modifications, and you’ve probably been approached about doing them as a business, the problem with that is most of these companies charge THOUSANDS of dollars in fees, AND they are very controversial (whether they’re legal or not, they probably soon won’t be!)  Obama AND the Florida Attorney General are telling consumers: “if you have to pay, walk away” and telling homeowners to do their own modifications.  Great!  Do you know anyone that’s tried to do their own?  One friend of mine was offered by their lender to take the $8,000 in delinquency and they’d make it a balloon payment due in September.  WOWZA!  That’s generous!  (if he doesn’t have the money now, what makes them think he’ll have it in a few months?).  I told him to go back to them, tell them that’s unacceptable, and ask “what’s my next option?”

Here’s a good solution where you can make a little bit of money and help your friends and clients with their modifications, totally hands off!  There’s a company that has written a “How To” guide to doing your own modification.  It sells for $199 but there’s a $20 discount for online purchasing, so it’s only $179.  If you refer a client, they’ll give you $50 of it.  That’s it!  No work, just send the ordering link to the client and it’s done!  (also, if you refer 3 clients, you’ll get the kit free, and if your clients refer other clients, you still get a little commission too!).  It costs nothing to sign up to be an affiliate, so what do you have to lose?  I’ve already signed up and started attending their training webinars (they have webinars both for reps AND training for people doing their own modifications)  CLICK HERE for the site, and the promo code is R201738 (they’re also going to be doing a live 3 hour training in Altamonte Springs in July… it’s $199 and includes the manual/kit)

Andy

p.s.  Tim’s being given an amazing award tonight by his Rotary group… he doesn’t know it yet, and it’s the highest honor his chapter gives to a member.  In other Rotary groups, people that donate a certain amount of money are given the Paul Harris Fellowship Award, but in the Sanford Lunch Rotary, the group votes and awards it to a member and pays their donation for them.  I might even wear a skirt for the occasion! (don’t tell anyone).  As you read this, we’re probably just starting “cocktail hour” and mingling.  If you want to congratulate him, his email is: Tim@TimTolbert.com

p.p.s.  Follow me on Twitter… www.Twitter.com/andytolbert … I DO know why, and I’ll be sharing it with you soon!

But don’t be fooled by it’s “rural” name… there are many beautiful subdivisions that qualify!

Eric in my husband’s mortgage office just closed a beautiful townhouse overlooking a golf course and IT went USDA financing!

Here’s the quick skinny:  620 minimum score, no monthly MI (but there is up front “guarantee fee” of 2% that can be rolled into the loan), they’ll actually finance up to 102% of APRAISED value (not purchase price) so it could actually be the purchase price plus all closing costs if the deal is structured right!

Interest rates are just a smidge higher than an FHA rate, but without that pesky MI or 3.5% down!

Imagine getting your client into a house for nothing down AND they get $8,000 back!  Whew!

Many MLS systems have a “financing available” field, so check if the property is eligible and then update your listing!

Here’s where to check:  USDA Property Eligibility Link If the property is listed as eligible, you’re good to go!

In fact, go check all of your listings right now and start marketing the eligible ones with 102% financing!  I’ve even seen it marketed on 1/2 million dollar loans! (there is no official “loan limit” but the borrower needs to be UNDER a certain income level… so it would be hard for someone to qualify in this instance)

But don’t be discouraged… the income limits are much higher than you might expect!
Talk to a knowledgeable mortgage broker right away. (In Florida you can call my husband Tim or Eric in his office at 407-831-2277)

Hope that helps!

Andy

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Each loan product has specific guidelines as to what can be done for shortsales and loan modificatons.  Make this a standard question that you ask your clients when you first meet (and then confirm the info… I recently had a client tell me his loan was VA, but when I called the VA office, they said it was not).  Once you know some details, it will better guide you in the options your client has.

FIRST AND FOREMOST:  If your customer wants to keep their house, AND financially they are able to do so now (or could with a small interest rate reduction) then talk to them about a modification… yes, you will not get your 3% commission, but you will get them in the future and EVERYONE they know as a referral because you helped them out of a problem.

I say small rate reduction because it needs to be within reason.  If your seller has a $3,000/month payment, it’s not likely that the lender is going to reduce their payment to $600 (although that would be nice!).  The biggest success in modifications is where the current loan is an ARM and the lender can convert it to a fixed rate, although I am now seeing many fixed rates get reduced too (often these are just for a 5 year period).

DO NOT let your customer agree to a payment arrangement that they can’t fulfill!  One of my clients recently came in to Tim’s office and said his lender was going to lower his payment by $100 for 6 months and at the end of 6 months he would have to pay $8,000 in a single payment to make up for what he is past due!  Come on, if he was having a hard time with the monthly payments, where’s he going to come up with $8,000 in a few months?  All that type of arrangement is doing is delaying the inevitable… if your seller can’t comply with the terms, they shouldn’t agree to it to start with. (by the way, after leaving our conversation, he called his lender back, told them that was unacceptable and they are now working on a real modification for him).

Now, on to short sales… if your client cannot afford the home any longer or needs to leave the area, then short sale is their next best option (yes, better than a deed in lieu as far as future credit goes).
Knowing the loan product can help you in several ways:

1st, if it is a Fannie Mae loan, your commissions will not be cut below 6%.  Yayyy!  They MAY even approve higher, give it a try!  It’s nice to know that you’re not going to do 10 times the work for less pay.  This also allows you to prepare a HUD that you know is somewher close to reality. (to find out if it is a Fannie Mae loan, go to the Fannie Mae Loan Lookup Site)

2nd, if it is an FHA or VA loan, the loss mitigation guidelines are posted on FHA and VA’s websites… not a big secret! (actually, so are most of FannieMaes, it’s called the Seller-Servicer Guide… go on, google it!)

3rd, just KNOWING this info will make both your seller AND the other real estate agent have w-a-y more confidence in your ability and knowledge level.  One of the challenges with short sales is that EVERYONE is an expert, even those who have never closed a single one!  It actually creates animosity between agents when one is clueless about the process yet pretends to know what they’re doing.

Right now I hear a lot of agents complaining that REO’s are hard to break into because you have to have experience before you can get listings and the only way to get experience is to work for someone already doing them… I think this would be a great model for shortsales!  You have to apprentice under an experienced short sale agent for at least 5 transactions before you’re allowed to take one as a listing yourself.  What do you think?

Today I’ve just been able to scratch the surface, but don’t worry, there’s more to come!
Andy

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This week we are going to discuss how your attitude determines your success, this takes shape in many different ways, but today we’re going to cover one of the more critical ones:

Self Talk:  If a five year old child heard every day “you’re stupid, you’re worthless, you’re never going to amount to anything” do you think that would hurt their chances of being a successful adult?  Of Course!  So why do we do it to ourselves every single day?  When someone makes a mistake they say “I’m so stupid” or when their business is not going well “I’m never going to be successful, I shouldn’t have even tried”  they are setting themselves up for failure just like that 5 year old.  Can you imaging if every day that 5 year old heard “You’re so smart, you’re going to be very successful when you grow up, the world is lucky to have you”  Do you imagine that child might turn out a little differently?  Certainly!  What are you telling yourself every day?  The next time you make a mistake, say “Hmmmm, that’s interesting, what can I learn from that?  or better yet, the next time you catch yourself doing something right, celebrate it!  Say “Wow, I’m a genius!  The world is lucky to have me!” and see how your outlook changes.

Exercise:  For one week, celebrate everything that goes GREAT in your life, whether it’s a big commission check, getting a great parking spot at the mall, having a good hair day, or seeing a beautiful sunset.  Celebrate It!  At the end of the week I think you will notice a difference and will continue to celebrate the successes forever!

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Now, before you read on, please realize how I take notes… I write the info down in my log with a date, person’s name, and details of their comments, THEN I repeat back to them my notes like this: “so if I understand correctly, you said that…” and double check my notes, dates, and comments.  Enjoy!

12/2/08: submitted FULL financial package and offer to Countrywide.  (BPO’s were ordered on 12/2, 12/9, and 2/9 that I know of…)

12/30/08: Mary Fleming assigned as negotiator, could be another 30 days for answer…

3/6/09: Still no answer on short sale (yes, we’re over 90 days). Buyer walks.
     However “Angel” assures me that as soon as I have a new buyer it won’t go ALL the way to the beginning… just back to the phase one.

3/11/09: Got new offer, $20,000 HIGHER, submitted all docs for new offer. I am told that a negotiator will be assigned within 5 days.

3/24/09: 2 appraisals came back.

4/17/09: (yes, that’s over 35 days later!) assigned to Mary Fleming. (YAYYY!  She was so speedy the last time!)

Here’s where it REALLY gets fun:

5/4/09:  “Catherine” tells me that Mary Fleming is a 3rd level negotiator and we should have an answer by Friday the 8th, suggests I call EVERY day for status update, payoff demand has already been ordered, she tells me.  Yayy!, of course, I update the buyer’s agent.

5/8/09: (oops, forgot to write her name down!) no updates in computer, she’ll request an “escalation”, meaning Mary Fleming will only have 5-7 business days to respond.

5/11/09: “Anthony” tells me that Mary Fleming is reviewing the file with management.  But Mary is NOT a phase 3 negotiator, don’t know why someone would have told you that, she’s a phase 2 negotiator.  Should have an answer within 5 biz days.

5/18/09: (too mad to ask her name…) Don’t know why they would have told you that… Mary is a phase 1 negotiator, and there’s no such thing as “escalation”

Today (5/20/09):  Had to do it.  As I was sitting here typing this, I figured I’d call again, just for laughs (guess I’m a glutton for punishment).  Ready for this?  she said phase 1 should have only been 15 days!  And we absolutely should have escalated it.  She read some of the past comments in her computer and SHE said she wonders what planet they’re on!  She’s escalating it, she’s sending an email to Mary Fleming, she also gave me Mary’s direct number AND Mary’s manager’s name AND direct phone number.  Holy Camoly!

Why do we do this again? someone please remind me…

p.s.  wanna hear the kicker?  This same seller has another property, also with Countrywide, same exact floorplan, same exact subdivision.  Lost my buyer on that one around the same time as this one.  Got a new buyer the same day as this one.  Also over $20,000 higher the 2nd time.  Submitted the full file to Countrywide the exact same day.  Know What?  That one I got approval on last week.  This one? still stuck in phase 1!  Happy Day!

Gotta Go!  Have to send an email to Mary and her boss!

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He shared some of the major factors and differences between the Baby Boomers, the Gen-X’ers (that’s me! Yayy!) and the Gen-Y’ers.

WOW!!! I had no idea!  I often talk about how every successful business person needs to be on top of trends and market changes and go with the times, but this presentation made me stop and realize that in many ways, I’M behind the times!

It’s not about ME or what I want, it’s about the CUSTOMER and what THEY want! ( I know that, I teach it, but I realized that I was guilty of it:  I am not a “texter” but more and more of my clients are, and I actually caught myself telling a client “I don’t text, just call me or email me!” ((luckily a long-time friend as well, so he cut me some slack)) HOLY COW!  How can I be so blind?  I guess it’s time to get with the times and start TXT-ing.   (If you’ve had any problems reading any of this, go to www.NetLingo.com)

Here’s some statistics he shared with the group (yayy! Stats!)

Baby Boomers, currently aged 44-65, there are 81 million of them, and most have lost their entire nest-egg recently

Gen X, currently aged 32-44, there are 47 million of them

Gen Y, currently aged 18-32, there are 79 million of them.  Yes, 79 million.

What do we know?  A lot, they are the most researched group in recent history.  They are the most powerful group right now.  They pretty much single-handedly just elected a president.  They are also “Green”.  The X & Y are collectively called the “Net Generation” and they will basically control our market from here on out.

They want certain things from you and your company in a transaction:

Simplicity.  Have Realtors made the process complicated to justify their fees?

Innovation.  The opposite of innovation?  GEEZER!

Speed. (guess they’ve never tried to do a short sale!)

Relationships.  Self, Family/Friends, colleagues and neighbors, citizens/markets

Entertainment.  Make the process FUN and enjoyable!

Collaboration.  Old way: we’re all against each other.  New way: how can we work together and help everyone more?

Transparency.  If we have ALL the facts we can make a better decision

Integrity.  Old way: “OK, you got me this time, but I’ll get you back next time”

Scrutiny.  No secrets anymore… they have the ability to research EVERYTHING

Customization.  Old way: this is how we do it. Period.  New way: let’s see what we can do to make it fit for you better

Freedom.  1/3 of the Gen Y will remain renters because they have more Freedom.

Community Service.  Tell them what you do for your community to make it a better place.  And they want you to DO something, not write a check!

If you want to be competitive in this emerging market, it is critical that you look at these 12 items and see how you can integrate them into your business right away.

Jeremy pointed out that so many agents are just trying to stay afloat right now that they’re not paying attention to the major market shift and when the market returns to “normal” we will all be left wondering what happened to “normal” because we will never be able to go back to the “old ways” of transacting business.

Hope some of these items opened your eyes to what the new market wants and expects from us, I know I’m making some changes already (TXT!)

CUL8R

Andy
 
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Yesterday my husband Tim & I went out and previewed 16 houses for the Blue Jeans Rehab Bus Trip that starts Friday evening, and in the garage of one of the Bank Owned/REO properties, we stepped into the garage and here was a stripped our car! (that’s me giving the listing agent the VIN number so she could call the police)
This car was completely stripped out: steering column busted, radio gone, NoS system gone (nitrous oxide…makes it go really fast!) obviously the wheels, and all of the interior panels were ripped out and they even slashed the seats up!

I immediately called the listing agent and asked if she KNEW there was a car in the garage and of course, she said no.  The crazy thing is that she said the house had been shown several times and nobody else even mentioned the car!  She reported it to the police and had to meet them out there to let them in (Tim & I didn’t stick around… to much to do! although we were curious. Oh well.  But we DID tell the listing agent to tell them that we did NOT touch anything!)

I’m going to turn this into a real estate lesson, of course

If you are EVER in any house and see ANYTHING that looks out of the ordinary, report it to the listing agent IMMEDIATELY.  Don’t wait, just pick up the phone and dial it now.  We’ve seen:  Dogs tied up in the back yard of an abandoned house with no food or water (we called Animal control on those… we’ve seen it more than once), fire sprinkler heads in condos covered up with paper cups and tin-foil, evidence of “squatters” and drug use, and now, stolen cars (sorry, ALLEGED stolen cars…)

If it was your listing, you would probably want to be informed, wouldn’t you?  do the same for the listing agent on the houses you look at… we all need to help each other out!

One of my friends at a title company forwarded this to me this week.  It’s an internal memo from their title underwriter about (more!) pitfalls of shortsales and what title companies are being warned about in short sales.  Just wanted you to know!

RE: Short Sales
Dear Associates:  
 
Approvals and/or instructions given by a lender for a “short sale” may include unacceptable instructions that make the transaction uninsurable. The following are examples of unacceptable conditions: 

°  “There are to be no transfers of property within 30 days of the closing of this transaction.  Escrow instructions must contain a clause that if such a transaction takes place then the title/escrow company must notify Lender.”  
Problem: A title company closing a short sale would not know if the property was transferred again within 30 days after the short sale. 

°  “If the property was acquired by any means of fraud, Lender reserves the right to pursue any and all actions available to it to offset its losses.  If it is determined that Seller(s) and/or Buyer(s) participated in any way to the fraud, this short sale will be void, and the Note and Security Instrument will remain in full force and effect.” 

Problem: This condition may make the short sale voidable. 

°  “Lender requires full disclosure which includes all details of the transaction on both the Seller and Buyer side of the HUD1.  If Lender finds full disclosure was not made at the time of the approval, the approval becomes null and void.” 

Problem: This condition may make the short sale voidable. 

Read short sale approvals and instructions meticulously.  Do not sign or accept instructions that contain any of the above, or similar, provisions if you are issuing a Stewart Title policy, unless the instructions are revised to remove the objectionable provisions.
If you have questions relating to this bulletin, please contact (name removed) Legal Services or your local underwriting personnel.