Understanding Fannie Mae Short Sales (Good luck!)

October 28th, 2014

Since I “cut my teeth” practicing short sales back in 2006 when I began my career as a Realtor in Cleveland Ohio, I formed a skill set not many Realtors were willing to undertake…spending more time processing paperwork dealing with banks and counseling sellers so they could prevent having “foreclosure” noted on their credit record.

This began my love for an segment of the industry which many (inside and outside real estate) found confusing and a tough way to make money.  I would brag about my love for short sales, help teach other Realtors how to process them and sit on short sale panels with peers guiding our industry with sound practices and lessons on creating systems and out-dueling banks, mortgage insurance companies and the third party interests all for the benefit of cleaning up our messing house industry.

Many know by now that a short sale by definition is when a bank allows “short of a full payment” on their mortgage by allowing the home to be sold at market value so the bank does not have to take the home back as a foreclosure and take title to the home.

Short sales generally always need the approval and the blessing of more than just one single entity.  Even if you have a loan at one of the biggest national banks, like Wells Fargo, Bank of America or Chase, these banks in most cases are what we call the Servicing Bank–they manage your loan.  However, the money behind the loan (often termed the Investor) could be Fannie Mae, Freddie Mac or Hud (an FHA loan).

Increasingly, these Investors and Fannie Mae in particular have taken a stronger role in the decision making process and in most cases employing an errant system of valuation and process of timely rebuttal.

My experience has been consistent that Fannie Mae’s guidelines, system and processes have created an institution trying to attain unachievable selling prices for their properties, allowing the houses to sit vacant and wither in the process and then accept LESS than current market value just prior to the property foreclosing.

As a taxpayer and a citizen who wants my government to run with efficiency, it is appalling to watch this process unfold and hardly seems believable to watch such inefficiency in action.

My most recent experience has been trying to help a retired librarian (whose partner has cancer) short sale a home she has been trying to sell for the better part of five years after attempting to rent it unsuccessfully.

I received an offer very close to market value back in early March 2014, began processing it with Everhome Mortgage (who was the first lienholder) and Fifth Third Bank (who owned a 2nd lien to the property).  Fannie Mae being the Investor for the primary lien.

Fifth Third Bank amazed us all and had their whole short sale process complete within 1 month while we waited impatiently for Everhome (following up weekly) to pick up the file which they finally did in mid-September (yep…count em…6 months later).

The offer was for $74, ooo and is a 4 bedroom, 1 bath outdated home in the Cleveland Ohio suburb of Cleveland Heights which has 127 homes for sale with 12 solds for the month of September 2014…anything but stellar numbers! My market analysis put the property right around the $80,000 price point.

After another month waiting for an answer, Fannie Mae came back and wanted $120,000 to complete the sale.  Fannie Mae offers a valuation dispute process on www.homepath.com and so we contested the value online (there is no person to call) and waited for a response.

After several setbacks (like wanting the Fifth Third Bank’s appraisal to be uploaded in color), we finally got an answer…Fannie Mae still maintained they want $120,000.

When I told the negotiator from Everhome, she said I should submit highest and best.  The buyers came up to $80,000 and we submitted again.  Their response came back.  Fannie Mae doesn’t see the property as a potential short sale because their analysis lead them to believe it is worth $120,000 and we just need to market it to get this amount of money!

Wow…if only I would have thought of that? (sarcasm unavoidable…sorry)  The property has been on the market at all different price points over the course of the last 5 years and there was no buyer interest until a young couple whose parents live one street over saw the convenience of the home and really liked the proximity to Mom for babysitting, visiting, etc..

Today, I am sending a mutual release to the buyer and seller and thank them for the opportunity and their perseverance.  The Seller will most certainly cry and ask me what to do next.   The buyer will start looking at other homes and most certainly will stay away from anything marked “short sale” or “bank-owned”.

Being a Realtor has been the most amazing job I have ever had.  However, days like today, crushing dreams and seeing a inept system in action in a country i love with all my heart is crushing.

 

2325 Plum Point, Lake Roaming Shores, Ohio 44084-Waterfront Home for Sale

November 13th, 2013

Join Keller Williams Launch Sales Team’s Darren Burke as he presents one Northeast Ohio’s best waterfront homes for sale on Lake Roaming Shores, Ohio 44084. In this video, Darren interviews the sellers who designed this home on one of Ashtabula County’s best waterfront lakes.

This home was designed by a renowned Cleveland Architect and was his personal vacation home for him and his family. Located within an hour from Cleveland, Warren and Youngstown Ohio and not much further from Pittsburgh and Erie Pennsylvania, this home offers wonderful views of the Lake, has its own tennis court and a unique design both inside the home and on the grounds.
Lake Roaming Shores has two beaches, two swimming pools, a marina and restaurant, tennis, basketball and volleyball courts and is popular for water skiing, fishing, swimming and boating.
To set up a private showing, please email Darren Burke and Launch Sales Team at darrenburke@kw.com or call 440-341-2002

How to do a Renovation Loan

October 29th, 2013

Join Cleveland Ohio Realtor Darren Burke as he interviews Sharon Gerber from Prime Lending explain how to do a renovation loan, do’s and don’ts, and the process involved for a buyer when a buyer might need to use renovation financing.

Sharon Gerber is a seasoned mortgage professional located in Mentor, Ohio and skilled in all phases of home buying throughout Cleveland and Northeastern Ohio from the initial pre approval through signing final loan papers! Sharon Gerber and Prime Lending are knowledgeable in Conventional loans and approved to both FHA and Home Path Renovation loans. Whether moving up into a bigger home or downsizing due to retirement, Sharon Gerber and Prime Lending has the honesty and integrity to help. Please Call Sharon at 440-725-5626 or sgerber@primelending.com for more information.

Lake Metroparks Fairport Harbor Beach Breakwall Swim Event

September 10th, 2013

This short video features Cleveland Ohio Realtor Darren Burke from Launch Sales Team highlighting a Breakwall Open Water Swim event. It is free of cost and is held every Tuesday morning at 7:30a.m. during July and August at Fairport Harbor Beach, the Lake Metroparks offers a guided swim (followed by kayakers, stand-up paddleboards and a jetski with a safety sled). The swim is just under a 1/2 mile each way and draws a varied crowd. While not a beginners swimming event, there are swimmers of all ages as well as some college swimmers from Lake Erie College and some local triathlon swimmers who use the event as part of their training.

After the swim, a regular following of volunteers cook breakfast and have coffee and fellowship before heading off to work in the morning ($5.00 annual donation for the whole summer appreciated).

Fairport Harbor Beash is about 40 miles east of Cleveland, Ohio on Lake Erie. Lake Erie is the 13th largest body of water in the world and in this protected breakwall portion of the beach, makes for smooth water and fantastic open water swimming.

Fairport Harbor Beach opens at 9:30 am during the summer and is free for Fairport Harbor residents and $2.00 for residents of Lake County. During the summer season, Fairport Harbor beach offers kayak, paddleboard and windsurf rentals as well.

Darren Burke’s goal is to highlight some of the fantastic fun opportunities around Cleveland Ohio and promote this great city to the World. If you are moving to Cleveland Ohio or any of its suburbs, Darren can be a great resource for all sides of the city…and if you are moving to an area not in the Launch Sales Team market area…Darren will gladly refer you to a Realtor who will assist you and your family with your move to Cleveland area.

Pulte Homes Reviews Crestwood Model Home

August 23rd, 2013

 

Join Keller Williams Realtor Darren Burke from Launch Sales Team as he visits the Crestwood Model Home in Highland Heights, Ohio.

Several local area builders have built homes in Aberdeen and most recently, Pulte Homes had a development called The Legends at Aberdeen which has been selling new construction homes at a very rapid rate!

New lots from another national builder are emerging and any potential buyers needing more information can call Darren Burke and Launch Sales Team for a guided tour of what is available in and around the Cleveland Ohio area!

Darren Burke has been involved in watching the Cleveland Ohio suburbs grow being involved in the new construction industry since the early 1990′s and has worked with several area builders throughout the Northeastern Ohio area. Darren Burke now has a small real estate team located in Northeastern Ohio and focused on helping both buyers and sellers with their real estate transactions. Call/text Darren at 440-341-2002 or email him at darrenburke@kw.com or visit his website at www.LaunchSalesTeam.com for more information.

New Construction Lots for Sale in Aberdeen Development (Highland Heights Ohio)

August 23rd, 2013

 

Join Keller Williams Realtor Darren Burke from Launch Sales Team as he visits the Aberdeen Development in Highland Heights, Ohio. Aberdeen is a large planned unit development in Highland Heights Ohio and is located about 5 minutes from two major interstates, I-90 and I-271.

Several local area builders have built homes in Aberdeen and most recently, Pulte Homes had a development called The Legends at Aberdeen which has been selling new construction homes at a very rapid rate and had several price increases.

New lots from another national builder are emerging and any potential buyers needing more information can call Darren Burke and Launch Sales Team for a guided tour of what is available.

Darren Burke has been involved in watching the Cleveland Ohio suburbs grow being involved in the new construction industry since the early 1990′s and has worked with several area builders throughout the Northeastern Ohio area. Darren Burke now has a small real estate team located in Northeastern Ohio and focused on helping both buyers and sellers with their real estate transactions. Call/text Darren at 440-341-2002 or email him at darrenburke@kw.com or visit his website at www.LaunchSalesTeam.com for more information

Twinsburg New Home Construction – Nature’s Preserve/Chase View

August 23rd, 2013

 

Join Keller Williams Realtor Darren Burke from Launch Sales Team as he visits the anticipated opening of Phase II of the Ryan Homes development of Nature’s Preserve. This development by Ryan Homes offers larger lots and a more rural setting than many of Ryan Homes developments. This video also highlights a home currently available for immediate occupancy at 3046 Simecek in the Ryan Homes subdivision of Chase View. Chase View is highly regarded for its spectacular winter time views overlooking Twinsburg’s Towne Center and Square.

Darren Burke has been involved in watching Twinsburg grow being involved in the new construction industry since the early 1990′s and has worked with several area builders in the Summit County area. Darren Burke now has a small real estate team located in Northeastern Ohio and focused on helping both buyers and sellers with their real estate transactions. Call/text Darren at 440-341-2002 or email him at darrenburke@kw.com or visit his website at www.LaunchSalesTeam.com for more information.

Ryan Homes: Orchard Springs – Brand New Development

June 29th, 2013

 

Orchard Springs is a band new Ryan Homes development located in Concord Township, Ohio. For more information about Orchard Springs or any development in the Northeastern Ohio area please contact Keller Williams Realtor Darren Burke at 1-440-341-2002.

Launch Sales Team is a small real estate team in the Greater Cleveland Northeastern Ohio market that is focused on using technology to help sell homes. Operating with a Warrior’s Spirit and a Servant’s Heart, Darren Burke knows how to help both sellers and buyers in this changing market.

2013 Lake County YMCA Dream House

June 29th, 2013

 

Join Darren Burke from Keller Williams Launch Sales Team as he discusses the 2013 Lake County YMCA Dream House and shares a video tour of the house. If you would like more information about the 2013 Lake County YMCA Dream House or any house in the Northeastern Ohio area please contact Realtor Darren Burke at 1-440-341-2002.

Visit the 2013 Lake County YMCA Dream House today. It is located at Mountainside Farms: 10220 Karaboo Trail Concord, Ohio

Launch Sales Team is a small real estate team in the Greater Cleveland Northeastern Ohio market that is focuses on using technology to help sell homes. Operating with a Warrior’s Spirit and a Servant’s Heart, Darren Burke knows how to help both sellers and buyers in this changing market.

Tickets for the 2013 Lake County YMCA Dream House are able to be purchased online at: http://www.lakecountyymca.org/locatio…

Home Staging: How to Sell Your Home for the Most Amount of Money

June 29th, 2013

 

Join Darren Burke from Keller Williams Launch Sales Team as he videos a LIVE Home Staging Video as he prepares to list a home in the Cleveland Ohio area suburbs. Joined by Diana Hudson Kreske from Devine Designs, one of Cleveland iconic Home Stagers, this video series guides a prospective home buyer into the home staging process and some of the things a home stager will look at when coming to your home.

If you are wondering “How do I stage my Living Room?” or “How do I stage my Bedroom?”, this video is divided into series so you can see professional home staging in action. If you are wondering if home staging is an important part of the home selling process or live in any of Cleveland’s eastern suburbs, from Mentor, Concord, Chardon, Willoughby, Highland Heights, Beachwood, Gates Mills, Solon, Twinsburg or Aurora, Launch Sales Team can effectively help you prepare your home for sale!

Realtor Darren Burke facilitates a consortium of industry experts, highly skilled and passionately dedicated to protecting our clients and their real estate investments; with the intention of improving neighborhood market values

For a Realtor in your area who works with a professional home stager or a home stager in your area, contact Darren Burke at mrdarrenburke@gmail.com or call 440-341-2002.