LATEST NEWS: Short Sales & Foreclosures
Videos Explaining BofA Equator System Available
Bank of America has posted five videos to help real estate professionals succeed on getting
short sales to closing using the online Equator system. The set of five-minute videos covers
1) Initiating a short sale 2) Uploading documents 3) Valuing properties 4) Conducting analyses and working
with investors, and 5) Closing the sale.
Source: National Association of REALTORS®
New Way to Access Confidential Documents in Equator (October 5, 2011)
Agents now have a new procedure for accessing letters and other confidential documents issued during a short sale in Equator. Effective September 30, agents will receive an email that simply states there is an important message in Equator. Agents must log in to Equator and follow the steps outlined. Get more information here (login required)
Law Against Short Sale Deficiencies Expanded (July 15, 2011).
In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R. sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transaction, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Fact Sheet (Updated 9/14/11)
The full law (Senate Bill 458 – Corbett) is available at http://www.leginfo.ca.gov/ .
FTC Will Not Enforce MARS Against REALTORS® (July 15, 2011)
The Federal Trade Commission (FTC) announced that it will generally not enforce the Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and agents engaged in short sales. Real Estate professionals must nevertheless comply with MARS prohibitions against misrepresentations and other laws prohibiting unfair and deceptive acts. Also, FTC’s forbearance of enforcement is limited to real estate licensees in good standing and acting in compliance with state laws, who assist consumers in negotiating, obtaining, or arranging short sales in the course of securing the sale of the consumer’s home. Read the entire FTC News Release at http://www.ftc.gov/opa/2011/07/mars.shtm .
C.A.R. Launches Short Sale Website
With fewer than three of five short sales closing in California, C.A.R. is aware of the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures. To assist both REALTORS® and consumers, C.A.R. has launched http://www.shortsalescalifornia.org/, a website specifically focused on short sales.
C.A.R. Calls for Short Sale Reform (March 10, 2011)
In an effort to bring attention to the broken and ineffective short sale process and galvanize industry leaders to help resolve the issue, the California Association of REALTORS® placed an open letter in seven of California’s largest daily newspapers, calling on lenders and industry regulators to streamline and improve the short sale process. More than 640,000 Californians have lost their homes during the past three years. C.A.R. calls on regulators, elected officials, nonprofits, business organizations, companies, and individuals to act today and help resolve this issue. The last line of the letter aptly reads, “Our families and communities can’t wait any longer.” Read the letter here.
C.A.R. Short Sale Lender Satisfaction Survey (March 8, 2011)
The California Association of REALTORS® released the results on its Short Sale Lender Satisfaction Survey. The survey guages REALTORS® experience in working with short sale transactions.
According to the survey fewer than three of five short sales close in California.
Of the REALTORS® surveyed, 94 percent participated in a short sale transaction during 2010, demonstrating the surpolus of short sale listings in today’s real estate environment.
The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays.
In overal satisfaction with the lender they worked with 67 percent of REALTORS® were “not satisfied” or “not at all satisfied,” while 19 percent were “satisfied” or “extremely satisfied.”
Short Sale Deficiencies
The California Legislature recently enacted Senate Bill 931 generally prohibiting a deficiency judgment after a short sale for first trust deed lenders of one-to-four residential units. The following charts are easy-to-use reference guides for REALTORS® and their clients to determine the general applicability of anti-deficiency rules for short sales and foreclosures. These charts do not cover all aspects of any individual case. Click here to view chart (login required)
Source: California Association of REALTORS®
C.A.R. urges action on short sales, HAFA (Dec. 2010)
In response to ongoing challenges REALTORS® face in working with short sale transactions and HAFA, C.A.R. has sent letters to officials at the U.S. Department of the Treasury, Federal Housing Finance Agency, Fannie Mae, and Freddie Mac requesting immediate changes to the HAFA program. Read the letter here .
Source: California Association of REALTORS®