Approved Short Sales

November 30, 2009 by  
Filed under Approved Short Sales, Blog

Approved Short Sale

If you are shopping for a home and see the term: Approved Short Sale on a real estate listing, the chances are that it may be a relatively good deal.  There are very few listings that are actually Approved Short Sales because the only way that they become approved is after a hardship qualification, appraisal, and the acceptance of an offer.  The property is on the market again because the original approved buyer fell out of escrow usually because of the very long wait time.  The trick in clinching these is to find out what the approved price was from the listing agent, and submit an offer in the price range.

Most listings will be listed as Short Sales, while only a very small percentage will be listed as approved for short sale offers. Most of the time agents and/or their clients mistakenly believe that once they get an offer the lender will then take them seriously, approve a short sale and forgive them for any deficiency left over.  This is a very risky strategy as the lender has to first verify a borrower’s stated hardship with tax, bank assets, and earning statements, etc.  After that they will do an appraisal of the property and approve a price.  But before everything, they have to determine that it will be less expensive to sell short rather than sustaining the costs of foreclosing, taking possession, and trying to sell it themselves.  Only then is it approved for a short sale status and they are open to looking at offers.  This can take up 3 to 5 months and most buyers don’t have the patience for that kind of wait time; especially in today’s buyer’s market.  This is the primary difference between short sales and approved for short sale offers.

 

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If you are behind on mortgage payments or foresee that you will be behind, you should consider contacting your lender directly and consider a leader in the industry execute a successful short sale.  Do it the right way the first time and get it done in the quickest manner possible.  We have almost all of our short sales approved in contrast with the very high failure rate amongst most realtors who aren’t specialist.  You owe it to yourself to find out why.

For a quick response, please fill out the input fields under “Contact Us for a Free Evaluation” at the upper right.  Please give us the best number to reach at as we can only do a consultation by phone and will email all support documents after the call. To view a list of short sales click here.

Buying Short Sales

November 25, 2009 by  
Filed under Buying Short Sales

Buying Short Sales

The main advantage in buying short sales is the opportunity to buy a house at below housing market prices. This is possible because the lender is highly motivated to approve an offer that allows for the settlement of a defaulted loan even if it is at a discounted price. They are open to offers like this because they save the cost going through foreclosure and the additional costs if the real estate auction is not successful and the property is held to sell at a reasonable price on the open market. Additionally they will accept a lower price because they usually offer the property “as is” and don’t usually offer to make any repairs.

 

One of the challenges in buying short sales is the longer than usual time it takes for the lender to approve your offer, so you must exercise patience and persistence. But your effort will rewarded with immediate equity and a position in today’s market to ride it back up to even more equity.

 

We are a top rated national short sale company with collective experience of more than 30 years. We are presently doing a large volume of short sales so all of our information is current and tested. It is worth getting the best and most up-to-date advice on buying short sales in a difficult and volatile real estate market. For a quick response, please fill out the input fields under “Contact Us For a Free Evaluation” at the upper right. Please give us the best number to reach at as we can only do a consultation by phone and will email all support documents after the call.

Obama’s Foreclosure Prevention Plan

Is Obama’s Foreclosure Prevention Plan Working?

There are new concerns being raised over the effectiveness of the 75 billion dollar effort to stave off foreclosures. The foreclosure prevention plan that the Obama administration implemented has offered long term help to a small handful of troubled homeowners.

By 9/30/09 the plan could only claim to have helped fewer than 5% of Fannie & Freddie’s “trial modifications” to convert to long term mortgages and according to the congressional oversight panel that monitors how bailout funds are being used, only 1.26% of these trials were made permanent after 3 months.

The plan puts troubled homeowners into new payment plans with an initial payment of approximately 31% of the borrowers’ current income. This is supposed to provide immediate relief while they gather all the paperwork necessary to complete a long term modification. The “long term modification” is not long term at all. What the modification does is to set the payments to the new lower payment for three to five years. After that, the payment will adjust to whatever the current interest rate is. At todays rate of about 5% this arrangement would be ideal, but the likelihood that interest rates will stay that low is not very realistic. After years of depressing the interest rates, the fed will likely have to make several hikes of the key rate, over the coming years. At the time that the adjustment happens, it will likely be too much for homeowners to bear.

Also, lenders don’t seem to be in a hurry to modify these loans under the Obama program, nor do they seem intent on converting any of the modifications into long term modifications.

“Everyone is going to be shocked at the low conversion rates from trial modifications to permanent modifications” said Guy Cecela, publisher of Inside Mortgage Finance, a trade publication. The president’s program, “won’t result in a significant number of loans being modified and won’t put a significant dent in foreclosure rates”

Some lenders blame borrowers, claiming that they have not been able to receive all required paperwork, while borrowers insist that they are getting caught up in a game where despite multiple efforts to supply lenders with documentation, lenders purposely lose paperwork or deny ever having received it.

“We’re not sure why we’re not getting the documents from people,” said Chase spokesman Tom Kelly. Of course Kelly wouldn’t furnish a response when asked how many long term modifications they had actually completed under the plan.

If lenders are really interested in converting applications into actual modifications, they are not showing it. When entering into a loan modification application, be prepared to submit paperwork multiple times and in as many different ways as possible and make sure to document every transaction, keeping time and date stamps of some sort on every piece of correspondence.

How to Stop a Foreclosure–cont.

How to Stop a Foreclosure

 

There are a number of ways to stop a foreclosure at different points along the foreclosure time line that starts when the lender files a notice of default (NOD) and sends you a copy. This is usually after about sixty days after you default on your loan and after several notices with the total amount in arrears that owe.

 

After the NOD, in California, you have up to five business days to stop a foreclosure sale by bringing your loan current–called your “right of reinstatement” period which is, at a minimum, 105 days. This is because 90 days after the NOD is issued, a notice of sale (NOS) lists the trustee sale date after at least 20 days of publishing the notice in a local newspaper.

 

If you don’t have money to bring your loan current, you can stop foreclosure by deeding your house over to your lender called a “deed-in-lieu-of-foreclosure” but the harm done to your credit is about the same as a foreclosure, namely the record will stay on your credit report for up to 7 years and prevent you from being considered for a home loan.

 

The best option to minimize a negative affect to your credit is to sell your house and payoff the loan but if you owe more than the house is worth, or are “upside down with your mortgage,” then you must do a “short sale”—a sale that brings in less than the loan amount. This is best left to professionals as much of the time it involves involved negotiation and to insure that you are forgiven for the balance of the loan under a financial hardship.

 

With over 30 years collective experience in negotiating and successfully completing short sales we will give you field tested advice and service. Let us tell you why we have over a 90% success rate compared to a 23% success rate among inexperienced realtors.

 

For a quick response, please fill out the input fields under “Contact Us for a Free Evaluation” at the upper right. Please give us the best number to reach at as we can only do a consultation by phone and will email all support documents after the call.

Avoid Foreclosure

November 19, 2009 by  
Filed under Avoid Foreclosure, Blog

How To Avoid Foreclosure?

Well there are a number of ways for homeowners to avoid foreclosure.  I’ve posted several blogs in our archive that shows you exactly how you can do this.  If you want to speak to me personally you can call 323-677-2800, and I will be more than happy to help you.

The government has allocated $400 million which was used to help homeowners avoid foreclosure, by lowering their monthly mortgage payments.    A study has been released stating that borrowers are about 60% more likely to keep their homes if they receive some type of counseling.

Borrowers facing foreclosure are 60% more likely to hold onto their homes if they receive counseling. So here is a simple equation I put together:

Counseling = Stay In Home

Get it?? Then go get some help and avoid foreclosure!!

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In particular i would use Housing Assist of America or the National Foreclosure Mitigation program, these are two institutions that have helped homeowners avoid foreclosure.   More and more homeowners are becoming delinquent on their mortgage payments, and this is not a problem that we are seeing an end to any time soon.  So please take my advice and get some help immediately.  Don’t trust a realtor or attorney, because at the end of the day all they want is your money.

Go get help from a counselor who does not charge anything for their services, and avoid foreclosure today!!

Short Sale Properties

November 17, 2009 by  
Filed under Blog, Short Sale Properties

Where can buyers find short sale properties?

There are several great deals out there for anyone who wants to buy a short sale property.  This is the perfect time to invest as property values won’t decline much more than they already have. To see a library of great short sales click here .


Actor Nicolas Cage Gets Foreclosed On

November 16, 2009 by  
Filed under Actor Nicholas Cage Gets Foreclosed On

Actors Face the Foreclosure Train Too…

Academy Award Winner Nicholas Cage has been slapped by the foreclosure train, losing two homes in New Orleans. The two homes totaled $6.8 million were auctioned on Thursday Nov. 12, 2009.  Regions Bank paid $2.3 million for a property that appraised at $3.5 million and $2.2 million for a property that appraised at $3.3 million.

Nicholas Cage is now looking to sue his former business manager Samuel Levin, who set up a corporation for Cage so that his name would not appear on any of the mortgage documents.  As of last month Levin filed a lawsuit against Levin, stating that the manager deceived Cage out of more than $20 million dollars.

Nicholas Cage is being forced to sell some of his larger assets to pay off any other debts he is currently facing.

CNN states that “Cage owes more than $6 million in back taxes and his properties in California and Las Vegas have also been foreclosed on and are designated for auction later this month.”

Cage has five roles lines up for the next year, which will hopefully help him with some of his debt.

Tax Credit Extended

November 9, 2009 by  
Filed under Blog, Tax Credit Extended

Homebuyer Tax Credit Extension & Expansion

Okay, so I know that many of you homebuyers were frantic whether or not you were going to find a home in time to utilize the first time homebuyers tax credit.  The new legislation that was passed, pushed this tax credit to April of 2010.  President Obama, signed the law on friday known as “Worker, Homeownership and Business Assistance Act of 2009”.  This law has extended the first-time homebuyer tax credit in a dismal time when unemployment has reached as high as 10.2%.

This tax credit has expanded to 10% of the purchase price of the property and must be in contract before midnight on April 30, 2010. According to the IRS, “the credit has provided more than 1.4 million to taxpayers as of September 2009.

The credit is now offered to those with incomes up to $125,000. Anyone who does not fall into this category is not eligible for the tax credit.

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This bill was passed by The House of Rep.’s on Sept, 2009…331 votes for and 83 against…But it’s funny how they keep extending the date.  Of course the tax credit is going to incentivize people to buy homes, the government clearly wants buyer activity to help clear up the foreclosure mess.  They wanted to stir up a lot of activity so buyers thought they didn’t have all the time in the world to purchase, and just as we came down to the wire they extend the tax credit.  Funny don’t you think?


Deed For Lease Program

November 5, 2009 by  
Filed under Blog, Deed For Lease Program

Deed For Lease Program

So what’s the fuss?  Fannie Mae is letting homeowners stay in their homes and rent them for up to one year. This will help stop a copious amount of foreclosures.  The deed for lease program is offering borrowers who were unable to qualify for a modification or any other workout plan, to deed their property to the lender while still allowing them to live in the property as a lease.  Generally speaking the deed for lease will be a lower payment than their actual mortgage payment.  Borrowers will pay market rent and have the ability to stay in the property.

This is beneficial to the borrower for saving the time and energy of moving out of their home, and helps the banks keep people in their homes in hopes for values to rise over the next year.   We are still uncertain of how many homeowners Fannie Mae is willing to offer the Deed to Lease program, but nonetheless it will sure help out a good amount of homeowners.

This program will not be offered to homeowners who have not been behind on any payments.  It is evident that Fannie Mae would love to hold on and sell these properties at a higher value.  I’m sure that the deed to lease program is inspired by Freddie Mac, who was offering their clients month to month leases to people who had lost their homes in foreclosure.

7 Ways To Stop Foreclosure

November 5, 2009 by  
Filed under 7 Ways To Stop Foreclosure, Blog

Here are 7 ways to Stop Foreclosure:

If you have not missed a payment yet, but know you are going to, the first step is to contact your lender and let them know your situation.  If you’ve lost your job or have some other type of hardship going on let them know.  They can give you time to help  get your life back together, but you must call them as soon as you know you’re going to miss a payment. The longer you wait until you actually miss your payment, makes it more difficult to ultimately get the problem solved.

Ask for forbearance. This allows you to delay payments for a short period of time, with the understanding that another option will be used afterward  to bring the account current.

Ask for a repayment plan. This is where the lender agrees to add a certain amount of the first missed payment onto each of the subsequent two payments.  These plans provide some breathing room for you if you only have short term financial problems, such as a sudden expensive repair or medical expense that makes it too difficult to pay your mortgage one month.

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If you have already missed 2 or 3 payments and owe a couple thousand dollars in lender legal fees, the lender of your mortgage may still try to arrange a repayment schedule.  But you will likely have to pay a third to a half of the delinquent amount up front, and then pay off a portion of the remaining balance each month for a year or more.  Also, never ignore the lender’s letters or phone calls. Ignoring the problem won’t make it go away- and if you’re going into a foreclosure process, there are other fees and costs involved and ignoring them only makes these worse.

You may also be eligible for a loan modification plan, designed for people who can’t afford repayment plans.  In a modification, the lender actually adjusts the terms of the loan to make it affordable. It may lengthen your amortization schedule or lower the interest rate to cut the monthly payments, or roll the past due amount into the loan and re-amortize the new balance so you can pay the additional debt back over time.

Some companies may be willing to offer you a “short refinance” too.  With these, the lender agrees to forgive some of your debt and refinance the rest into a new loan.  This way, teh lender still gets more money than they would by foreclosing on you.

A Deed in Lieu of foreclosure is an option in which you voluntarily deed your property back to the lender in exchange for a release from all obligations under the mortgage. Unfortunately, there is no way to do this without hurting your credit, unless you get the mortgage company to report your mortgage account as paid in full.  You may face income tax issues resulting from the lender forgiving part of the debt, but you might be able to get yourself out of the hole and start over again sooner rather than later.

If you can afford your normal monthly payment, but can’t afford to make up the delinquent amount and legal fees because your lender offered a really harsh repayment plan, you may want to consider filing Chapter 13 bankruptcy. Doing so temporarily halts the foreclosure process and can force the mortgage lender to accept a more friendly repayment plan.  This is a last resort, and will still negatively affect your credit.

If none of these strategies work for you there is still one option which is a short sale.

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