ShortSaleSellit.com

Barney Frank Get’s It…Support Him in His Efforts to Help Our Homeowners!

Kris & Kim — Tue, 09 Mar 2010 20:26:18 +0000

Congressman Barney Frank (Mass.) gets our kudos for taking the time to understand the misdeeds of the banks…2nd lien holders in this case.

Congressman Frank is sending out an ultimatum to Bank of America, Citigroup, Wells Fargo and JP Morgan Chase.

Mr. Frank is a very “powerful” congressman in charge of the governmental commission that oversees the banks…so, either the banks CEO’s listen or pay the price of not listening.

What it gets down to is:

These banks servicing 2nd loans/liens for their investors are not pushing their investors hard enough to accept reality.
What do we mean by this?
1. 2nd lien holders in today’s market can make or break Loan Modification or Short Sale by choosing to participate …or take a stance and make unreasonable demands on the homeowner.
2. Many 2nd lien holders hold notes that are worthless…as many of the homes are underwater or in a “negative equity” standing.
3. This means that these 2nd notes are worth nothing, because there is no equity to support there value.
What Mr. Frank is simply doing is sending a message to the CEO’s of these banks to remind their clients that own these liens, that they are in essence holding worthless paper and to take what ever is given them to resolve this debt and move on…remember…these notes are essentially worthless!
Why does Mr. Frank care?
1. Well it appears that he understands the economics of the banks and that the banks are simply manipulating the wall street into believing they earn more money than they actually do…That’s a whole other blog post…due to some changes a few years back…banks report their “negative assets” to show as actual stability and strength…kind of a “funny” economics!

Support Mr. Frank as he’s in the corner of the Homeowner…fighting the fight!

Kris

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Walking away from your home…Short Sales are an alternative

Kris & Kim — Mon, 01 Mar 2010 18:15:53 +0000

In some areas, you have a homeowner on either side of you that’s in a situation of “negative equity.” According to economists, it’s not going to get any better for a while….How long will it be before the housing market bottoms out is up for interpretation. Let’s say it’s right around the corner, although I don’t believe it’s that close.

Seeing our home values rise will not happen overnight, again, some economist are saying that it may take 10 years to realize equity again in our homes. Nothing indicates that we will see the equity increase to the prime times of the mid 2000’s.

Wall Street Journal posted an interesting article…….What would you do?
Millions of Americans are now deeply underwater on their mortgage. If you’re among them, you need to stop living in a dream world and give serious thought to walking away from the debt.

No, you shouldn’t feel bad about it, and you shouldn’t feel guilty. The lenders would do the same to you—in a heartbeat. You need to put yourself and your family’s finances first.

How widespread is this? More than 11 million families are in “negative equity”—that is, they owe more on their home than it is worth—according to a report out this week by FirstAmerican Core Logic, a real-estate data firm. That’s a quarter of all families with mortgages. And for more than five million of those borrowers, the crisis is extreme: They are more than 25% underwater—the equivalent of having a $100,000 loan on a property now worth just $75,000 or less. That’s true for a fifth of mortgage holders in California, nearly a third in Florida and an incredible 50% in Nevada.

Are you in this situation? Are you still battling to pay the bills each month, even when it may make little financial sense to do so?

It’s time for some tough talk.

Stop trying to chase your lost equity. That money is gone. Don’t think like the gambler who blows more and more cash trying to win back his losses. That’s how a lot of people turn a small loss into a big one.

And do the math. Even if you hope the real estate market is near the bottom—it’s possible, but by no means certain—it may still take years to see any meaningful recovery. If you are 25% underwater, your home will have to rise by 33% just to get you back to even.

Is that likely? And over what time period? Even if home prices rose by 5% a year from here, that would still take six years. And during that time you could instead be building fresh savings elsewhere.

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Old Video…Pre Short Sale Days

Kris & Kim — Sun, 14 Feb 2010 20:17:02 +0000

Man…this is old!

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DiTech Closes Headquarters in Costa Mesa, CA

Kris & Kim — Thu, 04 Feb 2010 17:23:15 +0000

The one time behemouth DiTech…part of GMAC closed it’s operation yesterday February 03, just as the Tresuary pumps another $3.8 billion into finaniciers open wounds.

These cutbacks by parent GMAC are in an effort to reduce 300 postitions and balance out it’s big “red” book!

Good luck fatties! Time for some weight loss in these lean times.

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Short Sale 2nds Taking Illegal Kick Backs

Kris & Kim — Sun, 17 Jan 2010 19:05:44 +0000

Banks Taking Kick Backs

Kim and I run across this all the time. IT IS ILLEGAL

Most recently we have been requested from Citi and Bank of America Negotiator did not care…It’s clearly in violation of REPA laws.

FASLO Solutions is another violator…they go as far as having an agreement outside of escrow between buyer and FASLO…Thats no lie!

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Jim Cramer Speaks “Shadow Inventory” and Making a Profit

Kris & Kim — Sun, 17 Jan 2010 18:43:45 +0000

Shadow Inventory of Homes…How to profit?

Jim Cramer says…

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Short Sell Your Home…It’s a Business Decision…VIDEO

Kris & Kim — Sun, 17 Jan 2010 18:26:32 +0000

Short Sell your home…it’s a business decision!

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DSNEWS Endorses Short Sales as The Alternative to Foreclosures

Kris & Kim — Tue, 12 Jan 2010 08:26:25 +0000

Default Servicing News has highlighted Short Sales as the alternative to foreclosure…

HAFA (Homes Affordable Foreclosure Alternatives) …a build on HAMP, was introduced November 2009. It is a tremendous stride forward to protect the American Homeowner who is in a perilous position of upside down property values, unstable work environment and the rising cost of everything.

Some of the quotes from the article from industry leaders are a refreshing reprieve from the bad press that Short Sales have received by many that don’t understand the short sale!

Dave Sundland , Bank of America Vice President “Were very pleased. We welcome any effort to reach standardization for all parties involved in short sales.”

Jim Satterwhite, COO Infusion Technologies, (Industry liaison with the Treasury)”Short Sales used to be the eight hundred pound gorilla that no one inthe room would talk about for the longest time, but didn’t want to talk about” …fast forward to 2010…”and banks are now encouraging them.”

Scott Brinkley, EVP Outsourcing and Technology Solutions at First American Corporation, “Short sales tend to be most cost effective liquidation strategy for servicers and investors. Since the borrower usually participates in the process, the timeline to work through a short sale, compared to a foreclosure sale, is much shorter. An there is less risk of property damage.”

We will continue to follow up on HAFA…Look for more to come!

Best…Kris

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Laguna Niguel Distressed Property At 50% Decline In Home Value…Short Sale!

Kris & Kim — Wed, 06 Jan 2010 20:25:41 +0000

I’m sure that many of you reading this will relate to what has happened in a lovely Laguna Niguel neighborhood over the past year. Because it’s most likely happened to you or someone you know.

We wanted to take some time and share this because so many homeowners are facing what this young couple is.

The call we received started out like many others…..The young man on the other end asked a lot of questions about what a short sale is, how it affects credit and “when can we buy another home if we short sell?”

“John” is married and his wife has recently had a baby. They are both in their early thirties and have established lucrative careers. “Mary” wants to stay home and raise their child for the time being, but the home they purchased about three years ago has a hefty mortgage payment. They could have refinanced in the past market, but unfortunately the home was purchased for $780,000 back in 2006.

Reality of their horrifying situation became even more devastating a few weeks ago when a neighboring home that had gone to foreclosure sold…dropping their home value to a whopping $450,000! Yes, I’m serious

“John” and “Mary” have never been late on a payment on their home, although they are struggling right now to make the very high payments.

Now they are looking for answers on how to move forward…..the payments will eventually become unbearable if “Mary” is going to continue to stay at home with their child. The home value is upside down $330,000 a drop of 40% and there are no indicators that the decline is going to stop anytime soon…..

First home and new baby….only 32 years old….you guessed it, the home in now listed for short sale.

It’s an emotional decision…but one that some people have to face.

To find out more about how a short sale might be the answer for you send us an email or call us at 877-391-2338

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FHA Guidelines Buying A Home After A Short Sale

Kris & Kim — Tue, 05 Jan 2010 17:50:05 +0000

The Department of Housing and Urban Development (HUD) released a letter to lenders regarding borrower eligibility for a new Federal Housing Administration (FHA) mortgage after pursuing a short sale.

Here is the actual language from the new FHA Guidelines:
FHA Guidance on Short Sales Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Reference: For detailed information on converting existing principal residences into rental properties, see 4155.1 4.E.4.g

Here is the exception:
Guidance on Borrowers current at the time of Short Sale Borrowers are considered eligible for a new FHA-insured mortgage if they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and the proceeds from the short sale serve as payment in full.
Reference: For detailed information, see “Short Sales” at 4155.1 4.C.2.l.

Translation: If the homeowner/ borrower didn’t miss any payments prior to doing the short sale AND their overall credit history will allow…they CAN buy immediately following a short sale using FHA financing. The focus seems to be on rewarding those who made their payments on time..and did a short sale VS. those who missed payments prior to a short sale.

More info:
Guidance on Borrowers in default at the time of Short Sale Borrowers in default on their mortgage at the time of the short sale (or pre- foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Lenders may make exceptions to this rule under certain circumstances.
Reference: For detailed information, see “Short Sales”, at 4155.1 4.C.2.l.

Translation: Borrowers CAN use a new FHA-insured mortgage if they were current on their previous mortgage and other debts at the time of the short sale and if the proceeds from the short sale serve as payment in full.

Bottom line, missed payments = no FHA financing…for 3 YEARS. If a borrower executes a short sale while in default on their mortgage would not be eligible for a FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Some lenders can make exceptions if the default was due to circumstances beyond the borrower’s control such as the death of the primary wage earner.

Anyone eligible for the Home Affordable Foreclosure Alternatives program (HAFA) would not be eligible for a new FHA-insured mortgage for three years. WHY? Because to qualify for HAFA the homeowners has to MISS PAYMENTS! Under HAFA, the US Treasury Department provides incentives to servicers, banks and investors to pursue a short sale for seriously delinquent borrowers.

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