Here is one scenario. Let’s say Bob want to sell his house. He owes more than it is worth and he has lost his job and cannot afford to make the payments any longer. His realtor advises him he has 3 options. He can let the property go into foreclosure but this will stay on his credit record for a long time which is not a desired result. He can give his lender a deed in lieu of foreclosure but this too could negatively impact him. Finally he can try and sell his property “short”. In a short sale the Borrower/Seller receives no money.

Why would a lender sell short? Because it is costly to foreclose. In some cases it could be several thousands of dollars with attorney fees, court costs etc. Also the property still has to be sold. A short sale can be a win/win for everyone. The lender recoups more money than they would in foreclosure. The seller/borrower/owner can escape without a record of foreclosure on their credit report. The Buyer can acquire a property at a rock bottom price.

Here is a problem with short sales. They take time. If the Buyer is in a hurry & needs a property now, most likely a short sale will not meet their needs. As they say time takes time and in the case of short sales this is very true. I have a short sale transaction still trying to close after 10 months which is the extreme.

They take a long time because of the current economic climate. The lenders are swamped. What used to be done in 45 days can now take several months depending on the lender. Bank of America is the slowest. Most sales require 1 or 2 BPO’s (a Broker’s Price Opinion) and maybe an appraisal to confirm the current value of the property in today’s market. Then the investor…the institution who loaned the money in the first place needs to approve the sale as well. The investor can be a bank or a loan servicing company or any number of entities.

Patience as I stated will go a long way to keeping one’s sanity during a short sale.

Always consult an attorney with all legal concerns with this process.

From here, you can see the official NOD from the attorney’s filing for the lender. It should list the name of the person that defaulted, the date the original loan was made, the address of the property, the original lender and the lender now, also, the servicing agent. It will list on the NOD the date of auction (which you need to be at least 6 weeks if you don’t have a lot of practice with short sales).

I usually look at the origination date to see if the home might have any equity, and I look at the zip codes to make sure they are in an area I want to buy homes. Then I come up with a snappy letter or a postcard to contact the people that have defaulted and see if they will sell their homes. Be prepared for a lot of drama and stress. After all, these people are losing their homes and don’t want to deal with reality at this point. They just want a solution to ALL their problems.

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Everyday, smart businesspeople are doing innovative things on the Internet. They are using the Internet’s efficient online tools to brand their business, gather leads and create a long term client base. Podcasts are one of these new tools. A podcast is basically a short, online radio show that you produce yourself that listeners can download to their computer or MP3 player. Thousands of businesses now use podcasts to build their credibility and client base. Here are just some of the ways podcasts can help your real estate business:

1. Introduce yourself to new potential clients. Podcasts open an entirely new marketing channel for you – a direct channel straight to your target audience.

2. Build a regular audience and a sustained client base. Keep yourself top-of-mind with consistent communication with your listeners, and the next time they are thinking of buying a new home, insuring a new home, investing their savings, who will come to mind first?

3. Become a trusted expert resource. By giving them valuable information every week/month, you build trust with them. You behave like an expert, and people prefer to do business with experts.

4. Get to know your potential clients personally through discussion. By posting your podcast with a simple blog, your listeners can discuss real estate topics with you. These discussions lead to trust.

5. Show your services through descriptions and/or video podcast. It’s like giving a virtual home tour with your personal commentary. Essentially, you would be displaying your services to hundreds – or thousands – of prospects 24/7, when it is convenient and comfortable for them.

6. Reinforce your brand and build long-term business. Your brand is your relationship with clients. Reinforce a positive relationship by offering free advice and discussion and you will always have people seeking your services.

7. Build traffic to your website. Posting and promoting a podcast is just one more way to get visitors to your site, surfing your listings.

8. Make more contacts. Not all of your listeners will be homebuyers, sellers, or have money to invest. You can gain powerful industry authority by being a vocal expert with your podcast. Regardless on the industry you’re in.

9. Think about it! Stand out. How many other realtors, insurance professionals, financial planners, minister, politicians, are using podcasts? Be an early adopter and you will stand head-and-shoulders above the rest. This is especially important when the market is in a downward trend.

Podcasts are new technology, but don’t be intimidated. If you have ever used a tape recorder, you can easily learn how to produce a podcast. You have a lot of knowledge and expertise that your clients can benefit from. They want to hear you – so start podcasting!

Stay tuned, we are ready to enter the world of VIDEO. I will be touching on that next.

What on earth do I mean?  Well, it’s usual to look for a home in places that are convenient to work and schools. Most folks take the daily commute into consideration when shopping for a home. Why not take the daily, weekly, and even monthly activities of family members consciously into account, too?

Case Study

I once helped a young, single woman named Wendy to find and buy her first home.  She worked for Geico, was rising very nicely in the company and wanted a home of her own and the tax break home ownership affords.  She asked my advice about choosing, and we had a conversation in which I mentioned many of the sorts of things I’ve said here. We made a list of what mattered to her. Then we went shopping. We looked at a lot of houses. After we came out of each one, we had a talk about how it measured up to Wendy’s list.

One of the houses we looked at belonged to the young woman who later became my daughter-in-law. It was brick, all on one level, had a fireplace in the living room, and had patio doors from the master bedroom and dining rooms to an enormous deck with a hot tub. It was beautifully decorated in a sort of “pared down Victorian” style. There was a brass bed, some wicker, lots of healthy house plants, and a few Victorian pieces of furniture that were actually old, family pieces. Silver framed family photos were clustered on top of the piano.

After we emerged from the house, Wendy started down the two steps to the car and then froze in place. She had the oddest expression on her face. I asked what was wrong, and she began to look sheepish and confessed, “That house is so pretty and so nicely decorated, I just enjoyed looking at it and didn’t give any thought to how I’d live in it.  I just wanted it.”

We went back inside.  Wendy still admired what had been done with the house, but decided it wasn’t right for her.

Knowing what’s important to you can save costly mistakes.  The process of “trying on” a house helps you evaluate what’s important.  I think you’ll find it’s worth the effort.