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It’s a sign of the times!

Most of us grew up thinking that if we planned well and played by the rules, we’d never have to stand by as our financial lives unraveled. Here in Phoenix, Arizona many owners have done Short Sales in order to Avoid Foreclosure.

 With the upheaval on Wall Street, unacceptable rates of unemployment and plummeting real estate values have taken their toll.  Since 2007, 7.9 million homeowners have lost their homes to foreclosure. Current estimates are that one in four homeowners owe more on their mortgages than they could get from the sale of their home. Millions more homes will be lost to foreclosurebefore this real estate crisis runs its course.

 The sad fact is that foreclosure is not an isolated event. For months leading up to the loss of a home, financially strapped homeowners live under a cloud of uncertainty.  And then for many years afterwards, the blow to credit gets in the way of buying another home or buying anything on credit. Foreclosureeven complicates employment prospects.

 The impact of foreclosure in Arizona is huge and the sad fact is that it’s often avoidable with other options and many cases it's usually a Short Sale.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially strapped homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

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Among the most important facts to keep in mind: the sooner help is sought, the better the options.

To find out if a Phoenix ShortSale is right for you...Click here for your FREE REPORT NOW .....

These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of an unmanageable mortgage and realize that hope and blue skies are within reach, contact me today and let’s get started.

 

Do you live in Rocklin CA? How about Granite Bay CA? Or Lincoln CA maybe? Folsom CA? Well, even if you live in El Dorado Hills CA or Roseville CA this message may help you if your home mortgage is underwater or you have considered a Short Sale.

BLOG SERIES – “What Does a Notice of Default Mean?” CALIFORNIA SHORT SALES FAQ's RETURNS!!! for Rocklin, Roseville, Granite Bay, Folsom, El Dorado Hills, Lincoln and Sacramento CA

As a Rocklin CA Short Sale Listing Agent serving places like Rocklin CA, Granite Bay CA, Folsom CA, Roseville CA, El Dorado Hills CA, Citrus Heights CA, Sacramento CA and Lincoln CA... And others in the area, I get many questions regarding the process, lenders, what course of action should be taken... There are an endless number of questions that come up. So, I decided to start a BLOG series in 2011 regarding those Short Sale questions that I get asked. Here s a link to 10 Short Sale Questions and Answers and my answers BLOGGED previously.

That said here is the next question I hear from Sellers & General Public a lot:

"What does a Notice of Default mean?" ANSWER – In California, your first missed payment is technical default.  However, most loan servicers (i.e. – Bank of America and Wells Fargo are Loan Servicers) do not begin the formal process until the third payment is missed.  A Notice of Default is a document filed with the county recorder officially beginning a non-judicial foreclosure timeline. Once you receive a Notice of Default, foreclosure has begun.  You have approximately 111 days before the property will be SOLD AT AUCTION or taken by the bank if nothing is done to prevent foreclosure.  After a Notice of Default, the next document received will be a Notice of Trustee Sale.  We will summarize the Notice of Trustee Sale in a later post.  If you are not making your mortgage payment, it is highly recommended that you seek advice from a qualified Realtor or Real Estate Attorney immediately.

Do you hold a government position, are you in the U.S. Military or are you a Federal contractor? These and many other jobs often require asecurity clearance. If you are considering short sale or foreclosure, proceed with caution or your position may be at risk.

If you currently hold a security clearance, such as DOD  “Confidential”, “Secret” or “Top Secret”, and work for the Federal Government, at Eglin Air Force Base or Hurlburt Field, you may already know a credit check is one of the standard procedures to obtain your clearance.  A short sale, foreclosure, or deed in lieu of foreclosure, as well as missed mortgage payments, can all affect whether or not you retain your clearance.  

“Why should I care?” you might ask, especially if you are not in the military.  According to the Washington Post, over 850,000 Americans hold security clearances and one-third are NOT employed by the government.  Also, those who hold security clearances are among the top wage earners in the United States.  You don’t have to be a technocrat or engineer to require a security clearance. If you are a janitor, fire fighter, police officer, or administrator in a secure facility, for example, at an international airport, you may need a clearance.

Before proceeding with a short sale, I ask my potential sellers to check with their current or FUTURE security or personnel officer to find out how a short sale may affect their position.  Even though many have received the “OK for short sale, but not foreclosure or deed-in-lieu of foreclosure”, a few have not.  I recently had an airman from Fort Walton Beach Florida inquire about short sale.  He told me his new position would be overseas with an international military group, representing  the United States. I asked that he check with his security officer before proceeding with a short sale. The answer? “No way.” He would have lost his position if he had gone forward. Instead, he is going to rent out his property. (By the way, that potential seller had interviewed two agents, and I was the only one who mentioned this possibility.) 

How about another “at risk” scenario? I had a former short sale seller apply for an overseas position in the Middle East as a U.S. contractor after short sale.  All applications, interviews, etc., had been completed except for the credit check. The position was denied. Why? Short sale.  I don’t want to frighten anyone away from short sale who needs a security clearance, as these are the less frequent outcomes. But, I want to put out a strong warning, consult your security officer before proceeding.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

Niceville Florida Short Sale Help

Wendy Rulnick, Broker, is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". She has successfully helped hundreds of families avoid foreclosure through short sale along the Emerald Coast of Florida. Wendy Rulnick is knowledgeable in all aspects ofshort sale, including VA Compromise Sale, FHA HUD pre-foreclosure sale, HAP military PCS, HAFA, Bank of America Coop program and more.  She is also co-founder of www.ShortSaleSuperstars.com and short sale instructor to agents across the United States. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Panama City Beach, Eglin AFB, Hurlburt Field. 

When it comes to staying in a home in a new place, the first question that comes in your mind is whether to rent a home or buy a home. While you take out a home loan for owning a home, you have to take the best step forward so that you don't default on the monthly payments for which you have to take out yet another refinance loan. You've probably heard various statements that claim owning a home as a better option than renting it. But what are the financial implications that will support this statement and make a prospective home-buyer feel in favor of it? Read on the concerns of this article to know more.

The monthly costs of owning a house

When you own a house, the monthly costs that are associated with it are huge. If you add all the expenses of owning a house, this may be shocking enough for you. There are a number of fixed costs that you have to bear when you own a home. Have a look at some of them.

The home insurance payments:Yes, the mortgage loan lenders won't ever let you complete the deal on the mortgage unless you agree to pay the insurance payments. Therefore, you need to shop wisely. Though this is sometimes required by the homeowners, yet always it isn't a necessity. But if the mortgage lender insists you, you can easily take it out and then you're supposed to bear the payments throughout the term.

The PMI payments:If you haven't saved enough money and you're not able to pay down at least 20% of what you’re borrowing, you have to pay the PMI or the Private Mortgage Insurance. This is a financial tool that protects the lenders from the risk of the borrower's default. This may tack on a couple of hundred dollars every month.

The property taxes:Yes, these are something that can't be hidden either. Since you're staying in that property, you have to pay the taxes on the typically assessed value of the house. The property taxes can add hundreds of dollars to the already scheduled monthly payments.

Utilities and maintenance costs:When you're shifting from an apartment to a house, the extra square footage may translate into a huge utility bill. Apart from the utility bills, the maintenance costs are also something that you need to take into account when you calculate the financial implications of homeownership.

The monthly costs of renting a house

It is not that there are no costs in renting a home. However, most experts are of the opinion that the costs that you have to bear when you rent a home are much lower than that when you own a home. Check out the financial implications of renting a home.

The rent payments:In case of renting a home, your property taxes and insurance costs are zero. The rent that you have to pay will be clearly mentioned in the lease and will be paid at the interest rate stated in the lease. However, whenever you default on the rent payments, the owner may make any kind of changes to the agreement.

The utility and the maintenance costs:The utilities will usually vary from the home to the apartment size and to the highest extent, in case of rented apartment; you may just have to pay the electricity and the telephone bills. On the other hand, the maintenance costs are almost zero as this is the responsibility of your landlord.

Renter's insurance payments:Yes, you may sometimes need the renter's insurance payments and this may take away 33-45 dollars in a month.

Based on the above mentioned analysis, renting an apartment is certainly cheaper in comparison to owning a home, in terms of costs. However, when you rent an apartment, you can't build equity; rather your equity is being released. This is a disadvantage of renting a house. But when you're taking the final decision, formulate a budget and then take the best decision according to your needs.

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Cambrian Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  656

Short Sales: 130

REO:            89

Distressed sales as a percentage of total sales: 33.45

Compare to 2010

Total sales:   750

Short Sales:   114

REO:            104

Distressed sales as a percentage of total sales:  29%

My conclusion:

The percentage of distressed properties in Cambrian is higher in 2011 over 2010. Also a 34% distressed property sale percentage is absolutely probably not enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales. This is being seen all over the bay area.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

DiscussionsRepliesLatest Activity

Commission Dispute Question: I submitted an offer on a short sale which took 2 months for approval and were schedule to close, however, a day before closing t… Started by Tavo	9	42 seconds ago Reply by Bryant Tutas
Seller taking an offer before it hits MLS We are seeing a lot of agents pre selling their own own listings that are short sales before putting them on MLS. I know we have a fiduciar… Started by Stephen	64	1 minute ago Reply by Bryant Tutas
LCS and Buying Its Debt I have a client who wants me to take over a short sale that failed. She was offered $25,000 from Chase Bank. LCS is the second. LCS blocked… Started by ElizabethWeintraub00697006LyonRE	9	1 hour ago Reply by Bryant Tutas
Approval of a Trust Has anyone had a short sale approved for a property that was owned by a trust? If so, what documents did the lender require? Started by David Zagorsky	1	1 hour ago Reply by Bryant Tutas
I have personally bonused being part of the Advanced Traing Group! What is keeping you from joining? Just having help closing a deal made it worth it taking the worry and pain out of the paperwork, especially HUD-1 issues. Bryant and Wendy… Started by Teresa Simon	1	1 hour ago Reply by Bryant Tutas
HAFA vs. non HAFA What's the difference between a "HAFA approved" and a conventional short sale? Started by Eddie Kearns	3	18 hours ago Reply by Smitty
Looking for a good basic short sale program for organizing files w/o the hype & program salesmanship. We, an attorney paralegal and myself sat and watched as much of a webinar as we could bare today.  With the reinvention of the mls, picture… Started by Teresa Simon	7	19 hours ago Reply by Joseph Alfe
How to get the smaller deals closed Looking for tips on getting higher commissions paid.  On lower priced listings ($65k & below).  The lenders will not pay more then 6% o… Started by Jeanine Whitehead	4	19 hours ago Reply by Joseph Alfe
Help - Freddie Mac HAFA demands from seller Has anyone had this happen? The seller is being asked to pay them over $2,000 per month while we try to short sale the home and if we are n… Started by Kathy Marlowe	5	yesterday Reply by Bryant Tutas
Innacurate BPOs, Why? I may have just figured out why there are so many inaccurate BPOS. Check out this email that I just got from someone who will do my BPOs fo… Started by Jeff Payne	22	yesterday Reply by Jim Schneider

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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

It's the beginning of the year so time for the round-up of last year's distressed property sales in Los Gatos. So here's what happened:

Single family and condo townhomes :

Total sales:  421

Short Sales: 42

REO:            24

Distressed sales as a percentage of total sales: 15.7%

Compare to 2010

Total sales:   489

Short Sales:   36

REO:            38

Distressed sales as a percentage of total sales:  15.1%

My conclusion:

The percentage of distressed properties in Los Gatos is virtually the same  between 2011 and 2010. Also a 15% distressed property sale percentage is absolutely probably not enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in Milpitas. So here's what happened:

Single family and condo townhomes :

Total sales:  513

Short Sales: 150

REO:            112

Distressed sales as a percentage of total sales: 51.1%

Compare to 2010

Total sales:   535

Short Sales:   131

REO:            140

Distressed sales as a percentage of total sales:  50.1%

My conclusion:

The percentage of distressed properties in Milpitas is virtually the same  between 2011 and 2010. Also a 50% distressed property sale percentage is absolutely large enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Anybody have any luck with Short Sales when 1st and 2nd was part of a BK?

It's the beginning of the year so time for the round-up of last year's distressed property sales in Los Altos Hills. So here's what happened:

Single family and condo townhomes :

Total sales:  97

Short Sales: 4

REO:            6

Distressed sales as a percentage of total sales: 10.3%

Compare to 2010

Total sales:   81

Short Sales:   5

REO:            1

Distressed sales as a percentage of total sales:  7.4%

My conclusion:

The percentage of distressed properties in Los Altos is higher  2011 over 2010. 7-10% distressed property sale percentage is just beginning to affect values but I think there are other reason Los Altos Hills values are decreasing that are more important than short sales and foreclosures. The area is just not as popular these days as Atherton and Palo Alto are for the high end buyer.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in Los Altos. So here's what happened:

Single family and condo townhomes :

Total sales:  353

Short Sales: 4

REO:            3

Distressed sales as a percentage of total sales: 2%

Compare to 2010

Total sales:   354

Short Sales:   6

REO:            3

Distressed sales as a percentage of total sales:  2.5%

My conclusion:

The percentage of distressed properties in Los Altos is virtually the same  between 2011 and 2010. Also a 2-2.5% % distressed property sale percentage is not large enough to affect values. I think that while there may be a few more short sales this year Los Altos is so desireable and the employement rate is so high that the market should continue its strength.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

My seller ended up getting $30,000 from Chase and $3000 in moving incentive from HAFA program. Wonders never cease.

Wow!  I am loving Wendy and Brian and the information!  We have done a ton of short sales but this is good stuff!

Hi Everyone,

What are the current lender credits available to Sellers?

Hi Everyone,

We have had some success with a simple underwater mortgage hardship.  I am still hesitant to let that be the only hardship with folks.  Any advice?

Thanks in advance,

It's the beginning of the year so time for the round-up of last year's distressed property sales in Cupertino. So here's what happened:

Single family and condo townhomes :

Total sales:  453

Short Sales: 21

REO:            11

Distressed sales as a percentage of total sales: 6.8%

Compare to 2010

Total sales:   844

Short Sales:   31

REO:            33

Distressed sales as a percentage of total sales:  7.6%

My conclusion:

The percentage of distressed properties in Cupertino is virtually the same  between 2011 and 2010. Also a 6-7% distressed property sale percentage is not large enough to affect values. What is interesting is the number of total sales in Cupertino is significantly lower in 2012 than 2011.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

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Need Training?

Visit the

OR

Join the Advanced Training Group

****Must Be Signed Into The Site To Join The Group

Group members have access to:

1. ALL training webinars.
   1. Currently 11 Webinars with 3 more scheduled (Click to View)
2. Short Sale Listing Package
3. Expired Listing Letter
4. Lis Pendens Letter
5. FSBO Letter
6. Sample HUDs
7. Sample BPO Disputes
   
8. You will become a "Featured Member" under "Find Agent" for leads
9. Private Member Forum
10. Direct Access to Wendy and Bryant For Short Sale Help

Membership is Only $197.00

This site 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

In a briefing by Credit Suisse this week, the financial giant’s opinion was that reducing principal balances of underwater mortgages is a risky idea that has not been shown to keep underwater borrowers from later defaults.  In my practice as a Florida real estate lawyer, that opinion flies in the face of borrower sentiment.  The guiding force in the Credit Suisse statement seems to be the “moral hazard” argument, coupled with statistics about the failure of principal reductions helping homeowners.

As reported by Bloomberg News, Dale Westhoff on behalf of Credit Suisse said that of the 11 million “underwater” homeowners, about 6.5 million have never missed a payment and 2 million more are making on-time payments after delinquency.  He said that widespread principal reductions may drive defaults much, much higher as borrowers seek the aid.  But he also said that such wholesale principal reductions have never been done before and the associated risk is unknown.  Furthering that argument, he said that if principal reductions are offered, it may create the concept that the lenders are guaranteeing the value of homes.

Others don’t share the same view.  I for one find that 50% of those that seek my assistance have decided that without a meaningful principal reduction, they are merely overpaying rent and having a debt obligation as well.  This sentiment was predicted as far back as 2001. [See my article A HOME WITHOUT EQUITY IS JUST A RENTAL WITH DEBT]. 

While Fannie Mae and Freddie Mac maintain a no principal reduction policy, New York Federal Reserve Bank President William Dudley said this month that without a significant turnaround in home prices and employment, a substantial portion of deeply underwater home loans (as in Florida) will ultimately default absent a realignment of principal to market value.  This concurs with the findings I make in my office everyday by speaking with troubled borrowers.

Will the argument that principal reductions will bring out a flood of applications for similar aid hold true – I think the estimates of that flood are probably understated! - At least here in Florida.

The problem has been quantified by specialists as needing to avoid 8 to 10 million more distressed property sales through the application of principal reductions.  Although some programs for “short refinancing” are in effect, with 125% caps that is not enough in the hardest hit states – where the market value drops are far greater and the bulk of the problem loans exist.

From the macro viewpoint, short sale guru (as in billion dollar bets that the mortgage bonds would fail) Greg Lippmann wonders what the big deal is – since investors write down their portfolios anyway and have been doing business like this for years.

 It seems to me that writing down the loan at the borrower level will have the added benefit of lowering losses on the loan underlying the mortgage bonds, therefore stabilizing that market.  Without the help to the first tier borrower – the homeowner – the homeowners’ later default simply makes the foundation upon which the bonds are created subject to disintegration.  If we don’t see principal reductions then this is going to be a very slow recovery.  If we do see principal reductions we are liable to experience “non-qualified” borrower revolt and a new era of lending and doing business a very different way.

-----------------------------------------------------------

Copyright 2012 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader. Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com Website www.Florida-Counsel.com.

See our easy to understand articles at:

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

Since we (the buyers) started this endeavor in July (2011), we've pushed the foreclosure date 4 times, had countless negotiations with the bank and just this month we FINALLY came to an agreement with them. A verbal agreement that is. It's been 3 weeks and we still haven't received anything in writing so we pushed the foreclosure a 5th time. Is the bank just pushing it so they can keep sitting on this contract and eventually just say no? How long does it typically take from a verbal contract to a written contract? There are major HOA fees that are owed that we are willing to pay but each month this contract gets pushed, the HOA tacks on another $1,000. I need hope that this will actually happen. We are going on month 7. Thanks!

This Church Street home in Santa Rosa Beach Florida was originally purchased as a short sale in 2009.  For the second time, it is being sold as a short sale, just approved by J.P. Morgan Chase. The mortgage was backed by Ginnie Mae, and was a USDA loan, which offers  mortgages to rural areas throughout the U.S.  

Lender: Chase
Mortgage Type: Ginnie Mae USDA
Balance: appr $220,000
Junior Liens: none
Sale Price appr $200,000
Seller Cash Contribution: -0-
Seller Promissory Note: -0-
Deficiency: none

Although Chase's short sale approval letter did not specifically address a waiver of deficiency, the Chase negotiator quoted me USDA loss mitigation guidelines, which state there is no pursuit for the balance of the unpaid note.  I researched online and found the following information about USDA loans sold as short sales, which the USDA calls "pre foreclosure sales" or "PFS":

"A borrower who successfully sells the property securing the loan using the PFS option is relieved of the mortgage obligation. The borrower shall not be pursued for deficiency judgments by either the Servicer or the Agency."

Other things to note about USDA short sales - you must have a hardship, and be at least 31 days late on your mortgage payment or facing "imminent default". For more information about Ginnie Mae or USDA short sale help in Santa Rosa Beach, Florida, email me at itswendy@rulnickrealty.com

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

Santa Rosa Beach FL short sale help