Program HR 3648 Helps Lenders Reclaim Maximum Return on Defaulted Mortgages
LOUISVILLE, Ky. — Program HR 3648 has established itself as the #1 short sale servicing platform in the country. Their unique approach, under Program HR 3648 , serves to remediate the suffering for both the homeowner in default and the depleted lender.

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EMC is the 1st lender. They approved the short sale for $479k and able to give $15k to the 2nd lender, CountryWide/BofA. The approval letter said that they need the money wired by August 3rd or the approval is voided. But, here is the thing - CounrtyWide/BofA has no approved the short sale yet. Anybody know how this all works???? My real estate agent is working on it but I am so anxious to find out!!!

Primary residence, first time buyer, purchased condo at $298K in August 2006. Had 80/20 option ARM, both lenders finally agreed to short sale. Property will be sold by end of this month for $145K. How do I make sure that I don’t end up paying taxes for the difference? Am I covered under the Debt Relief Act?

Call me anytime at 678-439-8683 - I am a Georgia/Southeastern Lender kennycook.com

Call me anytime at 678-439-8683 - I am a Georgia/Southeastern Lender kennycook.com

Call me anytime at 678-439-8683 - I am a Georgia/Southeastern Lender kennycook.com

Call me anytime at 678-439-8683 - I am a Georgia/Southeastern Lender kennycook.com

Short sale approval occurs when banks allow borrowers to sell their property for less than the balance due on the mortgage note. The primary goal of short sales is to minimize lenders’ financial losses and prevent the property from falling into foreclosure.

Short sale approval is based on many factors and varies by lender. Unified criteria include: properties cannot be in foreclosure; borrowers owe more than the home is worth; and borrowers cannot own assets which can be used to satisfy the mortgage note.

The biggest mistake borrowers make is procrastinating about contacting their lender when they become delinquent with payment. This usually stems from embarrassment or fear. Believe it or not, lenders do not want your property. They are in business to make money, not manage properties. Most are willing to work with borrowers and devise a plan that is beneficial to both you and the lender.

The short sale process typically takes between four to nine months. Much depends on the bank’s caseload, number of lenders involved, and ability to locate a buyer. The process becomes more burdensome when borrowers hold a second or third mortgage against the real estate.

Borrowers will work with a loss mitigator assigned through their lender. Mitigators do not make final decisions on short sale approval, but can be instrumental in helping obtain a successful outcome.

Loss mitigators are overwhelmed with work. They are oftentimes verbally abused by frustrated, stressed-out borrowers. If you want an edge on obtaining short sale approval, be nice to your mitigator. Organize financial records and provide requested information in a timely fashion. Take time to thank the person for assisting you through this difficult process. As they say, you catch more flies with honey.

Banks generally require borrowers to submit a short sale packet consisting of a variety of financial documents. Expect to provide bank, credit card and investment statements, previous years’ tax returns, tax or creditor liens, list of income and expenses, spousal or child support orders, and property tax and homeowners’ insurance receipts.

Lenders oftentimes request borrowers to submit a short sale hardship letter outlining events which caused them to become delinquent. The hardship letter is a crucial element toward obtaining short sale approval. It should be crafted with care and include dates of events which took place. Events might include loss of employment, death of a spouse or child, divorce, or chronic illness.

Many banks require borrowers to have a sales contract in hand before authorizing short sale approval. Others grant time to list the property through a realtor to locate a buyer. Borrowers can save time and money by selling to real estate investors.

Today, investors are particularly interested in foreclosure and short sale real estate because these properties are sold below market value. Use the Internet to locate investors in your area or ask friends, family, realtors and banks for referrals. Some investors purchase real estate across the nation, so if you are unable to locate a local investor look for nationwide investors.

Investors oftentimes purchase distressed properties with cash in order to obtain a lower purchase price. Everyone knows cash is king and lenders are generally more receptive to working with buyers who have cash in hand.

Call me anytime at 678-439-8683 - I am a Georgia/Southeastern Lender kennycook.com

Many turn to short sale to save their property from foreclosure. However, short sale is not as easy as it seems. There are several steps that have to be taken before an approval from the lender will be acquired. What is a short sale? A short sale happens when a property owner decides to sell the property and its value happens to be less than the value of the remaining balance of his loan. This is what makes it difficult to get approved. The lender has to be careful in his decision because he will lose significant amount if he agrees to it. Once he agrees to it, he will receive a discounted payment for the borrowed amount.

In order to get the approval of your lender, you have to be prepared. You should not only prepare your hardship letter but the rest of the requirements as well. Make sure that your package is ready. You should also familiarize them so that you will be able to answer the questions raised by your lender. You have to be ready so that you will not waste a good short sale package.

The first thing you need to do is to call your lender. There are systems that direct you automatically to the loss mitigation department. If your lender does not have this, make sure that you get to the right department. You have to introduce yourself first and talk to them politely. Let them know that you are interested in a short sale arrangement.

If you get an appointment with a mitigation officer, you should know what to expect. He will most likely tell you about the losses the firm will incur if he approves your package. You have to be patient and polite as he speaks. However, you have to look professional as well. It is essential that you know how to present your package so that the mitigation officer will see it from your perspective. This is also another reason why you have to complete all the requirements first.

You should prepare your answers as well. It would be best if you practice before the meeting or come up with a good script. Be prepared to provide more information if requested by the lender as well. However, see to it that you have the hardship letter, the financial statement, the Authorization to Release Information, the purchase and sale agreement and the estimated HUD1.

It would be best if you put yourself in the lender’s shoes. Consider the state of the real estate market today. The number of foreclosed property is high. This means that the lender is could be handling a lot of foreclosure issues. You can use this when you negotiate. Highlight what the short sale would do for them. It will eliminate the need to market the property when they foreclose it. This will also get rid of the expenses caused by the foreclosure processes too.

Short sale offers a lot of benefits; however, your lender will not approve it that easily. There are several things you have to do and prepare to ensure that you get the approval. First, prepare all the requirements. Make sure that you prepare for the conversation with the mitigation officer as well. This will increase your chances of being approved.