Anna Rose

Congratulations to the following agents for serving as the Short Sale Team within the Metro North office of Carolina One Real Estate:

1. Anna M. Rose
2. Jim Kelly
3. Diane Newton
4. Marlene Coleman
5. Patricia Cosgrove
6. Rachele Sharme
7. Cindy Norton-Ivy
8. Steve Query

The agents on this team are all armed with a Certified Distress / Short Sale Designation and have recognized the importance of providing this value-added service to their business.

This team has been trained to navigate through the requirements that need to be met to get all parties to agree to the short sale. They can handle the challenge of short-selling your property and prevent you from succumbing to the many pitfalls that can beset those who are not familiar with the process.

Do you know about the Short Sale Bill-H.3573?

SOUTH CAROLINA SHORT SALE BILL-H.3573

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-5-180 SO AS TO MAKE IT AN UNLAWFUL TRADE PRACTICE FOR A BANK, BUILDING AND LOAN ASSOCIATION, SAVINGS AND LOAN ASSOCIATION, SAVINGS BANK, OR OTHER FINANCIAL INSTITUTION DOING ANY KIND OF BANKING BUSINESS IN THIS STATE TO FAIL TO RESPOND TO A SHORT SALE OFFER FOR THE PURCHASE OF REAL ESTATE WITHIN THIRTY CALENDAR DAYS OF THE OFFER'S RECEIPT.

As an active member of my state's Legislative Committee, I find this to be a valuable BILL for our real estate market. If you're active REALTOR, Seller, or a Buyer within a real estate transaction-this is a proposal you should get educated on.

As it is currently, mortgage lenders currently don't have a time frame to when they should answer a Short Sale offer. Here is an example of a time frame for a Short Sale:

In most cases, mortgage lenders will take (72) hours to receive a Short Sale package by fax or email. If you send the Short Sale package by mail, you might have to wait up to (2) weeks to get a response that the Short Sale package has been received. After the package has been received, the package is then added to the Short Sale list and will need to be assigned to a Loss Mitigate personnel. This can take anywhere from (2) weeks to(30) days. Once the file is received by a Loss Mitigate personnel, it will take (30-45) days for the package to be reviewed. After the Short Sale package has been reviewed (this will include the time frame for orders of appraisals or BPOs), the Loss Mitigate personnel will either answer the offer, or sometimes the file is sent to a Private Mortgage Insurance department for further review. If the file is sent to this other department, the time frame for a response can be extended an additional (2-3) weeks.

As you can see in this example, the time frame for a closing on a Short Sale can take up to (90) days. The time frame can take longer if there were any documents missing within the Short Sale package that was sent. I know of a few people who have been in a Short Sale transaction and it's already been 9 months.

This Bill (H.3573) is designed to help those who are within a Short Sale transaction. The purpose is to make mortgage lenders make a decision on a time period.

Now, I know some of you are thinking "Ya right, this is an impossible Bill to pass and it will never get done because of the thousands of banks out there". Just so you know, when I first heard about this Bill, I was hesitate about it as well. After doing more research on this Bill and being an Active REALTOR in Short Sale transactions-I strongly feel that if we make a noise about it, something will be done.

I've talked to several REALTORS within my office about this Bill. Believe it or not, the majority of them are against this Bill. Here are their objections:

1. "The government shouldn't get involved because mortgage lenders will stop lending".
2. "Having the government tell the mortgage lenders to put a time frame on answering a Short Sale offer is unnecessary. The investors to thess mortgage institutes will get tired of paying out the money for foreclosures and the market will heal itself".

Here is my answer to these responses:

From 2000 to the beginning of 2007, we had a HUGE BOOM in real estate. During this time frame, not only was I an active REALTOR but I was an active Mortgage Broker as well. If the mortgage lenders said "Lets give them a mortgage", then I did the mortgage. Good, Bad, or no credit-You could get a mortgage. If the government had gotten involved with mortgages during this time frame, we wouldn't have had the kind of real estate boom we had, and we wouldn't be in the situation with our economy right now. As far as mortgage lenders not lending anymore-well, that won't happen. Mortgage lenders will probably tighten up some more, but won't stop lending. In regards to the market "Fixing itself". Well, I'm sure way later down the road we will get back on track with our real estate market. However, a time frame on Short Sale transactions can help us get back on track faster.

I would like to know your feelings on this SC Short Sale BILL-H.3573. Let me know why or why not you agree with this BILL. I will take all feed-backs to my next Legislative committee meeting and voice your concerns with the other committee members.

Thanks for reading,

Anna M. Rose

Certified Short-Sale Professional

CBS Early Show

Question:

"Yes, it is, and for a number of reasons. For one thing, housing prices are declining just about nationwide. Plus, mortgage rates are at a serious low. Rates on a 30-year, fixed-rate mortgage are at a level we won't see again in our lifetime. Finally, if you buy before December 1, you'll get an $8,000 tax credit if you're a first-time buyer or a buyer who hasn't owned a home in the past (3) years. For all those reasons, there'sreally never been a better time to go shopping for real estate.

NBC Today Show

Hard baller and former broker Barbara Corcoran said on 03/12/2009 this answer on the NBC Today Show:

"For the first time in a long time, you can actually get both a short and long-term gain on a real estate investment. With prices down, interest rates at record lows, and so may would-be buyers deciding to rent instead, it's a great time to buy a real estate investment."

Forbes.com

On March 31st, 2009, Forbes.com just came out with a list: "Ten things to buy before the Economy Improves", at the top of the list is=HOUSING. Their quote: "This may be the best time in generation to buy a home."

Kiplinger's Personal Fiance

On 03/09/2009, Kiplinger's Personal Fiance said this: "It's a good time to snag a bargain if you're confident in your job prospects and you don't plan to sell for at least five years."

Pew Research Center Survey

On 03/16/2009, Pew Research Center did another survey that showed "75 percent said it was good or very good time to buy real estate."

This is extra research that I provide to my customers, buyer/clients, and seller/clients.

Thanks for reading,

Anna M. Rose

www-AnnaRose-RealEstate.com

annarose@carolinaone.com

CBS Early Show

"Yes, it is, and for a number of reasons. For one thing, housing prices are declining just about nationwide. Plus, mortgage rates are at a serious low. Rates on a 30-year, fixed-rate mortgage are at a level we won't see again in our lifetime. Finally, if you buy before December 1, you'll get an $8,000 tax credit if you're a first-time buyer or a buyer who hasn't owned a home in the past (3) years. For all those reasons, there'sreally never been a better time to go shopping for real estate.

NBC Today Show

Hard baller and former broker Barbara Corcoran said on 03/12/2009 this answer on the NBC Today Show:

"For the first time in a long time, you can actually get both a short and long-term gain on a real estate investment. With prices down, interest rates at record lows, and so may would-be buyers deciding to rent instead, it's a great time to buy a real estate investment."

Forbes.com

On March 31st, 2009, Forbes.com just came out with a list: "Ten things to buy before the Economy Improves", at the top of the list is=HOUSING. Their quote: "This may be the best time in generation to buy a home."

Kiplinger's Personal Fiance

On 03/09/2009, Kiplinger's Personal Fiance said this: "It's a good time to snag a bargain if you're confident in your job prospects and you don't plan to sell for at least five years."

Pew Research Center Survey

On 03/16/2009, Pew Research Center did another survey that showed "75 percent said it was good or very good time to buy real estate."

This is extra research that I provide to my customers, buyer/clients, and seller/clients.

Thanks for reading,

Anna M. Rose

www-AnnaRose-RealEstate.com

annarose@carolinaone.com

Agents / Sellers / Buyers- How much do you know about Short Sales?

My office recently had an office meeting about why it is important to get educated in knowing and understanding the market of Short Sales. I found it very interesting that a lot of agents will do a short sale, but don't know much about the process. I recently looked over the MLS and noticed exactly how many short sale properties were on the Tri-County market. It amazed me on how many agents put the wrong language within the "Agent Remarks" section. If you're an agent and you plan on doing a short sale, please do everyone a favor and get educated on these types of transactions. Short Sales can hurt a seller more vs. helping them if you don't know what you're doing.

If you're a seller in need of a short sale or a buyer wanting to purchase a short sale- make sure you hire an agent who is Short Sale educated. I find myself coming across a lot of agents who can never answer my standard questions regarding short sales.

This indicates to me that: (1) The seller's agent doesn't really know the process of a short sale, (2) Because of the lack of knowledge the process on the Short Sale can take a lot longer then the standard 2-3 months, (3) The seller & seller's agent will still try to get other offers on the property along with my buyer's offer.

As a CERTIFIED Short-Sale Professional through NAR, when I sense this-I WILL ADVISE MY BUYER TO LOOK AT OTHER PROPERTIES. In most cases, buyers who look at short sales see a DEAL. However, they will need financing. If the buyer locks on an interest rate, they will possibly lose the rate lock because the transaction can be a long drawn out process. This wouldn't be great for the buyer or for both of the agents! Difference in payments because of a re-lock can be HUGE! In some cases, buyers who's interest rates have expired and are in need to re-lock-might not be able to afford the adjusted mortgage payment.

It's okay for an agent not to get Certified in the market of Short Sales. It's okay for an agent to advise the seller to hire a 3rd party to negotiate on their behalf. However, the lack of knowledge is not professional nor is it helpful is all aspects of short sale transaction.

LISTING AGENTS- If you include an addendum to contract that reads: "Buyers understand that the short sale approval process can take anywhere from 2 weeks to 3 months to complete. During this period the property shall remain in "ACTIVE" status until all underlying lien holders accept the conditions of the short sale." You will be in violation of the CODE OF ETHICS. Reason, the contract is "RATIFIED" once the buyer and seller sign off on it. Status on the MLS needs to be changed to either a "PENDING" or "A/C". The 3rd party approval is just like any other contingency. Receiving other offers on top of a ratifed contract is unethical and against the law of real estate. HOWEVER, if the seller's lender request that you include this addendum to be signed, it's your responsibility to get the lender to understand the CODE OF ETHICS and how a short sale is a benefit for them. That is why agents need to be EDUCATED!!!

SELLING / BUYER AGENTS- If you see an addendum to contract that reads: "3rd Party negotiator has been hired by the seller(s) and real estate broker(s) as a fiduciary advisor to the Realtor(s) and sellers(s), specifically to facilitate the short sale transaction between the buyer(s), seller(s) and lender. Seller(s) hereby agrees to compensate the 3rd party negotiator" I would advise you to find out if the seller is paying this negotiator out of the total real estate commission or a commission on top of the real estate commission. This will help you understand why your commission isn't what was originally stated.

The bottom line on my point of view on Short Sales is this: Everyone who is doing or in a Short Sale transaction needs to be educated. If you're a listing agent and you're not getting an offers on the short sale property-it's probably the comments or the addendums that you're putting on the MLS. If you're a Selling / Buyer Agent, make sure you read over all comments an addendums to the property. Talk to the listing agent FIRST, before any offers and make sure they know how to do a Short Sale. Ask questions and get answers. If the listing agent doesn't have the answers, then find the way to get your questions answered. Once again, this is why it's important to be educated!!!

Let me know your thoughts by commenting.

If you have any questions, e-mail me at your convenience at: annarose@carolinaone.com

Thanks for reading,

Anna M. Rose