Patty's "All Things Real Estate" Blog.

August 3rd, 2009.  This is my first call to the lender to inquire about their short-sale procedure.  They advised that I need to send a  3rd party authorization form signed by the seller to authorize our brokerage to receive information about the property & mortgage.  Faxed the authorization form to the fax number provided.

August 10th, 2009. I spoke with Customer Service.  They advised that in order to speak to me as the sellers representative the bank has to send a letter to the seller to verify they authorize me as a third party.  They do not have the 3rd party authorization form that I faxed to them on August 3rd.  This person then transferred me to the Loan Modification Department.  Spoke to another rep.   This bank bought out another bank and inherited this loan, but they don’t have the loans transferred over yet .  I was advised that I have to call the previous banks Home Retention department.

Same day:  called the Home Retention department and was advised that they DO have my 3rd party authorization on file!  Was also advised of  the following:

• Need to list the home for sale as soon as possible
• Get updated financial worksheet from the seller
• Notice of default has been issued, but has not gone to foreclosure process yet.
• Loan modification file has been opened but has not been referred to a negotiator yet.
• When offer is received on home, offer needs to be negotiated, then called in to this department.  Information will be given at that time on where to send all documentation.

Same day/same call:  Transferred back to customer service for clarification on notice of default (NOD).  I was advised that I may need to talk to loss mitigation.  Notice of intent to accelerate the loan was sent on June 30th, however no NOD has been issued.  (Didn’t the previous rep tell me the NOD had been issued?  I am confused!). 

Off to install a sign post in the front yard!

It was never my intention to go after short-sale business.  On the contrary, when short-sales started becomingprevalent in our Pleasanton Real Estate market, I made a decision to stay far, far away from these transaction. I thought it would be better to refer this out to an expert than to become one.   My reasons for not wanting a piece of this market were the following: 

• clients have to wait too long,
• banks take too long,
• short-sale departments at the bank are a nightmare to deal with,
• you could possibly work on a deal for 6-months and not get an approval,
• the bank may foreclose before the deal is approved,
• the buyer walk away if it takes too long,
• houses are in sub-standard condition or disrepair

Did I really want to spend my valuable time working on something so futile?  Fast forward to 1-year later and here I am with 3 short-sale listings.  And yes, many of those reasons I just stated are absolutely true!  What has changed for me that I now am involved in the short-sale market? Simple, education and experience.  There is really no other way to do this than to jump into a short sale transaction and endure the process.  In doing so I have found that it is actually something I enjoy.  It is a challenge and everyday there are obstacles and road-blocks, but there are also small successes and an opportunity to learn something new, which in my opinion, just makes me better at what I do.  It is a very different way of doing business, but one that is just as rewarding.

I  have decided to post the saga of one of my short-sale transactions.  This transaction started last year and  isn’t closed yet so I will catch you up on the past history, move into the future, and you can follow along through  the approval and (hopefully) the closing of this transaction.  I will not divulge the specifics of the actual property,  property prices, or any personal information about the parties involved.  This is more about the daily dealings with the financial institutions and what all parties must endure to get a transaction approved and closed.

The saga will begin tomorrow…….

WINTER TIP: Use Your Ceiling This Winter and Stay Warm!

Reverse the switch on your ceiling fan to run counterclockwise (reverse; this looks clockwise as you are looking up). This will redirect the warm air from the ceiling and down the walls and into the living space. Run the fan at a low speed so that you don’t actually cool the warm air that you are moving downward.

Happy New Year! 

Along with the hope of prosperity, the new year also brings with it some new and exciting changes in our state and federal laws.  One important change will be new license requirements for anyone conducting mortgage loan activities.

As of January 1, 2010 new license requirements go into effect for anyone conducting residential or commercial Mortgage Loan Activities.  Any person engaging in mortgage loan activities must report to the Department of Real Estate their intent to arrange or service loans secured by real property, by January 31, 2010. 

Also, any person conducting licensed activities as a Mortgage Loan Originator (MLO) is now required to have the following:

• An endorsement on their Real Estate License
• Register with the Nationwide Mortgage Licensing System & Registry (NMLS&R)
• Satisfy the requirements to obtain an MLO license (including new qualification assessments, federal & state exams, and background checks).  NO EXCEPTIONS OR EXEMPTIONS for existing licensees.
• The MLO endorsement must be issued by January 1, 2011 on the real estate license.  (Endorsement applications for qualified MLO registrants must be submitted by September 15, 2010 to be issued by January 1, 2010.

Failure to comply can result in the assessment of penalty fees of $50 per day for the first 30 days, and $100 per day for every day thereafter up to a maximum of $10,000.

Senate Bill 36 (SB36), signed into law October 2009, was enacted to identify licensees conducting mortgage activities and bring California into compliance with the federal Secure and Fair Enforcement Mortgage License Act (SAFE Act). 

Under the SAFE Act all Department of Real Estate (DRE) licensees who conduct MLO activities must meet the following requirements to qualify for the MLO endorsement:

• Take and pass the National and California Unique State component of the SAFE written exam.
• Complete 20 hours of pre-license education.
• File an online MLO license endorsement application and license enrollment fee on the NMLS&R.
• File  a NEW set of fingerprints using a NMLS&R live scan vendor.
• Authorize NMLS&R to obtain a credit report on the applicant.

The SAFE Act prohibits the licensing of an MLO for the following reasons:

• An applicant has ever been convicted of a felony involving fraud, dishonesty, breach of trust, or money laundering; or convicted of any felony in the 7-year period prior to applying for an endorsement.
• An applicant has eve had a MLO license revoked in any governmental jurisdiction, or
• An applicant has demonstrated lack of financial responsibility by showing disregard in the management of his or her own financial condition.

Further information can be found on the DRE website at www.dre.ca.gov, or by calling the DRE Licensing Section at (877) 373-4542.

• Add garden record keeping to the list of New Year’s resolutions. Make a note of which varieties of flowers and vegetables do best and which do poorly in your garden.

• Avoid heavy traffic on the dormant lawn. Dry grass is easily broken and the crown of the plant may be severely damaged or killed.

• Feed the birds regularly and see that they have water. Birds like suet, fruit, nuts, and bread crumbs as well as bird seed.

• If you have some time this winter, paint the handles of garden tools red or orange. This will preserve the wood and make the tools easier to locate in the garden or on the lawn.