Short Sale and Risk Management Seminar – Part Two – Live Blog

8:37 – We’re here at the historic State Theatre in Modesto getting ready for part two of the two part seminar series presented by PMZ Real Estate regarding short sales, protecting yourself as Realtor’s in this new legal climate with Attorney, Shannon Jones, and a special market forecast with Michael Zagaris, President and CEO of PMZ Real Estate. Stay tuned! We’ll be starting at 9am Pacific.

10:56 – Twitter, Facebook, Blogging: Be careful what you put online.  Plantiff’s attorney’s will research you. Put truthful, factual and backed up info on your site. For example, don’t refer unlicensed contractors on your blogs, etc. That’s it folks, thanks everyone!

10:52 – If it is new construction you DO need a TDS.  If it’s a single spec home, you need a TDS.

10:45 – Deed restrictions: When you get prelims take a look.  If there is something odd on the prelim, have your client speak with their lawyer so they can interpret these documents.

10:37 – Loan modifications:  They are still rare so make sure you have a good referral for your client.  There are 416 companies the DRE is investigating for loan modification scams.  The BAR is investigating 16 firms for loan modification scams.

10:35 – Deposit disputes: Stay out of the dispute as much as possible because you will be involved in mediation.  Do not give advice.  Refer your clients to an attorney.

10:29 – Don’t write multiple offers for your buyer as they could be bound to the terms of the other contracts.

10:22 – If you see a notice of default, one to four units, seller lives their, buyer is investor or equity investor, then talk to your manager.  This is a special case.

10:17 – Most lenders say you need to keep property active in MLS before they approve offer.

10:10 – Manage buyers expectations.  Explain the process to them.  Explain how long it can take.

10:07 – Trustee sales: don’t assume foreclosure dept is talking to short sale dept. You might miss out on your commission if the property goes to foreclosure sale before your short sale is complete.

10:01 – Use the CAR short sale addendum. Get the term sheet from the lender.  They contain material terms. Give deadlines, etc. Discusses release of borrower.  Make sure the borrower gets the information from the bank regarding the release of borrower.  They can pass it on to their lawyer.

9:56 – When you are dealing with a commission, the commission will be split 50-50.  Put that in the private comments in the MLS.  Introduce yourself to the lender to find out about any special steps lenders require you to. How many offers they take, etc.  When you are dealing with a short sale negotiator be very, very nice! They are dealing with a lot of files so you want o keep your file on the top of the pile.

9:55 – There are tax consequences to short sales!  Don’t tell your clients there aren’t.  To make it a tax-free transaction, check out the IRS bulletin.  It’s very complicated, however. Don’t give advice on whither to do a short sale or foreclosure.  Allow professionals to guide your clients to make their own decisions. Don’t take on that liability.

9:50 – Jones: Moving onto short sales. How do they start? The answer is not , “Let’s do a short sale” when a client calls you and says they are underwater. Real estate agents are like conductors.  While you manage each aspect of the transaction, you are not required to play each “instrument”.  Have professionals take the liability from you to take care fo things like inspections, etc.  Tell the client, “It is a complicated legal and tax analysis, let me refer you to the appropriate professionals.  When you make a decision call me back and I will be happy to assist you.”  You should have an attorney and an accountant on your team.

9:48 – A lender is responsible for giving some disclosures.  Check the CAR REO Advisory for which disclosures are required from lenders.

9:46 – INSPECTIONS INSPECTIONS INSPECTIONS! Get them done.  The properties we are dealing with are not being maintained in most instances.

9:45 – Buyers are entitled to disclosures but lenders are not giving them to you, then document this.

9:42 – Emails are a great way to practice risk management but also read what you are writing.  Think about it, use complete sentences.  Don’t use profanity.  Remember that an attorney could be reading your emails someday regarding transactions.  Be clear.

9:38 – We need to dispel myths about Agent Law – You do have to do visual inspection! Send REO advisory to lender if lender is not fulfilling obligations.

9:36 – REO’s: You promise to maintain the property under a listing agreement with the bank.  Utilities, etc.

9:30 – Shannon Jones, “Thanks for having me, I’m glad to be a part of this event.”

9:23 – Phil Levin is up speaking regarding the awesome tools CAR provides Realtors such as the Legal Hotline, managed by Attorney Gov Hutchinson. Introducing a private practice attorney named Shannon Jones.

9:15 – Zagaris is speaking of the unprecedented legal issues we now face today.  The current homeownership of US population is near 70%.  People who weren’t qualified to own homes were able to because of government incentives.  This is now going to return to the normal 60%.

9:06 – Zagaris is noting the strides PMZ Real Estate and our professionals have made in this market!  In 1981 interest rates were near 18 percent.  We are in an unprecedented time of opportunity.

9:02 – Ok sorry for the delay.  Just one person here operating our camera and our blog!  Michael Zagaris is up speaking!