First and foremost, remark on today’s video at shortsalepowerhour.com and you will have the opportunity to be entered into a drawing for free flip flops from the boys at Group 46:10

We are going to speak concerning a commission dispute that we had on a folder that was being handled by Bank of America. The backer on the folder was HSBC. The folder was rejected even though the offer being the same as the BPO. We came to find out that they sold the loan to Condor Capital.

Condor Capital is an asset management business that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this market out for yield. They didn’t necessarily do any loans. So, Kevin formally began dealing with them on July 1st.

Condor Capital reviewed the documents and noted that the commission was at 6%. They asked that we decrease the commission to 5%. They actually wanted to make the commissions 5% of their net sales price, which was purchase price excluding the buyers closing costs. Kevin responded to them telling them that he was not willing to do that. He knew that they liked the offer because they had previously told them it was a first-rate offer.

Condor Capital replied that their guidelines just allowed them to give 5% commissions. If Kevin didn’t accept that rule, they would simply foreclose on the property. This foreclosure idea got Kevin a tad upset.

It was clear that they were out to make more cash rather than discover a win-win situation for both entities. Kevin explained that he can get them a poorer bid and agree to the lower commission, but that wouldn’t be a win-win situation for either party. The policies they were utilizing were not in the best interest of either party. At the end of the day, you have to set up rules that help all parties successfully complete deals.

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From the very creation, shortsalepowerhour.com has spoken about the outback mindset. The outback is a result oriented mindset to identify processes that do not work and creating answers for them. The majority of people in a short sale deal are devoted to saying I can or I can’t do this based on what somebody else has told them.

We would like to chat about the HAFA program which rolled out April 5th. It was believed to be a game changing process. The HAFA program, in my opinion, has been a colossal failure. That’s not to say that people have not qualified for HAFA, but the point is that the predefined qualification standards are a slap in the face. The whole idea has been missed because no one understands the program even though the information is out there.

So, sellers come to us and say, “Hey I heard i can get $3000″. That is the instigation for the program and it creates an opportunity for an emotional circumstance and creates more sufferers.

About a month ago, I was up in Scottsdale at a big event where Matt Vernon, Bank of America official, spoke about short sales and the troubles that they have had with them. During the gathering he brought up HAFA and I laughed at him. I laughed because HAFA has been a complete letdown. Interestingly though, according to Matt Vernon, Bank of America has devoted themselves to producing their own program that is similar to HAFA to speed up the route and incentivize the home owner. The expectation is that the short sale program can be whittled down from 120-150 day short sale down to 60-90 days.

2 years ago, based on results, Coach Collard hated you guys at Bank of America. It is marvelous to see that you are talking about direction and you are making things happen. We appreciate the fact that you are candidly communicating with short sale brokers. Stick to the results and make it happen.

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Kevin and Fred are lounging on Mission Beach in the San Diego vicinity. It’s a bit cloudy on the sand, but that is not keeping Kevin and Fred from enjoying the coastline. Seeing as relaxing is more vital to them than talking regarding HAFA, they have determined to make this one of the shortest short sale power hour videos ever.

HAFA has demonstrated to be a non factor in the short sale business. Dave Sutherland at Bank of America says it HOFFA, as in Jimmy Hoffa, who is no where to be found. That is a good deal like HAFA, which is no where to be found. Back in March, there was a four letter designation out there and other companies selling their certification and telling real estate agents that they need to get certified for HAFA because it was going to be a game changer.

HAFA has not mattered at all. At this time we are on July 21st, and HAFA was rolled out on April 5th. So far, of the few hundred agents that Kevin has spoken to in that timeframe, not a single one has reported completing a HAFA short sale.

We aren’t saying that no HAFA Short sales have been closed. We are just saying that we have not experienced it or know any realtors that have experienced it. So, at this juncture is what we would like from our spectators at present. We are requesting your notes under the video in at least the form of two records. First, how many HAFA short sales do you have in the system. And secondly, how many HAFA short sales have you closed.

The original month that HAFA was rolled out there were plenty of trainings to study about HAFA. Now those teaching courses are CE credit courses. It seems that all of the classes that don’t actually matter goes to a CE credit course because you would only go to it if you could essentially get credit for it.

We are hosting a Crush It Short Sale Class in the Phoenix locale on Friday, August 13th. It’s a real life, in the trenches, information you can make use of, class. Get registered today!

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Kevin and Fred are hanging out at Taco Surf in Pacific Beach, California. Fred in fact held his wedding reception at Taco Surf. If you are ever in the San Diego area, you ought to check out Taco Surf. The reason Fred is having such a tardy lunch today is because he has exhausted a number of hours this morning babysitting foreclosure sale dates.

The first file, serviced by Metlife for Freddiemac, has been a pest during the complete progression. The first time we attempted to complete this file, MetLife sought to foreclose. So, we went to Freddiemac and they willingly postponed the sale date. Nonetheless, the buyer on that deal fell through after inspections. Now we have a new buyer and we submitted that agreement at the end of June. We have been working with Metlife to get them each and every one of the papers that they needed until last week. Last week they notified us that they could not delay the foreclosure sale date because it was very late. So, this morning, Fred had to call Freddiemac another time to get the foreclosure sale date postponed. Freddiemac, once again, cheerfully delayed the auction date and sent Metlife an email asking them to reschedule the sale date for an extra 60 days because the offer on this home is more than the BPO. It surely makes you wonder what Metlife is doing in the short auction business.

The second folder, dealing with Chase, has been very frustrating. Fred was told last week that the sale date has been delayed and all is fine. Fred has talked to a couple of people that have been very helpful and pleasant, but the trustee has previously told Fred that the residence is going to foreclosure auction tomorrow. Fred called the trustee for the second time today and he confirmed that it is absolutely going to auction.

Finally, the Chase worker called Fred back and confirmed that the sale had not been delayed. Apparently, Chase delayed the sale internally, but Chase forgot to get consent from the investor. So, Chase had to go to the financier and request that they sale date be delayed.

We are not picking on any servicers or investors, but we want other realtors to realize that you must confirm foreclosure sale dates with the trustee. Trust no one in the banks and corroborate everything.

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Last Friday we chatted about a commission dispute with Condor Capital. They aren’t truly a servicer of loans. They are really a buyer of loans. They identify themselves a scratch and dent lender. It turns out that Condor Capital goes out and purchases up the most awful loans out there for a specific proportion of the unpaid balance. Then they pass them off to their loss mitigation team and attempt to turn a profit. They do this through closing short sales and other strategies.

The loss mitigator that we chatted with last week was keyed up about the deal with Fred because he knew his company was going to make a gain. Nonetheless, the real catch here is that the loss mitigator receives a percentage of Condor Capital’s profit on the transaction. He’s not just getting a bonus for completing files, but really getting a percent of the profit.

So, when you are working with Condor Capital, bear in mind that the negotiator is making a commission on the deal. This most likely leads to some additional encouragement for the negotiator. You may want to reassess some of the strategies that you use when negotiating a short sale with Condor Captial. Take a little atypical method with Condor Capital because they are getting a profit and you are making a profit. So do your best to work with them.

There will be loads of visitors coming up in the next few episodes. So be sure to check out the next several days of videos for a few exceptionally special visitors.

Also, a reminder, that August 13th we will be hosting another Crush It Short Sale seminar in Phoenix. It doesn’t matter if you have seen us live already, we have so much fresh matter to communicate with you. If you can’t make it, send your negotiator or business manager. We will blow your brain and expand your business!

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Mindset Monday brings us a chat about the mindset of achievement. In the previous few weeks, Kevin and Fred have jumped back into the trenches taking on more records than ever before. In the previous three weeks, Kevin and Fred have gotten 16 short sales accepted. We don’t point that out to confirm how remarkable we are. Nevertheless, we bring this to your concentration so that you can recognize that there is a mindset to our achievement.

There is a mindset that the deal will be approved when we want it to be approved. We get questioned in our course on a ordinary basis about the things that we do in our own business. It is important to realize that we put into practice the exact same methods that we educate in other realtors. There is nothing that we teach in session that we don’t use in our own business.

We want you to appreciate that we jumped into a number of files that were in rough spots. Nonetheless, we did not acknowledge defeat. We set a map to be a success and we go after it. A remarkable instance of this winning mindset is the commission quarrel that Fred won today.

There is an aggressive domineering system to compel your resolve without running people over or demeaning them. Sometimes it is just a matter of running through the muddle. If you don’t take a forceful standpoint, there is a home owner on the other side of this deal that will lose their house. That home owner’s life and economic future is depending on whether or not you can finish a short sale. When you take on a client in a short sale, you have to put that person’s needs in front of your own. When you don’t inflict your will and do that, you will be average like everyone else.

One final tip for you. When your negotiator asks for something, give it to them immediately. Be strong with your route and single-minded from the commencement and you will have an easier time completing short sale deals in the end.

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Last week we talked about the declining home sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and since that point in time there have been tons of articles supporting what we are saying.

Firstly, if you took our videos last week to believe that you ought to run and hide from this situation, you are utterly wrong. We distribute this information with you so that you can face this market head on. We’re simply trying to be realists and modify our approach as the market changes.

One article remarks that the US economy appears to be in discontent as the effects of government stimulus are already wearing off. Also worth noting is that a double dip recession is highly improbable due to historical precedents. Nevertheless, Kevin wonders aloud how we can have a double dip recession if our market never improved. The economy has constantly been bad. Also mentioned in other writings was the national mortgage deliquency rate. It rose to 9.2% in May, up 2.3% from a month earlier and up 7.9% from a year earlier. This makes you speculate how mortage deliquencies are going up, but there was a spike in our economy.

When we examine writings like this, recognize that there is an opportunity to help citizens out. Do not run and be worried. There will at all times be buyers and there will always be sellers. People have to have a house to live in. Every house is marketable at the appropriate price.

It is important to note that the non-current mortages are really at a 12.4%. That is dreadful, because the historical normal is close to 1%. One other huge statistic to make a note of is that the average amount of days elapsing between when a mortgage becomes 30 days deliquent to foreclosure sale reached a record high of 449 days. So, from the time that a home owner is a month behind in payments, they are not losing their house for 14 months on average.

We will also be teaching a Short Sale Crush It class that continues to get better. Preregister for that August 13th class at shortsalepowerhour.com

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We have some high-quality stuff today. Reading the New York Times this morning, we noticed that we are hearing the phrase “strategic default” lots more lately. Strategic default is basically letting your home go into foreclosure. The house owner decides not to make payments because the worth of your house has gone downhill. The home owner might also not be making payments because in the end they will not be able to make payments. So they are simply speeding up the foreseeable.

Core Logic came up with some fascinating figures on what the rich are doing with their money and what some of the middle class are doing with their cash. More than one in seven home owners with million dollar loans are seriously deliquent. Below a million dollars, the data are just one in twelve homes. Core Logic chief economists believe that the rich are a little more brutal. Fannie Mae and Freddie Mac are begging home owners to keep making their mortgage payments, but the wealthy are not compelled to do so.

Investment houses with an original mortgage over a million dollars, have a deliquency percentage is 23%. For cheaper investments the deliquency percentage is around 10%. The rich and successful are less prone to the disgrace and fear mongering used by the government and mortage banking industry to keep underwater house owners from acting in their financial best interest.

It is remarkable that the piece of writing says bad things about the wealthy making this business decision. Many banks are addressing strategic default. We don’t make a position on either side of it. However, the rich are making a good business choice. If the middle class was a little more economically educated, maybe they would make the similar choice.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

Fred Weaver and Kevin Kauffman, Arizona’s best short sale team, is chatting about a current editorial on the area of strategic defaults. Apparently Experian finds that 19% of mortgage defaults in the second quarter of 2009 were deliberate. First of all, the information are fairly old. Also worth noting is the reality that there is no obvious description of who is strategic defaulting and who is not. It appears that, they are defining strategic by looking at financial and credit reports and assuming that the property owner could have paid their mortgage. This is 80% greater than 2005, which is kind of obvious, isn’t it.

Kevin’s estimates are that current short sales that are strategic defaulters is about 50%. Fanniemae has a unique reaction to strategic defaulters which will be discussed tomorrow. However, before we do that, we should fill you in on something that you might not be aware of. Many of your bank servicers are pulling credit on your borrowers and you will maybe have some conversations with negotiators in relation to strategic defaults. The strategic default is no secret now. So, logically, it is being scrutinized even more.

Kevin and Fred were first discussing the strategic default in early 2008. There were a lot less people doing it then than there are in the present day. We noticed it and thought it was very interesting. In Arizona, people are realizing that the market has done nothing but get poorer. The solutions that the administration and lenders have put out there have mostly been political stunts.

At the end of the day home owners still own homes that are worth $200,000 that used to be worth $500,000. We are not saying that everyone ought to do it. Nevertheless, everybody should consider it because it is a prudent business choice. Defaulting is a contractual option.

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Today we are chatting about home sales, specifically nationwide statistics. We don’t typically care too much about nationwide figures. It is essential that you go peek at your local figures because real estate is a local business. Nevertheless, sometimes the statistics are so inconceivable that they have to be brought to your awareness.

According to the National Association of Realtors, pending property sales fell 30% in May from where they were in April. Granted, April was the end of the tax credit deadline. So that had some effect on the situation. We do not quite know what has happened from May to June.

Kevin and Fred were foretelling that this would happen as much as a year ago. Essentially, we have been borrowing buyers from the future. With the incentive tax credit offered by the government, tons of people decided to buy homes at an earlier time than they would have.

This is just like what occurred in the first half of the decade. The banks were lending money to about any person that wanted it. Buyers that weren’t necessarily eligible or weren’t prepared to acquire a home stepped forward and purchased houses. So, in both cases, there is going to be a wait time before house sales catch up.

The biggest parts of this conundrum are supply and home prices. Because sales are depressed and inventory is going to amplify, prices will definitely plummet.

With adjustable rate mortgages and their pending resets, property owners will be taking a closer look at their mortgage and the house value. For some the payment will go down, but so will the value of their home. There is a great potential for an increase in strategic default. We haven’t seen the worst of defaults, unemployment and short sales. The nastiest is yet to arrive.

We’ve had all of this feel good news with the last couple months of sales and pulling buyers from the future. We will be in a poorer position from a nationwide perspective than we ever were in 2007.

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