Hey everyone, Daniel Propelio here, and today I’m thrilled to be joined by Melody Medley of Oh Yeaz Real Estate, widely known as the “Short Sale Queen.” With over 500 successful short sales under her belt, Melody is a true industry leader. Let’s dive into her journey and her invaluable insights on short sales.
From Craigslist to Real Estate Mogul
Believe it or not, Melody’s journey in real estate began with a Craigslist ad. Transitioning from bartending, she responded to a job listing and started as an administrative assistant at Oh Yeaz. Fast forward, she climbed the ranks to become an agent and eventually purchased the company, now owning it with her partner, Trains.
What is a Short Sale?
A short sale occurs when a homeowner owes more on their property than it’s worth. Melody negotiates with lenders for a reduced mortgage payoff. For example, if someone owes $100,000 but the property is only worth $70,000, Melody works to get the bank to accept the lower amount and waive the remaining $30,000.
The Timeline and Process
Short sales don’t mean a quick sale. Historically, it would take six to eight months to close a short sale. Thanks to streamlined processes at Oh Yeaz, this timeline has been reduced to four to five months on average. Speeding up the process involves a dedicated team, including negotiators and an efficient title company.
Overcoming Obstacles
Navigating short sales involves various complications such as multiple liens (second liens, subordinate liens, city liens, and mechanic’s liens). The title company plays a crucial role in resolving these issues. Although challenging, this meticulous approach ensures that everything proceeds smoothly.
Benefits to Sellers
Selling via a short sale offers several benefits over foreclosure:
- Time: Short sales give homeowners more time to plan their next steps.
- Credit Impact: A short sale appears as a settled debt, which is less damaging to credit scores compared to a foreclosure.
- Future Financing: Homeowners can potentially secure another mortgage within two years instead of waiting the typical seven years after a foreclosure.
Deficiency Judgments and 1099s
When a bank agrees to a short sale, it usually means not pursuing the deficiency (the debt remaining after the home sale). Sellers often receive a 1099 for the forgiven debt, but the Mortgage Debt Relief Act may offer tax relief on this amount.
Cash for Keys
Homeowners with FHA loans may be eligible for a $3,000 relocation incentive, although this can be used to clear other smaller liens against the property. However, the Home Affordable Foreclosure Alternatives (HAFA) program, which offered $10,000, expired in 2016.
Benefits for Investors
Investors often partner with experts like Melody for seamless short sales. Melody’s team handles all negotiations, making the process hassle-free for investors. They even assist in getting offers approved by disputing appraisal values when necessary.
Case Study: A Success Story
In a notable case, Melody helped an investor buy a property appraised at $425,000 for just $320,000 by strategically reducing the appraisal value. This required showing repair bids to the appraiser and meeting them on-site, demonstrating the importance of hands-on involvement.
Working with Tough Banks
While some banks are easier to deal with than others, Melody accepts the challenge of working with any lender. Banks like Ocwen and Select Portfolio Servicing are more cooperative, whereas Wells Fargo can be notably tough.
Current Market Insights
Despite a strong market, Melody continues to see the need for short sales. Homeowners often fall behind on payments, sometimes due to failed loan modifications. Explaining these dynamics to potential clients and having a backup plan is crucial for investors.
The Role of Real Estate Agents
Real estate agents benefit from outsourcing short sales to experts. Melody’s team handles the entire process, from dealing with banks to managing the title company, allowing agents to focus on their core responsibilities.
If you’re an investor or real estate agent looking to collaborate on short sales, you can reach out to Melody and her team:
- Phone: 972-342-0011
- Website: Oh Yeaz Real Estate
Short sales can be complex, but with expert guidance from Melody Medley, the process becomes manageable and beneficial both for homeowners and investors. Whether you’re dealing with multiple liens or trying to close quickly, her experience and dedicated team make all the difference.
Final Thoughts
Melody Medley’s journey from a Craigslist ad to becoming the “Short Sale Queen” of Oh Yeaz Real Estate is a testament to her expertise and dedication. Her innovative approaches and streamlined processes have transformed the short sale landscape, making it more accessible and beneficial for homeowners and investors alike.
With a strong team and hands-on involvement, Melody navigates the complexities of short sales with ease, offering a lifeline to those in financial distress and valuable opportunities for investors. If you need expert guidance on short sales, Melody Medley and her team at Oh Yeaz Real Estate are your go-to partners for success.
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