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Does anyone know what is happening over at Specialized Loan Servicing?  I have been trying to get a hold of someone for quite sometime and have not been able to.  None of there numbers seem to be working....any suggestions?

So far, Chase has been on the ball with asking me for information.  I just submitted the last of the paperwork to Chase for HAFA approval. 

They have the first and second.  Does anyone have suggestions for me?  Sorry.  I have NO experience with HAFA at all. 

On Friday, Ocwen refused last-minute pleas from American Homeowner Preservation and others to allow an Akron policeman and his family to stay in their home of 14 years. At 10AM, the Summit County Sheriff’s Department conducted their sale with a starting bid of $52,000. As there were no bidders, Ocwen will take ownership of the home, evict the policeman and his family, scarring this modest Akron, Ohio neighborhood with yet another vacant bank-owned home.

Tragically, this foreclosure could have been prevented. Ocwen had approved a $43,000 short sale through American Homeowner Preservation, but insisted that “neither the Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at any time after the execution of this short sale transaction”. This provision did not allow AHP to proceed with the purchase, as AHP’s program provides a lease and option to the family to allow them to stay in their home and eventually repurchase. In an email to AHP today, an unidentified Ombudsman at Ocwen wrote “Ocwen will not waive this requirement.  The foreclosure sale of the property is scheduled for today, January 7, 2011, and Ocwen will not postpone the sale for a potential short sale.”

The U.S. Treasury has committed $1,143,252,740 of Mortgage Servicer bailout funds to Ocwen as incentive payments to complete mortgage modifications. “Many families are unable to qualify for modifications and look to solutions such as AHP to stay in their homes. The $43,000 AHP short sale would have assuredly netted more to Ocwen and their investors than they will ultimately net by foreclosing and evicting this family,” said AHP’s John Wills. “Our hope now is that Ocwen will sell this REO to AHP. There is still a small chance that this family can stay.”

I notified the selling agent that the offer his client has presented on my listing  and submitted to ING, will not be considered per ING and that the property is going to auction 1/7/2011. The offer was substantial considering ING valued the property at $337,716 and the offer was $325,000 + $10,000 BUYER  paid repairs to be completed prior to closing to obtain financing on the property.....basically $335,000. The selling agent called ING, not because he didn't believe me, but because he takes his responsibility to his client seriously and wanted a clear explination, as I could not expand on ING's decision, because they REFUSED my call AND the calls of the homeowner. Negotiator Nancy Larson then called me and threatened me........that if..... I DIDN'T CALL THE SELLING AGENT AND TELL HIM TO QUIT CALLING AND CEASE TRYING TO CONTACT HER SUPERIOR.........SHE WOULD PUT ME ON THE LIST OF AGENTS ING WON'T DO BUSINESS WITH.  Without a doubt the most outrageous attempt of intimidation,  I've ever encounter in 19 years of real estate practice. Who do these people think they are? Instead of allowing Real Estate Professionals to move homes, unprofessional, ill-mannered hacks blow off legitimate offers and continue to inflate the local inventory with REO Garbage! When you have to ask for your next price reduction..........this is why!

AND PUT ME ON THE LIST..................I'll bet it's good company!

Glendale Short Sales | Burbank Short Sales | Granada Hills Short Sales | North Hollywood Short Sales | Van Nuys Short Sales | North Hills Short Sales

On November 9, 2010 my in-house short sale negotiator, Patrick Aladadyan, submitted a short sale offer to Chase! The offer was for ALL CASH for $210,000. On December 3rd, I received a call from the assigned negotiator that the "investor" did NOT want to entertain the short sale offer and would proceed to foreclose on the property. I politely said thank you to the negotiator and stated that we would be contacting Freddie Mac to see what they had to say about the file. My negotiator, Patrick Aladadyan, has a handful of contacts @ Freddie Mac that have been helpful in the past and decided to send them an email along w/ the complete short sale offer.

Here's the email that was sent to the contacts @ Freddie Mac on Dec 2, 2010:

"Hello…

I'm currently working on a short sale with Chase; which is a Freddie Mac owned loan, and was notified today that the "Investor" has declined to extend the sale date of 12/13/2010. I currently have a ALL CASH offer to purchase this property for $210,000. This offer will net Freddie Mac, $179,185.44. I've attached a Foreclosure vs. Short Sale Calcutions showing the the benefit of a short sale; which is currently @ 0.74 on the dollar as apposed to 0.68 on the dollor on a Foreclosure. I've also attached the offer of purchase and proof of funds showing the buyer has the funds to purchase the property ALL CASH. Furthermore, I've also attached the online printout verifiying that this note is owned by Freddie Mac along with the HUD reflecting the net to Chase/Freddie Mac. Please let me know if you can assist in this matter…it's a mutually beneficial transaction for everyone involved.

Thank you in advance…!"

Received an email back from our contacts on Dec 3, 2010:

"Thank you. We will reach out to you today to better understand these issues. Let me know what time is good for you. Someone from my team, who works directly with Chase on a daily basis will work with you on this issue."

Received another email correspondence back from our contact on Dec 14, 2010:

"We met with Chase today and your short sale issue is being researched...T., will you be on point to keep Patrick posted this week since our teams work through this issue behind the scenes"

Received Short Sale Approval from Chase on Dec 23, 2010:

Please see attached approval letter w/ the initial fax cover sheet verifying the date of short sale submission to Chase!

Fax Cover Sheet: Di4701101061459.PDF

Chase Short Sale Approval Letter: Di4701101061458.PDF

The point here is that you should "NEVER" give up and think of ways outside the box to get these short sale transaction successfully negotiated and closed!

Thank you...Jennifer Escobar @ Qwest Real Estate

My BLOG: www.Glendale-ShortSales.com

The Great Real Estate Debate

Every day I am asked by clients what my market predictions are for 2011.  I tell them. . .There is a great debate about what is to come and it is hard to know (short of a crystal ball).  We hear news about millions of foreclosures in the pipeline. We also hear that the delinquency rate on home loans is improving. In the debate regarding the recovery of the economy, certainly real estate is front and center. We can’t have a strong recovery unless real estate contributes positively to economic growth. CNN/Money posted an interesting article during the Holidays. On one side, Bill Ackman, founder and CEO of hedge fund Pershing Square Capital Management and Warren Buffett both stand on the side of the bulls who say it is time to start investing in real estate. Meanwhile, Rick Sharga, a senior vice president at RealtyTrac which is an online marketplace for foreclosure properties, highlighted the impending foreclosures to predict lower home prices in 2011. Who is right? In reality, the news will probably be somewhere in-between. In the next two weeks, we will list the reasons for and against a real estate rebound in 2011. Meanwhile, market watchers will be looking at the employment report this Friday for evidence of how the economy was doing as we ended last year. Certainly, the news that initial claims for unemployment dropped below 400,000 last week is good news although readings over the Holidays can volatile. Overall, the direction has been positive in the past two months with regard to lessening unemployment claims.

The reasons for the real estate market to get stronger in 2011:

• Homes are more affordable than they have been in a generation due to low rates and lower housing prices.
• The economy is improving and jobs are being created, unlike the previous three years. As the economy improves, household formulation will rise as well.
• While credit standards are tight, we have probably reached the height of the credit cycle and as real estate recovers banks will be more anxious to lend. Along the same lines, as rates have crept up, refinances are down and that means banks will be competing for a smaller market share of home loans.
• The population is growing at a rapid rate. We are now over 300 million. These people need to somewhere to live. Even those who are foreclosed upon will need to live somewhere–and not necessarily in an apartment.

 ~Trisha Bush, Principal Broker

Cell: 509.301.0975

Short sale - West Bloomfield MI Tip #58, don't realize to late that your agent is not a Short Sale realtor,. Mike Sher (248) 644-4700 x 242 (edit/delete)

Wow, I just got a call from one of our soldiers overseas who was to closing on a Bank Of America Short Sale today.  He started off with "I know you are not my Realtor but I need your help."  He proceeded with the story of how he was suppose to close on a home today but both Realtors were unable to reach Bank Of  America (BOA) to get the final ok on the short sale.  Their BOA contact was out of the office and was unreachable. His wife flew in to Detroit from Washington State for the day and needed to fly home.  If they could not close today, they most likely will not be able to buy the house since his wife is needed back home and he was ½ way around the world. 

Side note: The first mistake was made when the closing was set without the BOA's contact knowledge.  We must remember that these negotiators do get sick and have vacation time and they are not available as needed.   The listing agent most likely made the amateur mistake of not keeping the BOA negotiator in the loop.

Back to the story:  I proceed to let him know what I would do.  I would have the 3^rdparty authorized person call 866-880-1232 BOA's short sale hot line and find out who is covering for the negotiator in his/her absences.  RULE number one of getting unstuck in a short sale is going back to the beginning.   Many Realtors just end up filling the voice mail of the negotiator they have in hand and wait for a call back.  You must look at short sales like chess, just because a queen is considered the most revered piece, often the pawn is what gives you the check mate.  These Pawns/customer service/ Short Sale support people often wield more power and know how then the King, queen, or knights all put together.

After the agent calls the main short sale dept, then they should shoot an email to the negotiator that is out and see what the auto reply says.  Often the auto reply will give you the name of the person you should talk to in their absence.  Next, call and email all of the parties that the agent spoke to in the process getting the short sale approved.  This again is "the going back to the beginning approach", remember, the agent spoke to a lot of people before she/he got the approval.  Any of those people might be able to get you back on track.  When one gets lost in the woods, they go back to the last wrong turn they made and then make the right turn.  Same thing in short sales, better to take 3 steps back then 10 steps further in the wrong direction.  The next thing the agent should do is go back on to equator to email all of the parties available explaining that our negotiator is gone for the day and we have to close.  I would add that the buyer is a soldier serving over seas and this situation is really causing him a lot of stress.  Every one appreciates what our solders are doing so adding that detail should help.   After that email is sent, the Realtor should get some action soon. 

The real issue at hand is that neither the listing agent nor the buyer's agent really know what they are doing.  The fact that this soldier/buyer had to contact me off of a blog that I wrote from across the world because his agent did not know what do and was unwilling to call for help herself is VERY sad. That is why it is so important to get a realtor who knows short sales.  Whether you are buying or seller a short sale home, an experienced agent makes all the difference.

Mike Sher, Max Broock Realtors, Bloomfield Hills MI, Shortsale@mikerealtor.com and (248) 644-4700 x242

Short sale was approved, but buyer walked. A week later, I submitted a new offer which met all terms as required by lender. Aurora said it takes 2 months to review it.  Why didn’t they make an exception and jump at this GOOD offer?  What can I do now?  

5 Reasons Why A Loan Modification May Not Be the Answer for You

When considering whether you should pursue a short sale or a loan modification, homeowners should consider and discuss the following issues with their legal counsel and tax advisor.  

•1)      Not every loan modification solves an equity problem.  If your house is worth half of what you paid for it, a loan modification may not solve your problem, unless it includes principal reduction as a part of it.  Bank of America rolled out a principal reduction program in June of 2010, and recently, Wells Fargo Bank announced that principal reduction will be a part of its "pick a payment" settlement with the California Attorney General's office.   (This list, of course, is not exhaustive)  Also encouragingly, the HAMP program has rolled out the Principal Reduction Alternative.  However, if your bank will not offer principal reduction as a part of its loan modification options, or you do not qualify for principal reduction, (and you have an equity problem), a loan modification may not solve your real problem. 

•2)      You haven't made a payment in a REALLY long time.  Ever wonder how your bank will handle the fact that you haven't made a payment in such a long time?  Unless they offer the aforementioned principal reduction or payment forgiveness, they will more than likely take the amount of your back payments (along with the penalties for late payments) and stack it right on top of your loan balance, creating an equity problem, or making an existing equity problem worse.  If you haven't made a payment in a year or more, this amount can easily amount to tens of thousands of dollars.  You and/or your legal advisor should inquire with your bank about how they will deal with the fact that you are not making payments.

•3)      Your market is still declining.   Here is where consultation with a real estate professional or appraiser can help.  Is your market still declining?  Even if your bank offers you a principal reduction with your loan modification based on what the home is worth today, if the market is still rapidly declining you could still end up in a negative equity position again soon.  So then even if your payments are now affordable, you may still face the inability to sell in a few years if your equity position is in the negative. 

•4)      You've already been served with a Notice of Default.  The foreclosure process should be halted during consideration of a HAMP loan modification.  And, if a HAMP loan modification is denied, the servicer should then consider the homeowner for any of their other loan modification options available and/or a short sale (if the homeowner requests it).  However, homeowners should be aware that the filing of a Notice of Default in California is definitely a reservation of the lender's right to foreclose.  You should be mindful of any deadline in place regardless of your loan modification application.  If all your other options have run their course and you are relying on 30 day extensions of an auction date, you could easily run into problems.  Will you be able to switch the file into the short sale department if the loan modification is denied 7 days before auction?  That could be tremendously difficult, as some banks (as a practical matter) take weeks to even acknowledge receipt of correspondence.  Further, if you must submit a complete short sale package (including an offer) in order to be considered, you could then be in the position of obtaining an offer (that your bank will accept) in a very short time period.   I have seen a number of homes fall in to foreclosure for this reason.

•5)      You really want a clean slate.  If what you truly desire is a clean slate, a loan modification may not solve your problem.  A successful short sale can help you to avoid foreclosure or even in some cases bankruptcy.    If you short sell your property, you may be able to get a new loan in 2 - 3 years under current FHA and Fannie Mae guidelines.  Also, under the Federal Mortgage Forgiveness Debt Relief Act of 2007, sellers have a limited window of opportunity (until the end of 2012) for potential tax forgiveness on the short sale of their principal residence.  Also, California state tax relief is limited as well until January 1, 2013.   These favorable tax laws could be extended, but they also could not be extended.  If what you truly desire is a clean slate, a loan modification may not be the answer for you; you could need a short sale to truly wipe the slate clean and move forward with your life.

Unfortunately, loan modifications have not turned out to be a long term answer for some people.  It does not take a rocket scientist to figure out what is needed to keep most people in their homes; however, time and time again, the banks refuse and it does not happen.  Homeowners and their legal and tax advisors should make an honest assessment at the outset and also during the application process as to whether a loan modification will truly be the answer for the homeowner's financial difficulty.  I am a Certified Distressed Property Expert and a Certified HAFA Specialist and I can provide you with a short sale consultation that will include an analysis of current market conditions.

Tni LeBlanc, Mint Properties
Broker/Attorney, Short Sale Agent
CA DRE License # 01871795
(805) 878-9879

Serving  Santa Maria, Orcutt, Nipomo, Los Alamos, Santa Ynez, Los Olivos, Solvang, Buellton, Lompoc, Arroyo Grande, Grover Beach, Pismo Beach, and Avila Beach.

*Nothing in this article is intended to solicit listings currently under contract with another broker. 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 - this article does not offer legal and tax advice.

Copyright © Tni LeBlanc 2010 *5 Reasons Why A Loan Modification May Not Be the Answer for You*

This lightning speed short sale approval for a Fort Walton Beach Florida townhouse in Shangra Woods was a great way to start 2011. How long did it take? 15 days!

December 20: Short Sale package faxed to Citi Mortgage

December 29: Negotiator assigned (who says people don’t work over the holidays?)

January 4: Approved!

This Fort Walton Beach short sale seller had one mortgage, which helped the process.  This was not all “slam-dunk”, but close.

Citi slightly countered the purchase price with a minimum net requirement.  I questioned the settlement statement, asking if all fees would be approved if the net were met.  The buyer had asked for 6% closing cost credit.   Citi limited the amount to 3%.  (Many short sale lenders will not pay more than 3% if they even agree to extra closing costs for the buyer.)

The thorough package and excellent communications with the negotiator were the keys to success.  Result?  Happy New Year!

If you are facing foreclosure in Fort Walton Beach Florida, be sure to consult an attorney and an experienced Fort Walton Beach short sale agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Fort Walton Beach Home Search

Fort Walton Beach Short Sales & Pre Foreclosure Help.

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

OK fellow short sale experts, I need some NEW suggestions...

Been working on a deal for quite some time (with Chase) and now with approval in hand the sellers are refusing to sign due to the deficiency verbiage in the approval letter. 

What's working right now??  Any suggestions other than starting over or walking?  Much appreciated!  Thanks.

Oakland County Home Owner:
   
Happy Holidays! I hope you're well and 2010 has been prosperous for you. Now that the year is almost over, I'm reminded to set new goals and to ask you for help in achieving one of them.
As a CDPE-designated agent, I have received extensive training to help those struggling to make mortgage payments avoid foreclosure. I provide homeowners with alternatives to make the best decisions in securing their financial futures.

My goal for 2011 is to help as many people as possible either stay in their homes or pursue other avenues to avoid foreclosure. I want to help make financial stability their resolution for 2011. I've even created a free report at the following site to help:

http://shortsaleoaklandcounty.com/

The report defines mortgage modification and other solutions to help struggling homeowners. If you know anyone who may find the report or my services useful, please have them contact me today. Together, we can offer hope to those who need it most.

Have a tremendous holiday, and a phenomenal New Year!

Sincerely yours,

Mike Sher
mike@mikerealtor.com
248 496-1572

• Request a FREE Confidential, no-obligation, short sale analysis of your Metro Kansas City realty. Serving both home sellers and buyers in Kansas and Missouri

• 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

© 2010-2011 Suzanne Hinton-Hinton Homes-Short Sale Realtor

Kansas City Realty

Sometimes when you think you are “done” with Destin short sale negotiations, you are not done!  A short sale has many steps. There are several “layers” of negotiations.  I am going to use my recent sale of a Destin Florida condo as an example.  The property had two mortgages, both with Chase.  It was an investment property. 

Negotiation #1:  The Contract. Contrary to some beliefs, not just “any” contract should be sent in to the short sale lender (also called servicer).  Why?  Because sending in too low an offer would lose marketing time for the seller if the offer was not approved.  Countering early and getting a positive response from the buyer also indicates more sincere interest in sticking with the sale. Patience comes into play at this step. The buyers offered $275,000.  We countered the price and terms to be more "approvable". The buyer agreed to $290,000 after deliberating for several days. Getting the price right from the beginning saves time later, as it probably won’t be countered by the short sale lender.  And this one wasn’t.

Negotiation #2: The Homeowners Association.  This Destin Florida short sale condo had two associations.  The dues were many months behind, not uncommon in my part of Florida.  Chase would only pay $1,500 toward dues totaling $12,000, since there were no liens filed.  If there were liens filed by the association, Chase would have paid them. (Hint). Sometimes HOAs will reduce their balance and “settle” for less.  These associations would not.  After much negotiation, they finally agreed to release their liens with a partial cash contribution and promissory notes from the seller.

Negotiation #3:  The Senior Lien Deficiency Waiver. The dreaded “deficiency” is the balance still remaining on the mortgage after the proceeds are applied from the short sale.  (Not all short sales result in the lender settling for the funds received at closing. They may seek the outstanding balance from the seller via a deficiency judgment after closing, or with a note, etc. agreed to at closing). We asked if it could be waived in full.  The Chase Senior lien saw that the seller had a real hardship, as he was in the building industry.  His income was negligible and he was unable to pay the mortgage, plus any rental income could not sustain the payments.  The negotiator asked if the seller could contribute anything in cash at closing, and write a second hardship letter explaining that he would be unable to pay the deficiency. (Hint)  The seller agreed to contribute $3000 and his deficiency was waived in full.

Negotiation #4: The Junior Lien Deficiency Waiver:  The Chase Junior Lien initially issued approval with a $5000 contribution from the Senior Lien.  They did not, however, waive the deficiency.  We went back to ask what it would take.  At first the negotiator asked for 50% of the balance, or about $50,000.   After we talked and he saw that the Chase equity line was used for items other than “toys”, he said the lowest he could take was 25% of the balance, $25,000.  I discussed this with the seller.  Fortunately, the seller had detailed notes of his previous Chase conversations, where they had offered to settle for $12,000 a year ago.  I put the seller directly in touch with the negotiator, who dug through the file, found the old offer, liked the guy, and agreed.  (Big Hint: Do not be afraid to allow the seller to speak directly with the negotiator!)

Through much negotiation this story ended in success for my Destin short sale seller.  It wasn’t easy, and it wasn’t pain-free.  The seller never once denied his obligation, he sought all possible solutions, and he can now move forward with his life.

Each short sale has a different story. There are many layers of negotiation, and many possible endings.  If you are facing foreclosure in Destin Florida, and are seeking an experienced Destin short sale agent, let’s see if we can write a success story for you. 

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

Similar situation for us, and we got the same letter from Chase, except for $10k.  We called and they assured us the same thing, no hardship docs or financial info. required and we are pre-approved for short-sale.  We kicked things off with an agent, but then someone from Chase called and said we had to do the hardship letter/send financial info. and that the first person had told us incorrectly (three times on the phone btw).

So as of now, they said they were going to cancel our requested short-sale and go back to foreclosure.  This is frustrating as I feel Chase doesn't communicate internally.  I need to find the right person to execute the short-sale as originally agreed, assuming this is a real program.  Any thoughts appreciated.

ING Direct, the Dutch-bank and internet-based mortgage lender, has objected to American Homeowner Preservation’s program to keep families in their homes, and ING will no longer consider AHP short sales. “ING DIRECT will also be adding your company to our exclusionary list as your company strictly finds investors to keep sellers in their home, while the bank takes a significant loss.  This is against ING DIRECT’s short sale policies and guidelines, and as such you will no longer be able to work on this short sale file or any future ING DIRECT accounts,” Adam Agostinelli of ING Direct Retail Asset Management advised in an email to AHP. “We are disappointed in ING’s failure to recognize that AHP’s program can reduce ING's losses and concurrently keeps struggling families in their homes,” stated AHP’s Michelle Weadbrock.

Although ING Direct President Arkadi Kuhlmann (pictured atop motorcycle) has rightfully bragged of ING's lower-than-average 2.88% default rate, ING did require a bailout by the Dutch government and has recently been accused of violating federal truth-in-lending laws. In addition, Kuhlmann states that “the European Commission has mandated that we be sold by 2013” as part of a move to break up large financial institutions. Is now the time  for ING Direct to amend their short sale policies so that maximizing ING’s recovery while allowing families to remain in their homes is an option?

FROM Felix Salmon of Reuters: