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Glendale, CA Real Estate – Jennifer Escobar a Realtor at Qwest Real Estate recently received a question from Luis.

Here is Luis’s Question.

“I am working on a loan modification on my home. I just don’t want to be upside down and want a fair interest rate. Why should I pay on a mortgage that is twice as much as my home is worth, plus the interest on that mortgage? It just doesn’t make sense.

How can I get a loan modification with a fair interest rate where I am repaying what my home is worth today? Thank for your help, Luis.”

Here was my answer.

"You are asking for something that most lenders don’t like to do. Lenders don’t like principal reductions. Here is why!

Principal reductions usually have to be written down right away on their financial books. If you owe them $300,000 and they reduce your loan principal to $150,000, then they immediately have to reduce the company’s earnings by $150,000 for that fiscal year.

If they do that on enough loans, then it hurts the CEO’s ability to get a bonus. He may even risk losing his job. I don’t offer much sympathy to CEOs, but that’s how it works.

Here is what lenders like to do instead. They will reduce your interest rate to 2% for 5 years. After that, the interest rate will go back to the original level.

That way the write off will be much smaller than $150,000. It might be a $30,000 write off. That makes a much smaller difference on the CEO’s bonus for the year.

It’s also one of the reasons that most loan mod programs don’t work. The banks aren’t willing to be realistic.

It’s also why I think a short sale is the best principal reduction plan. You get to erase the bad debt. Rent a home for 2-3 years and then buy a new one at today’s market level."

Thanks for reading this, Jennifer Escobar.

Jennifer is a Real Estate Agent at Qwest Real Estate.

My BLOG: www.Glendale-ShortSales.com

Glendale Short Sale Specialists | Burbank Short Sale Specialists | Granada Hills Short Sale Specialists | North Hollywood Short Sale Specialists | Van Nuys Short Sale Specialists | North Hills Short Sale Specialists

Hello,

New to this site but so glad that I found it.  I only have a 1st with them and have an agent who is going to do an auction for us to get an offer asap to get it into LBPS.  My question is anyone out there who has dealt with them and how to go about getting it done quicker rather than having it sit there for 4 or 5 or 6 mths?  I know I am in the same boat as millions of other but I also know I can do things to improve my results.  Anyone out there know of great people to work with there or phone numbers other than the generic one they give you?  Also, are they really quick to star the foreclosure process like I have heard other bloggers say out there?  

Thanks so much

 Birmingham MI Short sale tip #59, "What do you mean I still owe money?"Mike Sher (248) 644-4700 x242 Max Broock Realtors Certified Distress Property Expert

Often Short Sale sellers are told that in a Short Sale you will not have to pay the bank back any money.  Some times that is true and sometimes it is not.  Remember when you got the loan you signed both a mortgage and a note.  The MORTGAGE is a lien on the home so if you default on the note, the bank has the right to seize the home as collateral.  While the NOTE; is a promise to pay the full amount of the loan no matter what. 

A Short Sale is when the lender releases the lien/mortgage and the borrower/seller then can sell the home for less than the note value.  BUT, your lender does not always release the amount owed. The borrower might have to sign a promissory note or renegotiate the terms of the deficiency post short sale closing.

Many borrowers/sellers are unaware of the fact that they might still be on the hook for the remainder of the loan until the day of closing or worse months after.  The borrowers/sellers post closing obligation is often determined by his/her future collectability and whether MI (Mortgage Insurance) chooses to be difficult.  Collectability is determined by factors like age, income, credit, employment and future income potential.  If the bank thinks the borrower is doing a short sale by choice and less by economic necessity, that borrower should expect to contribute in some way or this short sale is DIA.  As for the loans with MI, you should expect a fight from them no matter what the borrowers reasons are for the Short Sale.

Many borrowers/sellers become angry and decided to give up once they are aware of their need to contribute to the short sale.   They stop making payments and force the bank to foreclose on the home in hopes that doing so would hurt the bank. Sadly that is not true and the fact that CITI bank had record profits in 2010 shows that banks are just fine.   Plus in MICHIGAN it is important to understand that in Foreclosure the borrower will often owe more money and do great damage to their credit then if they completed the short sale.  That is why a Short Sale is often the better route even if you owe some money post closing then a MICHIGAN foreclosure.  My next blog will be on the ramifications of Foreclosure.  And like always seek legal and financial advice from an attorney and/or CPA before acting.

Mike Sher, Associate Broker,Max Broock/ Real Estate One, 248 644-4700 x242  ***Please be advised that Mike Sher, Katherine Green and Max Broock Realtors are not attorneys nor tax professionals. Our correspondence should NOT BE interpreted as that of the advice of legal counsel or tax professionals. We recommend seeking the advice of a tax and or legal professional with matters pertaining to Short Sales and other related questions.   ***

The other day an agent asked if she could have my “flight plan” to do a short sale. Per Wikipedia, a flight plan is a pilot’s outline of how he will get to his destination, including departure and arrival points, estimated time, alternate airports in case of bad weather, type of flight, etc.  This agent was sure I had such a document for short sales.  She had never had a short sale listing before, and was looking for a checklist.

Well, guess what? There is no “flight plan” that fits every short sale.  Sure, I can tell you the basic steps, but the number of variables would throw that plan off in a heartbeat. You might be trying for Wyoming, but end up in Oregon!  Here are some examples:

1.   The Seller – Every seller’s situation is different. Bankruptcy? Multiple liens? No hardship? Your approach will change for each circumstance.

2.   The Contract – What is  the  best way to write one to get approval?

3.   The Package – Many short sale lenders have their own forms and different requirements.  Do you know what they are?

4.   The HUD -   Each lender or mortgage type has unique stipulations as to what will be approved on the settlement statement. 

5.    The Lenders – What will the senior lien pay the junior lien, and what will the junior lien accept?

6.    Other Liens – How do you handle tax liens, judgments and association liens?

7.    Cash Contributions and Promissory Notes – When do they come into play?

8.    The Deficiency Judgment– Do you know what it is and if your seller can avoid it?

These are just a few examples of the variables involved in getting a short sale approved.  There are hundreds more.  So what do you do, if you’ve never done a short sale before?    One place to start is www.ShortSaleSuperstars.com– you’ll find over 5000 agents sharing information about daily short sale situations, problem solving, tips and tricks.

And  for some SERIOUS SHORT SALE TRAINING – watch for the upcoming short sale webinar from me andBroker Bryant.  We'll  be covering not only basics, but in-depth negotiating skills, deal-saving strategies and special short sale situations.  So be your own pilot to short sale success, and learn, know and grow!

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Copyright © 2011 REGrow, LLC | All Rights Reserved 

Just an FYI.  I faxed an LOA into the two numbers listed at the beginning of the Citi section 866-989-2088/2089 and when I called in they have no record and say that is not the fax number.

The SS dept gave me the fax number of 866-641-4350 as the best fax number for LOA and ALL other SS documents.

According to the Distressed Property Institute, more than 80 percent of distressed homeowners who go into foreclosure have never contacted their lender or a real estate professional for help. That’s a staggering number when help and relief are available.



Without fail, our phone rings off the hook near the end of every month from desperate homeowners looking for help. After checking the local foreclosure lists, we often find that the house is already scheduled for foreclosure the following week. At that point, it’s nearly impossible to get a Short Sale in place to stop it.

An important thing to understand about Short Sales is that the process is anything but “short.” The only thing “short” about a Short Sale is the payoff to the lender. The sooner the homeowner contacts someone for help, the more time is available to work the Short Sales process.

We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.

Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.



Based on "Avoiding Foreclosure - The Field Guide to Short Sales" © 2010 - Tom Branch and Gina Branch

Hi folks. Last year I had a closing for one of my Orlando Short Sale listings. This particular lender required all parties, including the agents, to sign an Arms Length Transaction Notice. This notice basically states.....well here it is. Read it for yourself.

Of course as an experienced Orlando Short Sale Agent and negotiator I explained this notice to the Seller not only at time of listing but also when it was received and before it was signed. It wasn't an issue as the Sellers were moving anyway and they certainly didn't know the Buyer. All parties agreed to the Arms Length Transaction Notice and signed it. Shortly thereafter the transaction closed and all was well.

Recently, and several months after closing, I was driving around and bumped into the Sellers. They were standing in the front yard of their old house. The one we did the Short Sale on!!

I pulled over to say "Hi" only to find out that they did not move and had signed a lease with the Buyer. I guess this all went down after closing. YIKES!!!

So what do we do now? Will the lender find out? Can I be held liable for an act I wasn't aware of? Can the Short Sale be rescinded?

I need an agent that handles the Sacramento and/or Roseville area in California.

My Niece and her Fiance are moving there and will be in the area this weekend.
They are looking for a House or townhouse with 2 or more bedrooms.

If you are interested, please let me know ASAP.

Thanks

PS-I apologize if I posted this in the incorrect area, I wasn't sure.

It's one thing to list a short sale and then hand it off to a negotiation company.  It's another to handle it yourself, keep your Seller and also Buyer's agent updated weekly, and then follow it through to a successful CLOSE!  I can do that for you!

To view my current listings and their status for the first quarter of 2011, please visit my website..

Short Sale First Quarter Status..

Thanks to Short Sale Superstars for many helpful exchanges between myself and other Short Sale Agents..we help each other to keep updated on Lender Rule changes and to get answers to difficult Short Sale situations.

Homebuyer Tax Relief Bill Passes Legislature on last day of 2010 Session MAR-supported legislation to allow foreclosed properties to retain their principal residence exemption for a period of up to 3 years has passed both the House and Senate, and is expected to be signed by the Governor in the coming days.

Senate Bill 77 provides for much needed Principal Residence status and tax relief to purchasers of bank-owned properties after the May 1st filing deadline.

This legislation has become particularly important since foreclosures, which are non-principal residences, have flooded Michigans real estate market in recent years. The current situation prices buyers out of homes by forcing them to qualify for a mortgage at the higher tax rate.

Those buyers looking to purchase foreclosed properties are consequently stuck with a significant tax burden for the remainder of the year despite making that new purchase their principal residence.

This bill would alleviate that burden by allowing a buyer to immediately make a foreclosed property their principal residence.

The MAR Public Policy staff met with legislators on this bill until the very last hours of the 2010 session to express the importance of making this tax-friendly legislation a priority.

We are pleased that legislators on both sides of the aisle supported the passage of this bill, which gives homebuyers significant tax relief when purchasing a foreclosed property.

Senate Bill 77 was vetoed by Governor Granholm on December 21st.

Newly elected Governor Rick Snyder needs to make sure this is done.

2010 Oakland County Michigan Short Sale, Bank Owned and Traditional Sale Market Share by Mike Sher, (248) 644-4700x242, Max Broock

So, what is the break down of the Oakland County Michigan housing market anyways? We have all read the articles, watched our CNBC and local media outlets. We have heard speeches from Bush and Obama, Granholm and John/Jayne Q Taxpayer; now here are the numbers. As the chart shows, the distress Market is a major part of the Oakland County housing market. Distressed sales made up 54% of sales in 2010, (of that 39% Bank Owed and 15% Short Sale.) The traditional sales market is now only 45%.

So what does that mean to the consumer; if you are buying or selling a home in Oakland County, you NEED a Realtor with distressed property experience. The traditional realtor is a dieing breed. The new Realtor knows about Foreclosures and Short Sales. He or She is well read and up to date on how this new real estate market works, acts and looks like. Even if you are selling or buying a NON-distressed home, your agent must understand the fundamentals of the distressed market. No home owner is an island and when 54% of the market is distressed, today's agent needs to be well equipped to get you the results you deserve.

To find out more on how the Mike Sher Team can help you, please contact me today.

 Mike Sher (248) 496-1572, mike@mikerealtror.com Max Broock Realtors 2010 Results, 65 Units Sold, $10,000,000 in volume and 26 Short Sales Sold

The First Step To Consider Taking To Avoid A Foreclosure of Your Kansas City Realty.  My first post of "What To Do Right Now If You Are Facing Foreclosure of Your Kansas City Home" outlined that there are possible options to foreclosure of your Kansas City realty. This is the second post in a series of posts that I want to share.

Before deciding that there is nothing that you can do to avoid foreclosure of your home, STOP and consider all options available. The first being to "talk to your lender" about the alternatives available to avoid foreclosure of your Kansas City realty. You may be very surprised to learn that there are several newer programs being offered that are more realistic than those that were previously offered. The Home Affordable Modification Program is one example. Other programs that I will be blogging about require following certain guidelines be met prior to making application.

The bottom line is DON"T believe that there is nothing that you can do. There are possible options to avoid a foreclosure of your Kansas City realty. But, you have to take the first step. Contact your lender and if that does not offer an answer, then there are other possible options.

I really want to help educate the public and those in need of gathering as much information as possible to better understand what you may be able to do to either avoid a foreclosure of your Kansas City realty, Kansas or Missouri. I have really learned, while working with foreclosures of Kansas and Missouri homes and while assisting home sellers with their Kansas short sale and Missouri short sale that knowledge can be power in your making the right decisions for your current and future well-being.

I will continue to provide updates to this subject over a short period of time. If you are facing foreclosure of your Kansas City home, Kansas or Missouri, please continue to read the upcoming posts.

Request a Free Confidential, no obligation, short sale or pre foreclosure analysis of your home and options that may be available to you.

It has been my pleasure to help a number of Sellers with their Kansas short sale or Missouri short sale. Consider me an available resource to help you determine what the best direction is for you to attempt to avoid foreclosure of your Kansas City realty.

__________________________________________________________________

Related Articles:

• Kansas City MO Bank of America Short Sale Listing Sold
• What To Do Right Now If You Are Facing Foreclosure of Your Kansas City Home

About the Author:

• Homes for sale in Kansas City Metro •What’s My Home Worth In this Market

Suzanne Hinton
Hinton Homes-Affiliated with ReMax Premier Realty
Voted 5 Star Best in Customer Satisfaction Real Estate Agent
Phone: 816-520-0917
Email: shinton@remax.net
www.hintonhomes.com

©2011 Suzanne Hinton-Hinton Homes-Kansas City Short Sale Realtor
Kansas City Short Sales

Short Sale Solds Report for Las Vegas Short Sales Sold in December 2010

LAS VEGAS SHORT SALE SOLDS FOR DECEMBER  1,232

A rise in closings for this month over last several months shows the push by everyone involved in processing Las Vegas Short Sales to get them closed faster!

LAS VEGAS SHORT SALE SOLDS FOR NOVEMBER 566

LAS VEGAS SHORT SALE SOLDS FOR OCTOBER 775.

LAS VEGAS SHORT SALE SOLDS FOR SEPTEMBER 879.

Now, this does not cover condos or townhouses, this is just for homes.

Short Sale Solds Report for Las Vegas Short Sales Sold in December 2010 *Las Vegas Real Estate Report* Short Sale Agent in Vegas  Dawn Barrier

Stats are on Resale Single Family homes only per the GLVAR MLS as of this writing, covers the Las Vegas Valley, North Las Vegas, Henderson area.

Is anyone having trouble getting Wells to approve final HUDS?  Apparently South Carolina is closed due to weather but they have no back up to approve HUDs for closing unless you yell and scream and demand that they transfer the file to another location (Milwaukee in our case)

Does anyone have someone to escalate this to?  Our final HUD has been sitting around since last Thursday.

Thanks for any input you may have!

We are a title agency that made handling short sales in the state of Ohio over 3 years ago.  We have a 90% success ratio and have closed over 300 short sales.  My theroy on short sales if you are a agent why would you want to hancle your own short sales when there is a company that will handle them for you so you can go out and work on getting the next deal. 

   We have contacts in many of the banks that we have built relationships with over the past 3 years that we can go to get a deal done.  We have a on staff abstractor to let you know immediatly what you are facing before you even list a property.  The lien search that we do will let you know what liens are against the property so we know exactly what we will be dealing with in the short sale.  There are no up front fees for this intial search it will be paid for in the short sale.  If you would like to give us a try, send me a email, again we only handle the state of Ohio .

Rochester hills mi short sale " Freeze On Foreclosures", Mike Sher (248) 644-4700 x242. Max Broock Oakland County 

As you can probably imagine, I have been busy helping distressed homeowners, and I wanted to take this opportunity to get in touch and offer my assistance to anyone you know who might be in a similar situation.

You've probably read or heard in the news that politicians across the nation are asking for a federal foreclosure moratorium. This may seem like a gift, especially during the holidays, but the reality is that a foreclosure freeze is not the answer to the problem of foreclosure.

You may know by now that I've earned my Certified Distressed Property Expert designation, and I am extensively trained to help homeowners who feel like they have no control over their situation take back this part of their lives.  I can provide important information, like the Five Steps to Avoid Foreclosure.

I've put together the five steps in a report that can be downloaded on a website I've set up:

http://shortsaleoaklandcounty.com/Freezes-in-Foreclosure.aspx

Please send this link to anyone who might find it helpful today.  The first step for any distressed homeowner to avoid foreclosure is to take action now!

I hope you and yours have a wonderful holiday season and I look forward to hearing from you.

Sincerely yours,

Mike Sher
mike@mikerealtor.com
248 496-1572

Ministerio El Shaddai, the North Phoenix church which faced foreclosure last August, will be able to stay in their current facility as a result of an American Homeowner Preservation short sale leaseback. The church’s lease payment of $759 is 50% less than their prior $1,500 mortgage payment with One West Bank(formerly Indy Mac). In addition, the church received an option to repurchase at $48,300, a 74% discount off their prior $184,500 mortgage. One West made an exception to their arm’s length short sale policy to allow the seller, Pastor Edgar Vanenzuela, to have an interest in the entity receiving the lease and option, Ministerio Mi Familia Corporation.

“We stayed strong in faith while waiting for the outcome  and God will bless AHP and One West for their works. This is truly a miracle,” said Pastor Valenzuela. “They can’t believe that AHP was able to save the church. This is unheard of according to many church members. All they see is banks stealing homes from them, and they saw Indy Mac(now One West) no differently and assumed the worse,” added Gilbert Bivens of Aztec Financial Resources.

Media coverage of the church’s August foreclosure scare attracted many new congregants to the church. “90% of the seats are full every Sunday,” said Pastor Valenzuela. As a result, church finances have improved significantly.