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Florida requires mediation in foreclosure disputes

Posted by Stephen B. McWilliam on December 30, 2009 at 2:30am

NEWS FLASH: A Florida Supreme Court Justice issued an order requiring all foreclosure actions involving Florida homesteaded property to be mediated between the lenders and the Borrowers.Read more about it: Fort Lauderdale Sun-SentinelI would suggest making certain the SS negotiators are aware of this new requirement while in SS process.

Debt Forgiveness Tax - not necessarily

Posted by Stephen B. McWilliam on December 27, 2009 at 6:30am

I continue to experience people, real estate practitioners included, that are under the impression that income tax must be paid on forgiven debt if the debt was not used to acquire their primary residence and as further defined pursuant to The Mortgage Forgiveness Debt Relief Act and Debt Cancellation of 2007.Long before this was enacted there was, and still is, an insolvency exclusion. Basically, if you owe more than you have in assets you are considered insolvent. Your accountant would file a IRS 1099C (“C” for Cancellation) for any 1099 debt that was forgiven. The debt that was forgiven will not be taxed.Borrowers should verify their insolvency status with their appropriate financial advisor (ie. enrolled accountant, CPA, or tax attorney).

Aurora Loan Services Offer - Too Good To Be True?

Posted by Wendy Rulnick on December 27, 2009 at 6:00am

A homeowner recently emailed me quite concerned about a letter she received from Aurora Loan Services. She had a second mortgage with them for $29,700 at 12% interest. She had never been late with her payments and was not selling as a short sale. The Aurora letter stated she could pay her loan off now at about one-third what was owed, and would have no further obligation on the note!Dear Customer:Aurora Loan Services, as a servicer of your loan, has been authorized by the owner of your second mortgage to offer an opportunity to pay off your loan at a reduced amount.Upon receipt of the reduced payoff funds in the amount of $10,400, your loan will be considered paid in full. Aurora Loan Services will report your account paid in full to the applicable credit reporting agencies and send the necessary documentation to release the second lien from the public records.If you elect tp participate in this special payoff offer, Aurora Loan Services will file an IRS 1099-C Form for the amount of debt forgiveness.Please be advised that certified funds (in the form of a cashier's check or money order) must be received by Aurora Loan Services no later than the close of business on January 29, 2010. If the funds are not received by this date, the offer made in this letter will be rescinded and considered null and void.Certified payoff proceeds must be made payable to and remitted directly to Aurora Loan Services. If you have any questions, please contact one of our representatives by calling 866-459-3059Is this offer for real? Apparently so, as the borrower called Aurora Loan Services and confirmed it. They said they were doing it "to help people" and their phones were "ringing off the hook". And what a deal - even with tax consequences, it seems to make sense to pay $10,400 and save almost $20,000 in cancelled debt and interest payments! I advised the borrower to consult with an attorney, as she questioned sending in a cashiers check with only the letter to prove her mortgage would be paid in full.Why is Aurora really doing this? Perhaps the investor on this loan is looking for some quick capital to cover losses? If you have any similar experiences with Auorora Loan Services, report it here.It's Wendy!Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.Destin FL Real Estate Destin Short Sales & Pre Foreclosure Help.Read Wendy's Destin Real Estate BlogCall toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204Email Wendy: itswendy@rulnickrealty.comWendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Note demands by junior lein holders

Posted by Stephen B. McWilliam on December 26, 2009 at 12:11pm

The knee jerk reaction by many is to refuse to sign a note upon a junior lien holder’s demand. One may successfully argue that position. However, in the end if the junior lien holder will not let up the Borrower is not in any worse position if they sign the note.First, they already have a note with that lender on which the lender will sue. This new unsecured note replaces the original note that is secured by a mortgage. The Borrower can always attempt to settle that new note at some point in the future.The main advantage in signing the note is that the Borrower will have avoided the foreclosure and any possible deficiency judgment that may occur on liability to the first lender. Furthermore, in avoiding the foreclosure they may be eligible for a conventional mortgage once the Borrower does not have any mortgage late payments in the past 12 month cycle.Basically, we recommend all attempts be employed to avoid the proposed note and to seek a full release of liability. Typically, as a last resort the Seller may be able to offer some additional money at closing in lieu of the note. However, in the end there is virtually no reason not to sign the proposed note if that is the only way to avoid the foreclosure.

Did you Check the MLS before Mailing your Christmas Cards?

Posted by Kelly Meadows on December 22, 2009 at 9:39pm

I was preparing my (last minute, of course) Christmas cards to clients and past clients at midnight on 12/22/09. For some reason I checked the MLS for an address update on a buyer client I hadn't been in contact with for quite some time. I was surprised to see that his house had recently closed and at first I was pretty upset that he had sold his home without me. My fault though, since I already gave it away that I hadn't followed up with him recently...Then I saw that it was Lender Owned. I decided to check the other addresses on my mailing list and was shocked to see that four of my past clients had lost their homes to foreclosure. It made me realize that if I had educated them about the option and benefits of a Short Sale, 1. I would have made a sale and possibly a rental, 2. My client's credit would have been in much better shape, 3. I would still have that client. Now, I don't know where he is!Lessons Learned-- Stay in touch with my clients and make sure they know I do Short Sales

Equator announces Agent-Initiated Short Sale

Posted by Rita Legan CDPE (440) 227-4461 on December 22, 2009 at 4:10am

BOA is on Equator-Anyone used it yet? Will it help?Equator, the default-servicing industry technology leader is pleased to announce the launch of its new Agent-Initiated Short Sale feature. Starting December 8th, Agents have the ability to request a Short Sale through the Agent Portal on www.equator.com. Only certain industry leading Lenders are currently allowing Agents to initiate Short Sales through Equator. Since it is such a great way for agents to help their clients, we expect many more Lenders to follow suit in the months to come. Final determination of whether the property in question qualifies as a Short Sale is at the discretion of the Lender or Servicer.Simply log into Equator.com, click the Initiate Short Sale link located in the header under the My Properties and Offers section, choose the Lender or Servicer, input the loan number provided by the Lender or Servicer, and request a Short Sale. For further details on the Agent-Initiated Short Sale, please visit www.equator.com today.Note: Please do not contact Equator by phone to initiate Short Sales - Equator is simply the technology provider and as such makes no determination on any aspect of the Short Sale acceptance and/or decisions. Only the Lender or Servicer can make decisions on Short Sales.Thanks,Rita Legan

HUD issues FHA lender guidance on short sales

Posted by DanaVoelzke on December 21, 2009 at 5:49am

I just watched a video announcing some new HUD guidelines with respect to borrowers looking to obtain FHA loans after having completed a short sale. It makes a distinction between borrowers who were delinquent at the time of the short sale those that weren't.It also says borrowers who took advantage of the short sale simply to take advantage of market conditions or who moved locally are not eligible for an FHA loan for 3 years. I guess my question is how could someone be approved for a short sale "to take advantage of market conditions"? I thought you needed to demonstrate a hardship to get approved for a short sale. I have never seen a decline in equity cited as a hardship, but maybe I'm wrong about that.I guess HUD is attempting to prevent people from abusing the system. Do you think it will help?

Chase After The Short Sale Chasing Additional Documents.

Posted by Bryant Tutas on December 19, 2009 at 8:43am

Hi folks. Just when I think I have this Short Sale stuff figured out I run across another issue that has the potential to really place my sellers, the buyers and the agents in a difficult quandary.Yesterday I received a phone message from Chase in relation to a Short Sale we closed on almost two weeks ago. It went something like this "Hi this is Sarah from Chase calling on LN# 11324567. I am preparing the post closing package to send off to the Investor and noticed that I need the last 2 months bank statements from the Borrower. Please fax these over to me by the end of business today or I will return the check and close the file. Thank You."YIKES!!! This call came in at 1:00 in the afternoon while I was out of the office. So needless to say I had to scramble to reach the Seller and luckily she was able to get the statements to me in time. I was lucky because my Seller was in the hospital but just happened to have her relative in town who was able to run around and get this taken care of.The Buyer has already spent about $10,000 rehabbing since he closed on the property two weeks ago.The frustrating part is that Chase had issued the approval and approved the final HUD for closing.This has happened to me 3 times over the last few months. You know....I can understand the Lender requesting additional information after closing to complete a closing file but this threatening to return the check and close the file is really starting to piss me off. AND....they only give you a few hours to solve the problem after it took them 7 months to approve the deal.So....I wonder what would happen if they did return the check and closed the file? The deal has already been closed so I'm pretty sure they can't undo that. Could they? Could they refuse to remove the lien even though all closing conditions were met? What do you think?

Ann Arbor Foreclosures Lower than the National Rate, but Delinquency Rates Increase

Posted by Missy Caulk on December 18, 2009 at 4:32am

Ann Arbor Foreclosures Lower than the National Rate, but Delinquency Rates Increase.Many sellers ask me should we sell now or wait until the market comes back? I answer by telling them two things.* Why are they selling?* How do any of us know when the market is coming back?According to recent data from First American CoreLogic on foreclosures for the Ann Arbor area, the rate of foreclosures among outstanding mortgage loans is 1.29 percent for the month of October, an increase of 0.59 percentage points compared to October of 2008 when the rate was 0.70 percent.* Foreclosure activity in Ann Arbor is lower than the national foreclosure rate which was 3.02 percent for October 2009, representing a 1.73 percentage point difference.However in Ann Arbor, the mortgage delinquency rate has increased. According to First American CoreLogic data for October 2009, 4.85 percent of mortgage loans were 90 days or more delinquent compared to 3.25 percent for the same period last year, representing an increase of 1.60 percentage points.Picture 1This is a current search as of today, December 10, 2009 of the homes that are bank or government owned in the Ann Arbor Area Board of Realtors MLS. There is a total of 97 single family homes; but 22 are under contract so 75 are available to purchase.***Thanks to First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, the largest provider of real estate, property and ownership data and advanced analytics for information on foreclosures, delinquencies, median home prices, home price indices, home valuations, sales activity and mortgage loan originations, for the use of their data in this post.***Ann Arbor Area Home Search

What to do in Michigan if Your Landlord Goes into Foreclosure?

Posted by Missy Caulk on December 18, 2009 at 4:25am

What should you do if you live in Michigan and are in a lease with a landlord who goes into foreclosure?The ScenarioIn good faith you have signed a lease. One day you come home from work or classes and see a notice of foreclosure on the door.First, don't panic. According to Michigan law the mortgage company must post this on your door at least 15 days before advertising in the papers a notice of foreclosure.After the 6 weeks of being posted publicly, the home must go to a sheriffs sale. Michigan is a redemption state, this means that the homeowner has 6 months from the date of the sheriffs sale to "redeem" the property. Basically this means the homeowner must pay all fees and back mortgage payments.The lease you have is valid until the redemption period ends.Should you pay your rent?That is a tough call, as the landlord has not been paying the mortgage but using your money. Technically the landlord still owns the property. Your lease is with them. One suggestion on the Michigan Tenant Organization suggests is to keep the money as the landlord could still bring and eviction case for non-payment of rent.Security DepositYes you are still entitled to getting your security deposit back.In Ann Arbor, I have seen this several times. In good faith you signed a lease, paid the rent and come home to find a "notice of foreclosure" on your door.If you are working with a Licensed Realtor, it is a good idea to have them prove they are current on the mortgage obligations at the time you sign a lease.Many homeowners in the Ann Arbor Area have not been able to sell their homes, therefore, they choose to rent. Many times the rent is not enough to cover their mortgage payment and they get behind.If they miss 3 months payments the mortgage company or bank will begin the process of foreclosure.Your lease is valid until the 6 month redemption period ends.If you need help in Washtenaw County contact Michigan Tenant Counseling Program at 734-761-8599

BANK OF AMERICA, Fannie Mae, REO Trans & REDC processing Short Sales

Posted by Dawn Barrier eXp Realty Vegas on December 17, 2009 at 11:56am

Ok, I have to give credit to Robin Rowland for tipping us off to this originally. I made a few calls and here is what I've found out.....Bank of America has contracted withREDCto process their Fannie Mae Short Sales using the REOtrans/Equator portal.They also will be working some of Wells Fargo short sales, Metlife short sales and GMAC short sales as well.The idea is to help speed the process up, but hey we all now how that is!There will be an additional 12 page welcome package to fill out and have sellers sign...UGH more paperwork! But hey if it moves a Bank of America Short Sale down to 60 days WHOA HOO!!I wouldn't count on that just yet, but maybe they can prove me wrong. This is a case where I would love to have them prove me wrong! LOL!Oh, and it is supposed to get even better for the seller .....Debt to be considered Paid or Settled with the Deficiency FORGIVEN!!I can't wait to see one of the Short Sale Approval letters to see if it is true.They are only doing Fannie Mae and they have to be assigned from the bank. They have a way to check your loan to see if they can request it go thru them.They are only processing Nevada Short Sales, Arizona Short Sales, California Short Sales and Florida Short Sales that are Fannie Mae.

Bank of America Lawsuit..Las Vegas Attorney Files Class-action suit against Bank of America regarding Loan Modifications

Posted by Dawn Barrier eXp Realty Vegas on December 17, 2009 at 11:02am

The suit was filed on behalf of homeowners facing foreclosure in NEVADA who say there has been no progress made with regard to negotiations with their lender."And that's why what we're calling for in this lawsuit," explains attorney Matthew Q. Callister. "(It) is an automatic stay of any further Bank of America foreclosures until such time as every Southern Nevadan avails himself of his right under federal law to have that fundamental 'good faith' negotiation."The class-action suit against Bank of America represents about 30 people so far; it alleges that the bank has failed to act in accordance with a section of the government's Making Home Affordable program, saying the lender has "refused to evaluate loans" and "failed to suspend foreclosure proceedings."Many of the customers' stories are similar; they attempt to negotiate with their lenders but are passed around to different representatives. In some cases they think the negotiations are going well yet come home to find a foreclosure notice on their home.This is an open class-action complaint in NEVADA only.Read the whole article at:Channel 3 News...Local attorney files suit against Bank of AmericaIt will be interesting to see what happens with this.Blog Disclaimer-This is a personal blog. All information is provided for informational purposes only and is Not legal advice, consult an attorney or financial expert for legal advice

Titanium Solutions is processing Bank of America Short Sales

Posted by Dawn Barrier eXp Realty Vegas on December 17, 2009 at 10:30am

Titanium Solutions is currently processing Bank Of America Short Sales that are Freddie Mac loans.Bank of America has contracted with Titanium and Bank of America assigns the short sale to Titanium Solutions.So you could be months into a deal and get a call from Titanium as I did. It is supposed to help speed up the process, but no guarantee of course.You will have to sumbit the whole package again to Titanium, but they acknowledge the docs rec'd usually with in a day!You can't call and get Titanium to take over your file as the BANK is the one who determines if they send it over to them.This will hopefully be a wonderful step in helping process some these BOFA short sales over the next few months.Not sure if I can post the links, so I will have to see what Bryant and Wendi say on that.

Positive Sign of Mortgage Lending? Sounds like things might be loosening up a bit?

Posted by John Susan Karen on December 16, 2009 at 10:11am

If you are in the process of buying a house, keep checking on the progress, monitor your credit scores because the lenders have once again tightened their standards. Improve your credit profile by doing the following:• Review your credit reports for errors. Visit AnnualCreditReport.com and order your credit reports from the three main credit-reporting bureaus: Experian, TransUnion and Equifax. You’re entitled to a free credit report once a year if you go through this website. Review your credit reports, and look for inaccurate information. Dispute errors through their published process. • Pay off credit cards and other debts. Paying off balances will increase the amount of unused credit you have available, which will help your score. Many say even if you’ve decided never to use credit cards again, don’t close your accounts. You reduce the amount of your available credit, which could hurt your credit utilization ratio.• Avoid opening any new accounts. New accounts you open are likely to drop your credit score. When you order your free credit reports from AnnualCreditReport.com, your credit scores aren’t included; you’ll have to pay a fee to get them. You can buy your FICO score and credit report from TransUnion and Equifax at www.myfico.com for $15.95 each.Many banks have posted profits possibly brought in by the sales of short sales and REO properties.In a meeting at the white House Monday Citigroup and wells Fargo agreed to support the struggling economy by lending. Possibly the recently released “Home Affordable Foreclosure Alternatives Program” or “HAFA”guidelines for "streamlining" short sales will help a few consumers in distress.That is good news for a home buyer. Sounds like things might be loosening up a bit?But Fannie Mae guidelines don't seem to be so consistent with this focus. Fannie Mae sets the standards for mortgage loans. Starting this week, mortgage finance giant Fannie Mae will require borrowers with a 20 percent downpayment to have a credit score of at least 620. Previously, the cutoff was 580. This action could stymie frustrated buyers who look to take advantage of the tax credit incentives that were recently extended.Makes you wonder if everyone is listening and aware of what is going on in the next room. Posted by Susan Phelps from StopForeclosureShortSaleTeam.

Wachovia Short Sales Made Easier! ~ Fast Track

Posted by Rosemary Brooks on December 14, 2009 at 3:33pm

Doing Wachovia short sales in the Central Valley.. The local field manager has extended the Wachovia Short Sale Program - Fast Track, with a streamline process.Here is what he sent to me today!Wachovia Short Sale made easier!1. Obtain listing agreement2. Contact local short sale manager - Chris A Hall as soon as you get the listing3. ** New** An appraisal will be ordered, based on the condition of the home AT LISTING4. When you receive an offer, send fully signed contract, HUD-1 and Fast Track form to local Short Sale manager, via email or fax5. Receive approval / minimum net from Wachovia within 7-10 days6. Obtain settlement letter from any Junior lien holders7. Close in 45 days or lessIf you are interested, please email me for an updated FAST TRACK FORM. This form can also be used to inform Chris of any Wachovia listings you may have listed.Please forward this message out to all realtors you know of, including your manager and staff, and spread the word.Thank you, and looking forward to working with you!

What is All the Hullabaloo about HAFA and Short Sales?

Posted by Wendy Rulnick on December 10, 2009 at 1:00pm

As you may have heard on the news, the U.S. Treasury is trying to make short sales, well, shorter! Many homeowners and buyers have been plagued for waiting months for short sale approvals. Realtors are at their wits end. Lenders are overloaded with requests. Waiting five months for a short sale approval is becoming the norm. The new program that is supposed to help is called “Home Affordable Foreclosure Alternatives Program” or “HAFA”.

What Treasury is trying to do is help streamline the short sale process by suggesting guidelines to the participating lenders. That’s “suggestions” and “guidelines”. That does not equal “requirements” in the way I read it.

Here is a summary of the proposed short sale changes, who is eligible, and what you might expect to change if you do qualify for the HAFA program. Remember, I am condensing here and pointing out what might be important to you, the homeowner, as it relates to short sales. There are many details, requirements and forms that make up this new program.

ARE YOU ELIGIBLE?

You might be eligible for HAFA if your lender participates in the Home Affordable Modification Program (HAMP), and your mortgage is not underwritten by Fannie Mae or Freddie Mac. HAMP offers you the opportunity for assistance by lowering your payments or delaying payments to keep you in your home. You must meet the HAMP requirements as follows, to be part of HAFA, whether or not you choose a modification. These qualifications are:

1) You have missed payments or are about to default

2) The home is your primary residence

3) You got your primary mortgage before Jan. 1, 2009 and your balance is less than $729,750

4) Your monthly mortgage payment is greater than 31% of your gross income

The HAFA Supplemental Directive states that the servicers (your lenders) have the “option to determine the extent to which short sales or deeds-in-lieu will be offered”. So this does not look like a slam dunk, guys!

Expanding on that, HAFA states that a participating lender must follow its investor guidelines to create their own policy, with criteria for your eligibility to include: how cooperative and “motivated” you are, the amount of the loss on your mortgage, and local market conditions, among other things. In addition, HAFA states that it is up to the servicer and investor to decide if allowing you to be in this special short sale program is in their best interest. That tells me they have a lot of leeway in deciding if you will benefit from HAFA at all.

THE GOOD NEWS if you get a short sale through this program, there can be no deficiency judgment later! That will help many leery Bank of America short sale sellers, whose approval letters reference the right to seek a deficiency in the future. More good news- your lender may not ask you for a promissory note or a cash contribution if they participate in HAFA and you do a short sale. More “positives”…

POSITIVE: If you are eligible for this program, and your lender participates, you must be given the chance to do a short sale or deed-in-lieu prior to the lender foreclosing.

POSITIVE: The program says you do not have to resubmit your financial paperwork for the short sale (a big pain for many short sale sellers) after you have already provided it for HAMP.

POSITIVE: Your lender will determine the acceptable net from your anticipated short sale prior to you participating in the program. This should save time versus a typical short sale, where the lender determines if a contract is acceptable after it is submitted for consideration. The minimum proceeds will be stated in terms of actual dollar amount, percentage of market value or percentage of your list price.

POSITIVE: Your lender will state what closing costs they will pay for the sale in advance. This will save contracts where the buyer asks for too much in closing costs- no wasted negotiating.

POSITIVE: You will receive $1500 relocation incentive upon closing your short sale.

*** OTHER THINGS you need to know:

You cannot remain in the home as a tenant after closing.

You must not be related to the buyer (arms length).

You cannot earn a real estate commission if you are a licensee and sell the home yourself.

You may be required to make payments deemed “affordable” by HAFA until your property is sold. This is based on a calculation of your income and expenses.

You must maintain the property and pay association dues until it is sold.

The servicer will pay your junior lienholder up to $3000 (or 3% of the junior balance) to complete the short sale, but YOU must take care of other impediments to selling, for example, an IRS tax lien or a judgment which might affect your sale. Your senior lienholder gets a monetary incentive when your junior lienholder waives the right to a future deficiency. This part of the program “may” inspire better terms from your second mortgage holder. NOTE: HAFA does not state this as a requirement, though, so you may still have a responsibility to pay your junior lienholder cash or a promissory note if they agree to the short sale!

If you have mortgage insurance (MI) on your note, the MI company must agree to waive its right to a cash contribution from you or note or you won’t qualify for HAFA.

MORE PROCEDURES: When you receive an offer on your property, you will have three business days, with your Realtor’s assistance, to get a copy of the contract, buyer pre-approval, and junior lien documentation to your lender. If you are using the standard HAFA program with a pre-approved net price (SSA), you should receive an approval or rejection with 10 business days, or about three weeks of receipt. However, if you have not gone through the HAMP modification program and standard SSA (sorry I am throwing in acronyms again), then your approval time will be lengthened. In this situation (alternate RASS), the program requires 14 more days to allow you to decide if you want a modification (well, of course at this point you don’t or you would have already done so, right), and for you to provide all the financial documentation necessary.

Finally, don’t expect to get off the hook with credit reporting or tax obligations from your short sale. Even with HAFA, your short sale will be reported “account paid in full for less than full balance” and you should consult with an accountant to determine any tax liabilities from your cancelled debt, especially from a second mortgage not related to your home purchase.

There is a lot to this new HAFA program, which officially starts on April 5, 2010 (although your lender may participate sooner). How many people it will actually help is questionable. If it does work, it will speed up your short sale. If it does not, there are still many options available to you.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search All Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

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Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist and can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.

Mortgage Electronic Registration Services. Do they have too much power?

Posted by Bryant Tutas on December 10, 2009 at 10:30am

Hi Folks. A few weeks ago I decided to start asking my past Short Sale Sellers to send me the Release of Mortgage notice once they received it from their lender after the short sale was completed.I’m just getting started on my quest but have received several “Release of Mortgage” notices thus far. As I was reading through them I noticed 2 things that were the same even though the Lenders were completely different.First they all state “…..acknowledge that it has received full payment and satisfaction, and in consideration thereof, does hereby cancel and discharge said Mortgage”.And secondly the “Original Mortgagee” as stated in all of the releases thus far is……..“Mortgage Electronic Registration Services, Inc.” or MERS.So whether the lender/servicer was Bank of America, Wells Fargo or Chase (the 3 notices I have received) the “Original Mortgagee is MERS.MERS, from what I understand, steps between the original Lender and the servicer. It acts as the nominee for the Lender and the servicer. Nominee: A person or organization in whose name a security is registered though true ownership is held by another party.So when MERS is involved we have no clue who the true owner of the mortgage is. I wonder how this will affect Lenders going after a Deficiency Judgment in the future?MERS is a privately owned company with some pretty serious players as shareholders.Their mission is to…“Register every mortgage loan in the United States into the MERS System".OK so what am I missing here? Does this company have way too much control or are they truly nothing more than a registration company? Help me out here. What say you?

Short Sale Tips

Posted by Rita Y. "Vonnie" Jacobs on December 10, 2009 at 6:24am

Remember to ad the title company to the authorization so they can get your sale approved.

Michigan Foreclosure Law, 6 Month Redemption Period

Posted by Missy Caulk on December 6, 2009 at 11:43am

Michigan Foreclosure Law is somewhat different than other states I have been reading about on Short Sale Superstars.I'll make it easy by going step by step:1) Home owners misses 3 mortgage payments.2) 15 days before it goes in the newspaper, a notice of foreclosure is placed on the door.3) It then must appear in the papers for 4 consecutive weeks.4) Then it goes to the sheriffs sale.4) After the sheriffs sale, Michigan has a 6 month redemption period.5) During the redemption period the homeowner can "redeem" the property by paying all the fees and back payments. A redemption amount is given to the Servicing Company so the homeowner can request the redemption amount.6) We still can continue to market and sell the home as a short sale during these 6 months.7) Until the 6 months are over the bank does not have title to the property. We still deal with the sellers and their banks.8) The sale is recorded with the County as a foreclosure and you can see the county records and count 6 months to that day and know that at that time the sellers (homeowners) will have no redemption rights.9) ****If you own over 3 Ac the redemption period is one year not 6 months.10) We are a non-judicial state. The common term is foreclosure by advertisement.11) We are a deficiency state which means that the mortgage company can come back and go after the seller if the sheriffs sale is less than the amount owed the lender.12) If the home is abandoned then the bank can take possession before the 6 months.

HAFA Update. Commentary anyone? Thoughts?(EDITED)

Posted by Bryant Tutas on December 2, 2009 at 2:30am

I edited this post now that I have read through the document. I highlighted my comments on the doc. Here it is.hamp_new.pdf

Note: this page contains paid content.

Note: this page contains paid content.

Note: this page contains paid content.