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August 2012

New Short Sale Guidelines for Fannie Mae & Freddie Mac

On August 21st a news release was issued by the Federal Housing Finance Agency (FHFA) providing new standard guidelines for Fannie Mae (FNMA) and  Freddie Mac (FHLMC) short sales.

Download The FHFA NEWS Release on Short sales 82112

Starting on November 1, 2012, Fannie Mae and Freddie Mac will ease the rules to speed up the short sale process on the loans they guarantee, even for borrowers still current on their mortgage.

One of the positives  -  homeowners could enter a short sale while current on their mortgage payments, but only with hardship reasons of:

• Death

• Divorce (legal separation may apply)

• Disability

• Employment relocation of 50 miles or more.

Other notable highlights of the new FHFA short sale guidelines include:

  • Servicers are required to reviewand respond to short sales within 30 days of receipt of a short sale offer; they must provide weekly status updates to the borrower if the offer is still under review after 30 days.
  •  Servicers must make and communicate final decisions to the borrower within 60 days of receipt of the offer and complete borrower response package.
  • These borrowers will  be eligible for a new mortgage backed by Fannie Mae or Freddie Mac for at least two years after a short sale.
  • Fannie Mae and Freddie Mac will offer up to $6,000 to second lien holders
    to expedite a short sale.
  • Military families who receive Permanent Change of Station orders will be eligible for a short sale.
  • Fannie Mae and Freddie Mac will waive the right to pursue deficiency judgments in exchange for a financial contribution when a borrower has sufficient income or assets to make a cash contribution or signs a promissory note.

Real estate agents... time to focus on taking more listings!  The Las Vegas market and many markets around the country are experiencing unprecedented low inventory.  Here is some positive news that hopefully will make Fannie and Freddie short sales easier to process... time will tell!

Need a Short Sale Certification?  Become a Certified Foreclosure Alternatives Consultant (CFAC).


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Las Vegas Nevada HUD Homes - Bid Process and Procedures

 Buying a HUD home in the Las Vegas area is definitely another primary residenHUD_homesce or investment alternative.  FHA loans have increased dramatically over the past couple of years due to the decreasing prices of Las Vegas Homes.  Therefore, expect to see the number of HUD homes available to increase.

What is a HUD Home?

When a homeowner with a Federal Housing Administration (FHA) insured mortgage can't meet the payments, the lender forecloses on the home; FHA pays the lender what is owed; and then the United States Department of Housing and Urban Development (HUD) takes ownership of the home.  HUD then sells it at market value as quickly as possible. BLB Resources is the current HUD Asset Manager for our region.   BLB Resources contracts with listing brokers in several states to assist in the marketing and listing of these properties through the local Multiple Listing Services.

Step 1 - (FOR AGENTS) Register as a Bidder on

  • The principal broker must be registered with HUD and be issued an NAID number in order to submit valid bids.  Agents - your broker must be registered first before you can register.
  • Agents - To register with HUD, select "Bidder" on the upper right hand corner of home page

  •  Real Estate agents need their Brokers NAID #, your real estate license number, date of issuance and expiration date to register.


Step 2 - Find HUD properties for your buyer

  • HUD properties can be found in the GLVAR Multiple Listing Service (Agent tip: Search for " in agent-to-agent remarkks) or on
  • HUD properties are listed daily - so check the HUD website or MLS often 
  • All HUD listings are on electronic or manual lockboxes
  • Buyers must use a HUD registered and licensed real estate agent to submit HUD bids. 
  • Financing Types:
    IN (Insurable) – these properties qualify for FHA 203(b) financing and have no obvious Minimum Property Standard (MPS) repairs. These properties may also qualify for 203(k) financing, a rehabilitation loan for
    owner occupants only.
    IE (Insurable with Escrow) – these properties qualify for FHA 203(b) with Repair Escrow, and have MPS repairs totaling less than $5,000. The repair escrow is the buyer’s financial responsibility, never a credit to the buyer. The lender holds the repair escrow money until completed (which must be within 90 days after closing) and is responsible for disbursing the funds to the appropriate parties. The escrow repair amount only applies to FHA 203(b) financing. These properties may also qualify for 203(k) financing.
    UI (Uninsurable) – these properties do not qualify for FHA 203(b) financing. Typically these properties have MPS repairs exceeding $5,000 or may not meet other guidelines for FHA financing.
    UK (Uninsurable, 203k Eligible) – these properties do not qualify for FHA 203(b) financing, but mayqualify for 203(k) financing.
  • Property Availability and Bid Deadlines:
    Properties listed as IN and IE are available exclusively for owner occupant, nonprofit and government agency bidders for the first 30 days on the market. Please note the initial bid review is on the 11th day of listing. All bids received during the first 10 days are opened and reviewed simultaneously. If no acceptable offers are received, bids are reviewed daily (Mon. – Fri.) until the exclusive 30 day owner occupant period expires. Properties are then available for all bidders, with bids reviewed daily (Mon. – Fri.).

Step 3 - Complete the appropriate Sales Contract Package (Investor or Owner-Occupant)

  • All the necessary Forms, Contracts and Addenda are located at BLB Resources or at, property detail view - click on Addendum tab
  • At BLB Resources, you can also download the Selling Broker Handbook, Selling Broker Quick Reference Guide, How to Complete a HUD Sales Contract Package
  • HUD will pay up to 3% towards buyers closing costs
  • NOTE:  HUD pays the full escrow fee - Buyer will not be charged 1/2 escrow fee.  However, all other "normal" seller closing costs will be charged to the buyer (Transfer tax, Owner's Title policy, Recording fees).
  • All signatures must be in Blue ink
  • Remember, the highest net to HUD is the winning bid - basically the offer price less any requested closing costs and commission (HUD will pay a commission up to 3% of sales price).

Step 4 - Submit the Bid Online at

  • All bids are submitted electronically directly on the HUDHomeStore website and are considered simultaneous bids.  You must have the complete contract and all disclosures completed and signed by the buyer prior to submitting the bid. 
  • Bid deadline time is 9:59 pm (PST)
  • Simply locate the property on and click on "Submit an Offer" and complete all the necessary fields using your completed contract as a guide.


Step 5 - Winning Bids and Closing Procedures

  • HUD will notify the winning bidder (Agent) via email typically within 24-48 hours.
  • If your bid is accepted, the completed, original sales package must be delivered (over-nighted) to BLB Resources within 2 business days.
  • Earnest Money Deposit must be in certified funds and made payable to "HUD or (Purchaser's Name)"
  • Cash offers - provide prrof of funds.  Offers with financing - submit lender pre-qualification letter of Loan Status Report (LSR)
  • Nevada HUD Closing Agent:

Western Title
5390 Kietzke Lane, Suite 101
Reno, NV 89511
Phone: 775-332-7100
Fax: 775-789-6214

NV HUD Hotline: 702-530-HUD1 (4831)

HUD Tech Support: 866-777-2034

Check out the comprehensive site for extensive and useful information.

If you are a buyer or investor interested in a Nevada HUD home, just give me a call (702-858-9191 or email me at and I will be happy to refer you to an experienced real estate agent who can assist you.


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Las Vegas Short Sale Training, Certifications and Networks

Short Sales continue to be a major sector of the Las Vegas Real Estate Market and all signs point to this not subsiding any time soon.

This post is provided to outline the variety of recommended training and certification courses available to real estate agents in Las Vegas.  


Realty ONE Group Continuing Education Classes

(Check for specific classes, dates, times and locations):

Foreclosure For Sale! NEW CE Class (General) CE#5457000
The latest statistics on foreclosures in Clark county and nation wide. Discussion on AB284 and the effect on inventory. Options for the homeowner, Judicial Foreclosures, Nevada mediation will be covered.

HAFA and Traditional Short Sales CE#5387000 (General)
This course will take you thru the steps of working with Sellers on a traditional Short Sale or the HAFA Short Sale including Fannie Mae & Freddie Mac requirements. Forms required, benefits to the Seller, and qualifying thru HAMP before moving to HAFA and more!

Success in Short Sales and HAFA Training(General) CE#5154000-RE
This course will provide you with the steps to minimize risk and short sale procedures. Training includes HAFA Treasury Dept, Freddie Mac and Fannie Mae. Also cover hardships, deficiency judgments, myths and facts about short sales.


Steven Kitnick Seminars

Visit Nevada CE for Schedule

Who Can Negotiate Short Sales? CE.5189001-RE
This class takes a close look at the 2009 amendments to NRS 645 & NRS 645F; what the new Mortgage Lending Division provisions are, how they affect current marketplace practices in terms of compliance, and their impact on the short sale activities of real estate licensees and others.

CE.5399000-RE 3 Hrs. Law & Legislation


Short Sale Certification Courses

CFAC – Certified Foreclosure Alternatives Consultant

 Jan O’Brien and Steven Kitnick co-authored this course that teaches the short sale process from A to Z with a focus on Nevada-specific laws and issues.  Approved for 7 hours of CE with the Nevada Real Estate Commission, the one day course is taught monthly at an investment of $159.

To Register for CFAC Live Course:

More info on CFAC:

Once you complete the Certified Foreclosure Alternatives Consultant Designation Course, you’ll be a trained consultant who understands the alternatives to foreclosure with an emphasis on the short sale process.

Is a short sale the answer to your client’s situation?

  • What liability will you incur if you recommend a short sale without exploring the alternatives?
  • What are the alternatives to foreclosure?
  • Why should you partner with attorneys, CPA’s and other trusted advisors?
  • How do you reduce the potential risk and legal liability when processing and negotiating a short sale?
  • What are the options for negotiating a short sale?  Who can legally do it?

Course content includes:

  • Using the Educational / Consultative Approach
  • Advanced Communication & Negotiation Techniques
  • Current Market Trends
  • How to qualify the Short Sale Seller, Buyer and Listing Agent
  • Lender Co-op and Relocation Assistance Programs
  • Options for Remaining in the Home
  • Options to Sell or Give Up the Property
  • A Complete Short Sale Listing System 
  • Access to Sample Short Sale Seller Packet and Forms, Disclosures
  • Effectively Working With Short Sale Buyers
  • Loss Mitigation and Servicer Processing Tips
  • How to Reduce Your Risk & Liability in Today’s Market
  • Legal & Tax Ramifications for the Short Sale Seller
  • Implementing the CFAC℠ Business Model for Your Continued Success




SFR – Short Sales and Foreclosure Resource Certification (NAR)




CDPE – Certified Distressed Property Expert

Retail Price is $599 – Discounts sometimes available through host for live course.

Over 40,000 agents have already become Certified Distressed Property Experts.

You can either attend a jam-packed, 2-day Live Event—and network with other agents, who will become a source of referrals, information, and expertise—or you can take the course in the privacy of your own home or office with the Online Distance Learning Course.

Live Event Schedule -

Online Training Course -

What you get from this course:

¨ The system, tools and resources you need to start listing and closing short sales immediately. 320+ Page Distressed Property Field Manual.

¨ The CDPE Resources Folder.

¨ CDPE Online Resource Materials, including over 50 forms and checklists available for immediate download, as often as you want.

¨ FREE! One-Year CDPE Membership ($99 dues, renewable annually): Enjoy full access to the Members' Only area of our website, as well as additional resources, presentations, Monthly Update Conference Calls, useful statistics and industry updates as they happen.

¨ FREE! Access to the CDPE Community Forum: Exchange referrals, syndicate listings, and share best practices with CDPEs around the country.

¨ FREE! Brand yourself as THE Distressed Property Expert in your market. You'll have full Access to the CDPE Logo in color and black & white as long as you are a member. We have already optimized the logos for use on your website, business cards, email signature, and more.


Short Sale Forums and Discussion Groups

Short Sale Professional Network

This social network was established in support of all Real Estate Professionals working in our current real estate market of short sales, foreclosures and traditional sales. We encourage all members to actively participate by joining the conversation, adding your own comments, experiences, questions, answers, feedback as it relates to the real estate industry and of course, short sales.

Short Sale Superstars

Over 10,000 members – this site is packed with info, training, tips and more for short sales

LinkedIn Groups

To Our Short Sale Success!

Short Sales Are Fun


Short Sale Commander Software

Web-Based Software for Listing Agents & Short Sale Processors


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Create a Powerful Referral System with these 7 Action Steps

SOI/ Past Client Referral System

There are 3 basic reasons why many agents fail to conquer the most important real estate system to implement – your Sphere of Influence (SOI) and Past Client Referral System.

  1. They never decide on a contact management or software solution.
  2. If they have a solution, they don’t enter the contacts, sort and categorize them.
  3. They over-analyze or never decide what to do or send out each month – thus, ultimately doing nothing for months on end.

So, let’s break it down step-by-step, get this critical system in place and generating business and referrals immediately.  The key to implementing this system is to commit to the process and set a deadline to complete each action step, one at a time. 


Action Step 1 - Create your list of past clients and sphere of influence.  If you have started a list or have it scattered in 2 or 3 places (MLS client, Outlook, other email program, scraps of paper, transaction folders, etc) get it all together in one place.  Make sure you have all the vital information on your contacts – names, address, emails, phone numbers, social media.  

Set deadline for completion: __________

Action Step 2 - Decide on a contact management /real estate transaction system.  You can choose a program like Outlook to get started and always upgrade to a more comprehensive, real estate-specific program.  The important thing is to choose something and just get started!  When researching and deciding on the right Customer Relationship Management software for you… consider these features to compare…

  • Accessibility (Mobile access, cloud-based, desktop)
  • Ease of use
  • Price (One time cost vs. monthly subscription)
  • Import/Export capability
  • Auto drip email campaigns
  • Action plans
  • Transaction management
  • Listing management
  • Contact/Client management 

REST – Real Estate Success Tracker  ( )  ($399 for single user license)
Highly recommended. Easy to use, more intuitive, not as complicated as many programs. 
Single and multi-user options available.  You install REST on your desktop/laptop but you can also remotely access from your PDA or another computer.

REST_Assured, hosted option for $34.98/mth

Top Producer, http://www/ ($ 39.95/mth). Top Producer is a comprehensive cloud-based CRM (Customer Relationship Management) and real estate transaction management system.  Multiple related products integrate with the CRM module (MArket Snapshot, Websites, IDX, Connector for MLS)

Realty Juggler   ($99/yr   Free 90 day trial) Cloud-based CRM, mobile access, real estate flyers, activity/task plans, print labels, letters, drip emails, track production, team support 

Wise Agent  ($24.95/mth  Free  30 day Trial ) Cloud-based CRM with contact manager, transaction manager, doc storage, email drip campaigns, flyers, newsletter, letters, property lists, to do lists, text and email alerts

Other CRM solutions

Real Estate Website – Your Back Office of your real estate website solution may have a CRM component

Email newsletters and email list management options:

 Research the solutions and make a decision.  Set deadline for purchase, installation and familiarization/training: _____________


Action Step 3 - Input all contact information into selected program.  Set aside a few hours and get this task done!  If you aren’t going to get to this task any time soon - hire someone to get this job done for you.  Computer-savvy people (teenagers, family members, your colleagues’ family members, agents in your office, local high school or community college students) are everywhere – find someone and hire them for this project. 

Set your deadline: ________________


Action Step 4 - Sort and categorize your database.  Optimally, complete this step simultaneously with the data entry of Step 3.  I recommend using the technique taught by Brian Buffini to sort your database:

  • A+ Multiple transactions or multiple referrals
  • A Referred at least one client
  • B Haven’t referred yet – probably will when you remind them/show them how
  • C You know them/just met them – haven’t sold them a home yet
  • D Delete - Not going to mail to them

You can also group your database by other specific categories or contact types (sellers, buyers, farm, past clients, newsletter, prospects, vendors, investors, short sale prospects, etc).


Action Step 5 - Create an Introduction or Reconnect letter with a deadline to mail out.

  • The letter should outline what the recipient can expect from this point forward; what services you provide; your client appreciation program; local market updates; annual market analysis of their property; business-to-business resources to name some possibilities.
  • If you are a New Agent, ask your broker for an endorsement letter from your Broker – company.  The concept here is the SOI member knows that the agent is new and may not have a high level of confidence in their ability or experience yet.   The letter reassures the potential client that not only do you get the agent but a team of professionals and support staff.
  • For those of you who have not done a great job staying in regular contact with your database, write a “reconnect” letter. 

Bonus Action Step:

Make a follow-up phone call after you send the letter or email. This one extra step will help you immediately sort your database and the major side benefit…you will more than likely generate business either directly or by referral from the activity of all the calls you make.

Make sure to cover these points on the call:

  • Ask them how they prefer to be contacted and updated (email, mail, texting, call)
  • Verify you have their preferred email and accurate contact info (use the Client Information Form)
  • Always ask for a referral!  “Who is the next person you know (or.. Who do you know…)  who is interested in investing in real estate?  Considering selling their home or buying anew home?

Set deadline for completion: __________


Action Step 6 - Decide on what you are going to mail or email each month.  This is the step many agents get stuck on.  They can’t decide on what to send or procrastinate about it or waste time creating their own newsletter or mailout.  Here are some suggestions to get you started.  Just pick one and do it.  You can always modify and refine later.

We recommend 30-40 connections annually.  A connection could be a call, email, mailer, text or face-to-face meeting.  Here is a sample connection plan:12 monthly newsletters

  • 12 monthly newsletters
  • 4 phone calls (call A+, A, and B contacts at least quarterly)
  • 4 personal notes (After these phone calls for sure.  And any other opportunity like when you receive a referral.)
  • 4 success mailers (quarterly just listed/just sold mailer)
  • 8 Holiday postcards, emails or flyers
  • 6-8 Seasonal postcards, emails or flyers (Time change, home maintenance, market reports)
  • Four Key Connects to include:
    • Settlement Statement (send first week of January for all closings from previous year)
    • Anniversary card, email, or call
    • Birthday card, email ,call or text
    • Annual Market Analysis
  • Current Market Data
    • Local or State REALTOR Association
      GLVAR has a Consumer Newsletter
      CAR has Client Direct – online newsletter
    • Most local Title Companies provide excellent market condition reports.  This is the information people are most interested in – what is happening in your local market.  Be the provider of that information!
    • Altos Research
    • Market Snapshot


Action Step 7Systemize it!  This is the final step and a key to the overall success of the system.  It simply means deciding on a day or week of the month that you will actually prepare and send out your monthly mailer or email.  Schedule it.  Place it on a visible calendar and make it happen.  Hire someone to get this task complete for you if you don’t want to do it yourself.



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