Wells Fargo Short Sale Process: new Equator Low Doc Process

Wells Fargo Short Sale: new Equator Low Doc Process

Effective 2-15-13, for all loan portfolios except FHA, agents will no longer be receiving the following tasks within Equator

·         Hardship Reasons

·         Financial Information

Equator has removed these tasks in order to provide agents a better experience when navigating through Equator and to provide agents a quicker response and decision timeframe for their short sale.

On 2-15-13 Agents will receive the following task instead:

·         Upload Required Documents

Prior to agents receiving this task, Wells Fargo will review the file in order to request only the documents needed to review that specific file.   This avoids agents from having to upload blank or search for and upload potentially unnecessary documents.  

What does this mean for you as an agent?

If we don’t need a document, we won’t ask for it, and you won’t have to find it.    This will allow your file to move quicker through our processing pipeline and get an approval even faster!  

More Approvals = More Closings! 

How does this affect your current files?

As with any transition there will be impacts, and we have done everything to ensure a smooth transition for agents.  However, any active files will have to be converted to the new Equator Low Doc Process.  

Each file still requiring documents will be systematically reverted back and will restart its lifecycle within Equator, while this sounds tedious; it will be very quick and is the best solution to ensure a smooth transition.   

Agents will be sent the following tasks:

“Upload 3^rd Party Authorization”

“Borrower Contact Information”

“Is there an Offer”

Once the tasks are completed each file will end up right back in its respective workflow.

SHORT SALES: LOSS MITIGATION AND EXIT STRATEGIES

First and foremost, Congratulations!

If you are at the step of negotiating with a lender, you have earned your first Short Sale client. Now, what steps are involved in earning your first Short Sale profit?

The number one rule to remember is that short sales are not only better for the buyer, but normally better for the lender as well.
For most banks, short sales are better financially than foreclosures.

If lenders can make more money off a short sale than a foreclosure, lenders will accept. As an investor, it is of utmost importance to make sure the client has filled out all needed paperwork, including the hardship letter. Double check the paperwork before it gets processed. As soon as the paperwork is completed, get it to a loss mitigator immediately.

Be persistent.

Follow through on the loan. Ask what is the update? Who owns the loan? The more persistent you are as an investor, the speedier the process. Normally if an investor fails to follow through, the case gets pushed to back of the desk and is often forgotten. Your persistency will pay off for you and your buyer.

Now that the paperwork is prepared and submitted, bargain the best price with the lender! As soon as the buyer and lender agree on a price, it is your job to start the tedious process of closing a deal.

Beside your offer, the lender will require additional documents. Different lenders require different documents but here are a number of common credentials included in the paperwork:


1. Recent mortgage statement or coupon

2. Two months bank statements

3. Two recent pay stubs

4. Borrower Financial Information

5. Homeowners Association Information

6. Hardship Letter

Once the price is finalized, it is your job to flip the house; turn a “upside down” property into a potential buyer’s dream. Buy, fix, and resell. It sounds easy, but this process can make or break a future sale. What exactly is flipping a house? This term merely means making over the property to meet the prospective needs of today’s buyers. This process does not need to be expensive, there are many tricks and trades of the business that can be economically friendly.

Simple things like curb appeal can add several hundred or thousand dollars to a price tag. That could be as easy as planting flowers and greenery, repainting the mailbox and porch, or updating outside light fixtures, windowpanes, and the front door. The interior of the house can be just as simple and easy on the pocket books. Trouble-free things such as adding fresh coat of paint to walls and trim, laying down new carpet or flooring, and de-cluttering can add monumental value to the price of the house.

Once the “make over” process is complete, it is now time to stage the house for potential buyers. The main objective in staging is letting your potential buyer imagine themselves in the property. Make it livable, family orientated, up-to date.

Focus on the main areas of the home: the living room, kitchen, and master bedroom. The first room a buyer sees when entering a home is the living room. The idea is to make the living room feel friendly and welcoming, at the same time as spacious. In today’s modern day kitchen, granite countertops and stainless steel appliances are a MUST, as well as, cabinet and counterpace.

Remember: de-clutter the kitchen!

This will automatically open up the kitchen and lets the buyer know that there is adequate space to cook. The ideal master bedroom for Jacksonville properties and surrounding areas are space and cleanliness. Portray the master bedroom as if a couple was living in it.

Common tricks like an open book or piece of jewelry on the nightstand lets the buyer know that this is not an empty house, but someone’s home. A house does not need to be the biggest or most updated to sell. Instead, good use of space, a high-quality cleaning, and simple touch ups will be the key to a successful, quick selling of a property.


You, the investor, have an enormous opportunity for success if you follow these essential steps. Organization and timeliness with paperwork will speed up the closing process, as well as, a quick, sufficient make-over of the property. We wish you monumental success in the start of your new Short Sale business!

GUIDE TO YOUR SUCCESSFUL SHORT SALE BUSINESS in Jacksonville Florida

GUIDE TO YOUR SUCCESSFUL SHORT SALE BUSINESS in Jacksonville Florida:

Short Sales in today’s society are inevitable and when executed properly, can generate great profits. What are the potential benefits and draw backs of Short Sales? The fundamental core of Short Sales is being able to turn an “upside down” property, to a property that has equity and can be sold for profit in 45 days or less.


The main benefit of a Short Sale is that there is a lot of potential money to be made.

However, be advised, that Short Sales do not happen at a snap of a finger, nor in a matter of a few weeks. Short Sales are timely and can take months to finally close on the property. As an investor, keeping this in mind can either make or break your business. As long as you are organized, have created a Short Sale system that can sustain needed changes, and are not needing an immediate turnaround on profits, your business has potential to succeed. Furthermore, gaining knowledge and implementing certain business tools can make all the difference.

The first step to a successful Short Sale business is obtaining leads in Short Sales through the power of marketing and advertising. Signs on the side of the road, billboards, radio broadcasts, TV commercials, or newspaper articles, are all good ways of gaining recognition as a company. However, be advised that marketing can be expensive. Understanding the fundamental aspect of Advertising can prove to be crucial: knowing your target audience and potential buyer!

Marketing and advertising are not the only business tools that can lead to a successful company. Getting to know people within the community, such as attorneys, realtors, and mortgage brokers, can prove to be helpful. Furthermore, remember that you are trying to start a successful business, and thus need to be trustworthy and reliable. Good credibility and word of mouth can often be the most successful tool in gaining new clients. There are many ways to build credibility and a successful business:

1)Build a website like the Jacksonville Short Sale web site with a free report.

2)Make articles about Short Sales. Help sellers to understand “Short Sale options in Jacksonville, FL" and the Short Sale process.

3)Understand your client. Get to know them and their family. What are their likes and dislikes? And most importantly, what is their ultimate goal in selling their house.

4)Above all, strive to be the most informed investor in your area. Knowledge is contagious, and with expanding knowledge, brings an expansion in the number of leads and clients.

5)Micro-management. Although everyone wants to control every aspect of a business, it is not only draining, but near impossible. Delegate time and tasks such as marketing, business writing, client relations, office management, and building an online website.

6)Lastly, not only get to know your clients, but learn about your employees. Which employees are more organized? Which are more personable and persuasive? Knowing your employees weaknesses and strengths will bring in not only clients, but money.


SHORT SALES: Investor/Seller Relationship



As an investor you need to educate your buyer. Many sellers are confused and overwhelmed with the process of Short selling their home. Sellers are already stressed out due to financial burden so ease your seller’s worries! Explain to them the benefits of Short selling rather than foreclosing. Let them know that it will lower their credit score, however, not nearly as much as a foreclosure would. Remind the client that in little as one to three years, their credit score will start to improve. This is not the end of the world. And, in the real estate world, reassure them that this is the best scenario.

CLOSING WORDS TO THE ASPIRING INVESTOR:

Educate and continue to build on your Short Sale System and business design. Join your local REIA and become the most informed investor in your area. Get to know your clients, potential leads, and employees. Not every Short Sale will be a triumph, but do not get down. With practice and a diligent work ethic, Short Sales are the answer to success.

Good luck, and may this article be as one small step to your financial freedom!

Short Sale Package

Beside Short sale offer, the lender will require additional documents.

Different lenders require different documents but here are a number of common credentials included in the Short Sale Package:

1.      Hardship Letter

2.      Two months bank statements

3.      Two recent pay stubs

4.      Borrower Financial Information

5.      Homeowners Association Information

6.      Recent mortgage statement or coupon

How to monetize every single short sale lead in Jacksonville Florida that comes across your desk.

How to monetize every single short sale lead in Jacksonville Florida that comes across your desk.

For those of you that are relatively new in the Short Sales business in Jacksonville Florida, you probably have this notion that the only way you can make money as a pre-foreclosure investor is via a wholesale short sale (the big spreads).  Once that possibility disappears, you figure the deal is dead. But the fact is, that in Short Sale Business in Jacksonville Florida this is not the case! 

There are many other ways to make money with short sales. 

As you bring in new leads, you will encounter homeowners that either want to sell their home or keep their homes.  The great thing about this is that there are ways to profit with either of these scenarios.

Here is a breakdown of how you do:



If the homeowner wants to keep their Jacksonville Florida home you can help with :

Loan modification-


this is when the lender modifies the current mortgage in order to work with a homeowner due to a hardship. The purpose is to help make the loan more affordable. Usually it is in the form of a rate reduction or fixing the rate for a certain amount of time.



Forbearance Plan -

A forbearance plan is a re-payment plan between the borrower and the lender to catch up the mortgage arrearage over a period of time. Typically, the lender will require the borrower to make some lump-sum payment up front towards the arrearage.  This amount is usually 50 percent of the total amount they are behind. The remaining balance is then divided up over the next 6 to 18 months, and is to be paid on top of their regular mortgage payment! 

The foreclosure will be put on hold while the borrower is making payments under the forbearance plan and will be dismissed once the forbearance is completed. However, if the borrower defaults on payments during the forbearance plan, the lender may proceed with the foreclosure immediately, without notice and without re-starting the foreclosure from the beginning.

If the homeowner wants to sell their Jacksonville Florida home you can:

Wholesale short sale in Jacksonville -

in a wholesale short sale you'll negotiate the debt down to an acceptable buyer price (for you) and sell it to a retail buyer for a profit.

Retail short sale -

a retail short sale differs from a wholesale in that the property goes from the homeowner directly to the retail buyer, and cuts you out of the middle.  Even though you won't be making the large check upon the reselling of the property, there are other ways to profit.

Long term buy and hold -

this refers to properties that you will purchase for the specific purpose of renting out long term.  Always make sure to run the numbers on these to make sure there is adequate cash flow! 

List the property yourself -

(if you're a licensed agent) and make a Realtor commission - whether the property is over debted or has equity in it, you can list the property for the homeowner and make a commission on it once it's sold.

Short Sale Rehab-

this niche that I like to call "the short sale rehab" is a hugely profitable niche to be in right now! There has never been a time where our end buyers' lending has dictated the condition of property that they will lend on! There is a great opportunity to not only get big discounts from foreclosing lenders that have properties that are beat up, but to fix them up and resell them for maximum dollar has never been so profitable!

These are all great ways to make money in the Jacksonville Florida pre-foreclosure industry, and all proven!

Make sure you are open to any and all of these options because it is quite likely that you will encounter some properties that allow you to perform a wholesale short sale while others are only conducive to a retail short sale.  Or, if you are dealing with a homeowner that really wants to work with you, but is reluctant to sell the home that has been in their family for generations...try a loan modification.  And remember, the money is there to be made!

Have a great and successful week and remember don't wait to start this business do it NOW and you will be thankful you did!

Sincerely,

Dmitry

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