Short Sale Power Hour

Last week we chatted about the waning house sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and ever since that time there have been tons of articles supporting what we are saying.

Firstly, if you took our episodes last week to think that you ought to run and hide from this situation, you are entirely wrong. We share this information with you so that you can stand facing this market head on. We’re merely trying to be realists and move our approach as the market changes.

One piece of writing notes that the US economy appears to be in turmoil as the effects of gov’t stimulus are already wearing off. Also worth noting is that a double dip recession is extremely doubtful due to past precedents. However, Kevin wonders aloud how we can take part in a double dip recession if our economy never improved. The economy has constantly been awful. Also mentioned in other writings was the national mortgage deliquency rate. It grew to 9.2% in May, up 2.3% from a month earlier and up 7.9% from a year earlier. This makes you question how mortage deliquencies are going up, but there was a spike in our economy.

When we scan articles like this, understand that there is an opening to help citizens out. Do not run and be fearful. There will at all times be buyers and there will at all times be sellers. People have to have a residence to live in. Each house is saleable at the suitable price.

It is critical to note that the non-current mortages are really at a 12.4%. That is awful, because the historical standard is close to 1%. One other impressive statistic to note is that the average amount of days elapsing between when a mortgage becomes 30 days deliquent to foreclosure sale reached a record high of 449 days. So, from the time that a house owner is a month overdue in payments, they are not losing their home for 14 months on average.

We will also be teaching a Short Sale Crush It class that continues to get better. Preregister for that August 13th seminar at shortsalepowerhour.com

Short sale FAQs and more.

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Able Financial Solutions specializes in Home Loan Modifications in the Southern California area. We’ve gone way above and beyond the call of duty to familiarize ourselves with the unique circumstances home owners contend with from Los Angeles to Palm Springs; from Orange County to San Diego. Our expertise rests in our ability to understand and connect with the average person dealing with hardships. loan modification

At Able Financial Solutions, we pride ourselves in bringing forth factual, up-to-date information that helps struggling and savvy homeowners alike make intelligent and informed decisions about Home Loan Modifications. We also acknowledge there are a lot of Home Loan Modification experts who can make the negotiation process with your lender appear more intimidating than it really is…

We’re not here to necessarily convince you to do business with us (although we appreciate everyone who is drawn to work with us). Our mission of sorts is to increase the positive awareness about Home Loan Modifications, especially as it pertains to the Southern California area where we reside.

Home Loan Modifications in Southern California are an amazing opportunity for any homeowner who seeks out their government supported right for mortgage restructuring!

There are a lot of misconceptions, misinformation, and old truths not yet retold about Home Loan Modifications. If you’re a homeowner in L.A., Riverside, San Bernardino, O.C., or San Diego, listen up: The information we’re inspired to share with you is going to help you tremendously in making the right decision about your ever-expanding mortgage restructuring options.loan modification

Let’s get straight to the heart about the Home Loan Modification reality:

• The Obama Administration believes Home Loan Modifications are an essential piece for economic recovery. Obama has created a 75 million dollar federal program that helps people with home loans of less than $729,750 succeed in restructuring their mortgages.

• Lenders like Chase, Bank of America, and Citi Bank (just to name a few) are extremely compliable about approving Home Loan Modifications. Whereas, a couple years ago, Southern California lenders were quite stubborn about approving home loan restructuring of any kind. New precedence about government funding and overseeing has changed the way lenders treat mortgage loan modifications. These are empowering times for homeowners, as much as they are scary for people who don’t know their rights and options. (Note: Individual lenders are more apt to approve different aspects about your home loan modification. Contact Able Financial Solutions to learn more about your distinctive situation.)

The truth is that Home Loan Modifications are absolutely perfectly suited for anyone unhappy with the structure of their mortgage:

• Are you paying a loan that’s under water, e.g. no equity?

• Have you been unable to pay your monthly mortgage and need to find a solution immediately to prevent foreclosure?

• Are you already in the midst of foreclosure proceedings and are experiencing a lot of fear about what options you have to save your home?

A lot of people fail to seek out the options they have to restructure their home loans because of fearing the unknown. These ever-changing economic times, while difficult for a lot of people; are also affording YOU the opportunity to renegotiate with lenders in ways that were not possible a few years ago. Lenders in Southern California don’t want an abundance of foreclosed properties. That’s to nobody’s benefit. Don’t let the noise in your head prevent you from taking deliberate action to better your life because of not fully knowing your options. The fact is that Home Loan Modifications are appropriate for anyone in the Southern California area who wants to:mortgage modification

• Lower their interest rate.

• Lower their loan principle to be more in harmony with today’s reduced home and property values.

• Stop paying ridiculous monthly payments for their outdated principle loan.

No, you are not helpless.

No, your home loan circumstances are not hopeless; even if you were rejected for a Home Loan Modification in the past.

Able Financial Solutions has special relationships with many of the lenders in Southern California that allow us to complete a modification in 3-5 weeks. Our unique ability to expedite your Home Loan Modification is a peace of mind we enjoy giving our customers.

When you work directly with Able Financial Solutions, we also take the burden of stress off your shoulders by:

• Determining the outcome of your Home Loan Modification before imparting any financial obligation to you.

• We also work with you to create a monthly payment you can afford before there is any cost to you.

In plain black & white English, there are absolutely no upfront costs for your Home Loan Modification. You can take that to the, um, lender!

Take the first step and contact us today. We’re here to help you become aware about your specific Loan Modification options. More importantly, Able Financial Solutions will give you the freedom to finally leave behind all the stress, worry, doubt, and fear about your cherished home. We proudly facilitate the ability for you to regain your sanity and equilibrium so can live a better more hassle free life. Isn’t that what we all want?

Short Sale Shift

Every once in a while, we want to voice our frustrations to maintain our sanity in the difficult short sale business. It also helps us keep fueling the fire to fight the banks because certain days are more difficult than others.

We don’t loathe Wells Fargo. Nonetheless, they are failing us today. The loan that we are having troubles with is an FHA loan. So, that might be part of the problem holding things up. We will have to escalate with this folder. Here is the account.

We got an offer on a property, a town house in Maple Grove. The listing price was dropped to $129,900 and we got a very fine bid on the property. We actually counteroffered and received an even higher offer. So, now we are sitting on an appraisal disagreement because the bank is not happy with the value that they got.

Wells Fargo showed us the appraisal report and they were using comparables from six months ago and failed to take into account any properties that were short sales or REOs. Also, the whole town home development is short sales and REOs. They will only take into account active listings that were of conventional sales.

Obviously, this is a short sale. However, we are not permitted to utilize the exact same town homes that were sold through foreclosure or short sale. We have a closing that is supposed to be in August. This procedure with Wells Fargo is bizarre. Why don’t we go back four years ago and look at those sales?

We will get this sale completed. This has occurred before, but we wanted to provide people a little insight as to why loan modifications do not work and why other agents do not complete short sales and why short sales take so long. We have submitted seven comps that were lower than the proposal on this town house. We will gladly pay for a airplane ticket for Wells Fargo to get here and see the comps and visit the house. We know the market and we will complete this contract.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

Short Sale Shift

Many times we giggle during this show, but we have to keep a positive approach because reflects on our business and we want to keep that encouraging outlook to deal with the bank and get short sales completed rapidly. So, whereas we have to be hard with them, we attempt to keep a upbeat approach.

This is true with GMAC, which is our latest favorite lender after venting yesterday about Wells Fargo. GMAC is utilizing Equator which is a short sale folder management system which helps negotiations between us and the bank. It is very beneficial. We are working on a file that is moving as swift as we have ever seen. They did forward us a counter offer that was a tad high, but in general, GMAC has been very easy to deal with. We had the property listed at that price for close to a month. So, at the moment we do love GMAC. We just want you to realize that there are optimistic things occuring at the bank.

When we receive an offer that nets them a good percentage of what they are losing we have a improved possibility at completing the file. If you are an agent, one of the most essential things is to realize is what the BPO comes in at. They have been telling agents the percentages that they are trying to net recently. So, if you recognize the BPO and you know what percentage the lender is attempting to get back, you will be ahead of the game. You will also know whether you need to quarrel over the file and get it closed in a timely manner.

Thanks for tuning in to Short Sale Shift. If you have a home that you would like to short sale in Minnesota, please don’t hesitate to make contact with us today.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

Short Sale Shift

Welcome to shortsaleshift.com. Minnesota’s foremost short sale agents, Josh Pomerleau and Sarah Willman are going to discuss why a bank would want to complete a short sale.

One of the first queries we get from home owners that are going through foreclosure or beginning to skip their payments is “Why would a lender choose to do a short sale?”. Often times the house owners think that it just sounds to good to be true. But, there are a lot of reasons why a bank would favor a short sale over foreclosure. At the end of the day, it saves the lender lots more money to progress through a short sale than to progress through a foreclosure.

There are a lot of negative expenses linked with foreclosing on a property. There are legal fees. Lots of times the home owner will vacate the property. When that happens, the bank has to worry about people breaking into the house and thieving things. In addition, the general maintainence of the house is ignored. There are also cases where property owners will damage their home because they are upset with the bank taking their house from them.

The bank looks at it like this. It is a great deal less possible that the home will be damaged when they complete a short sale. It gives the home owner a sense of resolution by not losing their home. Then the house owner can move on under their own power.

Additionally, the lender will have to insure the house from all types of scenarios such as tornados and other natural disasters. Those expenses are also unconstructive to the bank.

At the end of the day that is why the lender would aim to complete a short sale. The lender also wants to close on the property quicker than they could with a foreclosure. Getting that cash from a short sale permits them to turn around and loan that cash out again. So, the time value of capital is worth quite a bit to the bank.

Through the short sale route, statistics show that the lender will net more money from a short sale than they will from a foreclosure.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

How Does a Short Sale Work?

Just because your home has fallen in value since you bought it and you feel it is a waste of money to pay for a declining asset does not qualify you for a short sale. In order for the borrower to be eligible for an approval from the lender for a short sale, there has to be a financial hardship. Likewise, foreclosure on the property appears likely. When a borrower has enough assets to pay the mortgage, a lender is not going to accept a short sale. Once all paperwork has been submitted and it has been determined that the borrower can qualify for a short sale then the property is listed for sale to potential buyers. A prospective buyer can submit bids to the property owner for the purchase of the property. Typically these offers from the prospective buyers will be lower than the fair market value of the property. The borrower then decides to accept an offer on his property or not. Any offers the borrower approves are then submitted to the lender for acceptance. At this stage, the lender reviews the hardship of the borrower, reviews the borrower’s financial documents and determines acceptance of the amount derived from the sale of the property. Keep in mind that the mortgage lender is not approving the sale of the house. The lender is only acknowledging that the receipt from the property sale will be applied to settle the outstanding mortgage on the property.  Realty Gainesville explains this in detail.

What are the Consequences of a Short Sale for th Borrower?

There is no doubt an impact on the borrower. For a while the borrower will have a financial impact from the release of the encumbered home loan. However, the penalties of having the property foreclosed are far more severe.

Some of the more pertinent effects of a short sale on a borrower are:

1. An impact on a credit score of about 80 to 100 points

2. A 2 year wait before a borrower can obtain another mortgage

3. A possible deficiency judgment from the lender although this can usually be negotiated away with a professional negotiator.

4. Tax consequences for an investor property. Primary residences are exempt for debt forgiveness.

Does It Makes Sense for a Bank to Accept a Short Sale?

Foreclosure is the last resort to the bank. Mortgage lenders are not happy holding a property since this is not their business forte. The act of foreclosing on a home places a burden on the financial resources of any lender. It can cost up to $30,000 for a lender to foreclose. If the property becomes an REO for the lender then cash reserves are required to be put aside for up to 6 times the value of the REO. This restricts the use of these monies, not allowing for better investments. One of the first jobs of an REO Officer is to liquidate properties acquired by foreclosure. See the short sale button on Gainesville Fl Homes for details.  Therefore, it is truly in the best interest of the lender to work out a short sale where permitted as opposed to going thru the foreclosure process.

What are some negative points in a short sale purchase of homes

Short sales can often take much longer for approval than a regular home sale. This is due to the third party approval for acceptance of the pay off amount. In the long run the buyer can benefit, but the buyer must be aware that this short sale process can be approval lengthy. Other problems can accompany the short sale purchase. – Even with short sale approved properties, banks and lenders can still reject offers from buyers.  Some of these causes could be buyer qualification, appraised value showing a large variance between offer price and appraised value, etc.  Having an educated agent help buyers with the short sale process is important to make the transaction move forward toward a purchase.  You can get more information about short sales from Homes in Gainesville.

Short Sale Power Hour

Kevin Kauffman is united for forgettable Friday by the forever dapper, Coach Collard. We’ve got a small scenario to share with you today about a listing that Fred and Kevin took in November of 2008.

So, a year and a half ago, Kevin and Fred took a listing in the Scottsdale, AZ area listed at $330,000. That is what the property was worth in November of 2008. Remember that the market was still plunging progressively at that time. They received an offer at $330,000 and took it to lender. Utilizing the same short sale practice, they kept getting rejected. There was a disagreement on the value of the house and were repetitively rejected through January of 2009.

The 1st servicer on the file was COuntrywide and the second was Bank of America. At that point Bank of America was in a very rough situation. Also, in the middle of this process was the Countrywide merger which created more troubles.

We put the home back on the market and got another bid at $270,000 and got rejected. The buyer ultimately walked away from that. Again, we got an offer at $265,000 and once more the agreement was rejected and the buyer walked away.

It has been an exceptionally challenging folder because we rarely go through 1 or two offers, but with this file we have had numerous buyers walk away. We finally got an offer approved at $255,000 in the first quarter of 2010 after six weeks. After the inspection, the buyers walked. Nevertheless, we had another buyer with the identical offer and same net earnings for the bank. The negotiator did not believe that was an easily approvable transaction. It took an extra 30 days to review and were rejected for the identical proposal that was approved before.

So, we had to escalate to the investor and bring this to their awareness. The investor looked into the file and found out that the agreement was approved. Over a 19 month time a bank rejected several better bids purely because of lack of communication.

Short sale FAQs and more.

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Short Sale Power Hour

Kevin and Fred have a unique message today. In talking about what the subject of today’s episode would be, they decided that it was time to address the things that occur in a short sale deal that don’t make any sense. Reason and logic can be thrown out the window in a short sale. Countless times Kevin and Fred find themselves saying “why is the lender doing that?” There are so many examples of positions that cause you to ask that exact question.

A lending institution is apparently anything but logical. Lenders charging a fee to put money in an account are not logical. Taking a loan from a lender for $200,000 and then agreeing to repay them $100,000 isn’t rational either. The whole short sale procedure is not logical. Accept that idea first, and you will be one step ahead of everybody else.

To deal with all of this unreasonable behavior, we need to understand that there are numerous things within this transaction that do not make sense. As Coach Collard says, we need to suspend the need to know why. Remember that true solutions come from a place of not always attempting to understand. There are solutions and answers that are basically not rational.

The message of the story is this. This is sometimes an irrational world. Short sales are also not a completely logical procedure. The lenders do some very unreasonable things in the midst of these short sale transactions. So, if you are going to be a short sale agent and take on a customer to help them avoid foreclosure, you have to be certain that you can deal with the all of the irrational behavior.

Short sale FAQs and more.

Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona

Short Sale Shift

Today we did need to cover a few important things about purchasing a short sale and how to go about that process. If you are purchasing a short sale you might want to do a little research or have your broker do it for you. We would ardently advise getting a real estate broker to deal with it. They will probably know a little bit about the short sale practice and be able to act for your best interest.

Most people want to purchase a short sale as they tend to be better priced properties. The normal house for sale looks overpriced because they are not selling in this market. In a market where property values went down by as much as 40%, there are just certain properties that sell well. Short sales are those properties.

There are about 5 questions that you should ask the listing agent. Firstly, you should ask how many short sales they have completed because they will have a better idea how to close a short sale. The listing broker has to have the tenacity to get through the lender red tape. Knowledge in completing short sales is more important than a short sale designation. Next, ask if the seller has given the listing broker the complete packet. You don’t want to put an offer on a short sale that doesn’t have a hardship.

Third, you might want to inquire how overdue are the sellers. If the seller has been in default for quite a few months, the bank will be more provoked to sell. Also, you might want to inquire who the investor is. Some investors cause more hassles than others. Your buyers broker can aid you through the process. You might also desire to know who the servicer is. The servicer is not very crucial but it is another portion of information that you should think about gathering.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

Short Sale Power Hour

Today is once again Mindset Monday. We make out that there are some home owners and short sale realtors out there watching today. So, we would like to talk about the outback mindset today. We also have some magnificent prior episodes on shortsalepowerhour.com about the outback mentality.

Our focus today is around page 91 of the Red Book. Being able to think tactically is significant. You need to distinguise between the rules of how you play the game and strategies of how you succeed. In real estate the guidelines do not relate to money at all. The guidelines in real estate are about conduct, ethics, and procedure. There is no proposition that you should break the guidelines. As a matter of fact, guidelines are about self-control and you should play by them. Nevertheless, strategy is usually found in the grey area of the rules.

How many times have you heard the phrase, “Can we do that?” The outback mindset response to that inquiry is “Did somebody say we couldn’t?” Just mulling over the possibilities out there will enlarge your mindset.

Making an assumption that you can not do something only stops your thinking. Nonetheless, if you think about all of the possibilities in working a short sale situation, your thinking is expanded. Then, with all of those possibilities, you can weed out the ones that break the rules and you will still be left with endless possibilities on how to solve your dilemma.

When you think strategically the possibilities that rest ahead of you are endless as long as you try anything and everything that nobody has said you can not do. To replicate, when you think tactically the possibilities that remain ahead of you are never-ending as long as you try anything and everything that nobody has said you can not do.

Short sale FAQs and more.

Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona