Five reasons I like doing GMAC short sales...

I love doing Sacramento short sales with GMAC for a couple reasons...the first reason is that they generally use the online system Equator to facilitate their short sales, which makes transmitting documentation and information to the short sale negotiator pretty simple and (relatively) painless. The second reason is that I usually receive the direct contact info for the short sale negotiator employed by GMAC. The third reason is that they are usually pretty fast to respond to the initiation of the short sale process with a few proprietary documents -- for example they usually send an "Affidavit of Arm's Length Transaction" document with buyer and seller names within a week or so of receiving all of the info. The fourth reason is that GMAC is generally pretty quick to order their BPO's (Broker Price Opinion -- essentially a type of appraisal / valuation of the property used to validate the price that has been offered by a buyer)....AND the fifth reason I like to work with GMAC short sales is that they generally overall seem to approve their short sales in less than 60-days. I even once received one GMAC short sale approval within 2 weeks! So, if you are going to be selling a short sale in Sacramento with GMAC, here is what you need to gather;

GMAC Mortgage

Loss Mitigation / Short Sale Tel: 214-874-2500

Seller's Documents Generally Required for a Short Sale:

-3rd Party Authorization Letter

-Hardship Letter

-Last 2 months of bank statements

-Last 2 months of pay stubs

-Last year's federal tax return

-Most recent quarterly Profit & Loss Statement (ONLY if self-employed)

-GMAC Financial Analysis Packet (includes an IRS 4506-T, Dodd-Frank Certification, and Hardship Affidavit)

Trulia affirms that it is less expensive to buy your home in Sacramento!

Trulia says in Sacramento it is more affordable to buy a home vs rent.

Well, I suppose the words "I told you so" may be fitting today? Last week, the real estate website Trulia put out a study on real estate markets where buying a home is more cost effective (aka, cheaper!) than renting a home. Sacramento ranked well on the purchase affordability scale.

Nearly 2.5 months ago, I did my own little study on the cost of renting a Sacramento home vs the cost of buying a home in a few different neighborhoods (Natomas - 95833, 95834, 95835; Elk Grove / Laguna - 95757, 95758; Rosemont / College Greens -- 95826, 95827; Arden - 95821, 95825, 95864; Carmichael / Fair Oaks - 95608, 95628; Citrus Heights / Orangevale - 95610, 95621, 95662; and South Land Park / Pocket/Greenhaven - 95822, 95831) in the Sacramento area. My findings were consistent with Trulia's findings...

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Bank of America - Requiring New 3rd Party Authorization Form for Short Sales

The Bank of America legal department seems to be busy lately, because today I received yet another email from the BofA short sale department regarding a new 3rd Party Authorization Form that they will require starting April 14, 2012.

A 3rd Party Authorization Form is submitted by a property owner to a lender, and this document allows an "authorized 3rd party" permission to speak with the lender on the seller's behalf. As a short sale listing agent, I obtain a 3rd party authorization document from each short sale seller at the time I list a property so that the lender is allowed to discuss the details of the loan(s), the short sale, any pending foreclosure, etc.

I had created my own 3rd Party Authorization Form based on the requirements of different short sale banks, and I have never received any objections from the short sale banks when I have submitted it...my homegrown authorization form included the property address, sellers' names, the last 4 digits of their social security numbers, loan number(s), a note stating that the seller gives me authorization to speak with the short sale bank on their behalf regarding a short sale, and my complete contact information, and then the form was signed by the sellers.

BofA's new 3rd Party Authorization Form takes that a few steps further. In addition to many of the elements of my homegrown authorization letter, there is a section that requires the listing agent to provide licensing information, and sign acknowledging that he/she is a licensed as a real estate agent, will present all material facts pertaining to the circumstances of the short sale, and that the agent will comply with all applicable state and federal laws, rules and regulations governing the services provided.

Fraud prevention at its finest! Nicely done Bank of America.

Doing a Sacramento-area short sale with HSBC? Here is what you need...

Well...it's not a secret that I do A LOT of short sale transactions in the Sacramento area...and I have done several with HSBC Mortgage. I like HSBC's short sale process. It's generally (and of course, relatively speaking) on the faster side of the spectrum for negotiating approval, and their loss mitigation negotiators seem to be on top of their game and different short sale programs. So if you are looking to do a short sale on your Sacramento-area home and have a mortgage with HSBC, here is a list of the documentation you need to gather as you get ready to list your home with a Realtor;

HSBC

Loss Mitigation / Short Sale Tel: 800-395-3489

Seller's Documents Generally Required for a Short Sale:

-3rd Party Authorization Letter

-Hardship Letter

-Last 2 months of bank statements

-Last 2 months of pay stubs

-Unemployment stubs and award letter (if applicable)

-Proof of Homeowner's Insurance

-Most Recent Property Tax bill

-Last year's federal tax return

-Most recent quarterly Profit & Loss Statement (ONLY if self-employed)

-Evidence of SSI, Pension, Disability Benefits (if applicable)

-Rental Lease (ONLY if investment property)

-IRS 4506-T

I welcome your call if you have any questions regarding an HSBC short sale in the Sacramento area.

Wow -- I am the 2012 President of the Sacramento Association of Realtors Masters Club!

Well today was a fun day.

I woke up early, got to the office early, worked on some short sale transactions and tied up some other loose ends, and then I headed downtown to the Sheraton Grand Hotel for the Sacramento Association of Realtors Masters Club Installation and Awards Luncheon. If you are not familiar with the Masters Club, it is a club for the top producing Realtors in the Sacramento region. I can't even begin to describe what a great event it was. And I'm not just saying that because I was being installed as 2012 President of the Masters Club.

The subcommittee that orchestrated this event evidently knows me pretty well, because the theme they dreamed up this year could not have been neater! It was a baseball-themed event! If you have been reading my blog for a while, or if you follow me on Facebook or Twitter, you will know that I am a HUGE San Francisco Giants fan, and have played ball since I was 8 years old.

The luncheon started off with the singing of the national anthem, followed by some great food, a couple of speeches, installation of the officers and steering committee, and recognition of the Realtors who achieved Masters Club status. Not only was I installed as President, but I also achieved status as a "Life Member" of the Masters Club.

My parents and younger brother attended, which was great. My sweet significant other attended, which was also great. And of course there were several other Realtors from my company Dunnigan Realtors in attendance, which was also great. It was a super fun amazing day!

Then of course once it was all over, I had to go back to my office, where I planned what properties to show tomorrow (Saturday), received confirmation that one of my buyer transactions had closed (yay!), and then attended a short sale seller escrow document signing at Placer Title down the street. So, back to work....

What is so great about the SAR Masters Club, you might wonder? I wish more of the general public were aware of this, but being in the Masters Club is more than just about being a top producer. We support the SAR Realtor membership with additional educational programs and services that enhance the competency, professionalism, and productivity of its members. I look forward to a great year as Masters Club President!

Are you a Bank of America employee looking to purchase a home? Better make sure that you are not purchasing a BofA distressed property...

Got an email from Bank of America today regarding its policy for the sale of Bank of America short sale, REO/foreclosed properties to Bank of America employees. Basically, they are now prohibiting BofA employees and their immediate family from the purchase of any of its distressed properties.

This is consistent with the short sale policies of other large national mortgage servicers. I encountered this with a Wells Fargo short sale listing of mine last year...we received an offer from a buyer who turned out to be a Wells Fargo employee, and that person was not able to purchase the house due to their affiliation with Wells Fargo. Luckily we found another buyer who was able to complete the purchase.

Under the BofA's policy, "bank associates and members of their households may not purchase bank REOs, short sales and foreclosures. Members of the household include spouses, domestic partners, dependent children who live with the bank associate, or any other person who derives his or her primary means of financial support from the bank associate (household members)."

Now, when submitting a short sale offer to Bank of America, listing agents must also include the "Buyer's Acknowledgement and Disclosure" to swear that the buyer(s) is not a Bank of America employee.

I will add it to the growing stack of paperwork...

I "celebrated" daylight savings by....running a half marathon!

Well...another day, another half marathon in the books. If you follow me on twitter or facebook, you will already know that today I completed the Sacramento Shamrock'n Half Marathon, which started and ended at Raley Field. A year ago in 2011, I completed this one as my very first half marathon, and since I have completed numerous other half marathons, a 20-miler, and the California International Marathon. Here I am (on the far right) before the run with three friends. Ahh...I will sleep well tonight!

The forecast does not call for a Sacramento Zombie Apocalypse...

So...If you follow me on facebook or twitter, you will already know that I was showing a house in Elverta yesterday, and my buyer client and I stumbled across an old bomb shelter in the back yard!! It was probably 15' x 30' with cement stairs leading down about 8 feet, and had two "snorkel" like air tubes penetrating the ground above it. CRAZY! My first thought was thank goodness the cold war is over, then my mind wandered and thought -- hmm what a neat place for kids to have a club-house (I know I would have LOVED to play in this in my youth), or a great underground wine or home-brewed beer cellar, or extra storage...or preparing for a zombie apocalypse!??? Anyway, this while my client thought this was totally cool, the house was ultimately not a good fit for him.