Thursday, June 30, 2011

Short Sale and Foreclosure and Disclosure


Should foreclosure be disclosed?

Foreclosure means the lender has started a legal procedure to have the property on which it holds the mortgage sold at auction.

This may be a short sale, and it also may not be a short sale. A short sale is not a foreclosure but obviously the two situations can be related.



What is confidential here?



Say a property on Adams Avenue “under foreclosure” is presently worth $375,000 and the mortgage balance due is $300,000. Perhaps the seller lost his job…or a divorce has caused the mortgage payments to go unpaid. If the property is sold for $375,000 or is sold for any amount that exceeds $300,000 plus costs of the sale, there is no need to disclose that the property is in foreclosure as it not a “material fact.”


It does not affect the seller’s ability to perform on the proposed purchase contract and it is a confidential situation.


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If loans on a property on Maples Street are $430,000 and Maples Street is presently worth less than $430,000, then the property and the situation can be considered a short sale. In this situation, there is a “material fact;” the seller’s potential inability to perform. This fact needs to be discussed with the seller; consent obtained from the seller and probably disclosed to the transaction.


Confidential information cannot be disclosed without your client’s consent. If it’s not confidential information…just go one more step and get consent to disclose information about the seller in writing anyway.


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This is a discussion of market conditions and various real estate, lending, and legal procedure. I’m not offering legal advice. I’d suggest legal assistance if you have questions about the legal stuff. In Utah, an attorney is required to obtain a real estate license if she or he regularly processes real estate transactions on behalf of clients.


from The Porch…





Prof MikeClass Star®


ClassStar offers two, 3-hour core courses a new Utah Law series, and several live courses. www.ClassStar.com. Your business and referrals are appreciated.

The Porch weblog and all contents herein are © 2009-11 Mike Ballif. All rights reserved.









Saturday, May 8, 2010

Just Talking ... with No Words

Hello, All ...


A few blog postings ago we began a series of ideas and articles about “business” as a social concept.  The foundations of business – when understood help you become a better agent and increase your business acumen. Your clients will immediately notice and appreciate how well you are taking care of their needs.  So, we can do better business when we are better communicators…

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Christopher Columbus’ first recorded voyages to the New World were recorded in his Diario.  Columbus was surely a master negotiator and had to be a master at communications.  Of course the Diario contains remarkable observations of discovery and isreplete with passion as my buddy Al Sandomir describes it. Columbus writes a lot of exquisite material and describes the real estate and biological wealth of the New Indies.  Immediately and concurrently, the Spanish explorers began “winning over” the indigenous colonies of natives for loyalty to the Crown and to Christianity.  Among other assets there was also a nice big piece of real estate on the table.

Columbus had to somehow begin communications with these folks … largely using body language and other nonverbal communication techniques until the basic languages began to take hold.  

Imagine marketing a piece of real estate using gestures and noises only.

Sometimes we agents also talk in a foreign language with our clients.  Real estate—just as many other occupations has a specialized language that can be daunting to the public.  Doctors, lawyers, engineers, and stock brokers for instance all have a specialized language just as real estate practitioners use.  As a result we can use knowledge of nonverbal techniques to our advantage and improve our business communications and to also determine what the natives really mean or want. 

Many times clients won’t express verbally what they want to communicate, but rather do it with other mannerisms and gestures – body language.  In fact, it can be so predictable -- timeshare sales folks have an established floor routine for analyzing what prospective clients are “saying” to each other, under the table or out of sight of the salesperson.  A floor manager watches the body language and then steps in to “win over” the prospects.


Here are a few methods and maneuvers you can use to help in your negotiations.  Remember…the best negotiation is win-win.  All parties must win, or you will be trying to keep the sale on the books forty five days later because the folks on the losing side of win-lose … will most likely be trying to get out of the loss.  So bear in mind these techniques are effective, and greatly assist a negotiation.

After you read them I want you to think of an encounter or a conversation you had recently where some of these body language techniques were used and tell us about them and how they affected the communication. Preferably you can think of something that happened on the job or in a business situation...


Just Talking via Body Language

If you are strolling along an arcade or the county fair in the summer, and encounter a charcoal sketch artist who's drawing portraits... and ask him "how much?"

He says "$20."

You flinch...

What does the flinch mean—to the artist?


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Slight Tilt of the head. Hand going up to chin.  They are paying attention.

Perfectly straight head — not paying attention. [My students are going to sleep]

Stroking the chin.  Very interested.

Head leaning on the heel of the hand.  Boredom.

Stroking the nose.  Exaggerating.

Tugs at ear.  Want to hear more.

Scratches head.  Uncomfortable, nervous, discomfort. Back off, change direction.

Lays eyeglasses on table.  No longer listening to you.

Something in mouth…need more nourishment.  Like what they hear, but need to hear more.


Hands…"steepling." Confidence.  Feel they are in a superior position.

Fingers drumming on the table top…
Tug at the collar.
Hand at the back of the neck ... all indicate annoyance.

D    Determine then eliminate source of annoyance.  Adjust your communication.






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From Professor Mike, ClassStar.com
















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Just an FYI:  Class Star.com’s live Negotiation and Persuasion course presents detailed and experiential methods to learn and practice some nonverbal techniques.  I'll send more info to you on all these materials.  Let me know what you would like:  Mike@ClassStar.com


Mike Ballif • Class Star offers online core courses and several live continuing education courses on Consumer Behavior, Negotiation and Persuasion, Real Estate Math, How To Pick Comps, etc.   Your business and referrals are appreciated. The Porch weblog and all contents herein are © 2010 Mike Ballif. All rights reserved.

Sunday, December 6, 2009

New Changes in Utah Real Estate Licensing Laws Are Upon Us - January 1, 2010

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Utah Real Estate Licensees ...


Continuing Education - CE requirements will increase from 12 to 18 hours. Licensees will need to complete 9 hours of core education and 9 hours of general education / electives to renew a license effective January 1, 2010.

If your license expires in January 2010, you may renew your license in December 2009 and instead complete the current 12 hours of Continuing Education.

Sales Agent Pre-licensing - Pre-licensing education will increase to 120 hours on January 1, 2010.


Utah Mortgage Licensees ...


Mortgage Loan Originator Pre-licensing - license applicants are required to complete a 60 hour pre-licensing course, effective January 1, 2010. If the licensee applicant completes the licensing process on or before December 31, 2009, current criteria will be acceptable.

S.A.F.E. Requirements and Testing - Mortgage licensees in Utah must create an account on the NMLS website by May 31, 2010. All licensees must pass the S.A.F.E. exam by December 31, 2010.



RESPA ...


New Good Faith Estimate and Settlement Statement forms are required on all applications taken on or after January 1, 2010.



From My Porch ...












Prof Mike • Class Star®

ClassStar offers two, 3-hour core courses and several live courses. www.ClassStar.com  Your business and referrals are appreciated.

The Porch weblog and all contents herein are © 2009 Mike Ballif. All rights reserved.