Archive for 'aviod foreclosure'

Short Sale or Foreclosure can cause Death to Sellers

nationstar shortsaleMy office has been working on a file for over 1 year with Nationstar and a couple who put their faith in my Company’s skills to get a short sale approved. We listed the property and immediately received an all CASH offer from our Buyer. Nationstar sent out a Realtor to do a Broker Price Opinion (BPO) on the property and then instead of countering the existing buyer, they informed our office that they are now using to do a valuation process of the property. What that meant to the Sellers is that the existing Buyer on the property would not receive a counter offer on the property, but the Realtor was to hold 2 open houses in order to make sure that Nationstar received their highest and best offer.

We received a Buyer for $80,000 from and the existing Buyer would have to be released from their existing contract or Nationstar would not agree to the short sale. Right after the first Buyer for $60,000 was released, the Buyer through backed out. We were instructed to increase the list price of the property to $89,900. We did and got another CASH offer for list price based on the instruction of the negotiator from Nationstar. Time went on and as it did, Nationstar again decided that the $89,900 was not enough and we, as the Realtor, were instructed to hold 2 additional open houses for for their valuation process. No one bid on the property, so we assumed the $89,900 cash buyer was going to be accepted. On the website it stated “Short Sale Approved,” but it was NOT approved yet. We then got another negotiator who said that we had to increase the list price AGAIN to $125,000.00, which caused us to lose $89,900 cash buyer. We then got a new cash buyer at $125,000.

During this time, Nationstar did not stop the foreclosure action against our Sellers and continued to hold a Motion for Foreclosure wherein it would set a sale date when the property would be sold. The Sellers, who were already struggling immensely, hired an attorney who got us an additional 90 days to process the short sale due to the delay caused by Nationstar and their valuation process. We tried our best to advise the Sellers that we should be able to get this offer of $125,000 through Nationstar and please be patient and hang in there. I am not really sure how much more stress our Sellers could take. They had to move out of Florida due to a job relocation for the wife, and the husband still had to find a job in the new area. That stress alone of moving across the country and not having a job would be enough to cause sickness, anxiety, depression, stress, frustration and the list goes on. And then, add in the constant fight that we were having with Nationstar to get our offer approved; this was more pressure than the husband could take.

Even though the website had stated this was “short sale approved,” it took a couple months for them to process our new buyer.   The buyer had a deadline in which they needed to close, and after at least 2 months of waiting, Nationstar still hadn’t approved their full price offer and the buyer had 1 week to find a new home, so they walked. Nationstar again decided that they were going to do yet ANOTHER valuation process and requested that the house be placed for auction with

No new offers came in, as we truly believe that the $125,000 is a very high offer for this property. And, in this price range, you will most likely have a mortgage buyer, so all we could do is pray that a mortgage buyer would get approved. We finally received a mortgage offer at $112,500 and submitted this to the bank. Finally, Nationstar accepted the $112,500 offer………. only too late, because by then my Seller had committed suicide from the stress of everything. We were unable to tell him that we had a short sale approval letter from Nationstar and all we needed now was an approval from Bank of America, who was the 2nd lien holder.

But wait … Bank of America could not issue us a short sale approval letter because their servicing contract was going to be terminated in 10 days and Carrington was now the new servicer of the 2nd lien. Our just-widowed Seller/wife, had to deal solely with all the stress of everything in her life because her husband was no longer alive. We all cried at our office with much sorrow for this entire situation, and I personally was furious at Nationstar for dragging their feet to get this deal done.

Even though we have an approval letter from Nationstar, there is now another court date which the Seller’s attorney must request a postponement for in order for Carrington to provide us with the approval letter. It has been over 3 weeks since the date of the letter that Carrington is the new service provider and NO ONE there has the file yet. More stress for our Seller. So, all we can do is present our case to the Judge and pray that he will see the games that the banks are playing against our Sellers and he will grant another 90 days for the process of the short sale. Unfortunately, because we have a mortgage buyer, they will need 30 days to complete their closing process wherein the first approval letter from Nationstar will need to be extended. I really hope that this file screams out to Nationstar for them to see what they are putting our Sellers through and will not attempt to place this property again on and will just grant us an extension to close.

Many short sales that we process are simple and once the Bank sends out a Realtor to do a Broker Price Opinion (BPO) they counter the existing Buyer and we can get a deal going. Other Banks don’t doubt the value that was provided to them from the BPO agent who they themselves hired. We normally fight the banks on behalf of our Sellers without them knowing many of the things that the Banks are arguing. All Banks want money from Sellers and believe it or not some Banks will pay Sellers up to $33,000 just to do a short sale.

The Banks are constantly getting laws passed in the State of Florida for their own benefit. In January of 2014, the Banks are able to get a deficiency judgment at the time of the foreclosure action against our Sellers and also still have the asset to sell. WHO IS FIGHTING FOR OUR SELLERS??!!! We believe that there should be a voice for the Sellers and as one of those voices I am saying to the Banks “STOP IT.” Stop taking advantage of the Sellers wherein the Banks are receiving FDIC bailouts, some loans have private mortgage insurance which will pay the Banks 20-30% of loss. Stop dragging their feet so that we can push the short sales through and the Sellers can move on. I ask you, as you are reading this article, who is on the losing side of this battle? The Sellers who put all of their savings as a down payment on a house, maybe even fixed it up, will they ever receive a return on their investment? The answer is “NO,” unless the Banks allow the Sellers to receive money at closing.

My tears are for the loss of my Seller, for his wife, for his family and for many other Sellers who are depressed and don’t know where to turn. I say to my Sellers “Don’t Let the Bank Win.” This phrase is on my office window and it’s on my car. Fight back with a short sale and for more information go to for information on how you can fight back.

As a Realtor working on behalf of my Sellers, I am ashamed to work with Nationstar as I believe they don’t follow the rules of other Banks and I am very sorry for the loss of my Seller. My office will continue to fight the fight with all Banks in order to make the voice of the Sellers heard. I want the banks to understand that just because they are in foreclosure and attempting a short sale, my Sellers are not bad people. Bad things happen to good people, but it doesn’t make them bad people. We make the Banks read their hardship letter and understand their situation. We show the banks that it’s not that the Seller just decided to stop making payments, but that they had to relocate, couldn’t sell it and had no choice but to do a short sale.

As Investors and Realtors, you need to step forward and help the Sellers. Make offers on the short sales and fight for a deficiency waiver for your Seller and make sure that their voice is heard. Sometimes as a Broker, I take a loss on a file because of the time it takes for the Banks to process the short sale. I don’t mind when this happens, as this is my contribution back to the community and a way that I can help people move forward during a highly stressful time in their lives. I will continue to fight the banks and also teach Realtors and Investors how to fight the fight. At the present time, I have saved Sellers and Buyers at least 37 Million Dollars and counting.

I have several trainings available to Investors and Realtors who want to help the Sellers. Make sure you check out my websites below and remember – DON’T LET THE BANK WIN!!!

Happy Negotiating!

Kimberlee Frank

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Don’t question having a Mentor…..JUST HAVE ONE!

booklaunchI remember when I decided to quit my job as a legal secretary and become a millionaire in real estate! I started with Carleton Sheets’ course. Once it arrived, I was to read it and take action. Yeah, right! I found that between my J.O.B. (Just Over Broke) and taking care of my children, I was busy and distracted, so the course sat on my shelf collecting dust. About 6 months later, I got a call from Carleton Sheets’ organization asking if I wanted to be in their Mentor Program. How much? They said $2,000.00. At that time, I had to make a crucial decision that would change my life.

Did I just want to “dream” about leaving my 9 to 5 job or did I really want to take action and make it happen? I thought about it for a couple of days and I said “YES!!” The training was just the start. I was able to purchase 6 homes following the course. Working in my home environment with so many interruptions was the hardest thing I have ever done in my life! I can tell you one thing, if it wasn’t for the Mentor pushing me….I would have given up and quit!

Just like many of you reading this article, I attended multiple boot camps and ordered over $250,000 worth of courses. The only difference between where I am in real estate and where you are, is that I took action and hired a Mentor to continue to push me forward and hold me accountable. And a Mentor gives you the answers to EVERY question you have! I am only quoting one of my students, “Having Kimberlee is like having personal access to your own magical Real Estate Encyclopedia! She has answers and solutions for everything!” That’s gotta give you some relief right there about what a Mentor can do for you! Everyone learns differently. Some people are visual learners and have to come to a class room and be taught, other people have to physically do a transaction to understand the process, and then some can pick up a book and do exactly as it says in the course and become successful.

The reason I am writing to you is to encourage each and every one of you to take a stand and change your life and take action….NOW! You know what you have to do to move forward in your career as a real estate investor, whether it is to come to a classroom and learn, physically do a transaction or just pick up the course that you have on your floor, dust it off, and do it!!!

When choosing a Mentor, you do need to look at what they have accomplished. If they have “been there and done that” and have the t-shirt to prove it, then hire them. Once you hire them, it is your job to follow thru and participate! Each of my mentor students progress at their own pace. What I mean is when life gets in their way with all the interruptions, I make sure they don’t stray too far. If they follow instructions and keep marketing, which is the number one reason why real estate investors fail is that they stop marketing , then they make money. The student’s effort and intention controls the payoff in the end. But Kimberlee, you say, “I don’t know how to do this or that, or I always get stuck at how to prepare correct paperwork to protect me, or I don’t know how to negotiate or talk to buyers or get liens released, etc.” Your only job is to focus on the “what” and let your Mentor focus on the “how.” You just tell me what your desired end result is….what do you want in the pipeline by Dec 2013? And then let me guide you step-by-step on how to get there.

I want to tell you about two successful students of mine–a daughter/father team. They have been my Mentor Program students for almost 1 year. During that time, they closed on a couple of deals that I wasn’t involved in as a partner, which means that I didn’t share in the profits of the sale. To clarify, I still discussed these deals with them every week and mentored them on exactly how to proceed over each hump, but they made all the profits. They could not have closed these deals without the mentoring, though; there were several roadblocks I tore down for them that they simply did not have the experience to overcome.

Another deal in which we are partnering is a house in Ft. Lauderdale that is closing on August 15th. It was a short sale where the student made an offer thru the MLS. The real estate agent was the negotiator and Ocwen kept increasing the price. I wanted to buy the property at $180,000. However, the student offered $190,000 based on the real estate agent’s unwillingness to submit any offer for less. The bank countered back at $201,000 and I wasn’t happy with that amount. I immediately took over the negotiating on the file with the consent of the real estate agent. I got an authorization from the Seller and I argued value on the property. We purchased the property on June 16th. In order to increase our profit for a big cash return, we chose to do a rehab. The house wasn’t in that bad of condition at all except for a 2nd story balcony issue on the front of the home. We purchased the property for $190,000 (yes, you read that right, we did not counter higher) and with all the rehab costs, we have $220,000 invested in the property. We installed new cabinets and granite countertops throughout, lighting fixtures, new hot water heater and several other things. I personally met this student at the house and taught her one-on-one and hands-on how to rehab a house. This is priceless time to have with a Mentor.

We formed the plan of what we were going to do to the house and I used my crew and some sub contractors. The house value was increased by $50,000 for only $25,000 in repairs. Normally, I do not list the property for sale thru the MLS, however, we did at a 2% commission for the selling agent and received 5 contracts immediately. The highest offer was $310,500 and that was accepted. When all the smoke clears, the total profit will be approximately $68,000 with a profit to the students of $34,000. Without a Mentor teaching her short sales and rehabs, she would not have been able to do the deal. So, what would you like to do? Make Ten$ of Thou$and$ or make zero? All I’m saying is that a Mentor is a very small investment compared to the very LARGE profit advantages! Just ask my students! My students are like family to me and I work with them one-on-one through each and every deal to ensure their success!

TAKE ACTION NOW! Stop making excuses, as they steal your dreams! Our market throughout is very hot right now! Find a Mentor today so you will become successful!!

I look forward to providing you with future tips, so stay tuned or join me at my next boot camp.

Happy Negotiating + Happy Rehabbing + Happy Mentor = Happy Profits!

Kimberlee Frank

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Homeowner Associations Getting Out of Control in Florida

Wow – What a crazy week I had.  I am writing this article to let everyone know what is going on with Homeowner Associations during a short sale.  First off, I want everyone to understand that Homeowner Associations have the right to personally go after each and every Seller regarding their dues and it can become a personal judgment against the Seller.

Many homeowners are behind on their houses payments are being forced into foreclosure.  When it comes to a short sale, all liens or amounts due on the property for potential liens will need to be discounted and/or paid off in full.  Florida has many properties that have homeowner associations dues.  Some have more than one homeowner association.

It use to be so easy to negotiate with the homeowner association regarding the dues owed on a property.  A couple of years ago Florida passed a law that guaranteed the homeowner associations one year worth of dues should the house go into foreclosure.  This law did not take into consideration what if the homeowner needed to do a short sale.  When the law first past, many homeowner associations would  not even consider negotiating on the balance due to them during a short sale because they knew that the Bank would have to pay them at least one year worth of dues should the property go to foreclosure.

Recently, I had not just one deal but three deals where the homeowner associations would not agree to accept the short sale discount that the Bank offered.  All three properties were under $60,000 and were getting more than 1 year worth of homeowner association dues.  The worst part of negotiating with the homeowner associations they request an estoppel fee to be paid upfront  for providing the homeowner with the total amount due for homeowner associations fees.  The estoppel fee is either paid to the management company and/or an attorney.  The price ranges from $100 to $500.  This is totally crazy because if you contacted your mortgage company for a payoff their would be a nominal fee of $15 for the payoff figure.  Who do you think is paying the fee prior to finding out of they will NOT agree to the discount? We have to guess at the amount due based on what the homeowner informs us and when we know we are getting close to a short sale approval, the estoppel fee is paid by the title company and/or the homeowner.   I am now requesting my sellers to pay for the estoppel if they are more than 1 year behind on their homeowner associations dues.  In addition, after reviewing the amount due to the homeowner associations, they are including late fees, interest fees, attorney fees, broken blind fees, non-approved tenant fees and more.  A homeowner association bill that was originally $900 for late dues is now $21,000 based on the above junk fees.  $1,000 for broken blinds, give me a break they can only see the blinds from outside the unit.  I do understand they don’t want junky properties however, how would they like boarded up properties or broken windows like there are in many states.

I totally understand that right now it is tough for the homeowner associations as they are taking a big hit due to the non-payers.  In addition I feel sorry for all the homeowners whose dues are being raised to cover the homeowners in foreclosure.  However, do the homeowners who are current really know what is going on.  Do they know that many houses could be sold if the homeowners association would agree to a discount versus allowing the house go to foreclosure which decrease the value of their properties more?  I kind of doubt it!  If they did, they would be in agreement that having some monies being paid now and a new neighbor paying their homeowner dues is better than waiting the 749 days which is the time line for many foreclosure actions in Florida.

I am still working on two of the three properties dealing with the attorneys from the homeowner associations to get them to accept $4,000 now and a new buyer which would avoid the homeowner going into foreclosure.  The last negotiation I had with the attorney for the homeowner associations refused to talk to me and would only speak through her secretary.  We were off by $1,800 which the attorney said “have the buyer, realtors and title company take a discount”.  It is bad enough that the short sale lender is reducing commissions to realtors to 5% or 4% if you a good enough agent to list the property and find a buyer, now the homeowner associations are working against the people who are helping them stabilize their community by selling their homes.  This is totally wrong!

If you are a homeowner and you are going through foreclosure, I would recommend to do your best to keep up your homeowner associations dues or they can come after you personally.  If you are a realtor, I would highly recommend that you find out from your homeowner how far behind they are on their dues.  If you are a homeowner paying your dues, attend your board meetings and find out what are they doing on short sales.  You do have the right to speak at a board meeting.

We are all working together to improve the economy, can we all play nice?  I would sure hope so.  I did close one of the three deals but had to pay $300 towards the homeowner associations dues.  I didn’t like it at all, however, it was the only way to get the deal through.  I would have loved to walk away from the deal and tell them forget it.  However, there were circumstances that stopped me from doing so.  The short sale approval letter was expiring and the bpo value on the property would be expiring too so that would mean another bpo value from the bank and more paperwork from the homeowners plus my homeowner would still have the same problem next time.  The buyer had to be out of their place and had given notice so that would mean possibly a new buyer.  I am a great negotiator when in comes to playing poker (that is what I call negotiating), however, I knew when to fold and close the deal for the benefit of all parties including the homeowner associations.



Kimberlee Frank







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