This past week, I got an ING Direct Short Sale to closing.  Getting there was full of directives from ING Direct that every Short Sale Agent in this country should be aware of.

For starters, our contract had the Buyer requesting closing cost help from the Seller.  After reviewing the contract, ING Direct, as the Short Sale bank, determined they wanted more money in the sales price and that there would be no closing cost help to the Buyer.  Since my Seller was now officially an investor, having moved out of state and rented the home for a couple years, he faced a tax implication on every penny that didn't go toward the pay off of his loan.  So when the Buyer agreed to increased sales price and no closing help, Buyer and Seller signed an addendum to those terms and we moved forward.

Next up was the forced use of ULS for the title company.  ULS stands for United Lender Services and they are located in Pittsburgh.  When I asked my negotiator how this was NOT a violation of CRESPA (a Buyer's right to choose whatever title company they like), the response was something like, "ING's lawyers have reviewed it and it's legal.  So does the Buyer want  this house or not?"

As the Listing Agent for this Short Sale, knowing that ING had also asked for a cash contribution from my client and that we were working with a title company that had no clue about our local tax rates and fees, I begged for a preliminary HUD.  I wanted to make sure my Seller wouldn't be overcharged for anything. The week of settlement, we finally saw a preliminary HUD.  Despite the fact the ING Direct has said that the Seller was not permitted to pay the Buyer's closing costs, there was the optional owner's title policy on the Seller's side where it did not belong.  When questioned, our ING Direct negotiator's response was, "Since we (ING Direct) is forcing the Buyer to use the title company, we have to pay for the title policy."  Problem is, ING Direct is not the Seller.  And the money was coming directly out of the net proceeds that was going to pay off the mortgage.  And remember, every penny not paid was a tax liability to the Seller.  THE SELLER WAS BEING FORCED TO PAY BASED ON WHAT ING DEMANDED.  And that was forcing the Seller into a higher tax burden with the IRS.  ING Direct seemed to not understand that they were NOT a party to this contract, merely a contingency to it.

We did an addendum, though none was needed and our regional sales contract clearly spelled out whose charges were what.  That was the only way ING Direct and ULS would have the owner's title policy on the side it belonged. 

Then came the sheer ignorance of working with an out of state title company.  They transfer charges, a Bueyr's fee, were on the Seller's side and there was no Grantor's Tax.  Again, I had to point out to the ULS and ING Direct the error or their ways.  They were in the process of violating our state statutes.  When I explained that, and who was to pay for what, and on what page of the contract they could find that information, it was corrected.

If you ever have to deal with ING Direct, make sure you save your emails and know your local charges and statutes.  I've already reported this to higher authorities.  And since it involved interstate commerce, I can probably add the US Attorney General to the llist.  I know that mortgage fraud is not worth anyone's time unless it involved a big fish.  Well, I believe ING Direct is a pretty big fish.  If you've had similar experiences, please contact the authorities. 

Here I am in beautiful West Vancouver, BC.  I was here last year with clients/friends, but in the Northern Vancouver area.  Both are gorgeous.  As I did last summer, I am experiencing the other side of the Palm Springs, Calif. real estate reality.

No Short Sales!

Strange, but true.  The Banks here are regulated,therefore, no unregulated run up of property value..just a steady, gradual rise.  Now, the Vancouver market appears to be blazing along.  In fact, at a dinner party the other night with 4 couples, 3 of the couples had purchased their first homes in the Vancouver area within the past year!  All are paying top $ and shared with me when asked, that "This is a Seller's Market!"  The dinner conversation turned to California real estate, and the explanation of Short Sales and how we got into this mess.  The looks on my Canadian friends' faces when we really started getting into the price/sf of homes in my desert area vs. cost to build/sf, was brilliant! 

"How can they afford to sell those homes that cheap?"

"Short Sales!"  Then the Short Sale talks begin. 

I do a fair share of equity sales in California as well as my Short Sales.  I have a fair share of the Canadian buyers purchasing their winter residences, and part of the reason I'm up here is because of a home that hasn't sold yet.  My client and I are doing some investigative work..why is it still on the market after 6 months?  I can tell you for SURE, that it is not a Short Sale. 

It is no wonder our Canadian friends are purchasing in California..particularly, the winter resort area of Palm Springs.  It's a quick flight.  The Canadian dollar is crushing the US dollar, and the winters here are cold, while us desert rats average about 80 degrees throughout the winter months..I cannot think of a better place to be in the winters.

Back to the investigative work today...working my California Short Sales as needed, but had to share here on SSS how lovely it has been to re-visit the real estate world of urgent Buyers.

Short sales are unquestionably becoming a viable option for most homeowners and are rapidly becoming popular in our country today. The Federal Trade Commission (FTC) recently cancelled rules set by the Mortgage Assistance Relief Services (MARS). Their reasoning was they did not want to “inadvertently discourage real estate professionals from helping consumers with these types of transactions.” The rules that were cancelled for those trying to assist consumers in obtaining approval of a short sale from their lender or servicer were required disclosures, recordkeeping requirements, and the legal option to charge upfront fees. However, there has been a huge debate on whether it is fair for brokers to charge upfront fees to homeowners who are pursuing a short sale.

*Email received from staff in the Bureau of Consumer Protection:
The FTC’s stay means that the mars rule does not prohibit real estate professionals who assist consumers in obtaining short sales from charging advance fees. However, the mars rule does not preempt state law. This, in turn, means that if a state law bars such advance fees, real estate professionals who operate in that state continue to be prohibited from charging them.

The basic premises of the debate amongst Realtors are:

• There are realtors who believe charging an upfront fee to sellers who are already struggling financially is unethical and even unlawful in their respective states. It exposes homeowners to realtors who are not experienced in short sales but are hungry enough to take on the transaction knowing there is a considerable chance of failure. If the short sale transaction falls through, the homeowners will be put in a position worse than where they started.
• On the other hand, there are numerous brokers who are experts in the field of short sales having successfully closed hundreds under their belt that advocate charging an upfront fee is fair because of their many hours put into the transaction.  If the seller simply decides to walk, the brokers do not receive any compensation for all their efforts put into the deal.  Remember, we are not talking about inexperienced, unsuccessful Realtors. The “stay applies only to real estate professionals who: 1) are licensed and in good standing under state licensing requirements; 2) comply with state laws governing the practices of real estate professionals; and 3) assist or attempt to assist consumers in obtaining short sales in the course of securing the sales of their homes.”

Is it wrong for them to charge a small upfront fee for their legitimate services? Some realtors claim that they had sellers who were excited for the upfront fees and hired them because of it. The upfront fee establishes a commitment in a transaction that is a prolonged process and requires many hours of effort dealing with banks/servicers, sellers, and buyers.

What is your opinion on this matter? Do you believe upfront fees are justified and even beneficial for the short sale or is it unethical for Realtors to charge prior to closing a short sale because of the detriment it may have on the homeowner in case of failure. Homeowner’s opinions are greatly encouraged.

Our team of agent’s stance is to not charge an upfront fee for any given short sale transaction.

Peter

*Agents/brokers, your comments on my blog are very welcome!! Thank you

WHY Short Sale ~ by Los Angeles Short Sale Agent

Why Short Sale ? These are 3 words that may be on the minds of many people in such difficult times.

What is a Short Sale ? A Short Sale occurs when the homeowner receives an offer from a buyer which is lower than the balance owed on the home mortgage. House values have declined so this may be the situation for many homeowners.

Why Short Sale ? People are feeling a burden of debt. Some are finding that they may be able to rent a home for less than they are paying for their mortgage payment, property taxes, insurance and maintenance on the current property.

Why Not Let the House Go to Foreclosure ? There is always tomorrow. In other words, we need to be concerned with our credit in the future. Foreclosure may reduce your credit score more than a Short Sale would.

Future Home Purchase could happen sooner after Short Sale vs after Foreclosure. Qualifying for a home loan after Short Sale of a house takes a shorter time period. Foreclosure will have you waiting for a long while.

If you are in California, there are 2 bills that are giving homeowners that Short Sale some protection.

Senate Bill SB 931 went into effect January 1, 2011 and prohibits a deficiency judgment after a Short Sale for First Trust Deeds (First Loan/Mortgages).

Senate Bill SB 458 now prohibits a deficiency judgment after a Short Sale for 1st AND 2nd Mortgages.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation - Mortgage Debt Relief Act of 2007

In certain circumstances, a homeowner does not have to pay federal income tax on debt forgiven on a loan secured by a qualified principal residence via a Short Sale. For tax advice, speak with your tax professional.

Feel free to contact me with any Questions. If you are not in Los Angeles area, I can still help. I belong to a network of Short Sale Agents across the United States. For more FREE information, visit my website www.Short-Sale-Vs-Foreclosure-Help.com

Received a response for my "CAR - Call To Action" call made and the response I received today!  It really does make a difference when we all take the time to have our voices heard!

Dear Estella:

Thank you for contacting me about H.Res. 25, legislation expressing support for the current Federal income tax deduction for interest paid on debt secured by a first or second home.  I appreciate hearing from you on this important legislation.

As you know, the home mortgage interest deduction allows Americans a federal tax deduction, based upon interest paid on a first or second home mortgage.  This deduction acts as an incentive for homeownership, providing relief for American families and promoting a path to homeownership for the middle-class.

I believe the strength of our economy depends on a strong housing sector.  At a time when our nation's housing market continues to recover, removing the mortgage interest deduction would serve to destabilize our fragile recovery.

H.Res. 25 has been referred to the House Committee on Ways and Means, where it awaits further action.  Please know that I will keep your views in mind, should it reach the floor of the House of Representatives for a vote.

Again, thank you for contacting me to express your support for the mortgage interest tax deduction.  To learn more about my work in Congress, or to sign up for periodic e-mail updates, please visit my website at www.house.gov/matsui.

Sincerely,                               DORIS O. MATSUI                     Member of Congress

Received a response for my "CAR - Call To Action" call made and the response I received today!  It really does make a difference when we all take the time to have our voices heard!

Dear Estella:

Thank you for contacting me about H.Res. 25, legislation expressing support for the current Federal income tax deduction for interest paid on debt secured by a first or second home.  I appreciate hearing from you on this important legislation.

As you know, the home mortgage interest deduction allows Americans a federal tax deduction, based upon interest paid on a first or second home mortgage.  This deduction acts as an incentive for homeownership, providing relief for American families and promoting a path to homeownership for the middle-class.

I believe the strength of our economy depends on a strong housing sector.  At a time when our nation's housing market continues to recover, removing the mortgage interest deduction would serve to destabilize our fragile recovery.

H.Res. 25 has been referred to the House Committee on Ways and Means, where it awaits further action.  Please know that I will keep your views in mind, should it reach the floor of the House of Representatives for a vote.

Again, thank you for contacting me to express your support for the mortgage interest tax deduction.  To learn more about my work in Congress, or to sign up for periodic e-mail updates, please visit my website at www.house.gov/matsui.

Sincerely,                               DORIS O. MATSUI                     Member of Congress

Closed another Short Sale in Rancho Mirage, California.  Recorded yesterday for $265,000.  Bank of America notes at approximately $485,000.  

My Seller is a lovely woman who LOVED this condo.  She and her husband spent many happy years there.  Her husband died a couple years ago, and it just became too emotional for her to live there.  Emotional as well as expensive.  She finally gave in and decided to short sale it with me. 

My Buyer is a Canadian who was looking for a gated community with lakes.  He got it!  This community on the Northern side of Rancho Mirage, Lake Mirage Racquet Club, is fantastic.  He has a lovely condo with a private boat dock, and Western views of the Santa Rosas' over the lake..yes, here in the desert!!!  We truly do have it all.

My Seller is relieved and her stress level plummeted yesterday with Recording.  My Buyer is thrilled to have his desert winter retreat..all is well in the Short Sale world. 

Short Sales truly are a tremendous way out for both Buyers and Sellers...I list, work and CLOSE my Short Sales.  No negotiation company used or needed.  I actually enjoy the negotiations!

Short Sale Tip # 61 Birmingham, Michigan:  Don't wait to start the short sale process. “You HAFA try!!” Mike Sher (248) 496-1572, Max Broock Realtor

 Often real estate agents wait to start the short sale process until they have an offer.  This is a BAD idea and if the seller is not making payments it is a worse idea.  In short sales, time is not on your side.  So why not try and make some headway with banks before you have an offer.  Perhaps the seller can go HAFA (Home Affordable Foreclosure Avoidance) program.  This program offers full deficiency release, $3000 seller moving allowance and once approved, the bank is able to make a decision 10 days after they get an offer.  Why not try.  Sadly, some agents would rather wait to get a buyer before they start the HAFA process.  Not sure why they wait, maybe they unaware or inexperienced.  Either way, it is a mistake.  I would recommend that one day one your realtor or attorney sends in the 3^rd party authorization.  Day two a call should be made to investigate different short sale options.  Day three an application should be sent into the bank to start the process.  After all, “idle hands are the devils tool!”

Sincerely,
Mike Sher
Max Broock Realtors
248 496-1572

2010 results: 75 units sold, over $10,000,000,00 in sales and 365 days of FOCUS!

The Mike Realtor Team sells Homes in Bloomfield, Birmingham, Beverly Hills, Farmington, West Bloomfield. Rochester, Troy, Novi, Huntington Woods, Royal Oak & Auburn Hills. Call us at (248) 644-4700 X 242 or check us out at www.ShortSaleOaklandCounty.com or www.mikerealtor.com Mike Sher

Short Sale in Indian Wells, Calif......APPROVED!  Just received my approval letter yesterday on this one.  From List to 8/15 COE will be approx. 120 days.  It is intriguing to me how some Short Sales sail along and others..seemingly very similar to my eyes, get stuck.  This one is a vacation home for my Seller.  He has two loans with Bank of America.

Primary Loan:  $417,000 due

Second:  $206,000.

APPROVED Sales Price:  $465,000. 

I wrote a blog yesterday about how much power the Negotiator assigned to your file, wields in the completion of the approval and eventual CLOSE of a Short Sale.  This is proof positive.  My negotiator was fantastic, and I sent her boss an e-mail about how well she handled my clients' file.  Professional, communicative, on top of the file from the get go..and here we are..almost done.  Wish I could request her again..

The other thing is that the loans were linked.  The second had not been cut up and sold, and most importantly, no MI. 

I list, work and CLOSE these babies...

Does anyone have a solution or contact name/phone for someone in IT Tech Support than can provide a solution without being told to restart the whole process all over again???? Why is this happening all of a sudden? I have a total of six files which overnight relfect 'UNAVAILABLE".  CS, negotiator, supervisors and IT Tech have no real answers or solutions....

How to Torpedo Your Orange County Short Sale

Almost 1/3 of the homes currently for sale in Costa Mesa are short sales.

In Huntington Beach, nearly half of the homes in escrow are short sales. This is a problem that isn't going away any time soon, and for some people it is part of their daily reality.

If you have to do a short sale on your Orange County home, there are several things you can do to torpedo your sale.

1. Don't Pay Your Homeowners' Association (HOA) Dues.

- Many of the lenders won't pay past due HOA dues, and the short sale can't be closed without bringing the HOA dues current.

- If you can, keep your HOA dues current or plan to bring money to close to pay for them. Sometimes the lender will pay them, sometimes the buyer will, and sometimes we need can succesfully negotiate the amount, but late HOA dues can torpedo a short sale on your Orange County home.

2. Cash out your 401K

- Most lenders consider money in your 401K, IRA or retirement accounts to be "untouchable" money, money they won't usually require the seller to contibute to the short sale.

- However, if you cash in your retirement account, the bank will consider it fair game for contributions. So, if you don't want to contribute your retirement to your short sale, don't cash it out during your short sale.

3. File Bankruptcy

- Many banks will not agree to a short sale while you are in active bankruptcy.

- If they do agree, it may require that your trustee and/or judge must agree to the short sale.

- The bank may choose to file a Motion for Relief from Stay to take your home out of the bankruptcy and remove bankruptcy protection, which will allow it to sell the home through a foreclosure regardless of the bankruptcy.

- If you can avoid filing a bankruptcy during the short sale process, it will increase the odds that your short sale will be successful.

4. Keep your home poorly

- Buyers will judge your home based on several things including price, location and condition. If your home is poorly kept or is not show ready, they may not make an offer on it even if it's well priced.

- So, keep your home show ready so that it competes well against other homes for sale.

- A little time spent now keeping your home nice will make it more likely that it will sell close to fair market value and thus make a successful short sale more likely.

5. Use your home as an ATM machine

- If you pulled money out of your home to pay off debt, buy cars, take trips, etc., it may be harder to obtain a short sale.

- If the loan is not "purchase money" ( the loan used to buy the house), it is more likely to be a recourse loan (meaning the lender could get a deficiency judgment against you for the amount they don't recoup from the foreclosure).

- If the lender can get a deficiency judgment, they may be less inclined to grant a short sale, particularly without a cash contribution and/or a promissory note signed by the seller.

This is not an exhaustive list of things that will torpedo the short sale of your Orange Count home, but it will give you some idea of the problems you face when short selling your home.

If you have questions about short sales or about options to short sale, please contact me at 714.319.9751.

Certified Distress Property Expert Rochester Hills Michigan, "FTC validates that Realtors play a vital role in Short Sale Success" Mike Sher, Max Broock, 248 644-4700x242

On July 15^th the FTC (Federal Trade Commission) statement admitted that their December 1^st 2010 MARS (Mortgage Assistance Relief Service) Rule, which created penalties and limitations for parties (including Realtors) who offer mortgage assistance for homeowners, had"...unintended consequences that might result from applications of the advance fee ban, in the context of a real estate professional assisting a consumer in negotiating or obtaining a short sale "  For that reason, the FTC will place "a forbearance of enforcement  that applies ONLY to REAL ESTATE BROKERS...who assist consumers in negotiating or obtaining short sale...:

This ruling proves that Real Estate Agents play a fundamental role in the short sale process.  If you are or someone you know needs to sell their home and has a loan that is greater than the value,  I urge you to find a local realtor who specializes in short sale or call me and I can help or refer you to a qualified agent in your area.  

The Mike Realtor Team sells Homes in Bloomfield, Birmingham, Beverly Hills, Farmington, West Bloomfield. Rochester, Troy, Huntington Woods, Royal Oak, Northville & Auburn Hills. Call us at (248) 644-4700 X 242 or check us out at www.ShortSaleOaklandCounty.com or www.mikerealtor.com Mike Sher  

It really doesn't matter how experienced you are as a Short Sale List Agent. It doesn't matter how many CLOSED references you have..again as a Short Sale List Agent.  When it comes to approval, it is a complete crap shoot with the Negotiator holding all the dice.

I can tell from the first e-mail exchange, and often phone conversation if they won't e-mail, whether or not I am dealing with a sane Negotiator. 

The WORST negotiator I have ever had in the past 5 years was a Chase guy..I can still hear his plaintive voice telling me, "I'm sorry, but your Seller has too much money.  She can pull out of her IRA and make that mortgage payment"

"No, she can't.  She's retired, this home was a retirement hopeful, and she will let it go to Foreclosure as she has another mortgage for her primary res.  However, she will definately make a cash contribution of the $10,000 you are requesting."

"Hmm..well, I understand what you're saying, BUT.  I also see here that she charged $500 to Victoria Secret over the past few months.  If she's so broke, why did she do that?"

I was cleaning my horses pens right then, and literally had to sit down on the wheelbarrow and put my head between my knees to keep from cursing like a wild woman.

He turned down the file. BAM!  Here's the kicker.  Chase called me two more times on this same file, requested that I re-open it because their guidlines had changed.  I did, they rejected it again..generic rejection.  "Your Seller has too much money."  She chose to send them a letter telling them they could keep it as she was letting it go to Foreclosure.  Almost 2 years later and it's still sitting empty, the landscape is shot and the pool is boarded over.  Good decision!

That first guy still holds first position as far as insane negotiators. 

We've all got our favorites...

No Deficiency Judgments after Short Sale due to Senate Bill 458?

Disclaimer: This article is not intended as tax or legal advice. Those considering a short sale are advised to consult an attorney and/or tax professional regarding any potential liability. This article is not intended to solicit listings currently listed with another broker.

______________________________________________________________________________________

About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.

If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes.  Click the link if you are interested in buying a home at a courthouse auction sale.

Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Federal Government Disclaimer (MARS) 

1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject or accept the offer, you do not have to pay us.  
2. Christine Donovan, DonovanBlatt and Donovan Group are not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Click Orange County homes for sale to view all OC homes for sale.

It's an answer to all of our prayers I'm sure. Begging them to consider your backup and not start over only to find out it gets reassigned to a new negotiator and the last has deleted your file. *small sigh of relief*

I'm sure you all received this email, but just in case this is what I got;

As an example of our commitment to improving the short sale process, Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still
work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.

When a Backup Offer Is Ready

You should send a message to your short sale specialist via Equator when the original buyer is no longer interested in the property. Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit. If you have another buyer prepared to make an offer, the short sale can proceed without having to repeat the short sale initiation steps. The short sale status in Equator will change to "Marketing," and you will be directed to complete the following tasks within 14 business days:

·       
Complete the
"Listing Data" task.

·       
Provide the
marketing description.

·       
Review the
marketing plan.

·       
Upload the
offer.  (To do this in Equator, locate "My Properties," then "Offers" and select
"Place New Offer.")

If the "Listing Data" task is not completed and the new offer is not uploaded within 14 business days, the file will be
closed.

When No Backup Offer Is Ready

This new process applies only if there's an available
backup offer when a buyer walks.  If you do not have a backup offer ready to be
submitted, the short sale will be declined.  In that
case, you should return
to marketing the property and initiate a new
short sale in Equator once you
receive another offer.

A new educational guide, How and
When to Submit a Short Sale Backup Offer, is available to explain the
backup offer process.  If you have any questions, please contact your short sale
specialist via Equator or call
Customer Care at 1.866.880.1232.

Visit the Real Estate Agent Resource Center at bankofamerica.com/realestateagent for additional
educational guides, news and resources to help you complete short sales at Bank
of America.

Los Angeles, CA – Just in, Governor Brown, signed into law today, SB458. This law will be written in the California Civil Code Procedures under CA CCP Section 580(e).

Get my Free, Step By Step Loan Modification Guide by clicking here.

What this law states is that if a homeowner does a short sale, where the property has a 2nd Trust Deed, that 2nd lender/investor can no longer pursue the homeowner for the deficiency balance if they agree to entertain a short sale. If you recall, SB931, which came into effect as of January 2011, protected California homeowners from their lender/investor from coming after them for the deficiency balance on ONLY the 1st Trust Deed. What SB458 does now is that it encompass the 1st and 2nd Trust Deeds and protects the California homeowner from the possibility of their lender/investor from perusing the deficiency balance.

In Layman’s terms: If the 2nd Trust Deed Lender agrees to the short sale, they’re also agreeing to waive their right to collect on the deficiency balance!

There are two key things to point out here:

1) SB458 does not state that the 2nd TD Lender cannot ask for a cash contribution from the seller at closing.

2) SB458 does not state that the 2nd TD Lender cannot ask for a unsecured note from the seller at closing.

Thinking about a loan modification? Our Glendale loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at cme4homes@jenniferescobar.com to request a Free Copy. Or, click here to request a copy.

Want more information about a California Free Loan Modification? Our FREE Loan Modification Services will help you get a loan modification approved with your lender. Click here to for more information regarding my FREE LOAN MODIFICATION SERVICES!

Thanks for reading this, Jennifer Escobar.

Jennifer is a Real Estate Agent at Qwest Real Estate.

My BLOG: CA Free Loan Modification Services | Los Angeles Short Sale

Los Angeles Short Sale Specialist | Los Angeles Short Sale | When to short sale in Los Angeles | Los Angeles Short Sale Taxes | Why Short Sale in Los Angeles | Los Angeles Short Sale Requirements | Los Angeles Short Sale Guidelines | How does short sale work in Los Angeles | Los Angeles Mortgage Short Sale

Bank of America Short Sales Made Easier?

Bank of America just announced a change in its short sale program that may make Bank of America short sales just a little easier.

Until today, if Bank of America short sales were entered in Equator and then a buyer walked, the whole short sale process would have to start all over again. Even if the new buyer made exactly the same offer, the process had to start all over again.

This week, finally Bank of America, decided this was unnecessary. Now the original transaction will continue with just the buyer substitution. This may not work in all cases depending on the actual investor on the loan. Still it's a definite step in the right direction and should help to alleviate the pressure and the wait when a buyer walks as they sometimes do during the Bank of America short sales process.

Originally published at Bank of America Short Sales Made Easier.

************************************************************************************************************************

About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.

If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes.  Click the link if you are interested in buying a home at a courthouse auction sale.

Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Federal Government Disclaimer (MARS) 

1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject or accept the offer, you do not have to pay us.  
2. Christine Donovan, DonovanBlatt and Donovan Group are not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Click Orange County homes for sale to view all OC homes for sale.

My client is doing a short sale on an investment property. Sales price is $175,000. The first mortgage, Citi, Is taking a short sale and allocating $4,500 towards the second mortgage which is 5th 3rd.

5th 3rd wants the entire remaining balance of $40,000 to be repaid by the seller. 5th 3rd wants the seller’s current 2^nd mortgage on the investment property to be transferred as a third mortgage on the seller’s personal residence. The seller may have maximum $5,000 to $10,000 equity in their personal residence, but not really if you factor in selling costs and closing costs.

5th 3rd demands, per some “policy”, to have the seller encumber his personal residence up to 140% of its value.

5th 3rd also disregards the seller’s financial statement. The financial statement shows about $2,000 monthly negative including the loans that are included in the short sale. After the short sale, the seller will be barely breaking even.

5th 3rd claims that according to his credit report he has $2,000 of discretionary income, even though the CREDIT REPORT DOES NOT REFLECT most of his expenses such as groceries, baby expenses (two babies), utilities and most of the expenses needed to run a household. 5th 3rd is plucking numbers out of air and is unwilling to explain their math.

The sellers refuse to jeopardize their personal residence and the roof over their babies’ head and are ready to pull the trigger on a chapter 7 bankruptcy to shake loose of the problem. They have spoken to a BK attorney who confirmed their chapter 7 eligibility. The BK attorney has sent a letter to 5th 3rd clarifying the situation.

5th 3rd also states they would rather get ZERO dollars in a foreclosure and bankruptcy rather than $4,500 now! Does 5th 3^rd get reimbursed more by TARP or other source if they get ZERO from the seller?

We have appealed and escalated to a manager, but 5th 3rd’s answer always comes back the same: FIRM DENIAL.

We now want to escalate as high as we can. Does the group have any experience, suggestions or contact info within 5th 3rd?

A similar situation was previously posted at http://shortsalesuperstars.com/group/fifththirdbank/forum/topics/lisa-i-am-in-the-same-boat-as . I have not been able to obtain the phone numbers that were offered in that previous post.

Any help would be greatly appreciated. I have not run into such a brick wall in the hundreds of liens I have negotiated.

Well this is kind of a big deal and very good news. Read the article from the FTC website here.

http://www.ftc.gov/opa/2011/07/mars.shtm

Good thing I didn't spend any money on bulk mailers!!

Personally I think I will keep right on using the disclosures. What about you?