Kris & Kim Darney

Check this out…Wachovia is setting the benchmark for the Short Sale process…the days of 30, 60, 90 days waiting for a short sale approval are over.

Today on a call with Robert “Bobby” Jackson; Asset Manager, Wachovia, we were treated to one of the most exciting and industry moving initiatives that will change the way Real Estate is bought and sold for many years to come.

“Wachovia Short Sale”…as it’s branded…was rolled out in Northern California and has been a huge success. Wachovia is partnering with Real Estate Agents to expedite offers on short sales. Imagine…45 days to close a short sale…that’s 45 days from the day the offer is sent to Wachovia. This “Best Practice” will change the way short sales are done by every bank…nationwide and it’s brilliant!

Of $160Billion in real estate loans held by Wachovia, $80Billion is in California!!! Wow…Of this…30,000 of Wachovia’s California mortgages are 60 days + late with no notices of default…People need help…Our economy needs help!

With pressure on banks to dump bad assets…banks have been bundling these mortgages and selling them for pennies on the dollar just adding to the foreclosure epidemic. With moratoriums placed on foreclosures, Wachovia’s pro active measures will set the standard for mortgage economic recovery

Putting a buyer into a short sale accomplishes many things:

• Stimulates the economy

• Helps to re-establish communities

• Prevents future damage to neighborhoods

• And not to mention…it saves the bank from the high cost of foreclosure and rehabbing

As you may know…Wachovia was bought by Wells Fargo and the “Wachovia Short Sale” is only a test…but it has the potential of changing the Real Estate industry. You’d think the geniuses that run Chase/WAMU and BofA/Countrywide would follow this program and embrace the successful trail that Wachovia’s cut.

What next…Wells Fargo must expand this program nationwide and do it’s part in Helping Homeowners!

This initiative has the potential of changing our economy. The stigma of the short sale is no more. Buyers will make offers on properties knowing that they will get a response in a few days…not months.

“Wachovia Short Sale” is Epic!

Today was one of those days…

Up’s and down’s from the moment the phone calls started at 6:00AM.

In the world of Short Sales, there are so many moving parts. Usually a seller has 2 loans to deal with and most of the time they’re not the same lender. Needless to say that’s a circus in itself! Even when the lender holds both liens on a property we find that the departments don’t share information…

Then there’s the buyers agent…oh boy, could I say a lot on this topic. But to keep it “light” let’s just say that some buyers agents don’t communicate with their buyers, at all! Nothing like getting a long awaited approval and calling the buyers agent to tell them we are ready to open escrow and get….”well…I need to call the buyer to find out if they are still interested!”

Now, you have to realize that we have been talking to this buyers agent at least once a week for at least 45 days giving updates on when we should be getting an approval! ahhh…so, keeping it “light” if your buying a short sale, make sure you are talking to your agent once a week, don’t leave it up to them to call you.

After 6 hours of calls dealing with lenders, agents and escrow it felt like everything that could go wrong had…

Then, within 2 hours we had 2 calls from people that needed help with selling their home. After talking to each of them and listening to the emotional and financial devastation that these properties are causing them…I realized we do what we do to help others through these tough times. Having gone through losing a home, we really understand what your going through.

At the end of the day, I don’t know if I could say “I love what we do”. But I do know that we love what we “can do” for those who seek to find relief from a property that’s just no longer an option to keep…for whatever reason.

Once you have listed your home for Short Sale, you have agreed to let the bank/your lender decide the ultimate "Terms" on which the home will be sold.

A Short Sale is unique. Although you are the homeowner according to the note & or deed recorded when you purchased your home...because the home is selling for "Less" than that original note, the lender/bank now has to approve the terms of the sale and will decide howmuch of a reduced price will be accepted for the property. With that, the bank will also decide if they are going to offer money towards closing costs, home warranty, termite...fees etc.

When you are asked to sign a purchase offer, the buyer may ask the "seller" to pay closing costs. Remember, the bank holding the title has ultimate say on what will be paid in the transaction. These fees or costs will be paid from the proceeds of the sale. If approved...the closing costs will be paid from the proceeds. You as the seller, will not be responsible to pay for the closing costs at close of escrow. This is also true of real estate broker commissions. Commissions are negotiated by the broker and are also paid from the proceeds. Again, you will not be responsible to pay commissions.

Another very important thing to be aware of as the homeowner-

When you list your home for Short Sale, in most states (California) you will be asked to sign a Short Sale Listing Addendum. This form explains the Short Sale process and ultimately allows you to cancel the sale at anytime, for any reason.

What does this mean for you?

If you are not comfortable with the terms the lender has offered as an approval, CANCEL the sale. You are in complete control. Do remember that you will have to deal with the possibility of Foreclosure if you refuse the terms as agreed by the bank.

Make sure you have an experienced and trained Short Sale Agent represent you through the sale. Experienced? 5+ closed short sales. Ask to see previous clients Approved short sales.

We have never had a sale approved that the homeowners were not thrilled with. This equals ZERO dollars to sell the property.

Great news today for anyone contemplating a Short Sale....Also validation that Banks don't want to Foreclose if there is another alternative. Citi Mortgage announced that their pre-foreclosure preventions outweighed their Foreclosures 10 to 1 during the first quarter!

With this great news also comes the reality that lenders/banks are taking the time....and lot's of time to review these Short Sales.

We work with all the major lenders and servicing companies, and it's obvious that some of these "guys" have a great process in place. One major lender, Wachovia, is outstanding to negotiate with, they only require a few documents from the homeowner and have an approval process in place that is taking just under 30 days!!! To the extreme, Chase Mortgage is taking 30 days to even recognize that an offer has been received....making their approval time nearly 120 days...hmmmm?

We're confident that these delays will be corrected, and a smooth process put in place in the near future, Short Sales make real $$$$ and sense.