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Two Lenders – Bank of America and GMAC – Another Successfully Closed Short Sale!

This BofA and GMAC short sale took about 67 days for short sale approval.  It could have been a lot quicker but there were a few bumps in the road.  The first loan was owned byFreddie Mac.  I tried to make the servicer for the first loan, Bank of America, aware that Freddie Mac was using a new version of their standard short sale affidavit.  However, BofA refused to let us use the new addendum, and then weeks later after all four parties, two agents, and escrow agent notarized the first addendum, they asked us to notarize the new one.  <sigh>.   GMAC was very good at processing the file, although there was a bit of a debate about Freddie Mac guidelines, which amounted to about $300 of a discrepancy.  This also took time to resolve.  GMAC did process the file right away, and in fact their approval arrived long before BofA’s.  In my experience, Bank of America short sales now take about 45 days for approval, so the fact that there were two lenders may have added about 3 weeks to total approval time.  However, it is more likely that BofA’s Freddie Mac short sale affidavit error added that time to approval.  Nonetheless, persistence pays and it was approved and successfully closed! 

Those considering a short sale of their property should obtain legal and tax advice, and also consult with an experienced local short sale agent.  If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a no cost short sale consultation, please call my office to schedule a 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 the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

* 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. Any and all program benefits described are subject to change. Copyright© 2012 Tni LeBlanc *Two Lenders – Bank of America and GMAC – Another Successfully Closed Short Sale!*

Ihave a property near me that I would like to try to buy but would like to have a short sale specialist's help.

Mia can you contact me at bcheaven@bellsouth.net, thanks. Otis.

Hello,

Can you please forward me a copy of the Key Bank Short Sale Package?

Thanks so much!

Dee Psarros

602.486.5363

Dee@SellingAZRealEstate.com

Do you have a client walking the fine line between foreclosure and a short sale? They may have several questions regarding their predicament that you might not know the best way to answer. The good news is that’s what we are here for! We have compiled a few key points that should be made to a wavering client regarding their decision to short sale or not.

First, let’s start with the definition of a short sale:

In simple terms, a short sale is a graceful exit from an underwater mortgage. The lender will agree to sell the home for less than what is owed on the mortgage.

Secondly, what are the perceived advantages of a short sale?

1. Credit - If a homeowner decides to short sale instead of foreclose, they can become a homeowner again far quicker.  In fact, updated Fannie Mae guidelines assist homeowners in qualifying for loans just 2 years after their short sale. If a foreclosure is on record, it could take as long as 7 years to purchase again.
2. Short sellers could obtain additional time in the property - During a short sale, the homeowner could have more time to plan for what’s to come. Since the average short sale takes between 60-90 days, there isn’t a rush to immediately find a new residence. With a foreclosure, you could have as little as 30 days.
3. Short Sale Cash at closing / Relocation Assistance – There are many updated government short sale programs available and designed to assist the homeowner in need. Bank of America has recently begun to offer pre-approved homeowners up to $30,000 in assistance. We’ve also had Chase and CITI offer homeowners $12,000 - $30,000 as a cash incentive to the homeowner short selling their property. There is also the HAFA (Home Affordable Foreclosure Alternatives) program that is there to assist qualified homeowners with a relocation assistance of up to $3,000.
4. Mortgage Debt Forgiveness Act– There is the Debt Forgiveness Act of 2007 which may forgive the homeowners of paying the taxes associated with the cancelled debt of selling the property short. This is a question for a Certified Public Accountant.  Click here to see the Mortgage Debt Relief Act of 2007 as described by the Internal Revenue Service (IRS)

Lastly, what could be the perceived disadvantages of a short sale?

1. Credit - If a homeowner decides to take the route of a short sale, their credit score may be impacted due to the late mortgage payments and/or the reporting of the account being paid in less than full. However, it typically won’t be impacted nearly as much as a foreclosure.
2. Mortgage Debt Tax Liability – The seller may be responsible for additional taxes if they choose to short sell. If the lender agrees to the short sale, there may be a liability to pay taxes on the debt forgiven. It is important to speak with a tax attorney or professional regarding this matter.
3. Deficiency Judgments - In some states, the lender may be able to come after the homeowner for the deficiency amount.  In the state of California, for instance, there are Senate Bills that protect California homeowners who decide to short sale their property.  (Senate Bill 931 and Senate Bill 458). Again, it is important to speak with a tax attorney or professional regarding this matter.

At Short Sale Experts INC, we can answer these questions (minus the specific legal or tax questions) plus many more! We are here to help – our name says it all!

888-SHORT-20

Four months ago, I sold and close a condo owned by Fannie Mae-the buyer called me asking if she has ground to file a complaint against the selleer- who made her sign a disclaimer property sold "as is"

According to the buyer, she discovered the house was burnt and was rebuilt and put in the market, but she is now found out the floors was covered up by new carpets was all burnt wood underneth.  She first suspected it when after a month she start seeing black soot coming out of the carpets, probably sucked up by vacuum cleaner and now the buyer smell burnt in the closets and in the kitchen. 

They decided to look under the carpets and discovered the burnt wood- all black and damaged was covered by new carpeting.

Is there any grounds of filing a misrepresentation or fraud in this situatuon?

Please advise.

This Week's Popular Discussions

Discussions	Replies	Latest Activity
Realtors collecting fees for negotiating short sales. I have previously seen legislation stating that a Realtor could not collect a fee for negotiating a short sale, nor could he collect extra… Started by Wendy Rosenberg	8	5 seconds ago Reply by Bryant Tutas
Can mediation with attorneys from bank give you approval on the spot? I have two short sale listings and seller has an attorney, who advised her about doing a short sale on both properties. Does anyone know ab… Started by Carolina Gerdts	2	57 seconds ago Reply by Bryant Tutas
Should lender's closing instruction letter contain an explicit deficiency waiver? I'm about to close on my Chase short sale on June 7. Just got the lender's final closing instructions letter. Unlike the "conditional/preli… Started by Mark M.	3	2 minutes ago Reply by Bryant Tutas
Fannie Mae won't negotiate with us Seller here in the middle of a short sale. We have the approval to proceed but we cannot get the deficiency waived and we are getting the… Started by Melissa Taylor	5	2 minutes ago Reply by Bryant Tutas
Can Secondary Lender Take Relocation Assistance Funds? For my short sale, I'm approved for the $3,000 relocation assistance from my primary lender. I'm considering waiving the relo $$$ to keep… Started by JSav	2	3 minutes ago Reply by Bryant Tutas
HAFA Incentive being removed after 5 months w BOA Been working with BOA to get a HAFA file approved since 10/2011, 2nd offer 3/2012. There were many delays with the previous file due to no… Started by Jeanine Whitehead	2	4 minutes ago Reply by Bryant Tutas
Buyer appraisal $30k under offer - what are our options? Need some advice / suggestions - once again! We are the buyer on a SS - 180 days in as of today and still waiting for approval. We went a… Started by Tamara Vannest	8	4 minutes ago Reply by Bryant Tutas
Seller wants to accept a different offer. I have a situation where the seller has accepted a offer. Another agent has brought in a offer that is not as good as the first. The sell… Started by Susan Walski	5	6 minutes ago Reply by Bryant Tutas
Co op Short Sale with B of A now stalled in their "legal" department I'm a seller who is soooo frustrated with Bank of America. After a year and a half of trying to negotiate a modification, and my finally g… Started by Taunya Crilly	7	8 minutes ago Reply by Bryant Tutas
Coop Short Sale with BOA closed with a last minute surprise... Just had a Coop BOA close yesterday in Durham North Carolina . The seller incentive was $2500.00 and we were set to close at 2pm. I receive… Started by Julian Jahoo CDPE, SFR, ABR	2	9 minutes ago Reply by Bryant Tutas

Short Sale Superstars is owned and operated by REGrow, LLC

A Licensed Florida Real Estate Brokerage

ShortSaleSuperStars@gmail.com

DISCLAIMER

REGrow, LLC does not necessarily endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. REGrow, LLC takes no responsibility for the content on these pages that are written by the members of this community

Another La Quinta Short Sale listed, negotiated and CLOSED!  Cute as a button 3bd/2ba single family in the La Quinta Cove.  Seller paid $318,000 in 2006, then added granite counter tops, 18 by 18 ceramic tiles floors with hardwood floors in the bedrooms and even a custom fireplace mantle!  One note with Carrington Mortgage and SOLD for $135,000. 

Listed February 17, 2012.  Offer submitted March 15, 2012.  Approved April, 2012 and Closed 6/7.   Buyer used a conventional loan with 20% down and the loan took 45 days to fund/record.

Borrower relocated to start fresh.  Buyer is thrilled!

If you are thinking of shorting  your property in the Palm Springs Valley including Rancho Mirage, Indian Wells, Palm Desert or La Quinta, give me a call at 760-285-3578.  I'm certified, offer 5 years of experience with most Lenders, and references are provided upon request.  Free and discreet consultations of course!

I have a short sale approved with Bank of America here in Maine and the title attorney noticed the judgement period lapsed 2 yrs ago, but the foreclosure was put on hold due to the affidavit review. Now we are in need of a Waiver of Foreclosure, as the seller isnt technically a vested owner, I have submitted this to BOA and am waiting on them to sign off on it. We're getting a little nervous as its been over 2 weeks now.....Anyone experience this before? What is the likelihood they refuse to sign it? It would not make sense as they have approved the sale and this wouldnt jeopardize their position?

We've been working on a shortsale since March.  This is a $50,000 sale that they have countered and it is now at

$55,000.  We have been going back and forth and since the Buyer is a LLC, they have made several changes regarding the signing of the participant of the LLC. We are hoping that they have finally gotten this on the right track and approve it already.  This one has taken longer than expected. I tend to think the negotiator doesn't have the experience to really move it forward.  Hoping he surprises me.

Sharon Glick ABR., e-PRO

Realty ONE Group

7975 N. Hayden Road  #A101

Scottsdale, AZ  85258

Cell:  602-908-0725

Email:  Sharong75@cox.net

Good morning All!

We sent a contract on our listing to M & I and they demanded that the commission be reduced to 4% total, due to property price being over a Million, Can anyone help us please to what we should do to get the 6% ?

is this the norm and can they get away with it even if we argue and fight it

Thank you so much

Can we argue a 4% comission being offerd VS 6% on an M & I $1 Million contract we sent ( short sale )..

How can we get %6 ?  

With the passing of AB 284, shorts sales are HOT,  Sellers have a better chance of getting their short sales closed.  I am seeing the banks cooperating more today than in recent past.  If you would want to short sale your home this is the time to do it as the debt forgiveness act expires December 31, 2012.  

Good morning Superstars.

A big welcome to our 100+ new Superstars this week. Did you know one of the best features of Short Sale Superstars is having Lender info at your fingertips. We currently have 129 groups set up for Lenders.

Do you.......

• Need escalation information?

• Need a lender specific short sale package?

• Need the new HAFA guidelines?

• Need to know the FHA PFS guidelines?

We make is easy to find this information. Just go the “Lender Info” section of Short Sale Superstars and use the search function to find what you are looking for. If you are working with a Lender that we don’t have a group for then please feel free to start one. Add as much info as you can that will help our members.

Together we have made Short Sale Superstars the #1 resource for Short Sale information*** on the planet!!! Thank you.

****Based on traffic counts and content.

Here is today's market listings update for Active short sale single family homes located in Janesville Wisconsin. This information was pulled from the South Central Wisconsin MLS on 5/31/2012 at 10:30 A.M.

• 39 total short sale single family homes are listed in Janesville, WI
• Low listing price: $34,000
• High listing price: $399,900
• Average listing price: $109,992
• Median listing price: $84,900
• Average days on the market: 186

Of course these numbers change on a daily basis, so to obtain the most up to date information on current short sales for sale, please contact us directly at 608-921-8536. We would be happy to customize the search further for you to find the home that is just right for you.

As an extra benefit to Rock Realty home buyers, we offer a 1% broker commission rebate after closing. This could mean $1,500 back on a home purchase of $150,000. We love to hear how these rebates help our clients. Some use them for home improvements, while others simply put it in savings for future needs. It is a great option that we are happy to offer. Contact us for further details and limitations.

At Rock Realty, we currently have 4 great short sale homes listed for sale in Janesville. Feel free to visit our listings page linked below:

Wisconsin Home Listings 

Additional Short Sale Information

• Benefits of Buying an Owner-Occupied Wisconsin Short Sale
• Tips for Buying a Wisconsin Short Sale
• Buying a Wisconsin home after a Short Sale or Foreclosure
• What is a short sale?
• Is a Short Sale right for my home?
• Half of Homeowners Underwater on their Mortgage

I have a new file with a foreclosure date of June 5, 2012.  Wells Fargo has been backed up on imaging.  It's taken almost a week for the SS package to show up in their system.  Now I'm being told that there "is no guarantee that they will be able to stop the foreclosure." 

Can anyone give me an escalation phone number, email address or a place to send prayers to get this stopped.  File is a conventional loan.  My cell phone is 512-721-6320 for a private message or Carol@CarolPease.com. 

Please help me!!

Well that’s a good question. As most of you know the Mortgage Debt Relief Act of 2007 expires on 31 December 2012. This is creating quite the stir in the Short Sale world. In fact, many of the “Short Sale Gurus” out there, including CDPE, are using this as a reason to scare homeowners into doing a Short Sale now before they end up owing Uncle Sam a huge tax bill.

As with anything this important I have spent the last week doing as much research as I could on the issue. My conclusion is that if you do a Short Sale and end up owing taxes on the Forgiven Debt (deficiency) then you need to seriously consider finding a new Tax Professional.

Of course I am NOT a tax professional. This is just my opinion based on my research.

But this guy is a Tax Professional and his opinion is in line with my research. I bet he’d be willing to help you.

Some other resources.

IRS: Selling Your “Main Home”

IRS: Capital Gain Taxes

IRS: Form 982

This Week's Hot topics

REPLAY Member Webinar: Little To No Cost Marketing Ideas That Generate Leads Hi Superstars. If you missed this great Webinar on Tuesday here's the replay for you. Enjoy!! CLICK FOR REPLAY Started by you	0	on Friday
Short Sale buyer using FHA Loan/MHDC Assistance- major road block (Probable Septic Inspection issues)- Calling all SHORT SALE SUPERSTARS- Options? Hello All You Short Sale Superstars I am attempting to purchase a short sale home and have finally received approval from all parties ( aft… Started by Happy831	4	12 hours ago Reply by Jim Schneider
Citi approval requiring seller to continue payments until closing I received my short sale approval letter from Citi today and one of the terms of the approval letter is that the borrower "make all payment… Started by Ute Ferdig	1	21 hours ago Reply by Bryant Tutas
Fannie Mae loan, lender refusing to waive deficiency This is a great sight, so much wonderful information. I am currently residing in Texas trying to SS our house in NV. We moved 6 weeks ago.… Started by Melissa Taylor	4	yesterday Reply by Melissa Taylor
Short Sale Commander Do you need Short Sale Commander if you don't process your own short sale? Started by Trong Dang	2	yesterday Reply by Brian Avery
MI Approval and Release of Deficiency Balance When you receive an approval letter on a short sale that includes a deficiency release, can the MI company come back to the borrower for a… Started by Vicki Holmes	1	yesterday Reply by Brian Avery
Received update but not sure where we stand I hope you all don't mind us Buyers posting questions - but this is one of the few site resources I've found for getting real information o… Started by Tamara Vannest	3	yesterday Reply by Jim Schneider
Problem with new system at bank of America Before bank of America switch to the new system I had an offer submitted. Do to the problems with there system they could not upload file.… Started by Virginia johns	4	12 hours ago Reply by Virginia johns
HELP! Hitting so many roadblocks opening B of A FHA Short Sales. I'm having a heck of a time with B of A's new process for their FHA Short Sales. I have 3 right now, where they are having to deal with th… Started by Melinda Speth	1	on Thursday Reply by Evelyn Santiago
FHA Particiaption Approval I have a FHA short sale with WFB. The Approval to Participate ran out on Feb 3, 2012. When the approval expired, I was told by WFB to conti… Started by Dac Colden	3	on Friday Reply by Drew Ludlow

Short Sale Superstars is owned and operated by REGrow, LLC

A Licensed Florida Real Estate Brokerage

ShortSaleSuperStars@gmail.com

DISCLAIMER

REGrow, LLC does not necessarily endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. REGrow, LLC takes no responsibility for the content on these pages that are written by the members of this community

Feeling good on this one, sixty days from contract to short sale approval. Investor was Freddie Mac.

If you have a home loan through Bank of America and you are currently concerned about making your payments or your home is worth less than you owe, you may qualify for a short sale incentive from BoA. They refer to it as an 'enhanced relocation assistance payment'. To qualifying home owners/sellers, this could mean a check given to you for up to $30,000 after a successful short sale closing! Trust me, this is no scam. Here is a recent email that was sent to Bank of America Short Sale Specialists, like myself.

My name is Michael Collins, real estate agent and broker at Rock Realty. If you are currently considering a short sale in Wisconsin, I would be happy to walk you through the process and answer any questions you may have. I am certified as a Short Sales & Foreclosure Resource through the WRA.

Realtors® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities. The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk. Call my cell at 608-921-8536 and we can see if you qualify for any of these incentives.

Also feel free to fill out our simple
Short Sale Home Evaluation Form

Additional Short Sale Information

• Is a Short Sale right for my home?
• Half of Homeowners Underwater on their Mortgage
• Buying a Wisconsin home after a Short Sale or Foreclosure
• Benefits of Buying an Owner-Occupied Wisconsin Short Sale
• Tips for Buying a Wisconsin Short Sale