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http://vodpod.com/watch/4620705-daily-shows-wyatt-cenac-mortgage-bankers-association-strategic-default
What bank negotiators don’t realize is that if the property goes into foreclosure, it could end up costing radically more than just the delinquent Condo fees.
1. Special Assessments:
Unlike delinquent maintenance fees, Special Assessments are not extinguished in a foreclosure because they are part of the property’s cost basis. In other words, the assessed amount becomes real estate -- part of the property. Example: Structural improvements or repairs not covered by association reserves. Delinquent maintenance fees are part of an Association’s receivables, but assessments are part of the real estate itself. As this assessment directly affects the tax valuation of the property, it cannot be separated from it. Which means when a bank forecloses and the property becomes an REO, the entire assessment must be paid, plus the back due monthly fees and the Association’s legal fees, penalties, and the bank’s legal fees.
2. HOA or COA:
One wrinkle to check for is whether the property is governed by a Homeowner’s Association or a Condo Association. Currently, in a Florida foreclosure, the bank would only have to pay 12 months* of Condo Association dues (or 1% of the original loan amount, whichever is lower) in order to deliver clear title to the next owner. However, litigation in Florida is less certain regarding unpaid back dues owed to HOAs after a lender forecloses.
3. Attorney Fees:
Another thing the bank negotiator may not be thinking of is that, even if they only have to pay 12 months of past due monthly Condo fees after a foreclosure…what about the legal fees owed to the Condo Association’s attorney? Judges are lawyers. You think lawyers look out for other lawyers?
The bottom line is that foreclosure will cost a bank more than just a few months of fees and it is in the lender’s best interest to negotiate these costs as part of a short sale, rather than dragging its feet until foreclosure.
*only 6 months prior to new legislation in 2010
What do you think?
Blair
On top of this, the Attorney General in Florida is investigating 4 law firms for filing fraudulent foreclosure documents. And we have Title Companies refusing to issue policies on some of the foreclosures due to title risk. Richard Zaretsky wrote a great article about this yesterday.
To make matters even worse today I opened up my daily newsletter from the Florida Association of Realtors and found these two articles:
New legal tactic helps associations gain control of abandoned condos
- POMPANO BEACH, Fla. – Oct. 6, 2010 – After winning a lawsuit against Wells Fargo that claimed the bank purposely delayed foreclosure proceedings on a condominium unit for more than a year, a Pompano Beach condo association has been awarded title to the unit without owing a dime on the original $184,400 mortgage. READ THE ARTICLE
Judges revisiting foreclosure cases may help owners but clog market
- TAMPA, Fla. – Oct. 5, 2010 – On Florida’s west coast, where the housing bust has flooded courts with foreclosure filings, the chief judge of the 6th Judicial Circuit has little sympathy for lenders who have routinely submitted flawed and possibly fraudulent foreclosure cases. READ THE ARTICLE
Folks, we are in dire straights!!! As I expected lawsuits are starting to fly. People are getting pissed off at lenders who have been abusing the system for years and are starting to take action.
Foreclosures are no longer the property for buyers looking for a deal. They may get a deal but they will have no assurances that the property won't be taken away from them because the courts have rescinded the foreclosure. A foreclosure is a hostile take over and now these former homeowners have the legal ammunition to not only fight but to win the battle.
So what does all this mean for sellers looking to do a Short Sale? In my opinion Short Sales have just become easier to do. Lenders, not being able to foreclose, are going to be much more receptive to negotiating a Short Sale or settlement with the borrower. And since a Short Sale is a voluntary action on the part of both parties (lender and borrower) they will be a much safer bet for a new buyer. Chances are the Short Sale will not be rescinded and Title Companies will be able to issue a policy. A Short Sale has definitely become more attractive.
Of course this is just my opinion. What's yours?
Are you facing foreclosure in Florida?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.
LPS Applied Analytics recently announced that there are $464 Billion in mortgages currently in Foreclosure and that Americans are now behindon mortgages worth $1.4 Trillion. Several economists believe thatsomething really bad could be coming down in the coming months. Infact, leading economists are warning of a new financial crisis brewingthat could possibly be worse than the crisis we faced in 2008 and thatwe could see a collapse of some BIG U.S. banks.
Chris Whalen, the Managing Director for Institutional Risk Analytics stated recently in a Politico article, "Non-payment by borrowers andmounting foreclosure backlogs are creating the conditions for thecollapse of some of the largest U.S. banks in 2011."
Many say that there are banks too big to fail an that we cannot allow them to. But we know now that T.A.R.P. didn't work. Those 6 or 7"too-big-to-fail" banks control over 1/2 of all deposits and most ofthose were made even larger by T.A.R.P. But there's another issue withthe smaller Savings and Loans that exist in our communities. When thoselittle banks face both residential and commercial mortgages failing, wemay see a wildfire spread of enormous consequences that the Fed won'tbe able to contain.
Several government and large banks stated this week that they were going to freeze foreclosures for the next few months. This is great forhomeowners during the holidays and comes as good news to thosehomeowners wanting to do the honorable thing and try every option theycan to keep from going into foreclosure. However, with loanmodifications being rare and/or unappealing, this is only prolonging theinevitable and making it worse. Case in point, if you make $115,000income a year and you owe $550,000 there's no rework for that scenariounder the President's program that will makes sense. And what happensin the first few months of 2011 AFTER the freeze is lifted and all thosestalled foreclosures start moving forward again? With an average of180,000 to 200,000 foreclosures a month, how are we going to accommodatethe flood of a million or more homes hitting the market? The good newsis that the freeze may help many who are conducting Short Sales ontheir homes and who are feeling the time crunch.
Time will tell, however we should all be looking to the horizon because a huge storm is looming and time is running out!
By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available to avoidthis devastating occurrence. And know that there is someone here you cantrust to help. As a Certified Pre-Foreclosure Specialist, I understandthe ins and outs of Short Sales and Loan Modifications. I am also aWachovia and World Bank trained Pre-Foreclosure expert and well educatedin the Government’s new H.A.F.A. and H.A.M.P. programs for helpinghomeowners facing foreclosure.
CLICK HERE TO AVOID FORECLOSURE
Are you a buyer looking for a home?
Just got a 1st td approval letter from Indymac, where they have reduced the commission to 5%. Has anyone had any luck going back at this point and getting the commission back up to 6% after getting the approval letter with Indymac?
Bob
If you are selling a short sale in Destin Florida, it’s wise to have a title search as soon as you list.
Why? Problem prevention! Title problems can delay short sale closings. You don’t want to find out these issues after you finally get approval, and only have 30 days to close!
Here are some examples of what early title searches have revealed on some of my Destin Florida short sales:
1. Seller is not aware of a mortgage. That means we may have never submitted a short sale package to this lender.
2. Seller lists wrong mortgage companies on letter of authorization. Again, this causes nothing but delays.
3. There is a judgment that must be paid before closing. Judgments can be a huge problem. In Florida, a judgment in the county where the property is located normally has to be paid or otherwise removed before there is a sale. The judgment could be from a credit card company, a mortgage company, or any other creditor. The amounts can be substantial.
4. There is an IRS tax lien that must be resolved. Allow extra time to remove it.
5. Local tax liens. These must be paid or moved prior to closing.
6. There is another title holder. If undisclosed early, time is lost locating the missing party, and ensuring he is cooperative in the sale.
7. The seller should have received a quit-claim deed from an ex-spouse per divorce decree. Find out if the ex-spouse is cooperative at the beginning of the process.
8. Etc. Etc.
These are just examples of issues that would be revealed by an early title search. They seem to be more prevalent with short sales than with traditional sales. It’s best to get your title search done as soon as you list. Solve these problems ahead of time, and move on to a speedier closing.
It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
Destin 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.
Farmington Hills, MI Short Sales increase by 126% in 2Q 2010. "Each Short Sale is One Less Foreclosure" Says Mike Sher, CDPE (Certified Distress Property Expert) Max Broock Realtors (248) 644-4700 x242 or
www.ShortSaleOaklandCounty.com
This U.S. Treasury 2Q 2010 Mortgage Metrics Report below clearly shows that our distress real estate market will continue to be with us for awhile. The good news is that though foreclosures are still on the rise by 53% in past year,
Short Sales are up by 126% and even Deed-in-Lieu is up by 55%. The amount of
new retention actions (loan modifications) are down -28%. This shows that loan
modifications are not for everyone and many borrowers just have to sell or walk
away.
Clearly the banks, servicers, MI-companies and investors understand that a short sale is in the best interest of all parties. The servicers have hired more staff to service the loss mitigation efforts combined with the new HAFA
programs rolled out earlier this year. The hope is that as short sales increase
the amount of foreclosures will decrease. Though Short Sales are distressed by
nature, they mitigate the damages that foreclosures creates like plummeting home
values, increased crime & vandalism, decreases losses to both bank and
borrower and offers a more dignified exit strategy to the trouble homeowner.
If you would like more information about Short Sales, Short Sale Seminars, Deed
in lieu, credit
issues, Loan
Modifications Options, Foreclosures
or Bankruptcy
in regards to home ownership, please call me (248) 644-4700 x 242, email me mike@mikerealtor.com or find out more at
www.ShortSaleOaklandCounty.com
PSCing to a new base? If you are an Eglin Air Force Base or Hurlburt Field airman and own your home, this could be a problem. You may very well be "upside down" in your mortgage. Meaning, the balance you owe is more than market value of your property. That is a common scenario on the Emerald Coast, in Crestview, Navarre, Fort Walton Beach, and Destin Florida.
When you are in this situation, you have six choices:
1. HAP
2. Short Sale
4. Rent Out Your Property
5. Pay the difference owed out of your own pocket
6. Foreclosure
If your loan was guaranteed by the Veterans Administration (VA), and the other options won't work (obviously you don't want a foreclosure), you can do what is called a VA Compromise Sale. This program is similar to a short sale, but the VA guarantees the payment of a portion of your mortgage to your lender. The lender will handle the processing of your VA Compromise Sale and will use a VA appraiser to ascertain value of your property after they receive a contract. If you meet certain criteria, and your net proceeds are at least 88.13% of the appraised value, your sale may be approved.
The most frequent question I get about VA Compromise Sales is: "Will the VA come after me for the balance?"
The answer is "NO" unless there was "fraud, misrepresentation, or bad faith”.
Here is a quote from VA Home Loan Program:
"The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran. But if you fail to make the payments you agreed to make, you may lose your home through foreclosure, and you and your family would probably lose all the time and money you had invested in it. If the lender does take a loss, VA must pay the guaranty to the lender, and the amount paid by VA must be repaid by you. If your loan closed on or after January 1,1990, you will owe the Government in the event of a default only if there was fraud, misrepresentation, or bad faith on your part."
The other good news about a VA Compromise Sale (also called Offer In Compromise, Comprise Offer) is that you CAN USE YOUR VA LOAN AGAIN! The caveat is that you must pay back what you owe the VA. Crazy? Not really. Markets change, loan programs change and interest rates change. A VA mortgage may be the best option for you again in the future. At that time, you will have rebuilt your financial strength and may be able to pay back your entitlement. I've had veterans do it!
If you need to do a VA Compromise Sale in Crestview, Navarre, Fort Walton Beach or Destin, Florida, give me a call. I can help.
It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
HAP, Short Sales & Pre Foreclosure Help.
Wendy is a HAP, short sale, VA Compromise 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.
It has been several months since I signed up for Short Sale Superstars. It is the one site I have found that has information that I like to say "you can sink your teeth in", it is not fluff but real time information to aid all of us with our short sales. I have been referring agents to this site everytime someone asks me a question.
Yesterday an agent in our office, who is on the buying end, was frustrated with an OCWEN short sale. The bank was not responding for an extension. And the Listing Agent was stumped. Our agent referred the agent to this site. That person was able to get to the right person at OCWEN and get the extension.
All because of this site and the information it provides!!
Keep up the good work!! I am on the site daily and believe me having such a comphrensive site quickly available is priceless!!
If you are a short sale buyer’s agent, it can often be frustrating waiting for any scrap of information for your buyer. After all, it might be three to five months before you get short sale approval. You don’t want to lose your buyer. It’s best to give them as much information as possible so they feel part of the process.
But just how often should you call the listing broker to check for status? I get a wide variety of buyer’s agents selling my Destin Florida short sales.
Agent Mellow:He might contact me once a month to find out how the short sale is progressing.
Agent Never: He never contacts me during the approval process. I will send him updates, but if I don’t, he’ll just be “surprised” when I forward the final approval.
Agent Antsy: He emails me almost every day. Any word? Is the appraisal back? Do you have approval? Etc. Etc.
Agent Even: He calls or emails about every week or two. He is on a program. He might check in more often if his buyer asks. But he tells his buyer in advance how often he’ll provide an update. This is the guy to emulate.
If you are a buyer’s agent and sell one of my Destin short sales, feel free to email me once a week. Don’t call on Monday - it is the highest volume call day for short sale lenders. Thursday or Friday is a good day. Prepare your buyer about the short sale process. Let them know how often you’ll be getting updates.
Work as a team with the listing agent and keep your buyer in the loop. That way, everyone will be cool and prepared when you finally get approved!
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 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.
I am challenging that decision. Your "Servicers" are hopeless. Here is just ONE example of something bordering on Fraud in my opinion, and I have asked you for help..to no avail.
CHASE, approved one of my Short Sales verbally via my friendly (not) negotiator, Leslie. Leslie informed me that my client was approved IF she would pay $10,000 CASH and also sign a $50,000 note. Hmmm..let's re-visit this, shall we?
- California is a non-recourse state. This secondary home was purchased in 2005, one loan, therefore purchase money, nothing pulled out against it. If my client opts to pursue her "put option", you, Freddie Mac will get the home back at the Trustee Sale with no right to pursue for deficiencies. You can always sue her at a Judicial Trial, but let's face it..who has the money???
- Borrower is only 3 months past due. She has maintained this home impeccably, HOA's are currrent as are taxes, she paid for all upgrades and improvements, has never been late on a payment, and continues to maintain the home and pool and landscape as if she were there.
- Borrower is now retired, living on Social Security, and is getting into her IRA to continue with the mortgage payments on this home. She is drained and done.
- Borrower paid $486,000. BPO shows Value at $135,000 today. I have an offer ABOVE MARKET at $172,000 CASH.
Here's the really infuriating part about CHASE..after we counter back with cash, but no note, my knowledgeable negotiator leaves me another voicemail stating that "upon review, the Investsors have decided that your client makes too much money and we are turning down the Short Sale." BAM! WHAT??? You already decided she qualified for the Short Sale IF she met your outrageous terms, and now suddenly, she makes too much money?? Anybody minding the store?!
What??? You mean to tell me that in this awful market of declining values and increasing inventory, YOU, FREDDIE MAC, told Chase to turn this deal down?? If my client discontinues maintaining the property, and you have to carry it another 6 months, (at least!), with no payments, pay deposits to turn on utilities again, clean and shock the pool, water and clean up the landscaping, risk letting it sit in this non-gated community VACANT, and then get just the CURRENT BPO price of $135,000 at auction, you, FREDDIE MAC, are choosing to leave approx. $30-40,000 on the table?? I AM A STOCKHOLDER here and this is NOT a sound decision for this company!
I have sent an e-mail every day to Freddie Mac..borrower outreach. I received a response to my first e-mail asking me to send my Agent Authorization letter so you can talk to me on behalf of my client. That was a week and 4 e-mails ago. WHERE ARE YOU FREDDIE MACSTERS? Having lunch with the Banksters?
As the woman at CHASE resource resolution center told me after hearing my story.."I'm sorry, Miss. Kelly. It appears you had a bad negotiator. Just re-load the offer and docs and hopefully, you'll get a better one next time." Wow..what a way to run a business. I did upload everything again, of course, because there is nothing else to do. Banksters, and Investors, do NOT want to help borrowers. They are all about their own false bottom lines.
Non-performing loans are just that..NON-PERFORMING. Get rid of them! Take the money and be done with it! What is so hard to understand about that?? Econ 101 students could do a much better job that the lot of you..
Oh, by the way, I got my HAFA certification last week. Wow, am I feeling fantastaic about how well Freddie and Fannie and all the other Banksters are going to implement this program now..
In September/2009 I wrote a blog titled "Is The FDIC Killing IndyMac OneWest Bank Short Sales & Loan Modifications?". In February/2010, the folks at TBWS used this blog to create a video that ending up going "viral". If you watch the video, you will see that all of the numbers and the explanation of the FDIC loss share program were taken directly from my original blog post. For those of you that are not familiar with the video, at last count it had received over 1.3 million views on YouTube, and even caused the FDIC to issue an official press release debunking the video.
In an attempt to quash the outrage that the video created with Americans across the country, the FDIC not only came out with an official press release, but also released their own YouTube video titled "Loss Sharing Explained" in June/2010. The video attempts to paint the loss share agreements (which they now have with 167 banks) as a benefit to the FDIC. What the video fails to address is the total lack of oversight, and how lenders are abusing the program, and in turn, forcing more homeowners into foreclosure everyday. No matter how the FDIC wants to spin this, the fact remains the same... When a lender can make more money by foreclosing on a homeowner than they can by approving a loan modification or short sale, they will choose foreclosure.
Two weeks ago, I received a call from a woman in South Carolina who had just finished reading my FDIC IndyMac OneWest blog. She had just been turned down for a loan modification from OneWest Bank under the HAMP Program. According to her, they turned her down without even receiving the required documents, and told her that the reason for their denial was that the investor that owned the loan does not participate in HAMP. When she asked who the investor was, she was told that their "policy" doesn't allow them to disclose who owns the loan.
Needless to say, she was furious. I explained to her that without consequences, banks can do whatever they want. And, without transparency, they can tell borrowers whatever they want. The last thing that loan servicing entities like OneWest Bank want is homeowners calling their investors, verifying what the servicing companies are telling them.
In addition, those lenders who are benefiting from an FDIC loss share agreement DO NOT want borrowers to know if they own the loan. By telling borrowers that their "policy" does not allow them to disclose the owner of the loan, they can hide the fact that they in fact own it.
After spending over an hour on the phone with my friend from South Carolina, she came up with a great suggestion. She suggested that I produce a video that explains the FDIC loss share program, and how it affects homeowners who are trying to short sell their home or get a loan modification. Hence, the reason for this blog post today.
The video explains exactly what happened (in a "real-life" transaction) with one of my clients that I represented on a short sale in September/2009. The numbers are the actual numbers that I used to remind OneWest of the profits they stood to make from the FDIC loss share program. When faced with these numbers, they immediately gave up on their demand for a $75,000 promissory note from my client, and approved the short sale. Since writing this FDIC OneWest IndyMac blog in September/2009, I know of at least a dozen other agents across the country that have used this same argument with OneWest Bank, and were successful in closing their short sale deals.
The point of this video is not to bash OneWest Bank. What I hope and pray is that someone in Washington will see it and actually decide that "enough is enough".
I would ask you to PLEASE share this video with everyone you know. If it can get out to enough people, it might just end up on the computer of someone who will actually do something to stop this madness.
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Bob Hertzog
Summit Home Consultants
Visit The For Sale Phoenix Homes Website
Copyright © By Bob Hertzog 2010 *Making Sense of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners*
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