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Just received a charming Christmas Eve short sale "decline" after patiently waiting since August 2012 for an approval.  Reason - "strategic default" - DECLINED.  

This loan is through the SchoolsFirst Federal Credit Union formerly the OCFTCU.  My seller had to relocate her mother and father to care for them as her mother was diagnosed with cancer early last year.  She and her parents purchased a home together where they live now.  She is $150,000 upside down on her existing home.  She has a tenant in the home but it does not pay the mortgage with a $1,000 negative each month.  She cannot afford to keep both homes and pay for her mother's care.  

This hardship is not considered a hardship in the eyes of the CU.  It breaks my heart to tell her the news the day before Christmas.  No one expected this.  The credit union obviously ran her credit and found the new mortgage and made their decision.  We explained the situation just as I have here.  The new mortgage has all three names on it.  

Be careful of the strategic default!

The best way to find a Short Sale Realtor .

It's easy to discover a realtor...There everywhere... Here are my suggestions on what you have a look for in a Licensed California Realtor. Confirm they are Licensed!

 The Realtor has CLOSED at least Twenty short sale transactions. Not just listed. I'm seeing folks lose there houses everyday because they employed an inexperienced agent.

The way I see it... I'm the one that you hire to help you avoid foreclosure. At some particular point you and I are going to sit across from one another and sign the paperwork that enables me to market your home. Therefore it's my responsibility to help you through this. Not pass it off to some company so I can just try to get a few more listings

 The realtor should Market the property on the Multiple Listing Service. They do not work with investors unless the property is in actually poor condition and normal financing can't be obtained.

They've got a lawyer for you to check with if necessary.

Do not work with the guy / girl the bank has recommended to handle your short sale. That agents ultimate aim is to get more listings from that lender. They could server you up on a silver platter. What i mean by that is...sometimes a short sale isn't in your best interest....maybe  Bankruptcy is easier when you still have the house not after its already been sold. Not to say each agent would be that way.... You only need to be cautions.

7 ) The agent is familiar with the area and a member of the local board of Realtors.

Eric Baskett

310-261-8511

http://www.ericbaskett.com/category/short-sales/

Keller Williams Realty

DRE Lic # 01446685

Some of the main cities I service short sales in are Redondo Beach, Torrance, Gardena, Lomita, San Pedro, Lawndale, Palos Verdes, and Manhattan Beach.

How to Find a Short Sale Realtor

How to Find a Short Sale Realtor  How to Find a Short Sale Realtor in Torrance How to Find a Short Sale Realtor in Redondo Beach How to Find a Short Sale Realtor in Manhattan Beach

Escape Your Unmanageable Mortgage: Getting free doesn’t have to mean running away.

Perhaps you have heard about it???

 On the news, a reporter tells a story about how the housing crisis has caused some homeowners to simply walk away from their homes. It sounds crazy, but you can't avoid seeing the many Short Sales and Foreclosures in Phoenix, Arizona.  Many people are being led to believe that walking away from their home is a good (or even the best!) option.

It is called Strategic Default. For distressed homeowners who believe that they have no good choices left, the idea of walking away free of consequence may sound like a RELIEF. The REALITY, however, is that choosing Strategic Default has serious repercussions on your credit.

THERE ARE BETTER OPTIONS AVAILABLE!

If you feel that you are headed toward Foreclosure, and need Foreclosure Solutions, or if you are avoiding facing that fact, the sooner you reach out for help, the better your options.  The impact of Foreclosure in Phoenix, Arizona is huge and the sad fact is that it’s often avoidable with other options and many cases it's usually a Short Sale.  The good news is that there are Foreclosure Solutions!

To find out if a Phoenix Short Sale is right for you..OR...For your Free Report Click here ...

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially-challenged homeowners with options to escape from unmanageable mortgages without running away.  

Facing your problems head-on is always the best solution. Let me help.

Arthur Wainio

www.shortsalewitharthur.com

I help people decide what to do with upside down real estate. Everyone knows someone that is throwing good money away every month. Do you really want to know what it's going to cost for you to wait for your home to go up in value? Seriously do you want to know?

http://strategicdefaulthelp.us/

Put in your address so Zillow will give you an approximate value
Put in your loan balance and Interest rate

In 30 seconds you will have 3 different appreciation scenarios. 2% 5% 8% appreciation rates. This market crashed in 2006 and here we are in 2012. 6 years gone don't waste another 6!

http://strategicdefaulthelp.us/

http://www.ericbaskett.com/category/short-sales/

Advice for Short Sale in Redondo Beach California|Redondo Beach California

Exactly How to Complete Short Sale

Do you own a house within Redondo Beach California?

The property foreclosure inventory for the last Five years has remained exactly the same. On average you have around 300-400 residences that are in active property foreclosure.

You may be questioning when the housing market will start going back up. Nicely lets simply say not for many more years! If you are interested what the worth of your home Redondo Beach is currently visit Short Or Stay Calculator.

This site will give you a Zillow worth of your home and it'll tell you whenever you may have equity again and just how much it will cost meanwhile to just breakeven.

The Redondo Beach home values within 2005 towards 2006 had been between 800 and also $1,200,000. Currently, 2012 home values range from $500,000-$900,000. 6 years right after the real estate market crashed Redondo Beach house values are still going sideways.

So you may be sitting there wondering is a short sale best for you?

For many people the answer is yes!

Truly being your property is your main residence, so you can actually write off any kind of taxes for the short pay. Your mortgage is most likely a lot more than $200,000 upside down and is interest only. You can most likely lease a house in same neighborhood for $1,000 to $1500 less per month. Why has it taken you 6 years to make this choice?

Don't be concerned your not alone! Many people are attempting to do what they feel is right.

• Honor our own word
• Make good on our own promise to repay

Extreme caution!!! You're dealing with a bank not someone that has empathy and cares about both you and your personal situation. It's about return on investment! When are you delivering them there cash? They will often ask...in case you don't have the money who actually can you borrow this from?

They do not worry about if you have food on the table or otherwise! The quicker you believe and understand this the greater you will be ready for what’s ahead.

I speak with people every day which have been fighting a struggle with the lending company over obtaining a loan modification. Many that have selected to take on this task of getting a loan modification have since realized how much the bank really doesn't worry about your personal problems.

Often homeowners can't get assistance until they're at the very least Thirty days overdue on their mortgage. Regardless of the circumstances, even if you have a letter from your employer stating your likely to be unemployed in the next Forty five days.... you wouldn't have any assistance till you are Thirty days late.

So the whole time were trying to do things right only to discover it does not make a difference!

You need to do what is best for you and your family and also win control over your financial future and never be worried about the financial institution!

I'm sharing this with you Now so you go into a loan modification with realistic expectations.

Do you have Loan modification or Short Sale Questions you wish answered? Click here: Redondo Beach short sale.

Eric Baskett
Keller Williams Realty
23670 Hawthorne Blvd
Suite #100
Torrance, CA 90503
310-261-8511
ericbaskett@gmail.com
www.EricBaskett.com
www.StrategicDefaultHelp.us

I got a chance to watch a couple of agents go at it with each other in a real estate forum trying to answer a question about doing short sales.   It was interesting, to say the least.  Besides the two main agents who proclaimed themselves the “experts” and hijacked the conversation, there were a few others who chimed in and made some comments.  But the question was never specifically answered.

The question posed was whether a lender will approve a short sale if the borrower had assets. He didn’t provide a lot of detail but wanted to either do a short sale or let his home go into foreclosure and he specifically asked not to get into a debate about the ethics in not paying his mortgage.    

The argument or “discussion” in the forum quickly evolved into a big debate about the ethics of what people considered to be strategic default.  One expert proclaimed it was morally and ethically wrong to engage in strategic default and the lenders would not go for it.  The other expert proclaimed morality and ethics had nothing to do with his decision and it was more about money.

As a San Jose Short Sale Agent, I tend to agree with the latter expert.  When you are dealing with short sales with lenders, the department you deal with is called Loss Mitigation.  Let me say it again:  Loss Mitigation.  Their job description is patently obvious: it is to mitigate or lessen the loss for the lenders. 

Yes, there obviously are moral and ethical implications of not paying your mortgage when you have the financial ability to do so.   I firmly believe you should pay when you can and live up to your contractual obligations.  However, the question posed specifically asked not to judge the ethical implications but sought opinion as to whether a lender would agree to a short sale when the borrower stopped paying and was headed towards foreclosure.   

There is no definite yes or no answer in these matters as the answer lies in the details.  It has a lot to do with how much assets the borrower has or does not have.  However, if the lender is faced between foreclosure and short sale, from my experience, the loss mitigation department chooses short sales over foreclosures.   At the end of the day, the primary decision will be about which method loses less money for the lenders, then, other factors like ethics and mortality can be entertained. 

Why do you think big lenders like Chase and Wells Fargo are offering people up to $35,000 to do a short sale without even verifying their financial information?   HAFA recently amended its rules to state that servicers are no longer required to verify any financial information, but only to collect signed hardship letters.  Do these actions by large lenders and servicers sound like they are overly concerned about the ethical or moral issues surrounding foreclosures?   

I can’t speak for other States, but in California, the recent changes in the law means if the lenders agree to permit a short sale, then the issues about deficiencies become null and void.  Once a short sale has been approved, the seller can walk away clean without looking over their shoulders.  Yet, another procedure that make completing a short sale more effective and efficient and preferable to foreclosure.  It’s all about money; if the institutions can make more money foreclosing, they will certainly choose that method, but everything recently is geared towards choosing short sales. Yes, the lenders hate strategic defaulters, but they hate losing money even more.    

So back to the question about would a lender approve a short sale if the borrower has assets?  It would depend on how much assets the borrower had and whether foreclosure would yield more money for the lender or a short sale. 

Hi folks. Let's talk about this Strategic Short Sale thing a little. I know there are many people that just can't understand why anybody would do a Short Sale if they can afford their mortgage payment and they do not have a hardship. In fact, there are those that would call this immoral. Well OK then.

My job is not to judge. My job is to inform people so they can make a decision based on facts, their needs and what's best for them. And as much as it sucks a Strategic Short Sale MAY be the best option. Just because someone can afford their mortgage payment does not mean continuing to make it is the best way to go.

This post will give you some hard cold financial data. Do with it what you may.

First, you have to remember that in my area property values are down 75% and in some communities as much as 85%!!!! Folks that purchased from 2003-2007 with 20% down are still way up side down. Just to put our decline into perspective.....the average house in Poinciana, in the year 2000, sold for $81,000 and $56 per sq ft. Today, 2010, they are selling for $72,500 and $41 per sq ft. Unfortunately our MLS data only goes back 10 years so I can't see how far back values have gone. But we do know houses are worth less today than they were 10 years ago!!

If you purchased a house in Poinciana Florida in 2006 at $220,500 (average 2006 selling price) and put 20% down ($44,100) today, that house is worth $72,750! Your PITI (principle, interest, taxes, insurance) payment, if you have an interest rate of 6.75%, would be roughly $1,450 per month. You would still owe $168,000. This is 232% of what the house is now worth (LTV). So just to be EVEN on your mortgage, values would have to increase by 132%!! Of course this doesn't include the $44,100 you put down.

So.....should you continue paying? Only you know the answer to that question. Just remember that until values increase by 132% you will STILL be upside down on your mortgage.

If you did decide to do a Strategic Short Sale today and rent a similar house you would save approximately $700 per month. If you invested $400 of that savings at 5% you would have almost $28,000 at the end of 5 years. If you kept your mortgage instead you would still owe $150,500. What would your house be worth in 5 years? I have no clue. But I can only guess that it would not have appreciated 100%. That means if you needed to sale in 5 years you would SILL have to do a Short Sale. Do you take the hit now or take it later?

The numbers are staggering. What say you?

Are you facing foreclosure in Florida?

Well that's a good question. What do you think? Most folks would probably answer this question with a resounding YES! But...what if I told you the answer is "No....you don't necessarily need a hardship to qualify for a Short Sale. You may be able to do a Strategic Short Sale". Heck, big business and lenders do them all the time.

One reason lenders/investors may approve the Strategic Short Sale is that the hardship in no way changes the financial outcome of the Short Sale for the lender. The numbers are still the same. In fact, the numbers may even be better for the lender on a Strategic Short Sale because the Seller is in a financial position to contribute. So why wouldn't they approve it?

Now while you may not have to have a hardship to do a Short Sale you may very well be required to be delinquent on your payments. This is mostly due to government intrusion into the process. For example HAFA (Home Affordable Foreclosure Alternative) requires the mortgage to be: "delinquent or default is reasonably forseeable."

Also, if you have an FHA loan: "At the time the PFS (pre-foreclosure sale) closes the loan must be in default (i.e. delinquent more than 30 days)." FHA DOES require a hardship.

If you are way upside down on your mortgage and see no light at the end of the tunnel then you have to ask yourself some hard questions. The reality is that most of us will have to move for some reason over the next 5-7 years. So ask yourself:

• If I'm upside down on my mortgage today will I still be upside down in 5 years if I have to move then?

• Would my family be better off if I took the financial hit today instead of waiting?
  

• If I did a Strategic Short Sale today would I be able to rent a property for my family and save a substantial amount of money each month?
  

• How will going through a Strategic Short Sale affect my credit and will my interest rates on my credit cards go up drastically?
  

• How will a Strategic Short Sale affect my job (security clearance)?

Ask yourself hard questions. Seek legal advice from an experienced Attorney. Talk to your CPA. Have a family meeting.

Then if you decide that a Strategic Short Sale is the option for you, remember, there are no guarantees it will work. You may be asked to contribute to the "Short". What I tell potential Sellers when they ask the question is... "If you have no hardship and you have assets or sufficient income the bank may very well want some of it. You may have to bring a cash contribution to closing and they may also want you to sign a promissory note. But you may very well have your Strategic Short Sale approved."

These are difficult times and that require making difficult decisions. Let me know if I can help.

For the first time in two years active resale home in the greater Antelope Valley is above 1,300, with active core over 900. Banks seem to be releasing some of their stockpile of REOs. Short Sale are keeping pace with the REOs at present.

With the First time buyer ($8,000) and repeater ($6,500) tax credit being extended through the end of April now is the time to make the jump and buy.

Heard on NPR “In the days before the housing crisis, the idea of a bank foreclosure filled a homeowner's mind with dread and shame. Now, with so many Americans owing more on their homes than they're worth, some people are taking a whole new approach: essentially saying, "Foreclose on me, please." It's more technically known as a "strategic default.”

You don’t need to let the bank foreclose you can sell for less than the balance of your loan and in many cases have a less significant hit to you credit score. A strategic default might make sense at first blush, however it will stick with you for years. Need to buy a car, can’t do bad credit, getting back into a home could take 10 years, Rent? With a short sale you will have a better shot at getting back your good credit sooner.

Richard & Janet - Certified Short Sale Professional Realtors
661-733-0507 OR 733-0508
Keller Williams Realty AV Serving Palmdale, Lancaster in California
www.HomesByJR.com
www.ShortSaleByJR.com