CBS The Early Show...Rebecca Jarvis; Selecting a real estate agent

Yesterday, Rebecca Jarvis on CBS The Early show did a piece on how to avoid the common mistakes in selling real estate...her #1 mistake: Picking a bad agent

But, through lack of research or lack of expeirence she failed to give any concrete advice on how to judge if you are picking a good agent or a bad agent. The best advice is be diligent and careful when hiring an agent...you won't know you hired the wrong one until it is too late.

Personally, I have seen sellers select an agent because (in their own words) "they send me postcards all the time". Others have selected neighbors, friends, church associates etc. as their agent with no other qualifying criteria. Still others pick the agent that tells the the highest listing price.

A recent development is the "mega agent" who advertises under their name but actually has less experienced "team members" handle just about all aspects of a transaction, all the time selling the client on how this is good for them. The "mega agent" doesn't meet with the client, doesn't write or negotiate the contracts, doesn't interact with the buyers agent and may not ever speak with the client...they are involved in the clients transaction in name only.

While this is just my opinion and there may be no way to prove this, I would argue that the best agents occupy the "80th to 90th percentile" of a bell curve of relative real estate production. I say this because my years in the business have led me to believe that the absolute "top" agents in terms of total # of homes sold tend to be focused primarily on SALES and SELF-PROMOTION and most of the actual work is delegated to other individuals, while the agents just below that tend to be more client-centric and personally involved in the clients transaction.

It's time to get a CLUE

HAFA...all the benefits of a regular short sale...hafa the headaches!

Monday, April 5th, was the 1st day, officially, of the new government sponsored intiative, HAFA: Home Affordable Foreclosure Alternatives. HAFA was introduced to simplify and streamline the short sale process and to provide incentives for the homeowner, loan servicer and lender/investor.

We have already received specialized, in depth training on this new program and will briefly summarize the features and benefits below:

Qualifying Factors

• Must be HAMP eligible
• Principal residence only (must be living there, with 1 allowable exception)
• 1st lien mortgage originated prior to 2009
• Mortgage balance less than $729,750
• Mortgage payment exceeds 31% of monthly gross income
• NOT a Fannie Mae or Freddie Mac backed loan

Here are the Fannie and Freddie loan look-up tools:
Fannie Mae Loan Lookup
Freddie Mac Loan Lookup

How is the HAFA program different or better than what is being done now?
The main problem, for both sellers and buyers, with traditional short sales was that they took too long and the process was wholly unpredictable. It was always difficult to keep buyers interested in, and committed to, the process. The HAFA program was designed to speed up and standardize the short sale process and give incentives for each short sale completed. During a non-HAFA short sale, there is no government incentive for banks to help you. Also, a VERY important benefit to homeowners is the requirement that participating lenders release you of any further libility for the deficiency amount!

What are the incentives?

• As a qualifying homeowner, you would be entitled to a $3000 "relocation" incentive payment at the time of closing and funding of your short sale.
• Servicers participating in the program will receive $1,500 for a completed short sale
• Investors (lenders) can receive up to $2,000 for payments made to junior lienholders
• Junior lienholders can receive up to $6000

Do I have to hire a real estate professional for a HAFA short sale?


Yes, but it won't cost you anything. Under HAFA, our fee will be deducted from the sale proceeds and paid by the lender. It is a requirement of a HAFA short sale that you work with a real estate professional throughout the HAFA short sale process. The Jackson Realty Group is now the areas HAFA specialists, having received the most up-to-date training available on the HAFA program.

Also, any time there is a new program announced, there are people who set up scams based upon the publics ignorance of the details, and the HAFA program will be no different. Other than an attorney you may hire to assist with a pending foreclosure or associated issue, beware of anyone requesting "up front fees" to assist you in processing a HAFA short sale. MakingHomeAffordable.gov (MHA) provides the following guidelines:


• Beware of anyone who asks you to pay a fee in exchange for counseling service or modification of a delinquent loan.

• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes.

• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can "save" your home if you sign paperwork or transfer over the deed to your house.

• Never make a mortgage payment to anyone other than your mortgage company without their approval.

• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

If you would like to meet with me to discuss if you may qualify for this program and to review the process as well as your options, please call me at 561-602-1258 or CLICK HERE and send me an email with your contact information.

Foreclosures in Journeys End...breaking down the numbers

As of 4-1-10, there were 33 homes in some stage of foreclosure in Journeys End.

• 11 on C. Durham
• 8 on Houlton Cir
• 7 on Finamore Cir
• 1 on Kaleb
• 2 on Melissa
• 2 on Bither Way
• 1 on Nikki
• 1 on Eugene Ct

Below is the map of the properties with a Lis Pendens, color coded as follows:
Yellow=scheduled for auction
Green=Bank Owned
Red=Pre Foreclosure

1 on Melissa is set for auction on April 19th...2 others were set for auction but had Short Sale contracts pending so the foreclosure auction my have been postponed.

Don't let the bank foreclose...do a short sale

By Les Christie, staff writer March 29, 2010: 2:30 PM ET

NEW YORK (CNNMoney.com) -- Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks and months, when the government starts handing out cash to encourage lenders to close these deals.

"In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete," said Chris Saitta, CEO of Equator, which produces short sale software. "Things would just fall into a black hole and not come out again".

But, recently, a few things have happened: 1) the banks have finally begun to get an organized, trained staff and 2) the banks may be realizing that they lose less money in a short sale as opposed to a foreclosure 3) the govt has just come out with the HAFA program that incentivizes the lender, the investor and the homeowner when they complete a short sale according to HAFA guidelines. Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale. And the investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days. Also, not mentioned in the article was the requirement that the lienholder release the homeowner of any deficiency.

If you are behind on your mortgage, or believe that you will fall behind soon and your home is worth less than you owe...please call me 561-602-1258. Or email me with your contact information if you prefer. Just don't ignore the situation, get in front of it and get your lender working with you, not against you.