I have to say that I am EXTREMELY pleased that the Mortgage Debt Forgiveness Relief Act has been extended for another year. If you are a homeowner in distress this is not the time to sit back and relax because there is not guarantee that this will be extended after the end of this year. This is the time for YOU to take ACTION...AND it is the BEST time for YOU to take action. 

In November, I had given numbers of homeowners in default throughout the country. These, of course, were statistics up to the month of November 2012. I was especially shocked by the last statistic of close to 2 million homeowners were in Foreclosure status. That is a great concern and can be avoided by the homeowners taking action, Real Estate Agents getting the word out to the homeowners. 

There are many programs in place to help homeowners either stay in their home (if the numbers make sense) through a loan modification or to exit gracefully with a Short Sale. If a homeowner chooses the latter they are sure to reap the some of the following benefits of selling their home: 

• MORTGAGE DEBT RELIEF ACT: This act will allow homeowners to exclude the forgiven debt on the principal residence from income. 
• THERE IS NO COST TO THE HOMEOWNER: The commission for the sale of the home is paid through the lender. 
• YOU DO NOT HAVE TO BE BEHIND IN YOUR PAYMENTS: Depending on your lender, you may be able to move forward with a short sale if you are not behind on your payments! This is huge...as long as you can show a hardship, you may be able to complete a short sale, save your credit, and move on to something better and more affordable.
• CALIFORNIA HOMEOWNER BILL OF RIGHTS: Sellers will benefit from the Single Point of Contact (SPOC) and th end of Dual Tracking. So, the lender/investor can not foreclosure on homeowner in the midst of them performing a short sale (this also applies for a loan modification).
• RELOCATION FEE: Some lenders are offering up to $35,000 for homeowners and tenants to exit the home gracefully and keeping the home is saleable condition. 
• COMMUNITY GROWTH: Although, property values have dropped considerably. Completing a short sale keeps the home from being vacant and/or abandoned. Abandoned homes will continue to bring down the value of the home and the community. 
• GRACEFUL EXIT: The beauty of a short sale is that, although sellers may take a hit on the credit (If they are late on their payments), they will still have the opportunity to purchase again in 2-3 years (as long as they are continue to save and  work on their credit). Not to mention that they have helped the community, agent, lender, and investor.

The bottom line is that homeowners need to open their communication to receive the benefits from the help that is available. 

Good morning Superstars,

Here are some of this week's top discussions.

FANNIE MAE Valuation issue Members - I need you help quickly!! I have been in contact the past few months with NAR and Treasury Dept. regarding this issue. Please see… Started by Ken Ryan	12	yesterday Reply by Wendy Rulnick
Mortgage Debt Relief Act and Abandoned Homes Hi, Stars - First off, I understand that it's likely that none of us are CPAs or are qualified to give tax advice; that said, I have a pote… Started by Alex Krumm	11	yesterday Reply by Wayne Brooks
Short Sale Lien Holder wants our escrow refund to be applied to our principle We closed on our short sale house this last Friday, December 28th and moved in that day. Yesterday we received a notice from the title comp… Started by Joseph Russell	10	on Thursday Reply by Joseph Russell
Mortgage Debt Relief Act extended as part of fiscal cliff package http://speakingofrealestate.blogs.realtor.org/2013/01/01/senate-‘cliff’-bill-retains-mortgage-cancellation-relief/ This is a great way to… Started by Joseph Alfe	7	on Wednesday Reply by Tabitha
Ridiculous counters from BofA Happy New Year everyone, make a great one! I've had two issues lately with BofA short sales. 1. Seller is not delinquent, traditional sho… Started by Ellen Kirwan	2	on Thursday Reply by Tara Semtner
2013 Short Sale Symposium at Sea Cruise Conference April 20th-25th! Are you coming to see me and join many of the best minds in the industry at the 2013 Short Sale Symposium at Sea Conference? You des… Started by Mike Linkenauger	3	on Wednesday Reply by Mike Linkenauger
Buyer/Ouccupant loses 3 full price CASH offers to Games Investors Play! I'm only posting this discussion because we really LOVED 3 properties so much we made full price cash offers, and included a nice handwrit… Started by Susan Highland	12	on Thursday Reply by Tara Semtner
Short Sale Hell I have been trying to buy a short sale in Flordia for ten months now. I have no more idea today where we are in this process than I did in… Started by Pam Mingo	10	on Wednesday Reply by Gab
Short Sale offer in for two weeks. Listing still shows Active! This is the 4th short sale we have tried to get, and the only one who accepted our offer. Two weeks ago we placed a full price cash offer o… Started by Susan Highland Serious About Short Sales? Get Training! Need Short Sale training? Learn marketing, listing, negotiating, escalation tricks, HUDs, junior liens, FHA and VA tips from Bryant and Wendy. Make your New Year a success with our Advanced Short Sale Training. Current $50 off coupon below. ***Each session is 60-90 minutes of audio (MP3) with PDF materials. Are your short sales declined? Are you losing closings? Are you losing buyers? Losing sellers to foreclosure? Do you have to re-start your short sales dozens of times? Are your short sales taking forever? Are you stressed out over your short sale success or...worse, your short sale failure? And no one seems to be able to show you how to do it quickly, with no stress? UNTIL NOW. WE can HELP YOU Succeed with Short Sales! Broker Bryant and Wendy Rulnick... Real Answers from REAL PRACTICING SUCCESSFUL SHORT SALE BROKERS. Get More Info Order Now ***Use coupon code sss10000 for an instant $50 discount

PALM DESERT REAL ESTATE REALTORS / HOW TO SHORT SALE PALM DESERT HOME

If you need a Palm Desert Real Estate Agent / Palm Desert REALTOR to handle selling or buying your home remember these considerations when choosing us as your Palm Desert Real Estate professional:

• We have extensive experience handling listings in this difficult market
• We handle all aspects of Palm Desert listings and Palm Desert real estate sales
• We handle Palm Desert Short Sales, Palm Desert Foreclosures and Palm Desert Land Sales
• We have an unfair advantage in our marketing and advertising experience, enabling us to effective advertise your Palm Desert home for sale to as many buyers as possible, maximizing the total sales price.

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So contact us and let's get started!

Call us now: (888) 9-List-It.

That's (888) 954-7848.

Or click here to vist our website:

Palm Desert CA REALTORS

I am the lister on a short sale on which we have received an accepted contract. We are way into the process; Nationstar had a BPO done on it and yesterday they sent me a BPO two-page form to fill out.  I have no idea where to get all the information they are requiring.  I've never had this happen before.  Please help.

Gail 

Does anyone have contact information for Seattle Mortgae Company?

Short Sale Agents in Norco

Short Sale Agents in Norco CA arrange with mortgage lenders to agree to accept a mortgage payoff that falls short of the balance that is owed by a borrower. In other words, a bank agrees to accept less than what is owed on a borrower's mortgage. Foreclosure is avoided through the Norco CA short sale process, which is the primary goal so that the borrower's credit is not severely damaged as it would be through a foreclosure. If a foreclosure is imminent, a Norco CA short sale can help soften the blow.

A foreclosure can seriously affect an individual's credit and financial future. As a result, and because of the stress that the foreclosure process can cause, most Norco homeowners are willing to consider just about any alternative. When facing foreclosure, the worst thing that a Norco CA homeowner can do is nothing at all. By being proactive, a borrower can often find viable alternatives to foreclosure and a Norco CA short sale is one of the most popular and realistic options. For those who are facing the prospect of a foreclosure, a short sale might be the right option.

Norco California Real estate short sales can be complicated for everyone involved whether you're a seller, buyer, investor, agent or even a bank. Our Free Short Sale Help was designed to clear up the complicated world of Norco CA real estate short sales and make it possible for anyone who owes more on their mortgage than their Norco CA home is worth to find their way.

So call us now to find out more about Norco Short Sale Help:

Call Now: (888) 9-List-It.

That's (888) 954-7848.

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Norco CA REALTORS

Roseville Short Sale Advice

Short Sale Tax Relief measure extended until January 1st, 2014.  Bill passed Senate and then the House last evening.  President Obama says he will sign the bill, but did not say exactly when...

2007 Mortgage Debt Relief Act Extended in Fiscal Cliff Bill known as American Taxpayer Relief Act of 2012...  Click for More Updates and News

Looking for some feed back on servicelink. i have an SS through indnmax bank out of san Antonio and they farm their SS to servicelink. have a negoiator but BPO came in at 297,000 and is too high. I believe I can supply at least one comp to justify a 280,000 sales price, which is  what i believe the true FMV is but my negoiator is pretty much saying its what the BPO value is and Fanniemae doesn't budge. I am wondering if service link doesn't have an hidden agenda.

are they getting comped based on the final sales price of the home or a % of my future commissionsm. Indymac(Bank west) is still servicing the loan and the HO gets regular communication from them. .

Besides the above just looking for any recent experience anyone may have had with Servicelink. Thanks

As part of the fiscal cliff deal, Congress extended the cancellation of mortgage debt relief provision, also known as the Mortgage Debt Relief Act for one year, through the end of 2013. President Obama is expected to sign the legislation into law shortly.

The law – which was set to expire at the end of 2012 - is crucial to foreclosure mitigation efforts such as principal forgiveness and short sales. Normally, U.S. law decrees that when a lender forgives all or a portion of a borrower’s debt, the forgiven amount is considered taxable income for the borrower. This is known as Cancellation of Debt (COD) Income and must be included in a taxpayer’s gross income.

This Act, however, created an exception to this rule under the U.S. Tax Code. The Mortgage Forgiveness Debt Relief Act allows homeowners who received principal reductions or other forms of debt forgiveness to not pay taxes on the amount forgiven. The amount extends up to $2 million of debt forgiven on the homeowner’s principal residence.

For homeowner’s to qualify, their debt must have been used to “buy, build, or substantially improve” their principal residence and be secured by that residence. The law, which was passed in 2007 with a five year sunset provision, will now be in effect until January 1, 2014.

If you're facing foreclosure you're facing some very important  decisions. We want you know you're not alone and we are here to help  with any questions you may have to assist you in making the best decisions for  your situation. There is no charge for this service and we are happy to help! We  offer confidential and professional real estate advice.

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short  Sales in; Bexley Columbus Delaware Downtown Dublin Gahanna Grandview Heights Granville Grove City Groveport Hilliard Lewis Center New Albany Pickerington Polaris Powell Upper Arlington Westerville Worthington

As the year comes to a close you may be wondering what the foreclosure and short sale market looks like in San Mateo Clara County. In a word, things are pretty quiet. The numbers of sales are down. Here is what it looks like:

Closed sales from June 1,2012 to Dec 26, 2012:  

Bank owned: 259

Short Sales: 509

Compared to the first 6 months of 2012:

Bank owned: 387

Short sales: 462

Current Active Sales:

Bank Owned:  17

Short Sales: 22

Current Pending Sales:

Bank Owned: 44

Short Sales: 310

As you can see there has been a large drop off in REO sales with a slight increase in short sales.

I expect a decrease in both short sales and foreclosures as San Mateo County home values increase, loan modifications increase, and the Homeoner's Bill of Rights takes effect in 2013. As prices increase fewer homeowners are underwater, and the need for short sales and foreclosures decrease. Also, the tax exemption of the debt forgiveness on short sales and foreclosures expires at the end of 2012. This will be a big incentive for homeowners to try to hold on until they are no longer underwater.

If you have any questions about San Mateo County Short Sales or Foreclosures please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E. 01191194

650-619-9285

As the year comes to a close you may be wondering what the foreclosure and short sale market looks like in Santa Clara County. In a word, things are pretty quiet. The numbers of sales are down. Here is what it looks like:

Closed sales from June 1,2012 to Dec 26, 2012:  

Bank owned: 579

Short Sales: 1743

Compared to the first 6 months of 2012:

Bank owned: 978

Short sales: 1603

Current Active Sales:

Bank Owned:  33

Short Sales: 76

Current Pending Sales:

Bank Owned: 54

Short Sales: 1044

As you can see there has been a large drop off in REO sales with a slight increase in short sales.

I expect a decrease in both short sales and foreclosures as Santa Clara home values increase, loan modifications increase, and the Homeoner's Bill of Rights takes effect in 2013. As prices increase fewer homeowners are underwater, and the need for short sales and foreclosures decrease. Also, the tax exemption of the debt forgiveness on short sales and foreclosures expires at the end of 2012. This will be a big incentive for homeowners to try to hold on until they are no longer underwater.

If you have any questions about Santa Clara County Short Sales or Foreclosures please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E. 01191194

650-619-9285

Are you looking for a deal in a Short Sale or Bank Owned home in Santa Clara County? If so, don't bother. The inventory of distressed properties in the county is so low it is not worth doing a specific search for either a short sale or foreclosure. If one comes up in your general area search, go for it, but don't expect to get a deal, because there are so few of them.

Total number of single family homes for sale in Santa Clara County

1045 (historically low number)

Total number of short sales SFR For Sales in Santa Clara County:

65 or 6.2%

Total Number of SFR Foreclosures For Sale in Santa Clara County

18 or 1.7%

Total Number of Condos/Townhomes For Sale in Santa Clara County

233 (historically low number)

Total Number of Short Sale Condos For Sale In Santa Clara County

23 or 9.8%

Total Number of Bank Owned Condos For Sale in Santa Clara County

11 or 4%

Combined Single Family Homes and Condos/Townhomes for Sale in Santa Clara County

1278

Total Number of Single Family Homes and Condos/Townhomes for Sale That Are Short Sales or Bank Owned in Santa Clara County

117

Total Percentage of Short Sales and Bank Owned Homes and Condos/townhomes

In Santa Clara County

9.2%

As you can see the inventory of Santa Clara County Short Sales and Bank Owned properties that are currently for sale is less than 10%. This is not enough to bring the price of homes down in Santa Clara County, and not enough to allow for these homes to sell for less money than any other home in a similar location and condition. So, if one shows up in your search, be prepared for having to work harder to get through the offer and escrow process, but do not expect to to get a bargain.

If you have any questions about Short Sales or Bank Owned Homes in Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Great news for people who need to short sell their Blossom Valley

or Silicon Valley home!

If you have a hardship, loss of job, divorce, change in financial circumstance from medical or family issue, etc, you can now be considered for a short sale even if you have not missed a mortgage payment.

Freddie and Fannie will now have the same requirements and procedures, which was not true in the past.

This is great news, especially for people who have a sudden change in their circumstances and can no longer afford their mortgages, but do not want to have their credit ruined in order to be able to sell their home.

So, if you have a change in your circumstances which will change your financial picture, and you want to sell your home without ruining your credit, you may have a way to do this.

Be sure to work with professionals who know what they are doing. In short sales, there is no substitute for experience.

If you have any questions about short sales in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Good news for short sellers!!

Lawmakers managed to extend the Mortgage Forgiveness Debt Relief Act as part of their 11^th hour deal to avoid the fiscal cliff.

The extension means homeowners now will be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set to expire Dec. 31.

Without an extension, homeowners who completed short sales or mortgage modifications may have faced tax bills in the tens of thousands of dollars. Some industry officials feared that would hurt the housing recovery.

Source: http://www.sun-sentinel.com/business/realestate/house-keys-blog/sfl-mortgage-debt-relief-extended-link-20130102,0,2189193.story

Short Sale With Two Lenders — US Bank & PHH Mortgage Short Sale Successfully Closed

US Bank PHH Mortgage Short Sale

Short sales with more than one lender are more complex.  These two lender plus short sales tend to take longer for approval because you must meet each lenders unique short sale requirements, coordinate approval timelines and keep your buyer engaged during the entire process.  This is no easy feat!  People’s lives don’t stand still during the approval process, so it is not uncommon for sellers or buyers to encounter a change in circumstance during an extended approval process.  So, a short sale that takes longer has its challenges.

This US Bank and PHH Mortgage short sale was no exception.  Although ultimately we got everything that we needed for the short sale seller from both lenders, it did take time.  In addition, the buyer used VA financing to purchase the home.  Buying a short sale with a VA loan is also no easy feat either, however, I do have a good deal of experience with it and was able to coordinate it with the lenders for this very happy buyer.  The rewards of closing this sale right next to the holidays (and by year end) were tremendous.  We funded on Christmas Eve and closed the day after Christmas.  Happy sellers, happy buyers, and happy real estate brokers, just in time for the holidays.  

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing,  HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, Fannie Mae, Freddie Mac,  and others.  She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.  

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Tni LeBlanc and MInt properties are not affiliated or endorsed by any lender.

Copyright© 2012 Tni LeBlanc *Short Sale With Two Lenders — US Bank & PHH Mortgage Short Sale Successfully Closed*

Will Short Sales Be Pushed Off the Fiscal Cliff?

We can’t seem to hear enough about the fiscal cliff these days.  Undoubtedly, the decision to extend the Mortgage Forgiveness Debt Relief Act is bound up in the logjam of the fiscal cliff.  Indeed, given the current financial crisis, even the mortgage interest deduction seems up for grabs.  As a result of Debt Relief possibly not being renewed, many potential short sale sellers are wondering whether they should proceed with a short sale.

Every potential short sale seller’s situation is different.  Homeowner’s considering a short sale should begin the process by meeting with a real estate attorney, their tax adviser and a short sale agent.  For some, regardless of tax relief under the Mortgage Forgiveness Debt Relief Act, a short sale may still be the best option as bankruptcy is not an option, or because the person will still qualify for some tax relief under the rules for insolvency, and they truly must sell.   Divorce, job loss, drastic reduction in income, distant job transfer, and death of a borrower are traditional hardship reasons that will still affect many.

I’m not sure if our leaders will push the Mortgage Forgiveness Debt Relief Act over the fiscal cliff, but I do not think that short sales will go over with them.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of yourGrover Beach, Arroyo Grande, or Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Will Short Sales Be Pushed Off the Fiscal Cliff?*

Is 6 Months Too Long For Short Sale Approval?

I think 6 months is way too long for short sale approval.  Short sale approval doesn’t happen in one day and buyers need to understand that — I get it.  Lately, I’ve come across several short sale listings where the listing agent asks the buyer to wait tremendous amounts of time for short sale approval, between 4 – 6 months.  If you’ve done enough short sales, you’ve experienced a 6 month short sale, they do happen here and there.  For sure at the beginning of this crisis I would say a 5 – 6 month short sale was pretty typical for some lenders who shall remain nameless (or should I say shameless!).  However, I would have to say that 6 months for short sale approval is now very far from the norm.

As a short sale agent myself, when I’m told that my buyer needs to expect to wait an entire half of a year for short sale approval, I give pause.  I want to know why the agent thinks this file will take so long.  Are there two loans to negotiate and the second won’t process until the first gives approval?  Is there mortgage insurance on the note?  Did the Republic of Iceland file a lien on the property?  Does all information need to be coded and sent over to the lender in morse code?  Please explain… and make it good.  Often I find out that these agents are handing off their files to third party negotiators who are handling hundreds of short sale files.  I personally don’t think it makes much sense to hire a bureaucracy to deal with a bureaucracy and that may be the reason why their approvals are expected to take so long.

Even with low inventory, the prospect of sidelining my buyer for 6 solid months is not appealing in the least.  Something else WILL

come along.  Before signing a listing contract, potential short sale sellers should be aware, how their file will be handled, and the agent’s track record on approval.  I handle all of my short sale within my own brokerage and manage the communication on them personally to ensure a reasonable response time from the short sale lender.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Lompoc home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Is 6 Months Too Long for Short Sale Approval?*

CHASE Home Loans & CHASE Home Equity Short Sale Approved in 37 Days!

We closed this CHASE short sale in record time – 37 days total for approval.  This short sale was handled well by CHASE – it seems they have made some improvements in their processing, or at least it let’s you know when they want a short sale they know how to manage it fairly well.  In fact, CHASE reached out to the homeowner directly, offered a relocation  incentive, assigned it to a negotiator quickly, and ordered a valuation right off the bat.

There were two loans, both with CHASE, and instead of requiring two separate packages and dealing with CHASE Home Equity separately (as we’ve been required to do in the past), the file was handled by one negotiator.  This made the process super smooth and all parties were pleased as punch to close this short sale.  The buyer was able to close well ahead of the Christmas holiday and the seller was able to close well ahead of  the expiration of the Mortgage Forgiveness Debt Relief Act.  Have you received a letter from CHASE offering a short sale?    Are you considering it?

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of yourNipomo, Arroyo Grande, or Grover Beach home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Mint Properties is not endorsed by CHASE or an affiliated business of CHASE.

Copyright© 2012 Tni LeBlanc *CHASE Home Loans & CHASE Home Equity Short Sale Approved in 37 Days!*

BofA Introduces “Negotiation Agreement” for Loan Modifications

Recently, I was forwarded a recent loan modification agreement packet sent to a Bank of America borrower.  It included a document I hadn’t seen before.  It is entitled a “negotiation agreement.”  I’m not sure if they are using this agreement throughout the country or just California.  Definitely this was a document that has been needed for at least 4 years.

The following is a quick summary and is by no means complete.  It does not substitute for legal advice, and each borrower should definitely obtain legal advice before signing any written loan modification agreement with Bank of America or any other lender.  The new BofA “negotiation agreement” attempts to make clear that:

• Bank of America is working for the investor’s best interest not the borrower applying for a loan modification.
• Unless you have something in writing from them and signed by both parties — it is not an agreement.  (And of course, there is only one signature block on the document — for the borrower!  So, are they going to sign and return this document?  You gotta love BofA!)
• Until there is a new signed agreement they have the ability and right to enforce the existing loan documents.
• If your circumstance materially changes during the loan modification process you have an obligation to inform BofA.

This is important.  It’s been a long time coming for BofA to make clear that basically what people are told verbally on the customer service line is not meant to bind BofA.  How many stories have I heard on short sales, where borrowers were given bad information verbally and they relied on it to their detriment.  Situations where borrowers were told after a loan modification denial that they would be given 45 days for a short sale only to be foreclosed on by the bank in a couple weeks.  It is also important to point out that throughout the process the bank is working for the investor, not the borrower.  The bank is not truly there to “help” the borrower, they are there to protect the investor who owns the loan.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of yourSanta Maria, Orcutt, or Lompoc  home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *BofA Introduces “Negotiation Agreement” for Loan Modifications*