Utah Real Estate Survival Guide

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Archive for the category “Banks”

Second Mortgage Won’t Accept The First’s Approval

I am currently representing a Buyer client on the purchase of a Short Sale. The Seller’s first mortgage is a Fannie Mae backed loan with Wells Fargo. The second is with US Bank. This is a traditional short sale, not HAFA.

Wells Fargo has issued their approval, with no Seller contribution at closing or promissory note. They have allocated 10% to the second mortgage, per their investor guidelines, and will permit no more – to the exclusion of additional funds/promissory notes from the Seller or the Buyer that those parties would be willing to bring to the closing table. US Bank has rejected these investor terms.

Now, you’re thinking, “so what’s so unusual about any of this?” What’s my point?

My point, a question really, relates to the listing agent’s ethical responsibility given this situation (per the Realtor Code of Ethics). Since the second mortgage has rejected participation in the short sale, shouldn’t the listing be removed from the MLS? Or is it acceptable to let it languish, as part of an already bloated inventory, until it dies a natural death as an expired listing?

I’m looking forward to reading your comments. Please post!

Kim Novak, RE/MAX Masters
kimnovak@remax.net
(801) 726-1443

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Soapbox ❐ All That Bailout Money

Soapbox: “A thing that provides an opportunity for someone to air their views publicly.”

I read an article earlier today that made me gasp (which in the new vernacular means that it was compelling enough for me to hit the “share” button and comment). The US Government has filed a lawsuit against Deutsche Bank. That’s the good news. The bad news is that it involves $1.274 BILLION that HUD – that’s us – has paid, or in the process of paying, this ONE bank, for bad loan insurance claims.

The heartbreaker is that this is really about bailing out a bank, not for mortgages that it originated (which would legitimize the HUD compensation), but for a bad investment decision Deutsche Bank made in 2007 when it bought a subprime/Alt-A lender, MortgageIT.

How did a lender who “specializes” in subprime/Alt-A mortgages EVER get approved to originate HUD insured loans? From my brief internet foray into researching MortgageIT, it doesn’t look like they did. They simply bought HUD backed loans from “small to mid-sized banks, credit unions and mortgage bankers” to enhance the marketability of their own portfolio. The one that Deutsche Bank bought off on.

That being said, I know that Deutsche Bank is not stupid. I know that Deutsche Bank did their due diligence. I know that Deutsche Bank got burned. Wait, did they?

Deutsche Bank Posts Best 1st Quarter Since 2007

Executive Summary? Deutsche Bank Net Profits Up 17%

Shame on us …
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Knowledgeable & Professional Representation … Aggressive Negotiation

Contact Info:
kimnovak@remax.net
Phone or Text: (801) 726-1443
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Kim Novak is a Realtor® and Broker Associate with RE/MAX Masters in Salt Lake City and Layton, Utah. Licensed in 1995, Kim has closed over 500 sales during her full time real estate career and achieved industry recognition as a Lifetime SalesMaster and member of the RE/MAX Hall of Fame. She holds a BSBA with an emphasis in Sales & Marketing and has achieved the following designations/certifications:

ABR: Accredited Buyer Representative, AHWD: At Home with Diversity, CDPE: Certified Distressed Property Expert, CHS: Certified HAFA Specialist, CRS: Certified Residential Specialist, CSP: Certified New Home Sales Professional, ePRO: Internet Professional, GRI: Graduate of the Realtor® Institute, SFR: Short Sale & Foreclosure Resource, SRES: Seniors Real Estate Specialist

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