Lehigh Acres, FL 33971
Toll Free: (866) 857-3918 24 Hr
Local: (239) 243-0630 Days
Tom Teece, Florida Division Representative
for Good 2 Go Home Investors, Inc.
For Tom's interactive blog, visit http://www.trulia.com/blog/tom_teece/
2/20/2009 - The 2 questions you MUST ask your Agent BEFORE making an offer on a short sale listing.
I've been working exclusively with pre-foreclosures in Lehigh Acres, FL for the last 2 years. And the pre-foreclosure market is continually changing, even this week as new government housing initiatives are launched. But there is something in my experience that has remained constant. This has been verified by the experiences of my associates across 35 states. The # 1 reason a short sale fails is in the way Buyer's offers are handled by the Agents involved.
It's not really the Agents' fault. Short sales are unique and the detailed process used by the lenders' loss mitigation departments has not been widely taught to Agents. Very few courses are offered to Agents who want to specialize in the short sale market niche. More are coming.
There are some great opportunities for Buyers of short sales. And there is the added bonus of saving someone from a foreclosure while minimizing the lender's loss. According to the Mortgage Bankers Association: The lender's average loss on a foreclosure is 40%, while the average loss on a short sale is only 19%.
But if you are considering a purchase of a pre-foreclosure listing, be sure to ask your Buyer's Agent to get the answers to these 2 questions from the Seller's Agent and report back to you before you commit to making an offer.
1. Who will you present my offer to?
The correct answer ALWAYS is: the Seller, as indicated on the Listing Agreement. Any other answer, like, the Lender, is a good reason to walk away and find another Agent to work with.
2. What is the process for approving my offer?
The correct answer ALWAYS is: First, the Seller must approve my offer contract. Then the Lender(s) must approve the amount of their payoff(s). If any other answer, walk away.
There are 2 correct detailed answers, depending if my offer is the first and best to the Seller.
If I'm first and best, the Seller must approve my offer by signing and returning a copy of the contract with both party's signatures. Then a copy of the contract with both signatures is submitted to the Lender(s) along with a preliminary settlement statement so the Lender(s) can see how much they will (each) receive at closing. The Lender(s) must approve the settlement statement, not the contract. Once the Lender approves the settlement and the Seller accepts the Lender's contractual terms and conditions of the their approval, it’s on to the closing table.
Lenders are under no obligation to approve anything in any timeframe, so prepare yourself to possibly wait months, and even then there is no guarantee of closing. But if you can be patient, and are able to handle a few disappointments along the way, you may get a great deal on a short sale listing.
Best regards, Tom
1/28/2009 - A Short Sale may not be the answer for many property owners in distress.
Many property owners are distressed because their property today has lower market value, especially in comparison with the purchase price they paid a couple years ago. Even though the property may be a good candidate for a short sale listing on the MLS, the property owner(s) must also meet certain qualifications before the listing will have any real meaning.
A short sale may not be an option for you without a documentable involuntary decrease in income and/or an unavoidable increase in expenses. Having a third-party, acceptable to the lender, verify this is extremely valuable. Fortunately, HUD-approved housing counselors can do just that at little to no cost for you. And you don't have to be behind on payments to receive their service. Call 1-888-995-HOPE or counsel online. (in English or Espanol)
Even if you qualify for a hardship with the lender, the lender must approve the short sale buyer's offer price before the sale can close. For best results, find a realtor who works with an investor that buys short sales in your area. Once the lender approves your hardship documentation and receives the buyer's offer, they will order a "BPO" appraisal and begin negotiating to minimize their losses. Again, for best results, work with a realtor who uses a trained, full-time professional negotiator for dealing with the lender.
Don't be discouraged. If you can afford to stay in the property, do so and avoid the legal consequences. If you can't, stay on the right track by seeking legal alternatives to foreclosure. Just be aware that a short sale is not the blanket answer for everyone. Good luck.
Best regards, Tom
12/23/2008 - Attn Realtors: How to correctly list a property in Lehigh Acres, FL
Attention Realtors,
Please, please, please, learn how to correctly list Lehigh Acres properties.
I've lived here for 26 years, investing in properties and consider myself a neighborhood specialist.
Every time I look at a listing and view it on the linked map, there is about a 50-50 chance that the location shown on the map is incorrect. What's the most important detail in selecting a property? Location, Location, Location. Can you please learn to get it right on the MLS? If you are professionally representing property in my home town, take the time or hire someone who actually knows the area. I spend hours every week verifying locations of properties that interest me, only to find out the property is really in another section of town. Besides, not verifying your correct listing address on the map is just plain unprofessional. If you were the seller,...
Listing Agents, please read on...
If your listing is on a numbered street, the number alone is not sufficient. There are typically 4 different numbered streets in LA. For example, 11th St W is in 33971, 11th St SW is in 33976 and 33973, W 11th St & E 11th St are in 33972 and 33936.
Be sure to update your zip code maps, new zip codes were added recently, shrinking the others. For view free zip code maps, try http://maps.huge.info.
By the way, Google maps has incorrect street markings for W (n)th St, calling it the same as (n)th St W. However, http://maps.live.com gets the street markings right.
If I can answer any questions about Lehigh Acres, please contact me at 239-243-0630.
Best regards, Tom
12/17/2008 - MLS Listing Status determines how multiple buyers' offers are handled on a Short Sale
Short sales are unique. According to our local MLS, the initial MLS listing is "Active" and "Short Sale" is noted in the listing details. This means that the current market conditions will not allow the property to sell for enough to cover the balance owed on the mortgage. At this point the seller has not even begun negotiations with the lender. Only when a buyer's offer is accepted by the seller (signed, "contingent upon lender's approval"), the short sale application package, complete with the offer, is sent to the lender and negotiations begin. At this point the listing changes to "Active Contingent Short Sale" meaning negotiations are in progress on the initial offer. Interestingly, lenders are not party to this transaction, and therfore not obligated to approve it. But they must approve this transaction before it can close. Everyone involved is at the mercy of the lender.
For listings of "Active" and "Active Contingent Short Sale", you most likely still have a shot at buying this property. Your offer will be presented to the seller (defaulted homeowner) as a backup offer. Other offers can also be received as backup offers until the seller accepts the terms and conditions from the lender for settlement of the defaulted mortgage (Price, Deficiency Judgement or Taxable 1099, Release of Lien only, etc.). If the current offer is not closed (buyer couldn't wait, offer did not meet price acceptable to lender, etc.), the seller will select the best backup offer and submit that one for the lender's approval and continue negotiating. No more than one offer at a time is ever negotiated with the lender. Once an offer gets approval from the seller and the lender, the MLS listing changes to "Pending" and no more offers are accepted.
I know it's a lot to take in, but I hope this information helps you understand offers on short sales and how they are handled. And remember that each MLS has it's own rules, so listing terms and procedures may vary.
Best regards, Tom
10/12/2008 - Freddie Mac Releases Webinar on Short Sales for Realtors
Friday, October 10, 2008, Freddie Mac released a 35 minute webinar on an introduction to short sales to the National Association of Realtors. It is designed to educate real estate professionals on the nature and nuances of a successful short sale. It also tells you why short sales are becoming an increasingly important tool for the lender's to use to minimize their losses on defaulted loans. Pay attention to their request that realtors send sellers to HUD approved counseling BEFORE taking the short sale listing. And they don't say it specifically, but they want any submission to the lender to include a qualified buyer's offer. Without a buyer's offer, the entire package is placed on hold. You may have to install the webex player if prompted, to view the webinar. Here's the link: ... Well I tried to embed the link, but I guess I don't know how. You can go to my page, Tom Teece on Facebook, I posted the link there. Sorry folks.
Best regards, Tom
10/8/2008 - How to deal with the new Florida Statute 501.1377, effective October 1, 2008?
The new law in Florida, also known as House Bill 643, is intended to provide consumer protection for homeowners during the course of residential foreclosure proceedings. There is a $15,000.00 fine for each violation. Besides ensuring all paperwork is compliant, I believe the best way to handle the new Florida Statute is to require the distressed seller to complete HUD-approved housing counseling BEFORE offering them a listing agreement. Real estate agents do not need to take on the responsibility and potential liability by implying legal and/or financial advice in providing a short sale listing without proof of counseling. The HUD-approved counseling is free online or over the phone, and available in English and Spanish. The Hope hotline is 1-888-995-HOPE. Their website is www.995hope.org. The online version takes about 45 minutes to complete. By the way, they provide 3rd-party verification of the seller's financial hardship. That goes a long way toward getting a short sale approved.
Best regards, Tom
9/30/2008 - Will the Fed bailout take care of our local economy?
I believe the real question we all need to ask is: What can I do as a small business owner to position myself as a leader in dealing directly with the cause of the problem? While Wall Street and Washington are addressing the systemic problems, we need to use good old American ingenuity to address the problems in our own individual neighborhoods. I think we all can agree that housing needs to be "fixed" in order to restore overall economic stability. Small businesses, like Good 2 Go Home Investors, Inc. are working to help lenders and local homeowners (one at a time) liquidate problem properties, minimizing the costs (financial and social) of foreclosure and reducing the excessive REO housing inventory. That localized approach by small business, coupled with the overhaul of our financial institutions, will lead to a better future for all of us. This, of course, is just one example. I'm confident that there are a lot of other great ideas whose time has come.
Best regards, Tom
9/15/2008 - What kind of person negotiates short sales for a bank's loss mitigation department?
Here is an actual posting on Monster.com for HSBC Bank in Elmhurst, IL
Loss Mitigation Specialist
The Loss Mitigation Specialist analyzes assigned Real Estate accounts to ascertain and initiate appropriate action. A great percentage of responsibility will be collections which includes negotiating modifications, hardships, short sales, and deeds in lieu of initiating foreclosure actions, examine and compare values on appraisals or broker price opinions and takes the necessary actions to ensure the values are consistent with location and types of properties, including appraisal claims against errors and omissions, which could include litigation. Analyze and compare title policies and searches to ascertain true position and makes corrections to ensure clear title. File title claims, which could include litigation. The incumbent evaluates and recruits vendors and attorneys. Read and analyze legal documents, and takes appropriate action to protect the company’s interest, including summons and complaints, tax notices, sales notices, etc. The successful candidate will complete affidavits, certifications, interrogatories and depositions as required. Assist other functional units in high volume periods including dialer and manual collections, customer service, records processing etc., as assigned.
Initiate the bill paying and reconciliation of invoices from various agencies, attorneys and other vendors as assigned. Ensure asset preservation, monitor agents in clean up, winterizing, minor repairs, re-key etc., within assigned accounts. Review and control all expenses related to the management of accounts within designated limits. Manage charge off within assignment. Examine schedules of debts on assigned accounts to ensure all possible avenues of recovery have been examined. Maintain awareness of all policies, procedures, and collection practices, laws, regulations and rulings governing Real Estate collections. Maintain accounts on the computer system. Provide technical advice and assistance to less experienced team members. Provide assistance to management in the training of new employees. Adhere strictly to compliance and operational risk controls in accordance with HSBC and regulatory standards, policies and practices; report control weaknesses, compliance breaches and operational loss events. Complete other related duties as assigned and support the Company’s Diversity programs.
Basic Qualifications:
Bachelor’s Degree or equivalent
Minimum of four years’ collections experience real estate, paralegal, credit counseling, appraiser, underwriting experience is a plus. Ability to communicate professionally both in writing and orally to the standards commensurate with the legal profession. Flexible to work the following shift: Monday-Friday: 3 days 7am-4pm and 1 night 1-10pm; 2-3 Sat/mon 7-11am; On occasion, Friday shift 7-11am when working weekend shift; Sunday shifts and additional night shift as needed. Paid training runs for 3 weeks from 8:00am-5:00pm.
It's interesting to note: "Assist other functional units in high volume periods ..." "Flexible to work ... Sunday shifts and additional night shift as needed." Sounds like a lot of pressure. Especially with the current foreclosure crisis. That's why it is so imortant for a homeowner to have a professional negotiator on their side of the negotiations.
Best Regards, Tom
8/17/2008 - Safe from foreclosure?
Regardless of your home's value or your income level, unexpected life changes are often a contributing factor to foreclosure – especially those that impact your finances, such as: Loss of employment or reduction of hours, Major illness or injury, Divorce or separation, or Death of a spouse. Or there may not be a major life change to signal potential trouble – you simply may be having a difficult time properly managing your finances. Warning signs include: Maxing out credit cards, Using credit to pay for day-to-day expenses, such as groceries, utilities, etc., Being unable to pay your bills on time, Paying only the minimum amount on credit cards, Applying for new credit cards after maxing out on existing ones, Having to choose which bills to pay. Talk to a HUD approved housing counselor immediately if you see any of these early warning signs. Call 888-995-HOPE for free HUD approved help.
Best Regards, Tom
8/12/2008 - Realtors frustrated with Short Sales
I agree with the all the comments I hear about the difficulties of dealing with short sales. Very few people in our area truly understand the purpose and process. According to statistics compiled by the board, approximately 3% of short sales listed are successfully completed. I’ve been very fortunate to get training on short sales from a nationwide group of negotiators based in Ohio over the last year. Our group averages 30 to 50% successful short sale closings. Free, detailed information on the HUD approved Pre-foreclosure Sale process is available on my website, at the Short Sale Qualifications page. Local one-on one and group short sale training is available free to qualifying Brokers and Agents. Contact me through the website. I’ll share with you the top reasons why short sales are currently not closing and what Agents can do about it.
Best Regards, Tom
7/29/2008 - One of those days.
Did you ever have one of those days when your plans go right out the window? For me, this is one of those days. I start out with the usual coffee and a look at my e-mail. ERROR - USER ID DOES NOT EXIST. Oh, great! Out of the many e-mail accounts synchronizing every day for years, one decides to fail. I re-enter the user name, the password, hit enter and ... ERROR - USER ID DOES NOT EXIST. I check the error code and contact the technical support department. They give me a long list of things to check and clear and verify. I do everything they say to do. I re-enter the user name, the password, hit enter and ... ERROR - USER ID DOES NOT EXIST. Once again I contact the technical support department. They give me another long list of things to check and clear and verify. I do everything they say to do. I re-enter the user name, the password, hit enter and ... ERROR - USER ID DOES NOT EXIST. By now I'm sensing a pattern. Off goes another e-mail request for assistance to the technical support group. Well, it's lunchtime now and I've accomplished little. At least this blog is up and our Better Business Bureau Accreditation link is active on lower left of this page. Simply click on it to check us out.
Best Regards, Tom