Key Points to Short Sales

Collier Swecker, top producer with the Mega Agent Team at RE/MAX Advantage, shared the ins and outs of Short Sales, as well as, the new federal HAFA and HAMP guidelines with our agents. It was extremely informative. Here are a few of the key points discussed concerning short sales:

1) Learn the 10 ways your clients can avoid foreclosure and educate them as a professional. Placing the house on the market may not always be the RIGHT answer. Before suggesting short sale to to your client in order to avoid foreclosure, make sure you know how to direct the transaction toward success.

2) Be proactive. If your client decides short sale is the best method, get your mortgage authorization signed immediately and get it to the loss mitigation department of the lender. Have your client request the short sale package. Help your client fill out this paperwork. The package is so thick and can be extremely overwhelming because it requires bank statements, tax returns, and lots of tedious personal information. Remind your client that the lender could pay them $thousands$ of dollars for filling out this paperwork if the property is approved.

3) If your client has lots of cash in the bank or many assets, it doesn't mean the bank will not consider a short sale. The bank will look at depreciation, but the hardship situation will be the most analyzed to determine approval.

4) Remember to tell all parties to be patient because it could be 60 days before approval is granted. To expedite the process, ensure the paper work is complete.

5) The bank will order a BPO to ensure the offer is reasonable so inform buyers that extremely low ball offers may not be possible. Suggest the buyer provide TWO approval letters so the loss mitigation specialist will take the buyer seriously.

6) The short sale may not even affect the seller's credit rating. It can cause a zero to fifty point effect.

To learn more about short sales, consider earning your CDPE; Certified Distressed Property Expert designation. Bank of America will soon be assigning short sales to RE/MAX agents with CDPE designations. Short sales will be increasingly more prevalent due to the cost of foreclosure being 40% to 50% of the value of the house.

Collier also discussed the new federal HAFA and HAMP guidelines which I will share with you later in the week. If you have a property that you know is over priced and the sellers have told you they cannot drop the price, discuss the short sale process with them and get it into action.

How to Find Red Flags on a Title Policy

Ryan Sparks, closing attorney, taught our RE/MAX Advantage agents how to properly read a title policy and how to especially look for red flags. When we can identify issues ahead of time, we can create a better experience for our clients. Here are a few of the many tips Ryan shared with us.

1) A title commitment is only good for six months. It must be updated just prior to closing to protect the lender and the purchaser.

2) GET A PRELIMINARY policy to ensure who the owners are and how the title is held. If title is held in anything other than Fee Simple, additional research is needed.

3) If the title is a special warranty deed, the bank is only warranting the property for the time of ownership held. So, check the foreclosure date to advise your client of the one year Right of Redemption where the foreclosed party has the opportunity to re-claim the property.

4) If your BUYER is purchasing a foreclosure, ask your title company for a copy of the foreclosure deed. It is best for your client to purchase the property for LESS than the foreclosure deed.

5) Always ask the seller to provide a redemption bond when representing the buyer. But, remember, it only protects the new lender.

6) Check under schedule B for requirements necessary to transfer title. Ensure that no liens have been noted. Possible liens can include IRS, State tax liens, and medical or hospital.

7) Have a survey done prior to closing. Many title issues can be resolved with a survey, such as easements and public access.

So much more was discussed and learned, but these topics are the main points. Please read your prelim title when it is delivered. You may think the title company will alert you when the policy reports problems, but that is not always the case. And, guess who gets the blame?

My Top 10 Strategy Picks of Mary Lou's Team

Mary Lou and Chris Vondereau of Mary Lou's Team at RE/MAX Advantage in Birmingham, AL hosted our Top Producing panel today for our agents. Mary Lou has consistently run a highly productive business with RE/MAX for over 15 years. She and her son, Chris, have developed many systems for marketing, referrals, and customer service. With over 80% of their business coming from earned referrals, they have a thriving business with very low overhead. There was an abundance of great information shared, but these are my favorites of what they shared that you can implement into your business, too.

1) Hire a Coach. The team is a member of By Referral Only with Joe Stumpf.

2) Always think through every process from the client's point of view. Give them what they need and make it easy for them.

3) Say "thank you" a lot; especially if someone took the time to remember you and give your number to a friend. The team sends Starbucks or pizza coupons to say thanks for referrals.

4) Use a database management system to keep up with your clients and prospects systematically.

5) Get all of your client's personal information, including children's names and birthdays. Learn as much as you can about them so you can send personal gifts.

6) Build strong relationships with your clients by continually contacting them systematically throughout the year so you can do business with them for life.

7) Host a client party every year to thank clients and to purposely produce referrals.

8) Every January, send a copy of the settlement statement to your client that closed the previous year so he will have it for tax purposes. You may even send it to all principles of each closing you had.

9) Learn scripts and dialogues by practicing, practicing, practicing. Let your clients speak more than you. DO NOT DO ALL THE TALKING.

10) Use a pre-listing packet with a photo of the house for the CMA. Every time the phone rings for a listing appointment, it's "gold". It could be a $15,000 pay check. Wow them!!!!

I could share so much more because Mary Lou and Chris discussed many more techniques with us. But, I hope that you learned something from my list that you can implement into your business today that can make you even more successful.

BusinessBooster-Jan

January 2010 Business Booster
Tuesday, January 12
9:30-12:00 Business Planning

Tuesday, January 19
9:00 Breakfast/Mortgage America
9:30 Panel Discussion/Mary Lou's Team
Closing gift ideas/Stefanie Scotch

Thursday, January 21

2:00 Start from Scratch group

Part 2 Contract/ Addendum - Net Sheet

Tuesday, January 26
9:30 - 10:30 How to Read a Title Policy/Ryan Sparks
10:30-11:30 New Federal Guidelines/Collier Swecker
4:30 January Birthday Bash/MortgageBanc

This month's Birthday Bash Happy Hour sponsored by MortgageBanc will also be comedy night. Start writing your real estate funny material now. Mickey Berry has already started on his. This is going to be a great event!

Here's what people are saying about these courses:

you did a great job and I was very impressed!!..... learned alot and sparked things I already knew but had pushed back in the back of my mind.. thanks for bringing it forward.

---Linda Dennis

Genny provides realistic information in her classes. Information that if used properly costs very little and reminds clients and friends that you need their help in your business. All of us need to be reminded of what we know to do and many times do not do to enhance our production.

I feel that Genny's classes should be a priority to new or nearly new agents. Also, great reminders to young at heart realtors. Thanks to Genny and Robert for providing free classes for our agents.

---Jan Williams

“I am a big believer in planning your business and having goals set each year. I have been too many planning sessions and trainings regarding this over the years but have found none better than Genny's class. I took it at Keller Williams last year and the one here last week. In my opinion, there is nothing more important than knowing what you need to do to take your business where you want and need it to go. When you leave this class you will know EXACTLY what you need to do to reach the income YOU desire.” - Jason Boner

“I would HIGHLY recommend attending Genny's business planning class. The business outline she uses will show you exactly what you need to do in 2010 to achieve your goals. As important, the ideas that are shared by fellow agents in regard to what is and is not working in their business are great tools to use in implementing your own business plan. Great opportunity to bounce ideas off one another and see what is working for fellow agents.” - Jessica Letson

“Genny's business planning class is fantastic. It's not only the time for me to set goals, it is way I judge how hard I have to work (how many appointments and listings and buyers I have to have) to achieve my goals in the coming year. I have had my license for 13 months now, and my goal for 2010 is 48 closings. My attitude and my ability to achieve this goal are enhanced by using the coaching and advice I receive from Genny. She has been there for me to push me when I needed to be pushed, pull me when I needed to be pulled, and to pick me up when I was ready to give up. I'd recommend the business planning class to anyone, top producers or beginners.” - Mickey Berry

Happy 2010!

2010 is finally here. It's a fresh start; a fresh way of looking at your business. This year, stay positive about what you have to offer clients. I've noticed lately that some of you are saying negative things and focusing on why things are impossible or how they can never work or why someone would never do certain things. When you vocalize these thoughts you are creating negative things in your own life and in your own business. I strongly believe it's ok to have a bad day and to be upset about certain situations, but when you continually use words like. "that will never happen," "someone would be an idiot to buy that house at that price," "the bank will never take a short sale on this one," "these buyers are crazy," etc....you're making these statements happen in your own business. So, please, ask how you can make something work for your clients? What are the options? Let's focus on how to get something done instead of all the reasons it will not work. Don't limit yourself! Be open to new solutions and new magic happening.

Business is everywhere. Leads are everywhere. It's up to you to find them everyday. Deborah Bowels closed 8 transactions this past month as a single agent. It's around you. Dawn Kirkland and Ken Boyd closed 61 transactions on their team in 2009; their best year ever. Just ask for it.

You are talented enough and special enough to be getting your BETTER than fair share of the closings. You did it in 2009. Let's continue to make it happen!!! 2010 is the Year of Seized Opportunity. Your income is going to soar, your business will thrive, and I am on pins and needles waiting to watch it all unfold for you. We're going to have a blast this year!!!!

Happy, Happy New Year. Let the closings begin!