Archive for Personal
The Inner Game of Short Sales?
Posted by: | CommentsI have been thinking a lot about improving my game.
My inner game that is.
One doesn’t have to a financial genius today to know that things are bad and going to get worse before they get better, especially in real estate. Read about it enough and it’s enough to get you down.
But please don’t allow it to.
It may seem overwhelming, and it may also deeply affect you personally, as well as financially.
But the key is to focus on what you CAN do.
I think these are times that test a person’s mettle. Their ability to decide, commit, and to preservere until the goal, whatever it may be, is finally reached.
There’s a lot of fear out there right now. Things that can keep you from focusing on things you CAN do.
Don’t let it.
When I was suffering cashflow problem and foreclosure was starring me in the face, you bet I was scared.
My mettle has been tested on many an occasion in my life. To ultimately succeed, what I tend to do is focus on my previous successes where I did take action, where I DID succeed, despite the challenges and despite the odds.
In short sales, you can also be challenged. In fact it’s quite easy to be. (Ask me how I know?)
But I have to say that the resources and opportunities you have today dwarf what I had even 3 years ago. But the people focusing on short sales today and know what they are doing, are reaping the rewards of their efforts.
They focused on their training, they focused on their success-oriented mindset, they focused on the opportunity, and then let nature and God take care of everything else.
To the point: No matter how much money you have or may not have, you do not have to let this economy or situation get to you.
I hate to sound like a motivational speaker, but success (and wealth, for that matter) really is a mindset, not just an outcome you want.
- Jeff Kaller
Short Sales Students doing well and making a difference. I’m happy!
Posted by: | CommentsPeople deserve to succeed in short sales. Many struggle and with 31% of existing home sales being short sales, the industry is having a tough time transitioning to this phenomenal influx of properties.
Enter Hunter Paschall. He’s is one of my students. And he’s gone on to do great things for his clients as well as himself.
Hunter’s out there making a difference.
Go here and watch the video:
http://karcg.wordpress.com/2009/08/26/stop-the-bank-from-taking-that-foreclosure/
Now, you may say the video is rather promotional. So what??? Who cares???
Let’s think about this for a second. Someone real and genuine was willing to get up on video and to the world tell people that Hunter knows his stuff. That he helped them tremendously with a short sale.
That’s impressive to me.
That may not be impressive to you, but my hat’s off to Hunter.
- Jeff Kaller
The Foreclosure, Short Sales and Deed in Lieu Numbers Tell the Story:
Posted by: | CommentsThe Foreclosure, Short Sales and Deed in Lieu Numbers Tell the Story:
As foreclosure moratoriums provided temporary relief to troubled borrowers earlier this year, two other kinds of home forfeiture–short sales and deed-in-lieu-of-foreclosure actions — rose sharply.
In a mortgage study released last week, federal financial regulators reported a 176% jump in short sales and deed-in-lieu proceedings from the first quarter of 2008 to the first quarter this year.
Short sales and deed-in-lieu actions require borrowers to forfeit their homes to eradicate their mortgage debts, generally for less than the full amount due.
Selling a home or handing it back to the bank in this manner does less damage to a borrower’s credit rating than a foreclosure, and can be less of a hassle for the lender.
In a nutshell, year-over-year first-quarter short sales jumped from 5,523 to 17,036, according to the report from the Comptroller of the Currency and Office of Thrift Supervision, the U.S. Treasury Department agencies that oversee banks and S&Ls.
Quarterly deed-in-lieu-of-foreclosure actions edged up from 1,065 to 1,158.
Completed foreclosures still far outnumbered the alternate forfeitures. They totaled 78,936, up from 76,548 in the year-earlier quarter but far below the high of 126,266 in the third quarter last year.
But things are NOT getting better. In fact, they will probably get worse.
Foreclosure statistics are expected to spike again soon as federal, state, local and lender-imposed moratoriums expire.
The regulators said their report covered 64% of current home loans in the United States. Astonishingly, they noted that most of the short sales involved borrowers with prime loans, not subprime or alt-A mortgages.
The press release here describes other facts and findings by the regulators. Here is a link to the complete 42-page report.
Now’s the time to invest. Steals not just deals.
- Jeff Kaller
Can you say “Opportunity???”
Posted by: | CommentsCan you say “Opportunity???”
Sacramento as an example … 70% of all resales were distressed sales!
Here is the June data.
Sacramento Association of REALTORS® started breaking out REO sales last year, but this is the first monthly report with short sales.
This means just over 70% of all resales, meaning single family homes and condos, were REOs and short sales! Amazing.
This is indicative of the market at large.
Opportunity abounds! Now is the perfect time to invest. We are entering the biggest liquidation sale in history.
- Jeff
Something to watch out for with short sales…
Posted by: | CommentsSomething to watch out for with short sales…
This is nothing new but most people would be rather shocked to learn…
From the San Francisco Business Times July 10th: Sellers owe balances after short sales (ht Michael, SocketSite)
The rising tide of “short sales” by troubled home owners facing foreclosure is prompting lenders to become more aggressive in their attempts to pursue former homeowners for their loan losses in a short sale. In a short sale, a house is sold, with a lender’s approval, for an amount that won’t pay off the mortgages on the property.
Often, the troubled home owner assumes the loss will be eaten by the lender. But Bank of America and Chase have quietly added language in their short-sale agreements that require the borrower to sign a promissory note for the shortfall.
A spokesman for the American Bankers Association said this week that he wasn’t aware of the practice, suggesting how little attention has been paid so far to collection of these notes from troubled borrowers.
BofA says its intention is to protect investors holding the mortgages.
This is nothing new.
Zach Fox (when he was still at the NC Times) reported in April: Lawyers say lenders set stage to collect on ’short sales’
Lenders have been inserting language into short sale contracts that allow them to sue for any “deficiency,” or the amount lost by a bank by selling a home for less than the mortgage —- opening the door to collection agencies and court judgments that can run into the hundreds of thousands of dollars for some North County homeowners.
…
One real estate agent who specializes in short sales, Chris Mackey of Carmel Valley, said about 50 percent of the short sale contracts he has seen include the language before he requests its removal. Banks generally have removed the language, he said.
… the North County Times obtained a short sale contract issued by Countrywide Financial Corp … The contract warned the homeowner, who owned a house in El Cajon, that Countrywide “may pursue a deficiency judgment for the difference in the payment received and the total balance due … ”
based upon my experience, you should be aware banks and lenders will most likely remove this language, if requested. I strongly suggest having an attorney review the contract, and make sure “all loans are extinguished and debts forgiven”.
