Barton Property Group News & Tips

The more I talk to people who are facing foreclosure, I am amazed at the disparity of attitudes. Some people are feeling confident that their lenders are “working with them”. “I’ve already been told that they will work with me.” I sure hope so, because I hear from a LOT of others who have given up after being told that. They were told to pay for 3 months while their lender evaluated things. Then the homeowner struggles to pay for 3 months, but the bank hasn’t processed the paperwork yet. So they struggle to pay for another several months. Then the bank tells them, “I’m so sorry. You don’t qualify.” Meanwhile, their foreclosure is right around the corner.

Other people are hopeful – again – that the newest government programs will help them keep their houses. If it is like the previous ones, they will benefit a few, give false hope to many, and help out the banks – again.

Some people have lived in their homes for so long without paying that they have grown numb to the fact that eventually they will face an auction and have to move. They gave up a long time ago and are just riding the free train for as long as it lasts.

Other people are discouraged by struggling to pay their mortgage so that they don’t get behind on the mortgage, only to see help coming only for those who are behind. Some others I have talked to can afford to pay the mortgage, but don’t want to anymore because they owe hundreds of thousands more on their mortgage than their houses are worth.

Hopefully… the economy will continue to show signs of improvement and put people back to work. Hopefully… people will learn from this severe downturn and try to live within their means and make wiser financial decisions. Hopefully… we will get congressional leaders who will hold people responsible for the fraud that has taken place at the highest levels of our financial and government systems so that people go to jail.

Hopefully… people learn to depend on family and cherish relationships and the things money can’t buy. Hopefully… our very pressing needs motivate us to seek spiritual help and guidance. Hopefully… people begin to have hope again, which has been sorely missing.

Today I talked to 2 homeowners facing foreclosure and gave them hope that we can help them, because we can. It may be only a fraction of the number who need help, but I’m thankful that we are able to get them better solutions. There’s hope!

Over the last 2 weeks we have gotten 2 really bad appraisals for short sales. One appraisal used comps from surrounding high-end towns to comp a property that backs on to the freeway in a low-end town. That appraisal means the bank thinks the property is worth $20,000 more than we even have it listed for. Even at that listing price, there is only one offer for $45,000 less than the bank now thinks the property is worth. All because the appraiser took the easy way out instead of the right way. That’s like comparing Arizona properties with downtown Manhattan.

The 2nd appraisal (in this case a BPO) was denied because it was too low. I thought they wanted a fair appraisal. Obviously the appraisal management firm didn’t like it since it was considerably lower than the previous one and they wouldn’t send it in. It was actually higher than 3 of the offers I have on the property. So a 2nd BPO was ordered and this agent does 60 – 80 BPO’s a week (impossible to do well) and sends an assistant (not a licensed agent) to take the pictures. Which means the person doing the BPO has never seen the property! So far, every BPO we have ever gotten from agents who do this has come in so high the bank won’t accept the offer.

The banking industry is still a long ways from being credible. Meanwhile, homeowners are losing their homes while these kinds of tactics continue.

It’s amazing to think that while the banking industry is trying its best to eliminate any profits that real estate investors might make at their expense, that they are actually continuing to practice the very things that they are screaming about. Because dealing with short sales requires so much expertise and is so time consuming, many real estate agents have moved to hiring short sale negotiators who actually know the systems and can complete the paperwork in less time. They also have a higher approval rate. Now the banks are stating that they will no longer pay short sale negotiation fees.

Not only are they not paying them, some loan servicing companies are now CHARGING them – to the buyer. These are the same loan servicing companies that get money from the federal government to close short sales and get paid by the investor on the loan as well. As agents, we have to sign paperwork stating that we have not gotten paid outside of the commission and yet they are getting paid for the very things they deny us the right to do.

The part that really upsets me is the language in the approval letter we got today from AHMSI that stated that the buyer was being charged a short sale negotiation fee of 1%, but that amount was supposed to be disguised on the HUD so that the investor would not find out. They actually put in writing that the net to the bank should not reflect the short sale negotiation fee, but they would not approve the short sale without the fee.

I can’t believe that banks are trying to go after “short sale fraud” while they are allowing the loan servicers to practice in this manner.

According to the latest data as of this posting on July 29th, foreclosures are still rising in 75% of all the metro areas in the US. Foreclosure actions, which include notice of default, scheduled auction and repossession, in the first half of 2010 rose in 154 of the 206 metro areas with populations of 200,000 or more.
The cities with the 20 highest foreclosure rates were still in Florida, California, Nevada and Arizona, but that doesn’t mean that the rest of the country is out of the woods yet.
5,000,000 loans are still seriously delinquent and banks are predicted to take over at least another 1,000,000 properties this next year through foreclosure.
Prices are still lagging 29% behind the peaks posted several years ago, but no real increases in pricing is expected until people are able to get jobs.
We are seeing increased interest in bank owned properties, but the real players are investors with cash to spend since the banks are either too slow to approve the loans or not lending. It is interesting to note that the same banks that only give you 30 days to close on one of their short sales or REO properties are the same banks that can’t close a new loan in the same amount of time they are requiring!
I think the real estate market will have a hard time recovering until the banks are run better than they are today. It is sad to say, but I don’t think that will happen. I see the banks staying afloat using government money, slightly altering their game plan, and then continuing the same bad servicing and systems they have been using. The American public needs smaller banks that have to live and die by their own policies.

BoA encourages short sales

Bank of America (BoA) reported $35.7 billion in nonperforming loans, leases and foreclosed properties in Q210 – which is 15% above levels measured in the same quarter of last year. These loans and properties increased more than $5 billion in total aggregate balance since Q209. The total did drop by more than $200 million worth of these loans and properties from the $35.9 billion reported in Q110. They represented 3.74% of all outstanding loans, leases and foreclosed properties at the end of Q210. Since 2008, BofA and the acquired Countrywide completed nearly 650,000 loan modifications. During Q210 alone, BofA completed 80,000 modifications, including 38,000 trial modifications that were converted into permanent workouts under the Home Affordable Modification Program (HAMP). If a modification does fail, BoA is putting an emphasis on selling the home through a short sale ahead of foreclosure. At REO Expo 2010, Matt Vernon, the short sale and REO executive at BoA said that t he bank added 1,000 employees to the short sale staff and will “do everything possible to liquidate property prior to foreclosure.”

If you are working any short sales, make sure you continue to check to see if there are any new liens. We had one that was accepted, but before we could close, they slapped a $30,000 credit card lien on the property. We were able to negotiate it down from there, but a sizable lien can affect the profitability of many of these deals. It may also keep a potential buyer from being able to close on one within the required time frame.

We just closed a short sale that proved to be a far better way to get rid of debt than a bankruptcy. The homeowners got rid of $30,000 in one credit card lien, $7000 in another credit card lien, water, sewer, and electric bills, and over $100,000 in mortgage debt. Why in the world wouldn’t people go for that? Where else can you get that kind of deal?

Testimonials for Barton Property Group

Barton and her staff took what seemed like an insurmountable situation to us and worked out all the details and actually made things happen! At first I was nervous and doubtful that she could make it work, but after seeing her handle each problem, I finally realized that she would be able to sell our house – and she did. It was a huge relief to us and she did such a great job that we have already recommended her to others.

Lisa and Arthur, Plymouth

I have had the privilege of working with Barton Wallace and Barton Property Group for several years. We have worked on many deals which had varying degrees of complexity and she quickly became someone I could rely on to negotiate with the parties and get results. It is a genuine relief for me to discover she is involved as I know she will be part of the solution to any problems that may arise.

She is easy to work with, professional and experienced. She puts her client’s interests first, tends to the details and perseveres to the end to ensure each sale is successfully completed. Most importantly, she has experience with banks and negotiating short sales which has become increasingly vital in today’s market. I would recommend Barton Wallace to anyone who has issues with their property which require special attention.

Barbara Lazaris, Attorney at Law

50 Congress Street, Suite 318, Boston, MA 02109

We would like to take this time to thank you. You have put so much time in finding a strong buyer to get our home successfully sold. You went beyond the expectations of an agent…very courteous and personable. You have been so caring and easy to work with. We appreciate all of your hard work, and will always recommend your services to anyone we know who is buying or selling a home.

David C. and Deborah S., Rockland

Don and I can’t thank you enough for all your help and guidance you gave us during our very difficult/devastating situation, facing foreclosure. If it had not been for you, our situation surely would have been a grave disaster. Again, many thanks to you.

Don & Michele F., Hanover

Barton Wallace is there for you. She has a passion for helping people and it is evident in the manner in which she handles herself by putting her clients’ needs first. She is a person of strong character and conducts her business with the highest level of integrity.

Ronda Polleys, New Life Mortgages, LLC

Weymouth

I chose Barton Property Group to help sell my house because they were the most professional company I had contacted. I had a lot of difficulties with my property that were keeping it from selling but Barton Property Group found a way to get around those obstacles and closed on the property. They contacted me through every step of the process and it was very assuring to have a quality company like Barton Property Group representing me. I would absolutely recommend Barton Property Group to anyone who wants to sell their house because they conduct business with the utmost integrity.

Emmanuel U., Canton

Barton Wallace is a person who has the experience and training to assist you with your current real estate issues. More importantly, she is a person who understands the effects a difficult situation has on a family, person or community. She is sensitive to the needs of others and will help solve your real estate concerns with a professional approach.

Beverly V., Hingham

I want you to know how much I appreciate all the hard work that you all have done on my behalf over these last many months. I’m sure that everyone who seeks your help feels that their situation is unique, and believe me, none more than me. All the extra effort, phone calls, trips to the house, helpful advice, and continual reassurance that everything would finally work out meant more to me than I could ever express in words. Thank you for all you’ve done to help me get my life back together and on the road again to a bright future.

Jonathan O., Whitman

After having no other options, Barton Property Group was able to help us finally sell our house. They have a wonderful staff that was always there to answer questions and keep us updated on everything that was happening. Barton and her team worked non-stop to help us and I can’t thank them more for their support and guidance through this whole process. It was one of the best choices to make.
Heather and Erik, Kingston

The Barton Property Group were very professional and assisted our family in a time of need. We were losing our home to foreclosure and Barton and Peter took a very difficult time and made it a hands-free, worry-free situation. I would recommend them to anyone.

A & A Herring, Brockton

Working with Barton Property Group was a great experience for me. They helped me to find a property and worked through all the difficulties to close it – all with honesty and professionalism. They worked as a team with us to make our dream come true. I got the home I was dreaming of for much less than I thought possible. They worked smartly with the lender to get me the best deal I’ve ever seen. If you need help to buy or sell, I would highly recommend Barton Property Group.

Sidney G., Braintree

Barton Property Group has a very friendly staff. They were helpful in getting through to a lender that was not very helpful. We were able to get a great deal on our house, and I would recommend that anyone interested in purchasing a property to check out and call Barton Property Group.

Donald E., Whitman

We felt comfortable with all the information given and with the fact that they had so much experience dealing with our mortgage company. They were on top of things and very helpful. We have already recommended them to several people and will continue to do so.

Christine and Greg, Brockton

I met Barton last summer and she worked tirelessly to sell my home in order to avoid a pending foreclosure. Barton is honest, forthright, and succeeds at what she sets her mind to. Barton sold my home in a short sale and spared me of foreclosure and the problems it would have brought to me. I trusted Barton with keys to my home and she cared for things as if they were her own. Barton has been a pleasure to work with and I highly recommend her to anyone.

Alison D., Weymouth

Barton Wallace was referred to me from friends. Her whole company was prompt and courteous, knowledgeable, and continually followed up. They always made us feel like we were a priority. I would definitely recommend their services because they were well organized and professional at all times. They also helped us buy a property at a really good price.

Lori D., Abington

I called Barton Property Group because I was in foreclosure. Barton got my house sold in a very short time, less than a month. They were all very nice to work with and very professional. I would definitely recommend their services to anyone.

Ernest L., Whitman

Since I have been doing short sales, I have noticed that they are taking much longer to complete than they used to. I used to able to complete one in 3 months, but I’m afraid those days are over for the near future. The bank’s systems are really bogged down right now and many of them bottle-neck with the mortgage insurance companies who are having to look at short sales from so many different mortgage servicers.

I have had a short sale that was “approved” 4 months ago but then had to be sent off for mortgage insurance approval. To this day I still have not gotten the approval letter even though I have been told it is coming over and over. The systems are terribly broken and you need to have patience with the acceptance process because it will be a while.

If you’ve been stressing over what to do about that mortgage you know you really can’t afford, but you’re thinking they might do a loan modification, you need to know that MOST of them do not get approved! Listen to this story:

We had a great client who withdrew her short sale application in order to try a loan modification. (Hint: they will only work on one or the other.) By the time she found out that they were indeed turning her down for the loan modification, we had to get another bank appraisal of her property. This one came in $30,000 higher than the one 6 months previously. Although we could have gotten her offer approved earlier, we could not get the bank to agree to the new “value” they thought the house was now worth. The end result was it went to foreclosure in spite of all our efforts to get the short sale through. Waiting until the last minute didn’t allow us as many options as we would have had earlier. She lost out, we lost out, and even the bank lost out because the property will not sell for any more than we had it under agreement for! Don’t wait to act. Do it now!