Full video transcription coming soon

Full video transcription coming soon

Full video transcription coming soon

Full video transcription coming soon

Full video transcription coming soon

This is my new section on deficiency issues about short sales. Today is July 18 2011, this is an update, this is a new video, my old section or consultation about deficiency is no longer valid nor relevant, there has been new updates as of July 15^th, new legislation and law that has been put into place put about short sales and deficiencies.

What does that mean? Let me explain to you what deficiency is, it is the difference between the amount of money your property can sell for and what you owe. So if you owe $500k but we can only sell your property for $400k the remainder of balance would be the deficiency that the bank received. Now prior to last Friday July 15^th, banks could come after homeowner in certain circumstances and possibly require them to pay some money in order to do a short sale. Breaking news effective last Friday. Here’s a little bit from the news article, “In a major victory for REALTORS® and consumers, Governor Brown signed into law today and effective IMMEDIATELY a-sponsored bill, Senate Bill 458, amending Civil Code Procedure 580(e) and prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder.”  What that means is no matter how many loans you have on the property, whether it be a first a second or a third the banks can no longer come after you after a short sale. Not only that it also says “Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale.  This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units.” So what this means that not only can the bank not come after a home owner regardless of it’s a first, second or third lien holder after a short sale, they can’t even ask the homeowner to contribute any money in the proves this is a huge victory and huge change in circumstance in regards to how I’ve been doing short sales for the last 7 years. Before I had to always negotiator this and it was always about leverage now the banks has lost all their ability to ask the homeowner to pay any money.

What does this mean for you? This means if you were going to do a short sale and you are upside and cannot afford to make your payments and need to sell your property you can go ahead and do so. You can preserve your credit and not have to pay any money to the banks or myself. You won’t have to worry about them after the fact, doesn’t matter if you pulled out money several times afterwards or what was deemed in the past as a recourse loan, you don’t have to worry about it. Now this doesn’t mean things won’t change in regards to second lien holders asking for more money from the other bank, they are still allowed to ask for money from other resources, such as me a real estate agent and my commission or if they are in a second lien holder position they are allowed to ask for more money from the first lien holder in order for the to allow the short sale. It does state on here that they could ask for the buyer to contribute money, just means that the homeowner will not pay anything. A few things that will exclude from this provision is one if the homeowner commits any fraud or if the homeowner is a corporation, LLC or limited partnership, if the lien is secured by a bond or a public utility liens. But other than that if you are a typical homeowner who owns their property in their own name and if you don’t commit any fraud throughout the short sale process you want have to worry about owing any money back. Again this is a HUGE change for how things were done previously so I wanted to update this section here in my deficiency.

Understand that we are going to still proceed in my particular process with business as usual. We are still going to get an approval letter from the bank and then we are still going to allow you the opportunity to review that with a real estate attorney, so that you can clearly understand what the letter says and clearly understand what these new laws are that are in place and how they protect you. I have to give you this disclosure; I am not a real estate attorney, I cannot site that what these laws are and explain exactly what they mean. I am always going to refer you to a real estate attorney to go over your approval letter this is a service that is free to you, you’re able to utilize your own real estate attorney or one that we work with and again I will pick up the cost for that so that you understand these new laws and exactly how you are protected.  I just wanted to update this section of my video; again this is huge new in the short sale world. Hopefully this will contribute to a lot more homeowners going down the path of a short sale instead of a foreclosure and help rebuild this real estate market, I am short sale Kurt thank you very much for watching this section on my video consultation about deficiencies on short sales!

In a major victory for REALTORS©, Governor Brown signed into law today and effective IMMEDIATELY a C.A.R.-sponsored bill, Senate Bill 458, amending Civil Code Procedure 580(e) and prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

WHAT THIS MEANS FOR SAN DIEGO HOMEOWNERS

That San Diego Homeowners that are in distress and upside down on their property can now go ahead and sell their property without ever worrying that the bank will require any money from them in the short process or ANY time after the sale!

This is a huge difference than before in that, 2^nd lien holders (or loans) were allowed to still collect or require the seller to pay money in order to short sale their home. Because of this many people chose to go to foreclosure to get relief from laws that protected people in a foreclosure and not a short sale. Some people also had to turn to Bankruptcy in order to eliminate their debt from these 2^nd loans and now they will not have to do that. A short sale provides all the same relief as a foreclosure now, AND protects the homeowner’s credit!

With 610 Short Sale total in June for San Diego (19% of Sales) and 785 Foreclosure Sales (24% of Sales), this could be the incentive needed to swing the numbers in favor of short sales. Short sales, not only protect the homeowner’s credit, but keep property values higher, and help stabilize the market by preventing a homeowner to choose a foreclosure.

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What do you do when a bank keeps calling you and you are in the middle of a short sale or perhaps you are just starting a short sale? The first thing you need to understand is that if you are behind on payments, departments such as their collections department will start calling you on every phone number imaginable that they have for you. What you should do in this instance is a couple of things, first is if you are in the beginning of the process, you may want to take their call maybe once or twice or three times. In each instance talk to them and communicate with them you are in the middle of a short sale and that you now have the property up on the market. The bank may or may not know this because of the fact if you just started the process, you may not have an offer yet, so go ahead and let them know you’ve put the property on the market, you are attempting to do a short sale and give them all of the contact information for your t broker you are working with. Have them direct all their questions and concerns to them, once you do this once or twice they will typically put this down in their records and notate the account. If your real estate agent or broker is proficient with short sales, they may have a Do Not Call Me or Do Not Contact Me form. If you fill out this form and your real estate agent gets this form to the right hands at the bank, many times they are required by law if there are certain provisions in that form, to stop contacting you and stop calling you. Now that doesn’t mean you can’t call the bank and find out what’s going on with your file and it’s not going to stop them from sending you any notices in the mail. But they are required by law to stop contacting you and you can let them know at that time if they do contact you again, that you submitted a Do Not Contact Me form and they are in violation of the law of communicating with you and simply hang up from that point.

When an agent does have this form and does submit it in, it can take a couple of weeks for it to register with the banks. Sometimes we have to submit this form two, three, four times before we get it to the right hands before it does take effect. The other thing you have to understand is that the people calling you are typically from the collections department, who are usually from a different division or separate department from other people that your real estate agent may be dealing with such as a short sale division or loss mitigation division. But ultimately if you have the correct form, you fill out and your agent gets it to the bank and verifies that they have it that will typically get the calls to subside after a period of time. Now there are certain banks that are a little more aggressive than others, most notably Chase, they sometimes will ignore the form or state that they didn’t receive it and so it is up to your real estate agent to be aggressive and to continuously keep sending that in and for you as a consumer or homeowner to enforce the fact that you have submitted this form several times and that they are now in violation of law for contacting you. So those are couple of things you can do while in a short sale process if the bank does keep contacting you and asking to speak with you about your account. That’s some advice from me; my name is Kurt Wannebo also knows as Short Sale Kurt with San Diego Real Estate & Investments. Thank you very much for taking the time to watch this video and read this article 

What do you do when a bank keeps calling you and you are in the middle of a short sale or perhaps you are just starting a short sale? The first thing you need to understand is that if you are behind on payments, departments such as their collections department will start calling you on every phone number imaginable that they have for you. What you should do in this instance is a couple of things, first is if you are in the beginning of the process, you may want to take their call maybe once or twice or three times. In each instance talk to them and communicate with them you are in the middle of a short sale and that you now have the property up on the market. The bank may or may not know this because of the fact if you just started the process, you may not have an offer yet, so go ahead and let them know you’ve put the property on the market, you are attempting to do a short sale and give them all of the contact information for your t broker you are working with. Have them direct all their questions and concerns to them, once you do this once or twice they will typically put this down in their records and notate the account. If your real estate agent or broker is proficient with short sales, they may have a Do Not Call Me or Do Not Contact Me form. If you fill out this form and your real estate agent gets this form to the right hands at the bank, many times they are required by law if there are certain provisions in that form, to stop contacting you and stop calling you. Now that doesn’t mean you can’t call the bank and find out what’s going on with your file and it’s not going to stop them from sending you any notices in the mail. But they are required by law to stop contacting you and you can let them know at that time if they do contact you again, that you submitted a Do Not Contact Me form and they are in violation of the law of communicating with you and simply hang up from that point.

When an agent does have this form and does submit it in, it can take a couple of weeks for it to register with the banks. Sometimes we have to submit this form two, three, four times before we get it to the right hands before it does take effect. The other thing you have to understand is that the people calling you are typically from the collections department, who are usually from a different division or separate department from other people that your real estate agent may be dealing with such as a short sale division or loss mitigation division. But ultimately if you have the correct form, you fill out and your agent gets it to the bank and verifies that they have it that will typically get the calls to subside after a period of time. Now there are certain banks that are a little more aggressive than others, most notably Chase, they sometimes will ignore the form or state that they didn’t receive it and so it is up to your real estate agent to be aggressive and to continuously keep sending that in and for you as a consumer or homeowner to enforce the fact that you have submitted this form several times and that they are now in violation of law for contacting you. So those are couple of things you can do while in a short sale process if the bank does keep contacting you and asking to speak with you about your account. That’s some advice from me; my name is Kurt Wannebo also knows as Short Sale Kurt with San Diego Real Estate & Investments. Thank you very much for taking the time to watch this video and read this article

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One question I get quite frequently is do I qualify for a short sale? The answer to that question is sometimes hard to determine especially if your just doing some initial research online, the best way to get that question answered is to call a professional, call somebody who is extremely knowledgeable about short sales. I offer free consultations and we can talk about your situation and I can give you a very clear picture and definition as to whether or not you qualify for a short sale. If you aren’t ready to speak with someone yet however here’s a couple of thing to consider, the first is this, you have to understand a short sale is designed and geared for people who have a legitimate hardship or have an impending hardship, now that may be financial, it may not be. So let’s say for example you want to attempt to do a short sale but you want to stay current on your payments. Well the bank may still grant you a short sale if you have a circumstance where you know you are going to lose your job in a couple of months and we can document that. I have had clients who were a married couple and they could afford the payments together but separately they could not and they wanted to stay current through the process and we could prove to the bank that they were getting a divorce and wouldn’t be able to afford separately. The bank may grant them a short sale while they were staying current. Other examples might be clients of mine who have been in the military and are getting transferred and cannot rent out the house for what the mortgage payments are and need to sell it because they were going to be renting somewhere else. That is a legitimate hardship reason as to why you can do a short sale while staying current on their mortgage.

Now if for any reason you are behind on payments whether it be by choice or circumstance, well I can tell you that is almost an automatic qualifier for a short sale. You have to understand that when payments aren’t being made, the bank looks at it from the perspective of, we aren’t getting paid, this is a short sale vs foreclosure scenario for us to weigh out. Many times the hardship factor isn’t as important. So if again if you’ve missed payments 2, 3 or 4 months whatever it may be, it’s almost an automatic qualifier and I haven’t had any client EVER who has been behind, that’s been denied a short sale or an opportunity to do one. So that kind of boils it down to the basics there in regards to, are you making payments or are you not. If you are making payments and wanting to do a short sale, we need to be able to prove to the bank that further along down the road you aren’t going to have any money and you aren’t going to be able to afford the payments or something along those lines. If we have a legitimate excuse and can get it to the right people at the bank, we are sometimes able to get those done as well. I’ve done short sales with every bank out there where the client has stayed current, but in today’s market it is getting a little bit more difficult so we have to clearly document and define those hardships that are going to be impending and prove that to the bank.

If you have any further questions or want to know more specifically about your case give me a call, I offer free consultations. I will assess your situation based on your bank and what you have going on and I can probably tell you whether or not you will qualify for a short sale. Thank you very much for watching this video my name is Kurt Wannebo, with San Diego Real Estate & Investments, also known as Short Sale Kurt. Thank you very much!

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Are you currently considering a short sale or in the middle of a short sale and if so are you working with the #1 short sale agent? If you are, you may be in trouble…couple of things you want t to take into consideration when people make the claim they are the #1 expert. You have to understand where people are making this designation from, most people who are making these claims are most of the time self proclaimed, meaning that they have simply deemed themselves as the #1 agent, it is very relative to a number of things. Are they the #1short sale agent in the world, the # 1 short sale agent in the country, or are they simply the #1 real estate agent in their own office or branch or company that they work for. Again this opinion is totally subjective. And there is one particular agent here in San Diego that claims he is the #1 short sale expert, now how he gets away with that is beyond me but you have to understand that there are many people out there making this claim who have very low percentages of closing short sale transactions and it’s very important to determine who it is you are working with. If you are considering working with a short sale expert, I would do a couple of things, one is Google their name, determine what their reputation is online. Look up sites such as Yelp and read their reviews about their customer service, look at their BBB rating and to see if they have any complaints filed against them. Again Google their name and see what pops up, if the #1 website that pops up when you Google their name is, ripoffreport.com, I would have some reservation to hiring that #1 short sale expert.

In the end it’s important for you to one, to feel comfortable with who it is you are working with, in a short sale transaction you are not paying any fees. With that being said it’s in your best interest to go out and determine who you are most comfortable with, who you feel has the most experience, who you feel has the most knowledge and ask them to verify their numbers or verify any particular claims that they have. I would be real curious to hear from certain people’s clients as to how he determines he is the #1 short sale expert in a particular area and what documentation he has to try and prove that claim as the #1 short sale agent. Again I’m not saying that any of this is untrue, what I am simply saying is that all of these are opinions from people that make these claims and call themselves a certain thing. Me myself, I call myself a short sale specialist, it is something that is my primary focus of my business, it’s something that I have been doing for a number of years and I let my reputation, not only with my peers amongst the real estate community but also my reputation with my past clients, do the speaking for me. I would highly recommend if you are considering anybody, that you do Google my name, which is Kurt Wannebo, also on this website. Find out what websites do pop up, read what people have to say about me, read on Google reviews and read on Yelp reviews. Those will give you a determination from a starting point on who to talk to, from there you can ask a little more about their experience and if they have worked with your bank, etc., to the point you feel comfortable and satisfied, so that you’re not only going to get your short sale transaction done but that you are also going to receive excellent customer service. My name is Kurt Wannebo, I’m with San Diego Real Estate and Investments, also known as Short Sale Kurt. Thank you for taking the time to watch this video and again short sale specialist is what I go by; I make no claims as being the # 1 expert.