Archive for November, 2012

DOING THE RIGHT THING IN REAL ESTATE

by Maria Hass –
I recently lost out on a short sale listing due to my moral judgment not to engage in a fraudulent act.

A homeowner approached me to possibly short sale his home, with the condition that he would rent back the house to the buyer while he is arranging relocation. I declined the short sale listing because it was in violation of the “Arm’s Length” requirement of the seller’s bank. Under the “Arm’s Length Affidavit” which the parties are required to sign, the seller, buyer, Realtors, title companies and parties to the transaction agree not to have any hidden terms or arrangements, written or implied, that will allow the seller to remain in the property as renters or regain ownership of the property at any time. Each signatory understands that a misrepresentation may result to civil and/or criminal liability.

I didn’t want to risk losing my license or committing fraud, so I declined the short sale.

Months later, I connected with the seller and found out that he had completed a short sale of his house with another agent under the same “rent back” condition. He is renting his house back from the investor-buyer and the Realtor who assisted in short selling the house is out doing “business as usual.”

This made me question whether the seller’s lender monitors rent-back violations at all. My search online didn’t get me confirmation that there is a system to track this type of violation. I asked my broker for his opinion on this issue. He told me that “I did the right thing” and would discourage any agent from our company from engaging in fraud.

I lost money by turning down the listing – but I feel great being able to sleep well at night.

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November 27, 2012 at 11:39 am Leave a comment

Ocwen Short Sales – A Positive Reversal

By: Maria Hass – I recently blogged about Ocwen’s short sale processing system. In my blog, I mentioned the difficult process involved with obtaining correct information from customer representatives at Ocwen.

I also shared the story of Ocwen deciding to deny a short sale unless the seller was able to pay the full balance of the loan immediately. Ocwen said the seller had no foreseeable default because they were current with their mortgage.

I was upset and frustrated upon receipt of the short sale denial letter. However, my past short sale transactions taught me that if you want to be successful at short sales, “you should never give up,” and also to be prepared to hear the word “No” many times.

So, I escalated the matter to the executive level by emailing the senior manager for Ocwen short sales. I explained the situation to her. The following day, an Ocwen representative called me and asked for the details of my seller’s financials and the reason for the hardship. A couple of days later, I received a “clean” short sale approval letter without seller contribution or promissory note and a full release.

I’m obviously glad that the original decision of Ocwen to deny the short sale was overturned. We are now moving forward to successfully close the short sale. If you are negotiating a short sale with Ocwen, be aware that if your short sale is not going anywhere, there is someone at Ocwen who will be there to listen to you.

November 7, 2012 at 1:28 pm Leave a comment


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