There has been a spike of questions about modifications, short sales and settlements with the banks. The unvarnished opinion is that all this activity is Public Relations and a substantive policy intended to increase rather than avert foreclosures. Quite the contrary, offers of modifications are excuses to drag more money out of borrowers, give them a “trial run” and then deny the modification. More by Neil Garfield… Continue reading ‘Why Mortgage Modifications are a Red Herring…’
Archive for the 'Short Sale' Category
Bank of America can review a short sale offer while the loan is in an active bankruptcy. To complete a short sale and issue the approval letter, the bankruptcy documents must be filed and approved by the court. Any final agreement will require bankruptcy court approval.
Homeowner(s) should consult with their Bankruptcy Counsel about how these programs could affect their mortgage and their bankruptcy case.
When a loan is in bankruptcy, there is an Automatic Stay, also known as a “hold,” of any collection activity placed on any and/or all debts to which the debtor is a party. Before the short sale specialist can discuss the short sale, Bank of America must have written authorization from the Homeowner(s’) Bankruptcy attorney on the law firm’s letterhead to discuss loss mitigation options with the borrower. This is in addition to the Bank of America Third-Party Authorization Form needed from the borrower to speak to the bankruptcy attorney and the listing agent.
If Homeowner(s) is/are currently in a bankruptcy proceeding, Continue reading ‘Active Short Sales in Bankruptcy? It Can Work!’
Feds Slap BofA With $1B Mortgage Fraud Lawsuit
Government prosecutors filed a BILLION Dollare suit on Bank of America for “alleging” disregarding checking for fraud, making misstatements, and wrongdoing applications. From 2007 through 2009 had a program in place to file mortgage applications at a quick speed known as the “Hustle,” according to federal prosecutors. This started under Countrywide Financial and Countrywide Home Loans acquired in 2008.
According to the lawsuit, many of the loans stemming from “Hustle” program were sold to Fannie Mae and Freddie Mac and later defaulted, costing $1 billion in losses and resulting in thousands of foreclosures.
DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 25, 2012 Continue reading ‘Feds Slap BofA With $1B Mortgage Fraud Lawsuit’
Effective Nov. 1, underwater borrowers who have never missed a mortgage payment are eligible for short sales!! Previously, Fannie and Freddie allowed only home owners who had missed payments to qualify for a short sale. Fannie Mae and Freddie Mac has issued new rules allowing eligible borrowers to simply show a hardship and some paperwork to qualify for a short sale!!! Hardships may include unemployment or a death of a spouse. However: The nondelinquent home owners who undergo a short sale will likely take just as big a hit to their credit score than if they had missed loan payments and gone into a foreclosure.
Contact us for more details and up to date news!! Making a Difference, One Short Sale at a Time!!! Continue reading ‘Nondelinquent Borrowers Soon to Be Eligible for Short Sales’
When an underwater home is sold in a short sale or a foreclosure, the greatest concern is almost always over the remaining mortgage balance owed by the homeowner (known as a “deficiency balance”) and how long the lender has to try to collect it. When a property is sold in short sale, generally speaking, the deficiency is the difference between the total debt owed on the mortgage and the sale price. In foreclosure, the deficiency is, generally speaking, the difference between the total balance and the fair market value of the property on the date of the foreclosure auction. Obviously, “fair market value” is a very subjective term
Continue reading ‘Deficiency - What is it and How Much Time Does My Bank Have to Sue?’
Before there can be a short sale, the lender must be persuaded that it is both necessary and possible.
For there to be a short sale the seller must ‘qualify’, ie, have a hardship.
A short sales’s selling price is all about the lender’s bottom line: meeting their net proceeds requirements for the property, which is a percentage of the current market value.
Ask the lender to report the short sale to the credit bureau as ‘Paid as Agreed.’ You want the lender to report it as settlement in full, with full release of lien
SANTA ANA, Calif. – Aug. 20, 2010 – CoreLogic, a provider of consumer, financial and property information and business services, released its 2010 Short Sale Research Study.
According to the study, lenders should continue to view short sales with a skeptical eye. CoreLogic says the estimated financial impact of short sale fraud is $310 million annually, with the risk of “unnecessary losses” occurring in one in every 53 short sale transactions. The average amount of unnecessary loss is $41,000 per short sale transaction. Continue reading ‘CoreLogic releases 2010 Short Sale Research Study’
WHAT IS A SHORT SALE?
A “Short Sale” or “negotiated settlement” or “short pay” occurs when a Lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure.If the property is worth less than the amount owed on the loan, then even if the Lender forecloses and takes back the property, they know they are going to take a loss. We can often convince a Lender that they will “do better” if they take less than what is owed now rather than taking the property backby foreclosure and trying to sell it later. Continue reading ‘Understanding the Short Sale Process’
LOS ALTOS, Calif. – July 9, 2010 – Wealthy homeowners are defaulting on their mortgages at a higher rate than other segments of the population, according to the research firm CoreLogic.
More than one in seven borrowers with home loans of $1 million or more are seriously delinquent, according to research, compared to just one in 12 with mortgages for less than $1 million. The bottom line is the rich have stopped paying the mortgage on their residential, second home and investment properties at a rate that greatly exceeds the rest of the population. Continue reading ‘Well-heeled walking away from $1M+ mortgages’
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