Attilio Leonardi

Short Sale Buyers:

Here are some questions you need to have your Realtor ask the listing agent on a short sale.

1. How many short sales have you closed in the last 12 months?

Current experience is critical. We are in economic times that have not been seen in decades. A top short sale educator has stated from the the teaching platform that the newest Realtor is the best student for the current market conditions because prior knowledge or non short sale knowledge can be a hindrance to coming up with the solutions for an ever changing short sale market.

2. How many active short sale listing do you have?

If you are not in the thick of it, it is hard to be aware of the changing lender conditions for short sales which do change daily.

3. Do you have a complete short sale package?

Many Realtors make the mistake of taking the listing first and then chasing down the seller afterward for the short sale paperwork. Or the short sale paperwork that they do collect is incorrect or surplus. An incomplete short sale package wastes everyone's time, including the buyer.

4. Do you use a 3rd party to handle the loss mitigation of the short sale package with the lender?

The more efficient Realtor will have a 3rd party performing the communication on the short sale package with lender so that he or she can focus on what they need to be doing. The marketing of the property. Short sales are such a specialty that the first couple of transactions are lab experiment for all parties involved. Some States have legislation that does not allow the Realtor to negotiate directly with the bank.

For all your Hawaii Oahu Short Sale referrals please visit our website and see why your clients will be in goodhands. A referral to an experienced short sale agent is a reflection of your professionalism.

http://www.weloveshortsales.com/

http://www.teamlally.com/home.asp

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Attilio Leonardi Jr. (RA) CDPE
Short Sale Specialist
RE/MAX HONOLULU - Team Lally
(808) 388-5466 cell
(808) 356-8193 fax
sunnykapolei@gmail.com
weloveshortsales.com
teamlally.com



"I am never to busy for your Short Sale referrals"

I am not an Attorney or Tax Professional. Any information I provide is based on my experience when representing clients in Short Sale Real Estate transactions. If you need Legal or Tax advice please seek the appropriate licensed professional. I make no guarantees or promises of the outcome of any Foreclosure or Short Sale. All information provided by me to any all parties is to the best of my knowledge and is deemed reliable but not guaranteed.

A wise man learns from his own mistakes and a happy man learns from the mistakes of others. Here are some helpful tips to make you a happy buyer's agent instead of a wise one.

All the information I am providing is not theoretical or dated but comes from actual short sale transactions that our team has closed in the last 12 months (26) and are currently involved with (40+).

Buyers/ Buyer's Agent - Should know...

Expect to pay for closing costs that are traditionally paid for by the seller. For example surveys, termite reports, condo documents. We do try and get the lender to allow that these be paid for out of the purchase price but sometimes they just cut them from the approval.

Commissions maybe reduced so don't expect to be able to follow through on buying that new refrigerator or paying for that home warranty plan. Don't put your self in an awkward situation by promising these items to your buyer when you commissions may end up being reduced by the lender.

Signed purchase contracts may not be coming back to you to show to your buyer. We usually just send a generic email response. Prior to written approval it would premature to iniate any countering.

Follow up with the listing agent should be done via email. This allows for you to have documented proof of your requests and the listing agent can respond at their convenience. This also allows the listing agent to remain focused on the task at hand, getting your offer approved instead of retrieving voice-mails and returning your call with a "no approval yet." We have a website that agents/buyers can check 24/7 the short sale status on all our listings.

Does the property have any offers on it? The answer you want to here is yes. This indicates that a complete short sale package has been submitted to the lender and the process has been started.

Don't assume that a full short sale package has been submitted to the lender. Ask

Another key indicator that the process is moving along is if the lender has ordered a BPO or full appraisal. They need this to determine if they will accept your client's offer. With out it the file is in limbo.

Patience is a virtue. You need to be very patient when it comes to putting in offers on short sales, and by preparing your buyer's expectations for this, you will prevent having an angry client.

Hope this is helpful and make it a great day!

I have helped many home owners in Hawaii avoid foreclosure or get out of upside down mortgages. This is what I have learned. If you are facing foreclosure there are four questions you need to be asking or researching.

1. How will this affect my credit?

There is a ton of information on the Internet but the best analogy I have come up with is that a short sale is like a smash in your car door and a foreclosure is like totaling your car.

Since I am getting corrections on corrections (as reponses) I have decided to leave my comment above as is and let individuals search the Internet for all the many different answers. My ambiguous analogy is as detailed as I want to get on that topic.

2. What are the tax consequences?

You will be issued a 1099C statement on the difference and will have to treat it as phantom income. However, the new Mortgage Forgiveness Debt Relief Act of 2007 provides a way to for you to exclude the income. Go to this link for more details from the IRS...

http://www.irs.gov/individuals/article/0,,id=179414,00.html

3. What happens to the difference I owe the bank?

A couple of different things can happen. The lender may agree to short pay of and a full release of any underlying debt. They may ask that you sign a promissory note for the difference. They may ask that you pay part of the difference. They may reserve the right to come after you for the difference. Hawaii law allows the lender to pursue you for up to two years.

4. What are all my options when facing foreclosure or upside down in my home or both?

Deed in Lieu of Foreclosure: You basically give title back to the bank.

Forbearance: Temporarily freezing the monthly payment due on your mortgage.

Loan Modification: The bank changes the terms of the loan.

12-31-08 New Information about Loan Modifications:

From the Office of the Comptroller of the Currency and the Office of Thrift Supervision...

More then half of all mortgage modifications go into default within 6 months.

Short Sale: You sell the home at a market price and the bank agrees to the sale with conditions.

Check out my website... http://www.weloveshortsales.com/At the bottom of the page in the copywrite line click on "Agents" to see all our Short Sale Listings.

Foreclosure: You stop making the your mortgage payments and the bank auctions off your home.

Refianance: No explaination needed.

Reinstate Your Loan: Pay all your back mortage payments, plus late fees and legal fees.

I hope this was helpful for you if you are facing the difficult and stressful situation of a foreclosure or are upside down (owe more then it is worth) in your home.

"I am never to busy for your Short Sale referrals"

I am not an Attorney or Tax Professional. Any information I provide is based on my experience when representing clients in Short Sale Real Estate transactions. If you need Legal or Tax advice please seek the appropriate licensed professional. I make no guarantees or promises of the outcome of any Foreclosure or Short Sale. All information provided by me to any all parties is to the best of my knowledge and is deemed reliable but not guaranteed.