Happy 4th of July!

Don’t know about you, but we’re headed to the beach today.  Pulling out the wave runners and taking them for a spin.

Hope you and your family are enjoying your holiday too!

-Jeff Kaller

FOR IMMEDIATE RELEASE

By KATHY STEELE | The Tampa Tribune
Published: June 29, 2009

TAMPA – SULPHUR SPRINGS A financially-troubled emergency shelter for women and children has had a few prayers answered, its owner says, including a restructured mortgage to keep the facility open.

In January, Amen Outreach Ministry Shelter faced foreclosure and needed repairs to correct building violations cited by city code enforcement officials. Owner Susan Mays, who had been laid off from her job, was struggling to modify her mortgage and keep the shelter open.

“I was at a breaking point and didn’t know what to do anymore,” says Mays, who was born homeless. At age 3, a Tampa minister and his wife took Mays in as their foster child.

It became her dream to open an emergency shelter. She bought the Sulphur Springs house on Sitka Street, where drug dealers once plied their illegal trade. Mays cleared away weeds and cleaned the house, largely relying on her salary as an insurance adjustor to pay the shelter’s bills. She lost her job in August.

News reports about the shelter’s plight prompted senior mitigator Scott Wheeler of Suncoast Mitigation Services to offer free help.

“We didn’t think twice about it,” says Wheeler. “You’ve got to give something back to the community.”
Within the next 30 days, Wheeler and Mays hope to have a restructured mortgage at a lower interest rate and a reduction of up to $400 in monthly payments. Wheeler said the loan agency, GMAC, is discussing a grant for the shelter.

St. Augustine-based foreclosure investor Jeff Kaller of Crusade to Save America donated $4,000 as a share of a negotiated lump sum payment on the loan. More money is needed, Wheeler says. “What we’re trying to do is build a buffer,” he says. “[GMAC] seems to have bought into that very well.”

Other in-kind donations also have been made to the shelter including beds, sofas, dressers and night stands from Rooms To Go. WTVT, Channel 13 television and its community-based Careforce program, in partnership with non-profit Rebuilding Together Tampa Bay, recruited area businesses and dozens of volunteers to paint, plant landscaping and install new bathroom fixtures, kitchen counter tops and a stove. The house also was rewired and tented for termites.

“Families can come here and be comfortable,” Mays says. “I feel like someone finally listened to the heart, not what was on paper.”

The shelter closed for about six weeks while repairs were completed. Hillsborough Kids and Mental Health Care are among agencies that refer clients to Amen Outreach. Sometimes Metropolitan Ministries refers overflow clients from its Uplift-U progam to the county’s Homeless Recovery program, which then places some with Amen Outreach.

Mays still is looking for work but recently had job interviews. “I feel it will be a brighter tomorrow,” she says.

Donations may be made in the name of Amen Outreach Ministry Shelter at any Regions Bank. The shelter can be reached at (813) 598-4325.
MORE FROM THIS CHANNEL

Short Sales Standardization…

One of the frustrating parts for many sellers, buyers and agents is that the short sales process has not been standardized.  Even within a state.

For instance, the protocol of what happens in a normal real estate transaction goes right out the window.

The banks are not in the real estate business.  They are not bound by what agents would normally come to expect.  Besides, they have their own policies and procedures and agreements.

If you know what they are, it’s rather straight forward to work with them.

If you don’t, it can be time consuming, delay-filled and frustrating.

The banks ARE collectively working at streamlining the process.  I can tell you that.

My team and I talk to banks everyday, and nobody is more committed at making the process easier for everyone involved.

But I can also tell you this:

If you aren’t train in short sales, and you think it’s business as usual, you will be frustrated and you will get disappointed.  That’s why it’s even more important to get trained.  So you understand the process and know your options.  Please don’t expect the bank to train you.  It will probably label you as inexperienced.

It’s also important to set the appropriate expectations.  And if you are a buyer or an agent, don’t make any promises to the seller you can’t keep.

Please keep these ideas in mind.  I expect with the Obama initiative, there will be standard policy and procedures across the board sooner than we think.

- Jeff Kaller

7 Myths of Short Sales and Preforeclosures

Rumors, rumors, rumors.  If you’re not wired into short sales, it’s easy to be misguided.  People have their own agenda, and sometimes axe to grind.

Here are some very common misconceptions:

Myth #1: Missing payments is a requirement for a short sale
You absolutely do not.  Not right now, especially when 3 out of 5 homes are being short sold.

Banks and other lenders just want to verify your hardship.  If you have more month at the end of your money, that’s all that’s needed.  If you can prove you are insolvent, that’s better.

If you think you won’t be able to pay your mortgage in the near future, now’s the time to act.

Myth #2: There is not enough time to negotiate a short sale before the foreclosure
There is always time to negotiate a short sale before the final date.  I have done it up to the final date.  Do not let time deter you.

What matters is if you have a seller in the wings.  That will definitely get the bank to stall/extend the foreclosure process.  All it takes is a contract and a phone call.

Myth No. 3: Foreclose is better than a short sale
Banks and lenders are not in the real estate business.  They are in the lending business.  THEY DO NOT WANT YOUR HOUSE.

Given the option, they’d take the short sale over foreclosure–ANY DAY OF THE WEEK.

It’s EVERYBODY’S best option right now, if you meet the criteria.

Think about this:  If given an offer for a 50 cents on the dollar short sale or 15 cents on the dollar foreclosure auction, which you you take if you were the lender?

Myth #4: You’ll lose face listing your home as a short sale
1 in 5 homeowners are in foreclosure.  You are not alone.  This is not embarassing.  This situation is not your fault.  This is reality.

In some areas over 60% of ALL MLS listings are short sales.  Believe it.

The market is going through a massive realignment in terms of value and price.

Myth #5: Short sales are difficult to get approved
When people say this, it usually implies they either haven’t done them correctly or they haven’t been trained.  There is no mystery to them!  But it does require knowledge, understanding and skill.  Experience is a huge asset.

Myth #6: Buyers agents not showing short-sale properties
Whether you are talking preforeclosures or short sales, you are talking a a good deal.  It would be crazy for a buyer agent not to totally embrace short sales right now.  There is a tidal wave of short sales.

And yes, they are more involved than a straight buy/sell agreement, but for an agent to flat out reject a short sale is doing their client a disservice, unless time is of the essence.

There are some AMAZING deals out there.

Myth #7: Banks are waiting on a bailout and not approving short sales
I have said this before and I’ll say it again.  Short sales DO take more work on everyone’s part.  But they are the best option for all right now.

Freddie Mac recently hosted a national training Web seminar for real estate agents where they specifically stated their goal was “eliminating distressed assets through modification or short sale.”

That should give you a small clue as to how receptive everyone is to short sales.

In Summary:
Jump in, the water’s fine.  Just make sure you are working with people who are experienced and have had success with the process.  Training is essential.

Are the sellers qualified for a short sale?

One big mistake I see made is real estate investors and agents in this market is they too optimisitic.  Chasing every deal.
That’s a big problem.  Because you end up with lots of busywork and NO MONEY.

Sounds simple, but it isn’t.  But–it will save you a ton of time and grief.

To the point: Always make sure sellers are QUALIFIED for a Short Sale BEFORE taking on the opportunity.  I have filters which I share in my book “Secrets to Short Sale Success.”  They allow me to “Deal or No Deal” an opportunity almost instantly.  And when it IS a deal I jump on it immediately.

It’s important to get the paperwork in order and make sure the agent, the seller are fully engaged in the process.  If it’s really a deal, then it’s a deal worth getting done.

There’s a reason my team and I can get a short sale done quickly.  We don’t take every opportunity that passes our door.  Never have.  We ultra-selective about what deals are doable and what deals are not.

Whether you are an investor or an agent, you should be too.

- Jeff Kaller

PS: My father had a saying:  Person who chases two rabbits, catches none.