Trump International Realty - Welcome to the Industry

Donald Trump made some waves by starting his own real estate brokerage house this past month. The company appears to have offices in  New York, Las Vegas and Chicago. While Trump is a marque name in the development and property management sectors, its curious how he will fair in the licensed world of managing real estate agents, inclusive of the many ethical hurdles that the Department of State places along his way. Unfortunately for Mr. Trump, the Division of Licensing Services will not care who he is and instead will expect the same level of professionalism that they expect from everyone else. In a smart move, it appears that Trump International Realty is launching with a small group of established agents who can help set the pace for the company as it grows.

To visit Trump International Realty's website, click here.

Good luck Mr. Trump and welcome to the industry.

New Short Sale Rules - Treasury issues Supplemental Directive 12-07

Some of the highlights of the Directive are as follows:

• Use of certain HAFA documents will now be optional rather than mandatory, so long as the servicer communicates essential HAFA terms to the borrower in some written form.
• Borrowers who request HAFA consideration and are ninety (90) days or more delinquent and have a FICO score that is less than 620, will be deemed to have a “pre-determined” hardship. Borrowers with a pre-determined hardship must execute a Hardship Affidavit prior to closing of the HAFA transaction; however, servicers will not be required to further validate the hardship.
• Treasury will now require both the seller (borrower) and purchaser in a HAFA short sale transaction to execute a new HAFA affidavit prior to closing that certifies, among other attestations, that the sale represents an arms-length transaction and that no money is being given or received that is not reflected on the HUD 1 Settlement Statement. 
• The time frame for servicers to make a decision on a borrower’s request for HAFA has generally been shortened to 30 calendar days. 
• Treasury is increasing the incentive it will provide for permitting gross proceeds to be used to pay subordinate mortgage liens.
• The current prohibition against resale of a property for 90 calendar days following a HAFA closing is being changed to prohibit any resale within 30 calendar days and prohibiting a resale for more 120% of the HAFA short sale price between 31 and 90 calendar days of the HAFA closing.

Also, notate that these new rules are effective on 2/1/13, not immediately.

To read the Supplemental Directive in its entirety, click here.

Surviving the rule change is the following:

A statement that if the borrower has a real estate license, he or she cannot earn a commission selling his or her own property and may not have any agreement to receive all or a portion of the commission after closing;


Real Estate Agents - this does not mean to try to creatively earn a commission on your own short sale. You will likely face charges of perjury &/or fraud. Its just not worth it. Instead, simply hire a friend whom you respect at your company to represent you in your short sale.

I just want to make a point of the fact that HAFA offers a proactive short sale. Being proactive with obtaining lender approval is the ONLY sensible way to seek out a short sale these days. Push your clients, attorneys and friends to work under the HAFA program. If you do, you will agree that HAFA is the way to go.

Hey real estate agents, Business Insider says you will find love!

Just a fun article I found at Business Insider, take a read by clicking here.

Although the article has no methodological basis for its prediction, its a good thought that real estate agents have such good fortune.

Remember to vote on this Election Day.