Steve Daria

What Happens to the Deficient Amount in a Short Sale??

This is one of the top questions we receive from people who are looking at the option of a short sale.

Our goal is to get a short sale approval stating that the bank waives any deficiency rights. I have included in this message two recent sample "Short Sale Approvals" for your review. These are by two large well known banks. One of which is an investor.

The literature we are looking for:

"This letter will confirm our acceptance of the short payoff on the above referenced property."

"We agree to accept the proceeds as full and final satisfaction on the mortgage indebtedness"

"Approval to sell the property which will result in a short payoff of the mortgage of the mortgage... agreed settlement short of full payment and waive any deficiency rights."

Here are two recent short sale approvals that we received (October 27^th 2009)

#1: ShortSaleApproval1.pdf

#2: ShortSaleApproval2.pdf

We are aggressively helping people to avoid foreclosure. Let me know if I can answer questions and be of service to you. At NO cost.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties... That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco... http://www.maximrealtors.com/MyBlog

Steve R. Daria (239) 425-5671

Last Chance - Free Short Sale Seminar

There has been A LOT of response from the public and I want to ensure no one misses the chance to learn more about short sales.

There are only a few seats left for this free short sale seminar!! RSVP a must - shortshortsale@gmail.com

Thursday October 15th 2009 @ 7:00pm http://www.maximrealtors.com/MyBlog

Our special guest will be Mark Makara from Makara & Associates. An accounting firm that has experience in dealing with shorts sales and the tax consequence associated with them.

· The tax consequences based on how the property is held.

· Tax relief on certain property due to new law.

· Investment property and how it can be structured with your personal situation.

· Ability to set your own private meeting with Mark to go over your specific scenario as everyone's scenario is different and there is no general solution.

Here is the overall general outline:

· What is a short sale?

· What do we do for you as a real estate firm?

· Will this cost me anything?

· What is the structure of the short sale process?

· How will this affect my credit?

· What are the tax implications for different kinds of properties?

· What do I need to do to get started?

· Q&A

If you cannot make this and you are interested in speaking with us, call me direct at 239-425-5671.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties... That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco... http://www.maximrealtors.com/MyBlog Steve R. Daria (239) 425-5671

Be Careful with a Seller Contribution and a Short Sale!!

One short sale we are working on in Fort Myers has been a first for me...

We have a negotiator in place and have been going back and forth and I had a verbal approval from the negotiator at purchase price of $208,000.

Keep reading!

I went to the buyer, revised the contract and added the pertinent language for the seller contribution toward the buyers closing costs in which we had to change the price to around $220,000.

My mistake and shame on me for acting on anything less than something in writing... Prior to obtaining an actual written approval with the net amount that the banks needs, I submitted the revised short sale contract with the $220K price and the language of $12,000 as a seller contribution toward buyers closing costs.

The negotiator did provide a written approval.

Yeah. Well it was for the new price of $220K and NO contribution! I tried everything to fight this and talk with supervisors , etc - Nothing worked. And a take it or leave attitude was established.

We are still moving forward but had to increase the purchase price even further and now may deal with an appraisal issue.

I put this out if you are a buyer, seller or a representing short sale agent. Be sure to get a written approval with the net amount that the banks needs (even on your initial offer). Then submit the revised contract with any necessary contributions.

Another thing you will need to watch out for...

Now if this buyer backs out of this Fort Myers short sale because a denial in financing we may be in trouble. They may now look at the supplemented price as their new "approved" price which may kill any potential future buyer of the short sale if it is not a competitive price in the market. Also, some lenders will ensure the approved price to stay in place for a certain duration 30, 60 days...

I have not and will not give up until this property is sold one way or the other!! But - Just be aware of the scandalous activities that take place. Watch out and learn from my mistake!! I am sure to have more to come just keep checking back... Things are always changing and evolving. We just all need to be prepared and educated.

If you are interested in learning more -

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties... That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco... http://www.maximrealtors.com/MyBlog Steve R. Daria (239) 425-5671

Housing - A long Road to Recovery. Short Sale An Option for many. http://www.maximrealtors.com/MyBlog

Please note - We are not trying to bring down the public or persuade individuals that a short sale is their only way out. However, I think it is important for many to know that some options will not work and sometime government entities should just not be relied on. It is on the public to seek out education and the right professionals to assist them. It is survival and figuring out the best options for you and your family.

I have many friends, associates and others that have contacted us about information on short sales in South Florida as kind of a last resort before foreclosure... I encourage many to try and renegotiate the loan(s) that they have to see if they can come up with a more affordable scenario even if it is a rental property to a break even scenario. Unfortunately these individuals are coming back 60-90 days later and exercising their right of a potential short sale due to a denial of a modification.

Here are some quick quotes from the article out by Bloomberg by Fannie Mae CEO (Michael Williams) - Sept 9^th 2009 (Source - Bloomberg)

· Foreclosures will continue to climb this year, Williams said, putting pressure on home prices as mortgage companies work through a backlog of property seizures that had been suspended earlier this year as part of efforts to provide struggling homeowners with relief. While homes are selling faster, the inventory of foreclosed properties and unsold homes remain at "exceptionally high levels," he said.

· One in every 10 mortgage borrowers is behind on their payments and one in every 25 homes is in foreclosure, he said.

· Homeowners have lost 40 percent of their equity, making it difficult for many to refinance, he said.

· Some borrowers, as a result, are ineligible for government programs to refinance into lower rates. More than 1 million delinquent loans are ineligible for President Barack Obama's loan modification program because the debt was used to finance second homes or exceeds the program's loan limits of $729,750.

· "And not every borrower is taking advantage of the program," he said. Only 29 percent of the people who have received solicitation letters have responded, according to Williams. He said borrowers who aren't participating are skeptical of the program, have only just learned about it, have lost their jobs or have already abandoned their homes.

· Regulators seized Fannie Mae and smaller rival Freddie Mac one year ago amid concern that their capital wasn't sufficient to withstand a surge in mortgage delinquencies. The companies, surviving off a $400 billion lifeline from the U.S. Treasury Department, have since been thrust into a leading role in Obama's homeowner rescue plans, which include offering low-cost mortgage refinancing and waiving some loan standards.

· The companies, responsible for $5.2 trillion in U.S. residential mortgage debt, have booked a combined $165.3 billion in quarterly net losses in the past two years and have received or requested $95.6 billion in taxpayer aid since November.

Full Bloomberg article: http://www.bloomberg.com/

I am sometimes at a loss for words. I think we are headed into a long period of downturn even with media talking about "Housing market stabilizing" and "House pricing increasing" -What they do not say in big print is home prices have increased due to an acute period of time for a high demand of real estate in particular areas. And yes people are buying - And there are buying frenzies in Southwest Florida foreclosures and short sales. However, I expect we will see more abundant foreclosures and short sales especially in South Florida.

shortshortsale@gmail.com We are short sale servicing all of Lee, Collier and Charlotte Counties... That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco... http://www.maximrealtors.com/MyBlog

I can say that I personally got caught up in making purchases and selling for a profit when real estate values where sky rocketing in South Florida. I also am stuck with some negative performing rental properties. http://www.maximrealtors.com/MyBlog

The 1920's real estate boom and doom especially in South Florida can be compared to the 2000's - Massive amounts of people waiting in lines, filling hotels, traveling major distances to the sunshine state in order to purchase preconstruction real estate betting on a profit. The 2000's was a nationwide disaster, however, the state of Florida has been one the fastest growth, appreciating market and also the fastest falling.

So what happened in 2000?

There was a lot of access to money. Individuals were getting loans that should not have traditionally been able to get. No documentation & 100% financing allowed the average pizza delivery guy to "state his income" and make a real estate purchase with no money.

The level of greed and quick money skyrocketed not just by the home buyer but also government and Wall street. Check out the "House of Cards" video by CNBC: http://www.cnbc.com/id/28892719/ Very, very interested...

So now what? It is a matter of learning and rebuilding. I speak to some people who initially contact us about short sales and I hear "get me out of this house, I will never purchase real estate again." This is unfortunate and it was bad timing for many. However, there is time to start over and rebuild. Learning from the past and not dwelling on it will ensure a brighter future.

Consult your local real estate professional on rebuilding your future in real estate. It will and has proven to be an equity / asset builder over the long term. There are steps you can take if you are in a bad position with your current real estate portfolio such as a short sale. Being proactive now will help a quicker recovery for your future.

We are short sale servicing all of Lee, Collier and Charlotte Counties... That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco... http://www.maximrealtors.com/MyBlog