Take Flight this October, Purchase your Realty Round Up Ticket Today
Upcoming Events:
n Tickets now available for largest real estate trade
September 14 NAPMW General Membership Meeting Norris Conference Center - 11:30 a.m.
vention Center, located at 500 East Cesar Chavez Street. Regis-
show in Central Texas
tration will open at 8:30 a.m. and the exhibit hall will remain open from 10 a.m. to 4 p.m.
C
hatter is building as REALTORS® prepare for the
Your $15 ticket can be purchased in advance by visiting
largest real estate trade show in Central Texas. Re-
www.abor.com/events/roundup.cfm. Your ticket will provide
alty Round Up is set for Oct. 27 and tickets are now
you admittance to all of the Realty Round Up festivities. Addi-
available for the annual Austin Board of REALTORS®’ (ABoR)
tionally, your ticket includes a $5 coupon for use at any of the
event. Costing $15, Realty Round Up tickets will provide you
Austin Convention Center’s concessions, including the Starbucks
access to top-notch, informative education sessions, as well as
cart. Tickets will be available for pick-up at the registration desk
the opportunity to browse the latest products and services for
on the day of the trade show. For additional questions or infor-
real estate professionals. This year’s show, themed “Spread
mation, contact Gina Willemsen, Trade Show coordinator, by e-
Your Professional Wings,” will take place at the Austin Con-
mail at roundup@abor.com or by phone at 454-7636, ext. 1601. RL
September 16 Cheeseburgers in Paradise Kinningham House - 4 to 7 p.m. September 22 HBA 5th Annual BBQ Bash & Elected Officials Appreciation HBA office - 6 p.m. September 23 WCR Monthly Networking Meeting ABoR Auditorium - 11 a.m. October 2 WCAoR Green Expo Dell Diamond - 10 a.m. to 5 p.m. October 21 NAPMW Austin Mortgage Monster Mash Bottle Auction Bash Norris Conference Center - 5:30 p.m. October 27 Realty Round Up Austin Convention Center - 8:30 a.m.
—Associates—
In Progress September 2010 • Vol. 15 • ISSue 5
enjoyable. entertaining. It’s all about you.
Short Sale Transactions Require Addendums, Determination and Patience
W
hen looking for ways to increase income,
to disclose the potential of a short sale to the buyer,” An-
Winifred Harrison of Coldwell Banker United REAL-
REALTORS may want to consider adding
derson says. “It is critical that you know the short sale form
TORS says waiting for a decision — any decision — is
short sales to their repertoire. But a recent
exists and that you use it.”
painstaking. “I had a short sale offer on a house in January
seminar coordinated by the Williamson County Association of REALTORS shows that it takes a large heaping of
Buzan adds that it is important to let buyers and sellers
and did not get a response back from the lender until May,”
know that it is a lengthy process for
she says.
determination and patience to finally earn a commission
lenders to reach decisions on whether to
on these tricky transactions.
approve short sales. Even after decisions
should inform their sell-
REALTORS
also
Short sales occur when the seller gets a lower price for
are made, different parties that have a
ers that they may incur
their house than what they owe but the seller’s lender ap-
stake in the property often don’t commu-
a tax liability after a
proves the sale anyway, possibly to avoid the costs they
nicate well with each other. Buzan says
short sale, as the differ-
might incur if the owner is at risk of foreclosure. Sellers can
she has seen homes under short sale con-
ence between the origi-
find themselves facing a short sale scenario when market
tracts that are scheduled for closings still
nal loan amount and the
prices drop dramatically, leaving them upside down in
head for foreclosure, leading to increased
net proceeds agreed to
their mortgage, or if they get behind in their payments. If
fees for the seller, no home for the buyer
settle the loan — the
a REALTOR suspects this may be the case, then it is their
to move into and no commission for the
cancelled debt — can be
responsibility to provide a short sale addendum, says Edra
REALTOR — in other words, disappoint-
considered as income.
Anderson, an attorney for the Texas Association of REAL-
ment for all parties involved.
Wukasch, who as
TORS who participated in WCAoR’s hot topic seminar
“It happens,” she says. “This is the real
with Candy Buzan of Prime Lending and Bill Bradshaw of
world and you risk having the rug pulled
Gracy Title. TREC commissioner Avis Wukasch of Keller
out. Every servicing lender has different
ing the short sale adden-
Williams Realty moderated.
procedures and a different timetable. To
dum,
“If you are representing a seller, you have an obligation
protect your seller, tell them it is important to Presorted Standard U.S. Postage PAID Austin, Texas Paid Permit #715
You can visit us online 24/7 at www.realtylineonline.com
commissioner
says
she
is
currently working on an
remain
current
P. O. Box 81366 Austin, Texas 78708-1366
TREC
had a hand in develop-
affidavit form that RE-
in
ALTORS can use to
their mortgage. If they can
show they educated their clients about all the ramifications
hang on, it will be better off
of the short sale process. In the meantime, she suggests RE-
for them in the long run.”
ALTORS keep notes in a file that show they have informed
However, Bradshaw said he has found that sometimes
sellers just what a short sale means in order to protect themselves from any potential fallout.
lenders will not approve short
In the end, is the aggravation of a short sale worth it?
sales until a borrower is in ar-
Granted, the more education and training a REALTOR has,
rears. It is this kind of unpre-
the smoother the process becomes, but it appears short
dictability
sales will continue to be a challenge for many.
that
makes
maneuvering the short sale
“They take longer and there is always the question of
circuit difficult. If the seller
when or even if it will close,” Harrison says. “I don’t par-
has two liens, that further
ticularly run from a short sale transaction but neither do I
compounds the issue.
care if I ever get one.” RL