I speak to people all the time who avoid picking up the phone when the lender calls. While you may be uncomfortable, its necessary to update them so you can resolve the situation. So talk with your lender, regularly. Speak to customer service to locate the loss mitigation department. Make professional contact and give a brief summary of your situation. Talk to the supervisor or manager of the loss mitigation department; this person will have more accurate information.
Understand what your lender wants and their procedures for a short sale. Many lenders may have alternatives and may be willing to work with you by modifying your loan or pursuing other alternatives. It’s extremely important to find out what their position up front in order to increase the likelihood that the short sale will occur.
Don't delay. In a foreclosure, the clock is ticking. Know your time lines and stick to them. Communicate any delays to your lender and all parties involved.
Wednesday, October 26, 2011
Friday, October 21, 2011
The Basics of a Short Sale
Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.
A few examples of a hardship are:
•Unemployment / reduced income
•Divorce
•Medical emergency
•Job transfer out of town
•Bankruptcy
•Death
The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:
•Letter of authorization, which lets your agent speak to the bank.
•HUD-1 or preliminary net sheet
•Completed financial statement
•Seller's hardship letter
•2 years of tax returns
•2 years of W-2s
•Recent payroll stubs
•Last 2 months of bank statements
•Comparative market analysis or list of recent comparable sales
I offer FREE phone consultations and there is no obligation.
A few examples of a hardship are:
•Unemployment / reduced income
•Divorce
•Medical emergency
•Job transfer out of town
•Bankruptcy
•Death
The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:
•Letter of authorization, which lets your agent speak to the bank.
•HUD-1 or preliminary net sheet
•Completed financial statement
•Seller's hardship letter
•2 years of tax returns
•2 years of W-2s
•Recent payroll stubs
•Last 2 months of bank statements
•Comparative market analysis or list of recent comparable sales
I offer FREE phone consultations and there is no obligation.
Thursday, April 21, 2011
FAQ's About Short Selling
What is a Short Sale?
A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and the lender(s) accepts a discounted payoff to fully satisfy the loan.
The best part, the existing lender pays virtually all sales costs, including commissions, escrow and title fees. You get your home sold, the loan(s) paid off and you avoid foreclosure.
Is a Short Sale right for me?
Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure.
As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure.
Bottom line, your lender wants to work with you.
I am current on my mortgage, will my lender consider a Short Sale? The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your Short Sale file together within a couple days and submit it for approval. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for approval on a loan that is current.
If I do a Short Sale, how much will I have to pay to sell my home?
Nothing. It’s true, in most cases you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, are paid by the lender as part of the Short Sale approval.
Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.
How do I get started on a Short Sale?
It’s easy. If you would like to get prequalified for a Short Sale, we can do it online.
If you would prefer to discuss it on the phone, or set an appointment call 772-285-7611. There is no charge to you to get started. It is as simple as contacting me and we will get to work. If you later decide you don't want to do a short sale, that is okay too. I look forward to helping you.
A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and the lender(s) accepts a discounted payoff to fully satisfy the loan.
The best part, the existing lender pays virtually all sales costs, including commissions, escrow and title fees. You get your home sold, the loan(s) paid off and you avoid foreclosure.
Is a Short Sale right for me?
Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure.
As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure.
Bottom line, your lender wants to work with you.
I am current on my mortgage, will my lender consider a Short Sale? The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your Short Sale file together within a couple days and submit it for approval. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for approval on a loan that is current.
If I do a Short Sale, how much will I have to pay to sell my home?
Nothing. It’s true, in most cases you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, are paid by the lender as part of the Short Sale approval.
Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.
How do I get started on a Short Sale?
It’s easy. If you would like to get prequalified for a Short Sale, we can do it online.
If you would prefer to discuss it on the phone, or set an appointment call 772-285-7611. There is no charge to you to get started. It is as simple as contacting me and we will get to work. If you later decide you don't want to do a short sale, that is okay too. I look forward to helping you.
Thursday, April 22, 2010
Home Affordable Foreclosure Alternatives Program (HAFA)
In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program takes effect on April 5, 2010.
Highlights of the new program are as follows:
•• Provides a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
•• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
•• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
•• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
•• Uses standard processes, documents, and timeframes/deadlines.
•• Provides the following financial incentives:
•• Up to $3,000 for borrower relocation assistance;
•• $1,500 for servicers to cover administrative and processing costs;
•• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
It's important to deal with a Realtor that has experience with short sales and the HAFA Program. Always ask how many they have done, who does the negotiations and about the Realtors background. I am certified by the National Association of Realtors as a specialist and my banking background has been an invaluable tool when dealing with lenders.
So, in short, YES you can get paid when you do a short sale. I offer FREE phone consultations and there is never an obligation. I look forward to helping you.
Highlights of the new program are as follows:
•• Provides a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
•• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
•• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
•• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
•• Uses standard processes, documents, and timeframes/deadlines.
•• Provides the following financial incentives:
•• Up to $3,000 for borrower relocation assistance;
•• $1,500 for servicers to cover administrative and processing costs;
•• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
It's important to deal with a Realtor that has experience with short sales and the HAFA Program. Always ask how many they have done, who does the negotiations and about the Realtors background. I am certified by the National Association of Realtors as a specialist and my banking background has been an invaluable tool when dealing with lenders.
So, in short, YES you can get paid when you do a short sale. I offer FREE phone consultations and there is never an obligation. I look forward to helping you.
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