Archive for 'short sales'

Still Crushing Short Sales!

crushingshortsaleMany Investors don’t think that they can short sale an FHA loan and still make a profit, due to the guideline that FHA accepts a minimum 88% of the appraised value. I am here to tell you about an FHA deal that will bring a Pretty Profit!! This house is a 3 Bed/1.5 Bath/1.5 car garage, approximately 1200 sq ft in Casselberry. From the beginning, it was challenging since we had non-paying tenants in the home that were not as cooperate as a Seller would be for access to the property. The best part of a typical short sale is that a lender will obtain a value that is good for 90 days and if you are in a Seller’s market, you end up with a higher profit, since the values are increasing based on the sales.

The Seller just wanted out of this house debt and didn’t know what to do with non-paying Tenants!! The lead came in from my office signage. The property was listed and an offer was submitted. It took the short sale lender about 90 days before they ordered the value on the property. We were very concerned about having access to the home when the appraiser came out from the short sale lender. On an FHA deal, the short sale lender requires an appraisal on the home which is good for 4 to 6 months, versus the standard 90 days for a BPO value.

I knew that the Tenants were going to be a problem and I was prepared to handle that situation. The Tenants had knowledge of how a short sale worked, so they wanted to live in the house as long as possible without paying rent. Since the number one thing in a short sale is to meet the BPO Agent/Appraiser to make sure that all the repairs were considered when determining value, I knew the Tenants needed to go! The Tenants were evicted so there were no problems with meeting the BPO Agent/Appraiser out at the house.

The house was built in the 1980’s and was not in bad shape at all. The repair was a light rehab which consisted of a new roof, new air conditioning, adding a shower in the master bathroom, paint, carpet, new garage door and new kitchen cabinets. The cost for the rehab and the supplies was approximately $20,000, most of this was from the new roof and new air conditioner.

Whenever I purchase a property and plan on rehabbing and then reselling it, I include a minimum of 4 months hold-time due to the seasoning on the property. Seasoning is how long the new Seller has owned the property. If I wanted to sell the property to another FHA buyer, then they require 91 days of seasoning and two appraisals to make sure that the value on the property is correct. If I wanted to sell the property to a conventional buyer, as long as that lender was not mirroring the FHA guidelines, I could sell to a buyer in 31 days. Obviously, there is no seasoning required for a cash buyer.

The property was purchased for $78,000 and I will not be listing it through the MLS, as I am going to sell the house quickly without paying a realtor commission. The property will be sold for $145,000.00 with a profit of $25,000. Not bad for a light rehab!

Please keep sending me your questions and topics that you would like to hear about, so I can be sure to keep feeding you with the information that you need in order to move confidently through 2016 and bring your Real Estate Dreams to Life!


Still Crushing Short Sales,

Kimberlee Frank

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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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Short Sales are Sailing

short sale sign held by ladyMany Investors and Realtors avoid short sales like the plague.  They are definitely missing the boat!  My business specializes primarily in short sales and I have seen an increase in the number of approvals we are getting.

The time line for a short sale varies from 90 to 120 days if you submit the lender a “complete” short sale package.  Since short sales are dominating the market, the Lenders are creating more streamlined processes to conduct smoother short sales.  If you do short sales, then I am quite sure you have heard of the online system called “Equator.”  Equator allows all of the short sale paperwork to be processed electronically through one common venue, versus traditional and random faxes and emails.  Having a file processed online avoids the common objection from the short sale lender of “We didn’t receive the documents.”  Effective January 1, 2013, the newest lender that has started to use Equator is Chase.  The following lenders and servicers are presently using Equator:  1) Bank of America, 2) Chase, 3) Wells Fargo, 4) GMAC, 5) Nationstar, 6) ASC, 7) Carrington Mortgage, and 8) Homeward Residential Services.

The Equator System assigns applicable tasks to each party (Agent, Negotiator, Closer, etc) including a deadline in which to complete each task.  I like the fact that the lenders can no longer say “Oh, we never got that paperwork.”  However, I don’t like the fact that they are tracking our information.  Nationstar has taken the collection of Buyer’s information to a whole new level.  They require all Buyers to fill out a loan application even though they most likely will not be using Nationstar as a lender.  This application has been mandatory and this has not been waived on any of my files.  If you are a Buyer on any property, you are required to provide your name, address, telephone number, DOB, SS#, assets, employment history and more.  This is regardless if you are purchasing for investment or personal use and if you are getting a mortgage or paying cash.

I believe that the lenders are collecting data against all Buyers and will soon share with each other how many deals each Buyer has purchased.  I had one student inform me that once he purchased over 10 properties from Bank of America, he was no longer allowed to purchase any more in his name, his wife’s name or company name.  Therefore in the future, when all lenders work as a team, they will share all of this information and limit the amount of deals that an Investor can purchase.  Wells Fargo started using a system called CoreLogic approximately 2 years ago which allows them to simultaneously check to see who was applying for a mortgage at the same time they were conducting a short sale.  This caused Investors a hardship even though they fully disclosed to Wells Fargo their intention to buy, resell and/or fix the property, if they used my paperwork.  Many short sales were not approved at that time and many Investors had no idea WHY?  Some of the lenders frown on the fact that Investors are purchasing the property and would rather sell the house to a homeowner.

You would think that the lenders, since they are funded by Investors, would understand how we Investors work.  We don’t buy properties at full value, as we are not going to live in the home.  This is a business and we can’t make the Seller’s problem our problem by paying full value.  It is the Investors, like us, that are helping the lenders get money and not go under.

Now is the time to purchase short sales and if you haven’t started you have 10 years to ride the wave, so do it now!  Align yourself with a good Mentor and take flight just like many Investors around the world.

Happy Sailing,

Kimberlee Frank

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