There have been so many news articles about homeowners walking away from the financial obligation to their mortgage. In response, there has been a lot of opinions about how these homeowners are not taking an ethical stance and avoiding their responsibilities. The result will be billions of dollars spent by the U.S. government to aid lenders and homeowners until the housing market stabilizes. Ultimately, this means the nation as a whole will be responsible to helping the housing market through higher taxes.
Besides the ethical attempt of meeting your financial obligation to the lender, there are considerable benefits a homeowner who completes a short sale.
1. Get $1500 – A new law has passed that allows some homeowners receive $1500 from the government from a successful short sale. The transaction would need to qualify under Obama’s new legislation published January 2010.
2. Improved Tax consequences – A lender may exercise the right to issue you a 1099 to collect the uncollected mortgage amount of a short sale. If the homeowner qualifies, they could be exempt from this 1099 under the Mortgage Forgiveness Debt Relief Act of 2007. Some lenders have stated that a 1099 most likely would not be sent out if the financial status reported in a short sale submission proves to be difficult to collect any future debt. Keep in mind that collecting the debt is costly and sometimes these bad debts are sold off to collection agencies for pennies on the dollar. Sometimes the deficiency can be reduce by the lender or the collection agency.
3. Protect your Credit History – There have been ongoing debates on how a short sale will actually affect your credit report. The fact that a short sale was concluded instead of a foreclosure should show that the borrower did something to redeem themselves. The stance of the major credit bureaus is that they are likely to see a short sale the same as a foreclosure. The reality is each persons credit history depends on how the creditor reports your credit performance. Some homeowners have reported getting a “Paid in Full” or “Satisfied” on their credit report after a short sale. When negotiating a short sale, it is possible to request removing any mortgage lates as a condition of the short sale.
The importance of credit is many times overlooked in the eyes of a financial distressed homeowner. Most of the time if they are about to lose their home, other bills aren’t getting paid because they are trying to save money to move out of the home and find a new home. Protecting your credit score allows you a short time to wait for your score to increase, also, it affects any reliance on credit cards, auto loans, getting approved to rent an home, etc.
It is recommended to always seek professional advice before making a decision to go through with a short sale. Every situation is different and decisions must be well thought out to receive the best outcome. Seek a Bankruptcy Lawyer if you are considering bankruptcy. Seek a Tax Attorney or Real Estate Attorney to understand your legal rights and tax consequences. Real Estate agents can help you list your short sale but they are usually not qualified to provide tax and legal advice.
To learn more about how to qualify the best candidate for your short sale transaction visit whbsolutions.com. The number one factor in becoming successful in Short Sale Education, Short Sale Success and Short Sales is to learn how to pre-qualify your deal which includes finding the right buyer.
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Short Sale Secrets Clip 2
Learn how to short sale real estate. Bill Twyford and Dwan Bent-Twyford define short sales, outline the structure of deals, and explain the relationship with the banks you need to get those deals done. A.D. Kessler’s Real Estate Roundtable #354 Clip 2 from www.cremag.com.
(01:10)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04)
The third most populous city in Alabama State, Mobile is home to over 195,000 residents according to the 2010 U.S. Census. This is because the city is one of the most convenient places to reside in.
The quintessential Playa del Carmen lifestyle is the downtown condo, on the beachfront. While Playa del Carmen real estate offers a good bit of variety these days, this part of town and the lifestyle it offers have likewise developed to offer something special.
Buyers will notice that in Playa del Carmen’s downtown the homes which are available tend to be back from the beach. While these are still excellent options with their own benefits, there are Playa del Carmen homes for sale directly on the beachfront in the surrounding area.
As some Playa del Carmen condo sales are made in resorts offering owners rental income through vacation packages such as weddings, good news also comes from the tourism industry, showing that “wedding tourism” is growing.
An attraction option within the Playa del Carmen real estate market is that of land. Both Playa del Carmen land for sale and lots in the surrounding area present affordable options and good investment potential. The following is an overview of some of the main areas to consider land purchases.
The timeline for the short sale process can be extremely long and will test your patience. Once a file is submitted to the lender, it is processed according to the bank timeline. While you may be limited in your ability to try and speed up the process, you do have the ability to avoid items or circumstances that cause delays in processing time.
For all of our short sale transactions, we log the date and details of every conversation, fax submission, and commitments made. Keeping meticulous records show the level of professionalism that you bring, and inspire the trust and cooperation with your bank representative.
Too many times, we approach the phone call with a request for something we want from the bank representative: assignment to a negotiator, escalation to management, speeding up the processing time, better terms on the approval letter. Because the short sales process takes a long time, we tend to be very results driven, and focus on achieving milestones as fast as possible so that we don’t lose the buyers in a short sale.
One of the responsibilities of a listing real estate agent is to evaluate the strength of the offer. In a retail transaction, this would involve examining the financial details of the offer: the amount of the earnest money deposit, the amount of down payment, the credit score and potential for qualifying for the loan needed to finance the purchase. A secondary consideration may be the ability to close quickly.
Before every single call, remind yourself of your intention to set a tone of collaboration. It is too easy to jump right into a conversation, where it becomes a simple mechanical exchange of information. Of the hundreds of calls that a lender’s representative takes in a week.
To learn more about how to qualify the best candidate for your short sale transaction visit whbsolutions.com. The number one factor in becoming successful in Short Sale Education, Short Sale Success and Short Sales is to learn how to pre-qualify your deal which includes finding the right buyer.
I purchased a home nearly 2 years ago with a 100% financing with 2 loans for $365K in Northern California. I have a 1st 80% and 2nd 20% from the same lender, both loans closed on the same day, never refi the loans and the 2nd 20% loan is not a HELOC. The properties comparable to my house around my neighborhood now sold for $265k-$280k so in that respect, I’m very upside down. To make long story short, I’m having difficulties paying my mortgage and here’s my question: If I foreclosed on the property, the bank would lose about $80k-$100k. If I go with short sale, assuming the bank approves it. It would still only be selling around $265k - $280k at the most, I’m 90 days late on my mortgage and I realized this might be a good time to negotiate with the bank since I might be able to leverage the current market turmoil situation to renegotiate the terms. What are chances the bank are willing to forgive my 2nd loan, which is at around $72k? Please advice, time is running out. Thank you.
Whether you live in Phoenix, Scottsdale, Mesa or Glendale, you may find that you just cannot afford your mortgage any longer. In fact, you may owe more on your home than what it is worth, and it seems you are getting farther and farther behind. A short sale is a viable option for those who see no way out of their dilemma, and fear they are facing foreclosure. An experienced Arizona realtor can help you understand the process, and also assist you in all negotiations should you decide the short sale route is right for you.
Are you already months behind in your mortgage payments? Foreclosure may be just a few weeks away, and is something you really want to avoid. While you may hear bad things about a short sale, most of that is due to the fact that it can be a lengthy process – but if you have a reputable real estate agent, it can be much simpler and accomplished in far less time.
One thing many people find attractive about the short sale is that they can honestly tell friends and family they sold their home and avoid embarrassment often associated with foreclosure. You can also avoid having your credit completely destroyed, which can be devastating for some people. When your credit is demolished, you are looking at about 7 years of not being able to purchase anything on credit – even another home.
A short sale will affect your credit rating somewhat, but not like foreclosure does. You will likely be able to purchase another home in two years or less. Why do you need an Arizona realtor if you decide to go this route? They will help you negotiate with your lender, and also help you find a buyer for your home. Your lender must approve the offer of the buyer; a good agent can make sure that the price the buyer is offering is in the ball park, so that you do not waste time.
As long as you can prove good reason for why you can no longer pay your mortgage and your lender agrees, a short sale may be just the solution to your problem. Lenders would rather have some money on your home, because they are not in the business of owning vacant properties. If you live in Phoenix, Scottsdale, Glendale, Mesa or surrounding areas and need to consult with a professional, contact an experienced, Certified Arizona short sale realtor today.
Maureen has been in the real estate industry for 36 years as an agent and broker/owner of her own company. She prides herself in successful negotiation for both buyer and sellers and in building successful portfolios for investors. She is proud of her Agent friendly office environment that is her own creation and the caliber of real estate agents she has working for her
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Questions and Answers
Ask our experts your Home and Family related questions here…
Short Sale Secrets Clip 2
Learn how to short sale real estate. Bill Twyford and Dwan Bent-Twyford define short sales, outline the structure of deals, and explain the relationship with the banks you need to get those deals done. A.D. Kessler’s Real Estate Roundtable #354 Clip 2 from www.cremag.com.
(01:10)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04)
The word green comes from the Old English word grene, or, in its older form, groni. This adjective is closely related to the Old English verb growan (”to grow, turn green”), which in its wonted usage referred primarily to plants, and goes back into Western Germanic and Scandinavian languages.[6] Cognates in other languages include West Frisian grien, Dutch groen, German gr?n, and Danish gr?n. The first recorded use of green as a color name in English was in 700.[7]
This machine was designed to cool the air and lower the humidity up to 55%. The machine became very popular and was installed in some hospitals and pharmaceutical industries. This machine was very large, expensive and also very dangerous.
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Stink bugs are invading homes and crops. Just before you try to get your stink bugs under control and kill the infestation its time to learn what are stink bugs.
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Are you contemplating placing your house on the real estate market, but not certain where to start? Worried it’s going to take to much time to sell, or that you simply wouldn’t get the selling price you would like? Give thought to “staging” your home, or to paraphrase, setting the scene for quick b
The area of Arizona encompassing Phoenix, Glendale, and Scottsdale is even called the Valley of the Sun because of the typical 325 annual days of sunshine the state enjoys. Still other Canadians searching the Phoenix real estate market are shrewd property investors. Phoenix properties are ripe for the picking.
Check out from facts from the multiple real estate listing service what really is going on in Phoenix, Scottsdale area Arizona with real estate .Want bargain priced quality housing?
Any Canadian who’s been double-minded about purchasing due to the currency exchange should not wait any longer. This situation is viewed by investors as a dream with endless opportunities and to those looking for a second home a vision in the making.
Thinking about asking a Phoenix realtor to help you out in buying a home, then you might as well ask about short sales
It’s the most ideal time to invest in a short sale – it’s huge in the real estate market even now.
If you’ve been looking for that dream home with a price that perfectly suits your budget and preferences, it would be wise to invest now or be sorry later.
Phoenix properties for sale appeal to those from all walks of life. It is a superior buyers market for those who are retiring, relocating, or investing in a vacation property. Real estate rates have likely reached the bottom in Arizona. The inventory is high for Scottsdale bargain golf communities, condos, winter retreats.
Looking to buy their dream home or winter home at remarkable low costs of properties.and weather conditions in the Phoenix and Scottsdale Arizona. are more appealing, The strength of the Canadian dollar is exceeds its historical average in the previous decade by approximately U.S. 78 cents. Why wouldn’t Canadians invest.
There are many advantages for Canadians in buying property in the U.S., particularly in Arizona. You need to be knowledgeable of U.S. real estate or have a U.S. Realtor help you and if you can hire a Canadian practicing real estate in US all the better.
Maureen has been in the real estate industry for 36 years as an agent and broker/owner of her own company. She prides herself in successful negotiation for both buyer and sellers and in building successful portfolios for investors. She is proud of her Agent friendly office environment that is her own creation and the caliber of real estate agents she has working for her
Home Page > News and Society > Economics > Pros and Cons for Homeowners in Massachusetts and New Hampshire Participating in the HAFA Short Sale Program
Pros and Cons for Homeowners in Massachusetts and New Hampshire Participating in the HAFA Short Sale Program
Short sales are confusing enough, but let’s throw a new program into the mix. It’s called HAFA. Now to not confuse you even further, I’m going to talk about the good old regular HAFA program and not the Freddie Mac/Fannie Mae HAFA short sale program.
Homeowners need to be aware of the pros and cons of the HAFA program. I received two calls this week from agents who were furious when their short sales were approved the lenders “kept the right to pursue the deficiency” and gave no relocation assistance.
Here’s why:
SECOND lenders do not have to participate in the HAFA program so even though it’s Chase or Wells or whoever the second lender is and they independently participate in the HAFA program as a second lender on the property they do not have to comply with the HAFA program. The agent’s going into these short sales didn’t realize that. Not only were the agent’s furious about the homeowners, the lenders in both cases CUT the commission to get an approval. Imagine that? A short sale lender cutting an agent’s commission? Well THERE’S something you don’t see every day right? WRONG!!
So let’s go over the basics for the HAFA program.
The PROS:
If you only have ONE mortgage and that mortgage company is a participant and approves your short sale there are some PROS:
1) You will be released of the deficiency (the difference in the accepted offer to what you owe- for example you owe $225,000 and someone offers $175,000 you will be released of that $50,000 deficient amount. The lender will not go after you)-This doesn’t mean you won’t have tax liabilities.
2) You can get up to $3000 in moving expenses.
3) The lender will need to respond in 10 days to the buyer’s offer-THIS DOES NOT MEAN you will GET AN APPROVAL in 10 days. They just need to respond and a response is, “Hey we’ve received it and we’re looking at it”
Those are VERY strong reasons to attempt a HAFA short sale if you QUALIFY! So let’s see if you actually qualify….
These are some of the qualifiers for HAFA:
Property must be the homeowner’s primary residence.- No investment or second homes will be considered. “The property is the borrower’s principal residence, except that the property can be vacant up to 90 days prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative (RASS) or DIL Agreement if the borrower provides documentation that the borrower was required to relocate at least 100 miles from the property to accept new employment or was transferred by the current employer and there is no evidence indicating that the borrower has purchased a one- to four-unit property 90 days prior to the date of the SSA, Alternative RASS or DIL Agreement.” [From the Supplemental Directive]
The first mortgage must have originated before 2009.
Mortgage payments must be delinquent OR default is reasonably foreseeable.
Unpaid balance is not more than $729,750.
If a homeowner hasn’t applied to HAMP the servicer will require a completed Request for Modification and Affidavit along with verifiable financial hardship evidence that the homeowner’s financial situation meets the 31% income eligibility requirement.
Homeowner’s TOTAL monthly payment PITI-(principle, interest, taxes, insurance and HOA dues) MUST EXCEED 31% of their GROSS MONTHLY INCOME.
Ok. Great. You qualify and you’ve applied to HAFA and are enrolled in the program:
Here are the CONS: 1) Mandatory deed in lieu – The homeowner is required to sign a deed in lieu requiring them to hand back their house to the bank if the home doesn’t sell. This is the number one reason I would never have a homeowner sign up for HAFA – a Deed in Lieu is a “friendly foreclosure” and reports on your credit report very similar to a foreclosure
2) 120 days. You have 120 days to sell your home through HAFA from when they MAIL you the SSA (Short Sale Application) – If you don’t sell your home in that time, refer to #1. You agreed to a friendly foreclosure – deed in lieu. You MAY be given additional time to market your home, but don’t bet on it.
3) Your lender will set the price for the property. A BPO is done PRIOR to listing the property. The BPO agent is hired by YOUR LENDER and if that BPO agent is not experienced with the home market in your area you could be in trouble. They are not responsible for the accuracy of the list price and have no responsibility to you in the event the property is not sold.
***Side note: Last week I got a call from a homeowner who had Bank of America as a lender and had NO idea she had enrolled in the HAFA program. Her agent had not fully explained what was going on and she didn’t know what she agreed to. She asked me to buy her home. Now we buy short sales. We love short sales, and that’s what we focus on for investing but we cannot buy every short sale and we have to qualify them. I immediately called her agent and spoke to him. He informed me the lender set a price of $177,000 for the property. They got one offer in for $120,000 in which I’m sure you can guess the outcome. They (BOA) denied the offer. The home needed a tremendous amount of work. It’s value really was closer to $100,000 with all the repairs it needed and the location didn’t help it’s value. I explained to her we could not buy it because we would be no where near an acceptable offer for BOA. It was heart breaking to explain to her that if she didn’t get an offer, she would likely be looking at the deed in lieu****
4) HAFA is a set of guidelines. It’s not law, so if the lender doesn’t follow protocol, there really isn’t a legal action that can be taken.
5) Each participating lender develops their own written policy, consistent with investor guidelines, that describes the basis on which the lender will offer the HAFA program to borrowers. You do not get to see the guidelines. However, the guidelines are submitted to the government. So how are you to seriously know if the guidelines have been broken? Makes a LOT of sense huh?
6) Servicers may amend the terms of the SSA in accordance with investor requirements – Basically this means lenders can do whatever the heck they want and well, then why would anyone consider HAFA? Lenders do whatever they want with a good old traditional short sale and you don’t have all the other negatives.
7) Homeowners must make partial mortgage payments through the process. These payment amounts are determined by your lender.
COMMISSION ISN’T PROTECTED – This one is really for the agents out there. I think that’s why the agents we work with really like us. THEIR COMMISSION is PAID IN FULL. Here’s the thing. If a second lender wants commissions slashed to approve the short sale within HAFA your commission is not protected at 6% and then it truly isn’t a HAFA short sale as the agents we spoke with this week found out.
The reason I wrote this is because of the two agents who worked very hard on what they believed was a HAFA short sale releasing the homeowner of any deficiency and allowing a $3000 moving credit. Their frustration with the 5-6 months they wasted only to have the end result be similar to a traditional short sale was evident. PLEASE keep in mind second lien holders DO NOT necessarily participate in the HAFA process EVEN if they area HAFA approved lender.
We purchase MULTIPLE short sales and don’t put offers on any HAFA short sale property because we don’t believe in having a homeowner sign a deed in lieu to be part of the program. I am not saying the program doesn’t have it’s benefits, but homeowners, agents, and everyone else involved need to know ALL the pros and cons before making a decision on how to short sale their home, whether through HAFA or a traditional short sale.
Maryann Little works with homeowners in preforeclosure. Her company Rapid Property Relief, LLC focuses on preforeclosure acquisition and negotiation in New Hampshire and Massachusetts. For more information go to http://rapidpropertyrelief.com.
Maryann Little works with homeowners in preforeclosure. Her company Rapid Property Relief, LLC focuses on preforeclosure acquisition and negotiation in New Hampshire and Massachusetts. For more information go to http://rapidpropertyrelief.com.
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According to the reports from HuffPost, he was reported saying that he felt really bad about Gabrielle being in the hospital and getting shot, so I just wanted to help her. Saldana could gather about a total of $2.85,
Increasing numbers of men and women are choosing to run away from home in the hopes of never being found again. Last year in America there were close to a million people a year who left home, voluntarily, disappearing without a trace.
If you’re like me, you’ve thriftily embraced the newest craze in money-saving, deal-getting hullabaloo—daily deal sites. In this economy, as a consumer, I’m all about the great deals, and as a business owner, I’m all about innovative ways to generate new customers. But as a member of my community, I’m left hanging. I finally found a daily deal site that gets it. A portion of the proceeds from every deal, regardless of who buys the deal or how many deals are sold, goes back to the community.
There’s a global conspiracy against wealth today. It isn’t obvious - no conspiracy is - but the signs are there if you know what to look for. A “jobless recovery”… a collapsing dollar… runaway government spending… bloated “zombie” entitlement programs that’ve long eclipsed the policies they were originally intended to implement and now exist with the sole purpose of furthering their own existence… these are all indicators of the worldwide march away from economic freedom….
An article looking at the current job climate in Newport, South Wales - wondering if proposals to cut hundreds of jobs will be a disastrous and it seems
If you are one of those people that lives from pay-check to pay-check this is something you will be interested in. I can’t seem to put any money aside but this has helped me make ends meet.
We have done enough short sales to see our fair share of bankruptcies occur. There is an impact to a homeowner’s credit and their short sale if they file bankruptcy. Homeowners in need of filing need to speak to an experienced attorney if they are considering bankruptcy as an option to stall a foreclosure or capture their deficiency from a short sale. I would even suggest they find a bankruptcy attorney that also specializes in Real Estate.
Short sales are a mishmash of paperwork, time, anxiety and questions, and one of the biggest questions I receive from Massachusetts and New Hampshire homeowners wanting to short sale their home is, “What do I write in my hardship letter to the lender?”
Short sales are confusing enough, but let’s throw a new program into the mix. It’s called HAFA. Now to not confuse you even further, I’m going to talk about the good old regular HAFA program and not the Freddie Mac/Fannie Mae HAFA short sale program. Homeowners need to be aware of the pros and cons of the HAFA program.
New Hampshire and Massachusetts homeowners may be very overwhelmed when contemplating a short sale process. Educating yourself is the most essential ingredient to avoid frustration when moving forward.
A short sale is not without risk. Homeowners facing foreclosure in New Hampshire or Massachusetts should know what they face when they decide to short sale their home.
First time home buyers, investors, and organized property flippers currently make up the majority of those active in the housing market. However, Pete Flint, CEO of Trulia.com, cautions the first time home buyers that are looking to benefit from low interest rates and low prices of foreclosed homes. I would recommend working with an experienced foreclosure expert and doing research before purchasing a foreclosed home, he said. Instead of foreclosing, Howard Glaser, president of the Glaser Group recommends short sales and loan modifications. He believes the Obama administration is going in the right direction with passing loan modification measures because they will help the three things necessary for recovery; a stable economy, stable credit, and a stable inventory.Short sales are another good way to put the right person in the home and get the lender out from under, said Glaser. But CNBCs Diana Olick expressed skepticism in turning to short sales in lieu of foreclosures. Short sales are beginning to take as long as the foreclosure process, which at this point are quicker than they ever have before.” For more information please click on the link provided: www.truliablog.com
Maryann Little is a pre-foreclosure acquisition specialist. She works with homeowners in New Hampshire and Massachusetts facing foreclosure. Her team of negotiators has successfully negotiated over 300+ short sales. She owns Rapid Property Relief, LLC which specializes in purchasing and negotiation of short sales. http://rapidpropertyrelief.com
In June 2010 there were over 848 auction notices given to homeowners in New Hampshire and the number of advertised auction notices in Massachusetts more than doubled to reach 2,858 in May 2010 compared to 1,378 during the same month last year. A total of 13,969 auction notices from January through May were published. The above information from the Warren Group, represents a 139.7 percent jump from 5,828 during the same five months in 2009 in Massachusetts. New Hampshire statistics were reported by Real Data.
If you are a homeowner in Massachusetts or New Hampshire and are considering a short sale, there are some risks you should weigh. A short sale is a viable alternative to foreclosure.
It is not uncommon in today’s economy to have lost your job, had a reduction of pay, gone through a divorce, death in the family, or even have an ARM mortgage that wasn’t fixed into a rate that you could afford. There are NUMEROUS situations that face homeowners that put a strain on their income and their ability to pay their mortgage. At some point, most homeowners realize their house is something they can no longer afford and feel trapped because its value is no longer worth what they paid. So, what are the options?
There are several options including a modification, forbearance, deed in lieu, or even bankruptcy, but most homeowners have tried one of these options or several without success. One of the last options a homeowner may consider is a short sale. It’s the last option because most people don’t want to sell their homes, however, there comes the time a homeowner realizes holding onto their home drains them financially too much.
Homeowner should know the risks of a potential “traditional” short sale. There is a new type of short sale called a HAFA short sale that has other risks all together, so for today, our focus is the traditional short sale.
The biggest risk in considering a short sale is the home could go to foreclosure. If a homeowner stops making payments, at the 90 day mark, most lenders can escalate the loan and call the whole thing due. It doesn’t mean it will happen at that time, but it could. Most lenders don’t want to foreclose as it costs them an average of $65,000.
There are usually three possible outcomes to a successful short sale the homeowner should be made aware of:
1) The lender agrees to forgive the deficient amount. The deficient amount is the amount the homeowner owes minus the accepted sale amount. So for instance, a home that had a mortgage of $200,000 and was bought for $140,000 would have a $60,000 deficient amount. Most distressed homeowners can’t come to the closing with that $60,000 so the lender has the say on what happens to that $60,000. If the lender agrees to forgive the deficient amount, a 1099-C will be generated and the homeowner MAY have tax ramifications on that $60,0000. MOST homeowners will be deemed insolvent under the mortgage debt forgiveness act of 2007 and a homeowner could walk away at that point and never think about the house again. Only your accountant can tell you if you are insolvent.
2) The lender does NOT forgive the deficiency. They “reserve the right to pursue” the deficient amount. In this case, they are reserving that right to collect their $60,000. Now it doesn’t mean they WILL pursue the homeowner, only that they are reserving the right to pursue the homeowner. What homeowners in Massachusetts and New Hampshire need to be aware of is the statute of limitations is 20 years. They have 20 years to collect that deficient amount. If this is the outcome of your short sale, you will NOT be issued a 1099-C,
3) The lender could ask for some form of payment at closing or a promissory note. So for instance they may ask for $12,000 in the form of a promissory note. This amount is usually spread over a few years. There is no way to tell what amount they will ask for or how long they will spread out the repayment of that amount.
The homeowner makes the decision on whether or not the terms of the approval are acceptable to move forward with the short sale. If the homeowner decides not to move forward however, the outcome will likely be foreclosure, in which there is an automatic deficiency listed on their credit report and the foreclosure.
If the homeowner pursues a short sale their credit will also struggle, however it will be far less damaging than a foreclosure. Their ability to purchase a home again can be anywhere from 1-3 years as opposed to 5-7 in a foreclosure.
A short sale is an excellent alternative to foreclosure, however there are risks the homeowner should consider. The more information a homeowner has about the potential outcome to their short sale the better position they are in to make decisions on their future.
Maryann Little is a pre-foreclosure acquisition specialist. She works with homeowners in New Hampshire and Massachusetts facing foreclosure. Her team of negotiators has successfully negotiated over 300+ short sales. She owns Rapid Property Relief, LLC which specializes in purchasing and negotiation of short sales. http://rapidpropertyrelief.com
Short Sale Secrets Clip 2
Learn how to short sale real estate. Bill Twyford and Dwan Bent-Twyford define short sales, outline the structure of deals, and explain the relationship with the banks you need to get those deals done. A.D. Kessler’s Real Estate Roundtable #354 Clip 2 from www.cremag.com.
(01:10)
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04)
Globalisation, the growth of intercontinental trade, technological advances and the rise in the amount of corporations dealing on the international stage have led to a dramatic change in the frequency, context and suggests that by which people from completely different cultural backgrounds interact.
There is a lot of confusion today about where the economy is and whether this USA recession is going to come to an end. One of the biggest reasons there is so much debate and confusion regarding our economic status is the fact that the information mainstream media feeds us is misleading!
It’s not hard to choose our worst president, for me it’s Barack Obama no question. There have been others who were in contention but no one quite measured up like Obama.
When you own a home and you are behind on your mortgage payments it can seem like a mammoth task to get your mortgage payments back to a current status with the credit reporting agencies. With the unemployment rate being so high and decline in overall family income all around us, many homeowners are finding it harder to make their mortgage payment.
Deed-in-lieu of Foreclosure(DIL) is a when a lender or a mortgage company takes back a property from a borrower with consent. It is similar to a permission based repossession, except it is a lot easier on a borrower’s credit report.
Are there jobs for people aged 60 and over? The answer is yes. The first thing is to believe and to situate oneself. This stage of life requires reflection. We must answer the question: what do I want to do during my last lap?
We have done enough short sales to see our fair share of bankruptcies occur. There is an impact to a homeowner’s credit and their short sale if they file bankruptcy. Homeowners in need of filing need to speak to an experienced attorney if they are considering bankruptcy as an option to stall a foreclosure or capture their deficiency from a short sale. I would even suggest they find a bankruptcy attorney that also specializes in Real Estate.
Short sales are a mishmash of paperwork, time, anxiety and questions, and one of the biggest questions I receive from Massachusetts and New Hampshire homeowners wanting to short sale their home is, “What do I write in my hardship letter to the lender?”
Short sales are confusing enough, but let’s throw a new program into the mix. It’s called HAFA. Now to not confuse you even further, I’m going to talk about the good old regular HAFA program and not the Freddie Mac/Fannie Mae HAFA short sale program. Homeowners need to be aware of the pros and cons of the HAFA program.
New Hampshire and Massachusetts homeowners may be very overwhelmed when contemplating a short sale process. Educating yourself is the most essential ingredient to avoid frustration when moving forward.
A short sale is not without risk. Homeowners facing foreclosure in New Hampshire or Massachusetts should know what they face when they decide to short sale their home.
Central Florida Realtor amp; Short Sale Expert Paul Antonelli Hosting Radio Show to Help Struggling Homeowners Avoid …
KISSIMMEE, FL With thousands of Florida properties already in foreclosure and scores more on the brink, Central Florida Realtor Paul Antonelli of Coldwell Banker Ackley Realty has launched a local weekly radio show aimed at helping struggling homeowners.Antonelli, who kicked off his Central Florida Real Estate Talk Show on station Big 810 AM Radio www.big810am.com on …
Homeowners underwater may benefit from low rates
Deutsche Bank just released a report stating that 48 percent of American homeowners will be underwater by the first quarter of 2011. Maybe that is part of the reason that the Mortgage Bankers Association’s weekly report showed mortgage applications are down?
A few weeks ago I heard about President Bush signing something to help homeowners avoid paying taxes on their short sales. Banks would issue a 1099 when a short sale was approved, and be taxed on their short sale savings. I need a link to read about that story, please. Thank you !!
Taking steps now to avoid foreclosure could help homeowners divert financial trauma. We have all heard about the misfortunes of people that bought into the ARM hype during the housing bubble. Currently, many of these people are finding that they cannot keep up with their house payments now that the introductory period of their loan is over. The concept of a short sale is fast becoming more popular for distressed home owners. Buyers find the idea very attractive because they can usually by a property at a discount. Initiating a short sale could help some individuals minimize their damage.
Home buyers may be convinced by greedy lenders that they can afford more home than they actually can in the hopes that they will foreclose. Other examples of predatory lending can come after a homeowner is in distress. Beware of lenders who offer to re-finance repeatedly, or loans that are for more than the house is worth. Whenever possible, engage legal counsel.
The threat of foreclosure comes fast and hard for many homeowners who experience adverse personal circumstances. Loss of employment, tax liens, divorce or illness can all be contributing factors that lead up to foreclosure. A factor that may determine your eligibility to conduct a short sale is the level of communication with the lender. Banks are more likely to work with debtors that are a few months behind with problematic issues that impact their ability to pay than debtors that appear to have simply given up. Lenders also have an obligation to their guarantors to mitigate their losses and they want to maintain a positive public image. So, it is in their best interest to work with you to resolve the problem.
If all else fails, a short sale could be the best option. It is even a possibility to retain any equity you may have accumulated. Be prepared to present your lender with payroll stubs, tax returns, bank statements, a recent credit report and any applicable medical bills or divorce decrees.
Your lender will need to examine these documents in order to come to a decision. If you are approved for this measure, you still need to find a qualified buyer for your property. Part of the stipulation for approving a short sale may be the use of a real estate agent who has experience with short sales. Be cautious when dealing with a buyer. Make sure they are genuinely capable of purchasing your home. There are some real estate scammers who are ready and willing to take advantage of your distressed situation.
In conclusion, don’t let this experience deter you from buying another home in the future. By initiating a short sale, you have minimized the damage to your credit rating. Remember that you are not alone in this experience. Plenty of homeowners are feeling the sting of the housing hype. Home ownership is the American dream. You can recover and repair damage to your credit and be ready to buy at another time.
COMMISSION ISN’T PROTECTED – This one is really for the agents out there. I think that’s why the agents we work with really like us. THEIR COMMISSION is PAID IN FULL. Here’s the thing. If a second lender wants commissions slashed to approve the short sale within HAFA your commission is not protected at 6% and then it truly isn’t a HAFA short sale as the agents we spoke with this week found out.
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