It's Good that NAR Will Consider New Rules for Listing & Advertising of Short Sales & Distressed Properties

The good news during April 2008 from the National Assoc. of Realtors is that it is considering new rules for listing and advertising of short sale and distressed properties.

It's about time.

Rules must be made and followed regarding listing of these properties with the MLS services. The rules should bind owners and sellers, listing agents, and lenders, through the short sale process.

The health of our real estate market is dependent upon buyers having sufficient and accurage information on which they can rely for truth about the properties.

Regarding distressed properties, the market and folks who buy need MLS listings to identify whether there is lender approval of offers on short-sale.

The market needs to have MLS rules on advertising of commission offered by the owner and lender to the broker Realtors for the buyers. Buyers and their agents are dependent upon accuracy of information provided to them in order to make informed decisions and protect value.

The market and buyers deserve to know from the MLS whether the property will be tied up in a lengthy process of lender determination of eligibility, whether there is non-judicial foreclosure in the works, and what is exactly being offered.

After the rules are established, the NAR, California Association of Realtors, and local MLS groups, must enforce those rules, and not allow listings that don't comply.

Banks, lenders, and holders of notes, must not be allowed to set rules and information to be provided in the MLS listings.

Posted by Harrison K. Long, Explore Group, Realtor and Broker, Irvine, CA, May 8, 2008.

Labels: Ethics and business practices, marketing, Realtors and Brokers, short sales

Reinstatement of Your Home Loan or Mortgage After Default?

You don't have to be a bum or a deadbeat to get into a foreclosure position with your home. It can be as simple as missing some days of work or having a mortgage payment late. You are in over your head with your lender. Now your lender's threatening you with foreclosure. The last thing you need is the stigma of foreclosure and are seeking a way out.

If it's possible, the best way to get out of this mess is to come up with cash and go for reinstatement of the loan.

This could be difficult. The lender requires you to catch up with payments and late fees in a lump sum. If you can work this out, get it in writing. The only chance you have of making it happen is if you satisfy the lender that conditions that led to this situation will not be repeated.

Be careful with this. Hire a qualified and professional Realtor, someone to trust who will look out for you during tough times. Get sound advice from an objective advocate who will be in your corner.

Then decide for yourself whether reinstatement of your defaulted mortgage is a possibility and/or the best course of action.

Posted by Harrison K. Long, Explore Properties Group, May 2, 2008

The Market Needs More Control Over Information on MLS Listings for Distressed Properties

The Market Needs More Control Over Information on MLS Listings for Distressed Properties.
Consumers and buyers need more accurate information on distressed property listings. The markets and MLS should have better control over listings of distressed properties, including foreclosures and short sales.
On a short sale, the owner lister should be responsible for accuracy of information and sign to certify it. The owner and their agent should be contractually and legally responsible to pay the buyer's broker the amount of commission set forth on the listing.
On a bank owned property, the bank should certify its contractual agreement to pay the buyer's broker the set commission prior to the property being listed by the MLS.
These and other simple measures would help Realtors provide better service, assure the consumer a better handle on whether and how to purchase such properties.

As of April 19, 2008, distressed properties, short sales and foreclosures, were 35.1 percent of MLS listings in Orange County, California.

Posted by Harrison K. Long, Explore Properties Group, April 22, 2008