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Home Page > Finance > Real Estate > Orlando Short Sales: Homeowner Takes On Lender And Wins!

Orlando Short Sales: Homeowner Takes On Lender And Wins!

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Posted: Feb 26, 2011 |Comments: 0
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Orlando, FL – According to the Philadelphia Inquirer, Patrick Rodgers of West Philadelphia was able to “file a foreclosure action against Wells Fargo. I bet there are a lot of homeowners facing foreclosure that would love to do the same thing. You work so hard to negotiate a reasonable loan modification in order to keep your home.

But, no one at the lender seems to care. It seems the big lenders are able to live in a protective bubble. They can foreclose on paid off homes and face no consequences. If they average American did that, they would probably face jail time. So, it’s nice to finally see someone turn the tables on a lender.

Here is the story according to the Philadelphia Inquirer:

It’s not clear how this story will turn out, but right now Patrick Rodgers is living a pay-back fantasy probably shared by millions of struggling U.S. homeowners. Frustrated by a dispute with Wells Fargo Home Mortgage and by his inability to get answers to questions, the West Philadelphia homeowner took the mortgage company to court last fall. When Wells Fargo still didn’t respond, Rodgers got a $1,000 default judgment against it for failing to answer his formal questions, as required by a federal law called the Real Estate Settlement Procedures Act. And when the mortgage company didn’t pay - does something sound familiar? - Rodgers turned to Philadelphia’s sheriff.

Find Orlando Short Sale, Orlando short sales, Orlando short sale realtor, Orlando short sale homes, short sale Orlando, Orlando fl short sale, Orlando foreclosure, Orlando foreclosure assistance and Orlando fl short sale realtor by clicking here.

The result: At least for the moment, the contents of Wells Fargo Home Mortgage, 1341 N. Delaware Ave., are scheduled for sheriff’s sale on March 4 to satisfy the judgment and pay about $200 for court and sheriff’s costs. Rodgers has even written his own headline: “Philadelphia homeowner ‘forecloses’ on Wells Fargo.”

Has he really? Not quite. But Rodgers, who lives in the city’s Wynnefield Heights section, won at least a momentary upper hand in a fight with Wells Fargo that began nearly two years ago. Before you leap to conclusions, let’s get a few things straight. Rodgers isn’t unemployed, or a deadbeat. He’s a music promoter who owns Dancing Ferret Concerts - if industrial, electronic, or goth is your sound, maybe you’ve been to one of his gigs. He says he’s paid all he owes under the terms of his seven-year-old mortgage.

And there’s no reason to think that Rodgers’ house is “underwater” - worth less than he owes, in banker jargon that has sadly entered Americans’ everyday lexicon. Actually, it was the value of Rodgers’ home that apparently sparked the dispute - not what he paid, or what it would fetch if he wanted to move, but what it would cost to fully restore the house if, say, it was struck by a meteorite and burned to the ground. Rodgers owns a three-story, six-bedroom Tudor on a beautiful street not far from City Avenue. He paid about $180,000 for it in 2002, and for years handled his mortgage without dispute. But in mid-2009, his insurer delivered troubling news: His homeowners premium would more than double, because Wells Fargo was insisting that he insure the home’s full replacement value - about $1 million worth of coverage, the insurer told him. Rodgers loves his home, neighborhood, and adopted city - he moved here about 17 years ago, after growing up as a child of American parents in the Bahamas.

But he knew that he paid a fraction of what his home would command elsewhere, such as across City Avenue in Bala Cynwyd. That’s one advantage of living, as he says, “a short clip away from the wrong side of the tracks.” In such situations, most lenders require a homeowner to insure for a total approximating a home’s market value - a good thing for large swaths of Philadelphia, where a home’s market value may have little relation to what it would cost to rebuild stone by stone or feature by feature. All in all, I think it’s a great story. I’m sure a lot of homeowners fantasize about doing the same thing.

What is an Orlando Short Sale? A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.

Thinking about short sale? I can help you short sale your property and never pay the bank another penny. Contact me for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Look for my contact information below.

Thanks for reading this, Gitta Urbainczyk P.A..

Orlando Short Sale Realtor. Orlando, FL Short Sales. Orlando Short Sales. Copyright © 2011 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Gitta Urbainczyk P.A.’s personal views and do not reflect the views of Keller Williams Heritage Realty.

This information is provided as a courtesy to our viewers to help them make informed decisions.

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Gitta Urbaincyzk -
About the Author:

Gitta is a Real Estate Broker / Associate at Keller Williams Heritage Realty.

Phone: (407) 330-2181. Email:gitta@gitta.com

View my Orlando Short Sale Blogs here.
For Orlando Short Sale Homes, click here.

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
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Gitta is a Real Estate Broker / Associate at Keller Williams Heritage Realty.

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Mar 02 2011

Can My Lender Pursue A Deficiency Judgment After A Short Sale?

Posted by Usual in Lender Approved Short Sales, tags: after, deficiency, judgment, Lender, Pursue, Sale, Short

Can My Lender Pursue A Deficiency Judgment After A Short Sale?

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Can My Lender Pursue A Deficiency Judgment After A Short Sale?

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As discouraging it is to lose your place to foreclosure, borrowers may still be liable for the deficiency amount. It’s the difference of what’s owed on the house loan and what the bank could sell for at an auction. “Deficiency judgments” can come after ex-borrowers at any unexpected time-frame after they have lost their house.

It can be an unpleasant shock for borrowers who have sold their home via a short sale arrangement where the bank approved selling the property for an amount less than the mortgage debt.

Vanessa Corey who made a short-sale on her Fredericksburg, VA home in April of 2008 is a real life example. After building her house in 2004, unforeseen setbacks which led to a bitter divorce coupled with the economic housing crisis forced her to sell the house through a short-sale arrangement.

As a real estate agent, she thought that the deficiency amount was negotiated away. In other words, she thought that the difference was forgiven by the bank. Last November, she received a letter from her lawyer indicating that she owed her lender $65,000. She was forced into bankruptcy as she had no means of settling the payment.

Numerous banks choose not to make statement about the subject of ‘deficiency judgments’. Corey’s bank, BT&T confessed that they were going after more borrowers with deficiencies.

How Do You Avoid A Deficiency Judgment? It depends on which state the homeowner resides in. Other things include if the borrower has a second mortgage or other liens. It can definitely hurt homeowners if they disregarded the issue altogether.

Mr. Zaretsky, a property lawyer in Palm Beach, Fla said that once your bank has judgment on you, they can pursue you regardless of where you reside. They can demand for your financial records and have your salary taken away or have you jailed if you ignored any contact.

Financial firms can legally impose deficiency judgments in more than thirty states with the inclusion Fla, NY and TX states.

In some states such as California and Arizona, they are both considered ‘non-recourse’ or prohibit ‘deficiency judgments’. The other remaining 10 states that prohibit deficiency judgments are Alaska, Iowa, Montana, North Dakota, Oregon, Pennsylvania, South Carolina, Washington and Wisconsin.

As financial institutions are likely to agree in forgiving the deficiency amount, many ex-homeowners do not know that they are needed to opt for a release. This can be done by having your legal representative demand a release from your financial lender.

According to Zaretsky, people should not have a false sense of security thinking that a deficiency judgment will not come back and haunt them. He expects many of the deficiency judgments will be filed over the next few years as many of these accounts were sold at discounts to numerous collection agencies and third parties. These organizations would not have bought these accounts if they were not planning on recouping their initial investments.

Financial institutions or debt collection companies may sit and wait for borrowers to cure themselves from their financial woes before filing for a judgment. Take for instance in Florida state, financial institutions and debt collection companies can wait up to five years to file. Once judgment is received, the organizations will be granted a time span of up to 2 decades to collect the debt with interest.

Lenders and collection agencies can come after borrowers regardless of how small the debt. Case in point, Richard Varno and his wife short-sold their Nashville house in 2004 when he became unemployed. Four years later in 2008, the second lien holder was after him for $25,000. He argued by informing them that they had released the title and he was no longer liable.

Unluckily, this is not true. Even if the title was released, it does not make the debt disappear. Since state laws are not uniform from state-to-state, normally, a loan agreement is divided into two sections. The 1st section is the collateral or the pledging of the property. The 2nd section is the agreement to repay the mortgage loan.

Financial institutions may drop the liens to help allow a short-sale. This however does mean that they will terminate the original contractual agreement for the borrower to repay the loan as stated in the promissory notes. After selling the house, the secured debt can evolve into an unsecured debt.

Zaretsky pointed out to one of his customers who went over the mountain when he got a short-sale. He blindly signed away all the papers that his loan agent had given him with the inclusion of a document that made him still legally responsible for the debt.

He was unaware that the financial institution could take that document and transform it into a deficiency judgment through the legal system.

Banks are not always on your side. Zaretsky mentioned of another customer who was wealthy enough to pay off the difference but the lender didn’t care as they had the power to target you for the debt in the foreseeable future.

Larry Tolchinsky, a Florida real estate attorney said, lenders can occasionally come after borrowers who strategically default (or walk away) if they have other remaining assets.

Lenders will investigate if this was a true strategic default by pulling out your credit report. If they discover that you were not behind in all your payments and not in financial distress, they may pursue you.

If in doubt, it is advisable to seek legal advice to ensure that your short-sale or deed in lieu agreement does not contain any deficiencies therefore allowing your lender to pursue you in the future. To alleviate any risks, it is important for your attorney or counselor to negotiate the deficiency out of the short-sale or deed in lieu contract.

Get the latest news reports and tools on how to avoid mortgage foreclosure. Download the Free Podcast about How To Avoid Deficiency Judgments After A Short-Sale for your own use, blog or website.

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Feb 28 2011

What Offer Should You Make to the Lender In a Short Sale Deal?

Posted by Usual in Lender Approved Short Sales, tags: deal, Lender, Offer, Sale, Short, Should

What Offer Should You Make to the Lender In a Short Sale Deal?

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What Offer Should You Make to the Lender In a Short Sale Deal?

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Posted: Dec 02, 2010 |Comments: 0
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A short sale deal happens when a home owner is on the brink of entering foreclosure. In order to avoid the hassles of dealing with a foreclosure, the lender agrees to sell the property to a third party, even if the selling price is lower or shorter than the market value of the property, hence the name short sale.

As a real estate investor poised to make a good profit from a short sale deal, you need to understand the relative complex procedures involved in these transactions and also what levers you need to push in order to convince the lender to sell you the property in a short sale.

One of the most important aspects of a short sale is figuring out what is the correct amount of money that you should offer to the lender for the distressed property. Too little and the lender will turn you down; too much and you will sacrifice your profit and maybe even end up with no profit at all.

The answer to this question depends on a few issues. Let’s expand a little on these factors:

The initial offer – as a rule of thumb, your first offer should be as low as reasonably possible. Never begin your negotiation with more than you think the creditor could accept. If you make a first offer for a short sale and the lender immediately accepts you can start looking for mistakes in your plan.

What is your exit strategy?

Before making an offer, deliberate a little on your exit strategy, or what do you plan to do with the property if everything goes as planned. If you plan to sell the property to a rehabber, you should know that rehabbers generally don’t spend on a purchase more than 65% of the retail value of the property. So, if a house is worth $100,000 and needs rehabbing, you can expect to receive offers of no more than $65,000. If the house is well kept and doesn’t need any renovation, you can sell it directly to a landlord and receive a maximum of 80% of the value of the property, in our case, $80,000.

What is the value of the pending mortgage?

The amount of money the lender needs to recuperate from the homeowner is the second factor which you should ponder when pricing your bid. If the total withstanding value of the mortgage is smaller your offer can also be less substantial

Don’t forget to add all your expenses in a spreadsheet, like the fees and commissions that you need to pay for the various transactions, since these smallish expenditures can add up in a substantial amount of money.

Also, devise a realistic roadmap and do everything in your power to stick to the milestones.

Expect the unexpected, nevertheless. Short sales are notorious for the long delays which can appear, caused by the complex and sluggish process of approval by the various lenders involved.

With these advices in mind, remember that there is no fails-safe template for a successful short sale and you need to adapt your actions to every particular situation.

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What lender can do 100% financing on a bank-owned home?

Posted by Usual in Bank Owned REO, tags: 100%, BankOwned, Financing, Home, Lender

purchase price of $410K, need 100% financing for a client.
688/663 fico, O/O, sfr, Stated income, verified assets, wage earners, impound account. First time home buyers

Property being purchased is a bank owned home (REO). Does anyone know of a lender who can do 100% financing?

2 Comments »

Jan 02 2011

Why Would A Lender Agree To A Short Sale?

Posted by Usual in Lender Approved Short Sales, tags: agree, Lender, Sale, Short, would

Why Would A Lender Agree To A Short Sale?

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Home Page > Finance > Mortgage > Why Would A Lender Agree To A Short Sale?

Why Would A Lender Agree To A Short Sale?

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Posted: Aug 10, 2010 |Comments: 0
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There are many solutions to prevent losing a home but signing away ownership in a method that ruins credit, embarrasses the family and strips an owner of dignity is just about the toughest. For owners who cannot manage to keep mortgage payments current, there are options to bankruptcy or foreclosure proceedings. One particular choices is named a “short sale.”

When lenders agree to perform a short sale in real estate, it implies the lender is agreeing to under the total amount due. Not all lenders will acknowledge short sales or lower payoffs, in particular when it would make more financial sense to foreclose; moreover, not every sellers nor all properties meet the criteria for short sales.

If you are contemplating a short sale, there may be disadvantages. For your protection, is is recommended that all borrowers:

1. Acquire legal assistance from a competent real estate lawyer.

2. Call an accountant to talk about short sale tax outcomes.

Note for certain conditions per the Mortgage Forgiveness Debt Relief Act of 2007, bear in mind the I.R.S. will look at debt forgiveness as income, and there isn’t any promise that a lender who allows a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In a few states, this amount is termed a deficiency. A lawyer can ascertain whether your loan is approved for a deficiency judgment or claim.

Despite the fact that all lenders have various requirements and may possibly insist that a borrower provide a wide array of documentation, these methods gives you a pretty good picture of what you should expect.

Call the Lender

You may want to make many phone calls before you discover the person responsible for handling short sales. You don’t want approach the “real estate short sale” or “work out” department, you want the supervisor’s name, the name of the person able to making the decision.

Send In Letter of Authorization

Lenders generally do not want to reveal any of your personal information without written certification to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you may obtain far better co-operation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan.

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As many as 6 million families are expected to face foreclosure in the next several years. Janian Short Sale Janian & Associates protect homeowners from predatory lending practices and mortgage fraud.

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Things Your Lender is not Telling You about Short Sale

Posted by Usual in Lender Approved Short Sales, tags: about, Lender, Sale, Short, Telling, Things

The seller can benefit from the short sale. Through this, he will be able to settle financial obligation. Aside from that, he can also use some of the proceeds to start over. However, this is only possible if he was able to handle the short sale properly. The short sale takes place when the lender agrees with the borrower to sell the property and use the proceeds to settle the remaining balance of the mortgage. However, the payment will be less than the actual balance.

Although many think that they already know everything about short sale, they are mistaken. They ought to understand several things. Besides, there are things that lenders do not tell their borrowers. A few of them are discussed bellow.

Banks or lenders will take their time before they approve any application for short sale. This is because they are not certain if it is the right thing to do. It is the last thing on their mind. This is because short sale is tantamount to loss. Although the borrower will be able to settle his loan balance, the lender will receive a discounted payment. In order to avoid the loss, he will consider all his remaining options first.

The lender also changes the different processes in order to make it more complex for applicants. This will discourage the borrowers to file for the sale. There are also changes that frequently happen in the mitigation process, which is normally not favorable with the consumers. This is because lenders are always cooking up ways to reduce losses through the short sale. This lengthens the entire process, which requires borrowers to wait longer.

This can be inconvenient for buyers as well. Although short sale homes are cheap, the buyer is not guaranteed to own the property he wants. Even if the buyer made an offer, there is still a chance that he will not end up as the owner of the property. This is because the lender will still need to approve the application for short sale first. They may take a while. Aside from that, the property may still be in the listings of most real estate agents. This means that it is still open for other buyers. Someone may make an offer that is higher than his. This would mean that he would lose the chance of owning the property. He can expect to wait for a long time as well. This is because he has to wait for the lender will need to approve the short sale.

The lenders also want to ensure that their investment is protected. This is why they will make you feel that they will lose a lot in a short sale arrangement. The truth is, they could have already earned from your loan. In fact, most lenders have already earned from your previous payments.

If you wish to purchase a short sale property, you should learn how it works. Making an offer does not guarantee anything. You have to be patient as well. This is because it can take a long time before the seller can get an approval.

Find the best Short Sale Real Estate in El Cajon CA, Short Sale Homes for sale in Imperial Beach CA and Oceanside CA Short Sale Realty.

Jul 26 2010

GM Agrees to Buy Lender AmeriCredit for $3.5 Billion

Posted by Usual in Lender Approved Short Sales, tags: $3.5, Agrees, AmeriCredit, Billion, Lender

GM Agrees to Buy Lender AmeriCredit for $3.5 Billion
General Motors Co., the automaker 61 percent owned by the U.S., is buying subprime lender AmeriCredit Corp. for $3.5 billion to help it reach more customers with leases and loans to borrowers with faulty credit records.

Negotiating Short Sales with Two Loans, Same Lender - Short Sale Education

Posted by Usual in Lender Approved Short Sales, tags: Education, Lender, Loans, Negotiating, Sale, Sales, Same, Short

Negotiate with only one lien holder is the best short sale scenario, but what do you do when there are multiple liens with the same lender? It has been WHB Solutions experience that negotiating with the same lender can be an advantage depending on the lender.

For example, if both the first and second loans were held by Chase, there is a good chance of getting a short sale closed. If there was one loan with Countrywide and a second loan with Bank of America, it will be hard to get a short sale closed. Even though Bank of America bought Countrywide, they have different loss mitigation departments with different short sale approval guidelines.

We a short sale file that we could not close because Bank of America, as the first lender, would only give Countrywide $3000 in a short sale approval. Countrywide wanted $25,000 and would not give a short sale approval unless this was received. We tried to provide reason and arguments on how Countrywide would receive nothing if the property went to foreclosure and that they are technically the same bank and the overall short sale would net more money than going to foreclosure. Countrywide was so stubborn to get their money, they ended up getting nothing. It does not make any sense.

In a case where you have two loans that were originated from the same lender, it has been our experience that the second lien holder is more flexible. A typically response is that the second lien holder would give an approval for $3000 any day, but no full release or giving up their rights to deficiency is provided. Depending on the homeowner’s situation, they may be excluded from any future deficiency rights. Either they prove insolvency to the IRS or they qualify for the primary residence exclusion rules.

Typically, in any short sale negotiations, getting an agreement from the second lien holder should be obtained before going to the first lien holder. If this is not done, you would not have the right numbers to show what the first lender would net. So to avoid going back and forth with the both lenders, find out what the second lien holder is expecting to approve a short sale first.

In the majority of short sales, the first lien holder is the one who files for foreclosure. Once this filing occurs, many times, the second lien holder would move the loan to their Charge Off or Debt Recovery department. We have noticed that it is much easier to obtain an approval when this happens as the guidelines of providing an approval is less strict. At the point it is in debt recovery, the expectation is that the dollar amount they are looking to recover would be less than what would be expected if it was still with the loss mitigation department. Keep in mind that loans sent to a debt recovery department are sold on pennies on the dollar and there is a high possibility where no money would be recovered.

Full Article Resourse: www.whbsolutions.com/blog/

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.

Jun 27 2010

Short Sale Tips: Working With your Lender to Avoid Foreclosure

Posted by Usual in Lender Approved Short Sales, tags: Avoid, Foreclosure, Lender, Sale, Short, TIPS, Working

A Short Sale Can Stop Home Foreclosure & Save Your Credit

Nothing is as detrimental to your credit rating as late mortgage payments and foreclosures. If you have fallen behind on your mortgage payments and are facing home foreclosure, you should consider using a short sale to sell your home now and avoid foreclosure.

One of the most common questions that homeowners ask is, “can I still sell my home if I am in foreclosure?” A Short Sale is simply selling your property for less than what is owed with the permission of your mortgage lender. It is not as complicated as many foreclosure advice experts make it sound, and is one of the best forms of foreclosure help available. There are three steps to closing a short sale: short sale pre-qualification, marketing the property, and closing the short sale.

The first step, short sale pre-qualification, is when you contact your lender and explain that your financial situation has changed and you wish to avoid foreclosure by selling your home. Most lenders have a short sale application that can be faxed or emailed. The application will tell you what documents you will need to gather and submit to your lender in order for them to determine if a short sale is an option. Common documents include paycheck stubs, tax returns, hardship letter, and bank statements. These items show your lender that you are not in a position to repay the loan.

Once your file has been pre-qualified for a short sale, you will market the property to find a qualified buyer. This means hiring a realtor and, if you can afford it, advertising your property in your local newspaper or other real estate publications. Remember, you are not trying to profit from the sale or cover what is owed to your lender. You are simply trying to stop home foreclosure and avoid have a foreclosure on your credit history by helping your lender recover as much of the money they loaned you as possible. It is also important to remember that the foreclosure process can be quite lengthy in some states, so don’t give up using a short sale to avoid foreclosure just because you do not find a buyer immediately.

Lastly, once you have found a qualified buyer, you will submit your purchase contract and the buyer’s credentials (pre-approval letter or proof of funds to close) to your lender. If your lender accepts the offer, then the deal is sent to a title company who will facilitate the closing of escrow. It is also important to order any city of point of sale inspections or other inspections as to avoid delaying your buyer from closing on time.

Once you have completed these steps, you will have stopped home foreclosure and your credit rating will be much better, in most cases, than if you had simply done nothing and lost your home through the foreclosure process. A short sale is a great option to anyone trying to avoid foreclosure.

This article was submitted by the Loss Mitigation staff of ILMG. We offer free short sale advice and can

help you avoid foreclosure today!