When I first heard about the Bank of America Cooperative Short Sale Program, I thought it might be more blah blah and less ah ha!

I was initially skeptical, A) because banks are famous for coming out with “new programs” that don’t end up getting squat done! And B) because I was told that with this program, the bank does the appraisal BEFORE an offer is received for the property.

Issue “B” was what I was more concerned with. I thought that with an appraisal being done before an offer is received, that there were great odds of the bank determining a value for the property much higher than we could actually get an offer for.

I thought of a way around this tho! We processed the file through their co-op program, and the seller received a check for $2,500!! So how did we get around the value issues with the lender? Give me a call and I’ll be happy to share with you how we get this accomplished now without having to worry about a high value when dealing with Bank of America co-op short sales. Now I’ve closed several through the Bank of America Cooperative Program, and my clients are getting checks! If you would like to see if you can qualify for the Bank of America Cooperative Program and receive a check for doing a short sale, contact me right away!

A quick side note about the BofA Cooperative Program: The process of going through the Bank of America Cooperative Short Sale program can take a little longer than a traditional short sale with BofA. This is because they outsource a lot of the processing. Of course this may be a benefit to you, depending on your situation. I have also found another benefit to this tho. Hit me up

The Mortgage Debt Relief Act of 2007 is set to expire!!

The window is closing rapidly on one of the most important tax-relief provisions enacted by Congress during the housing crisis to help financially strapped homeowners. Time is running out to Short Sale your house. Although the 2007 law that allows taxpayers to exclude from income the amount of debt that is forgiven or canceled by their lenders doesn’t expire until Dec. 31, it’s likely to take every bit of the coming months to persuade your bank to either foreclose or allow you to sell your house for less than it’s worth (Short Sale).

While owners who are struggling to hold onto their homes shouldn’t throw in the towel solely because of the pending tax bite, it is certainly something to consider.

Under the tax code, borrowed money need not be reported as income because you have an obligation to repay. But if the lender subsequently cancels what you owe, the IRS requires that you report that debt as income because the duty to repay it no longer exists. So, if you owe $250,000 and your lender forgives $50,000 of that debt in a $200,000 refinancing, that $50,000 is considered income. If your combined federal and state marginal tax rate is 36 percent, you would owe $18,000 in taxes.

Under the Mortgage Forgiveness Debt Relief Act of 2007, though, taxpayers are allowed to exclude from income the discharge of debt on their principal residence when they do a short sale— at least until 2013.

So when your lender agrees to a short sale, there is no tax on the difference between the selling price and the amount you owe. When your lender forecloses, there is no tax on the canceled debt. Even when you refinance at a lower loan balance, there is no tax on the difference between what you owed on the old loan and what you now owe on the new one.

But unless Congress extends the law — and there is no indication lawmakers are even thinking about that — all residential mortgage debt relief that takes place on or after Jan. 1, 2013, will once again be considered taxable income.

Why worry about this now, Because the timelines on debt forgiveness decisions by lenders are absolutely horrendous.

Of course, each state has a different timeline. But the shortest is 463 days in Minnesota, according to Lender Processing Services. So the tax absolution window may already be closed for foreclosures.

There are no hard-and-fast numbers when it comes to short sales or loan modifications. But they also can be long, drawn-out transactions.

According to a nearly year-old survey by Equi-Trax Asset Solutions, a Santa Barbara, Calif., analytics company, it can take anywhere from four to nine months for underwater borrowers to persuade their lenders to sign off on a deal in which the lender will net less than what the borrower owes (Short Sale).

Eighteen percent of the 600 agents polled said short sales can be closed in less than three months if the stars line up just right. But almost 10 percent said these transactions require more than 10 months to complete.

There are many factors besides a tax break to consider when deciding whether to give up your house. What will a foreclosure or short sale do to your credit score? How long will you be precluded from buying another house? Will the extra income push you into a higher tax bracket? How long will it take before the amount I owe is on par with what is owed? Is it worth being tied down to one property for many years or should I just short sale and be back in the market within 2 years and probably buy more house for way less.

Consequently, as always when it comes to such matters, you should consult a tax professional before making any decisions.

At Trinity Homes & Investments we discuss all available options with our clients before deciding which course of action to take.  Our mission is to find dignified solutions to foreclosure.

The National Association of Realtors and the U.S. Department of the Treasury are collaborating to help Realtors better assist distressed homeowners who are struggling to Selling Your Home Through a Short Sale - Avoid Foreclosure.

Realtors who attend upcoming Making Home Affordable "Help for Homeowners" outreach events, sponsored by the Treasury Department, will learn insights to help them navigate the short sale process and have the opportunity to meet directly with loan servicers on their clients’ behalf for assistance with difficult transactions, according to a statement.

"As the nation’s leading advocate for homeownership and housing issues, Realtors are working hard to keep more people in their homes, and when a family is absolutely unable to keep their home, Realtors specializing in short sales, short sale specialists are there to help homeowners by facilitating a loan modification or short sale," said NAR President Moe Veissi, broker-owner of Veissi & Assoc. inc. in Miami.

"Help for Homeowners" community events will take place throughout the year; the first sessions are in Miami today and Tampa, Fla. on Feb. 24. Additional events are scheduled in Chicago, Indianapolis, Los Angeles, and Sacramento, Calif.

The sessions for real estate professionals are not open to homeowners, but borrowers who are in financial distress and concerned about losing their home to foreclosure are encouraged to attend the free homeowner sessions. Homeowners who are having difficulty paying their mortgage will be able to meet one-on-one with loan servicers and housing counselors to explore foreclosure prevention options and work toward solutions to their mortgage problems. Real estate professionals are encouraged to invite homeowners and their clients to the events and are welcome to accompany their clients in conversations with the servicers.

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

I was starting to feel like the last player picked in dodge ball. The rejections were really hurting, especially since there was never any reason given. Just messages saying your supporting documents were rejected. Oh the pain!

I finally got a really nice B of A negotiator on the phone today who gave me a simple explanation, the buyer's proof of funds were downloaded as a web page instead of being a PDF of the originals, and the current policy is only original statements are accepted, no web page screen shots.

I guess I should not be surprised. Just yesterday I got an e-mail from PNC saying the same thing. They needed the original October bank statement, not the one that was downloaded from the internet. At least PNC did not tell me I was rejected.

So if you want to keep your ego in tact while doing a short sale with Bank of America or PNC, be sure and give your Santa Clara County short sale agent original bank statements (which you may need to order from your bank if you are paperless), or see if you can download something that does not say web page on the screen. And be sure and ask your agent to get original bank statements for the buyer's proof of funds. There may be other banks requiring that now as well, but these are my two latest encounters.

If you have any questions about buying or selling short sales in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

I've mentioned numerous times that I have two companies.  One is an electrical contracting company, and the other one is a real estate brokerage.  They overlap more often than not, and my clients in one company end up being clients in the other company.  It's a nice relationship.

The overlap of the two give me a great opportunity to use either company to help my clients.  When I sell a house, I send an electrician in to check the electric system before the clients move in.  If there are issues, he will fix them up to a certain point.  I'll also make a list of other electrical issues that the client may chose to have repaired at a later time. 

How does that pertain to Realtors who don't own two companies?  One way I've found to stay involved in the lives of my clients is to do a couple things.  For instance, this past week, our contracting company did a project for another local business.  During that process, the owner and I took a ride to his second business location.  During the ride, I realized that his auto air conditioner wasn't working. 

He mentioned that he gets it charged every Spring, but he hadn't had time to do it so far.  A couple days later, I was in his area again and I dropped by his shop and charged his car AC.  It took me five minutes and it costs me about $5.  I was thrilled that I knew how to do it, and what did I gain?  A great faithful client, referrals and some of his wares.  

You don't have to be the one doing a service for your clients, but you can give your clients the names of great contractors, lawn-care companies, tailors, painters, auto repair shops, hair salons, restaurants, discount stores nearby, doctors, dog groomers, etc.  You can give information, which is free, or you can do something simple like mow their grass before they move in.  We  do that when we sell a house that is our listing.  Your clients will love you for it.  Dropping back into a client's life briefly keeps your relationship warm and comfortable.

When they need something, they will call you.  You become a trusted resource.  I received three listings this week.  Two of those listings came from clients our contracting company had done electrical projects for.  I almost always find a way to work information about my real estate brokerage and local market conditions into a conversation when meeting electrical clients.  I actually had a client become a Realtor because she got so excited during one of those comments. 

Be the go to person, and people will seek you out. Use your blog as a resource to help others find what they need, and in the process they will find you.  Share your talents, your knowledge and wisdom and you will always have repeat clients and customers.

One of the best things that has happened to short sales in the last couple of years is the on line platform for processing a short sale. There are several platforms in use, but Equator is one of the more popular ones, and is the one used for Bank of America and Wells Fargo Short Sales. So, instead of your agent having to fax all the documents, usually several times, the short sale documents are uploaded as PDFs onto the Equator web site. In order to keep the process moving forward Equator will assign a task to be fulfilled by the agent, like uploading an offer or financial documents onto the website. Once the task is assigned they will give you a fixed number of days to upload the requested documents. This number of days is the same, no matter when the task is assigned. So if it isa 2 day task and it is assigned on a Friday, it is due Sunday, period.

So my latest Bank of America short sale assigned me the task of uploading the signed offer on Friday, with a due date of Sunday, which happens to be Christamas.

And that is why this Palo Alto short sale agent is cheerfully working Christmas Eve. 

Enjoy your holidays!

If you have any questions about buying or selling short sales in Santa Clara or San Mateo County please feel free to contact me!

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Short Sale Tax Consequences

After a short sale, there is still one more type of paperwork that the seller has to accomplish and it pertains to income tax after a short sale. Ordinarily, a debt that has been forgiven is still treated as taxable income. However, because of the Mortgage Forgiveness Debt Relief Act of 2007, homeowners may qualify to exclude the forgiven debt from the net taxable income but what is considered as a forgiven debt and what makes a homeowner qualified for debt relief? It is important for a homeowner who just went through a short sale to fully understand the provisions under Mortgage Forgiveness Debt Relief Act of 2007 since not all types of debt forgiven can be excluded from the net taxable income. By doing so, a homeowner can avoid paying for unnecessary taxes or being penalized for excluding a taxable income. Here are the common questions that relate to income tax after a short sale.

What is forgiven debt?

A forgiven debt is an amount you owe your lender but have been waived usually as a result of a request backed by a very valid reason. In the case of a short sale, a forgiven debt is the difference between the selling price and the mortgage which the lender or bank has waived because of your valid hardship situation.

What is exclusion of forgiven debt or income?

Continue Reading About Short Sale Tax Consequences

Have a great property listed short with one loan with B of A..primary residence, Seller not trying for HAFA..slam dunk!  But..the darned BPO came in $130,000 over market!  It hasn't happened to me often with B of A short sales, usually that's reserved for Chase who I suspect may specifically try to hire Agents that submit high BPO's ??? 

Buyer #1:  Submitted $850,000.  B of A countered at $980,000 because that is what the BPO "supports".Buyer didn't even want to counter..too far apart.  They walked and I re-listed at $980,000 after submitting my comps and supporting docs and going back and forth to no avail.

Buyer #2:  Submitted $851,000.  B of A countered again at $980,000 and "has comps to support it."  Again, I submit my real comps (BPO is based on surrounding streets and developments..why didn't she use THIS street?  Plenty of closed comps....)  Again..buyer walks.

Buyer #3:  Submitted $865,000..wow!  BPO expires 1/6.  I have a sane negotiator and we talked back and forth via equator and e-mail..B of A countered at $980,000 AGAIN!  OK, I tell my guy, your investors are leaving $15,000 on the table because this home will generate another offer at $850,000 or less when this buyer walks and the file is closed and I re-list and you finally order a CORRECT BPO! 

I figured he'd just stick to the $980,000, but he sent me an e-mail, "I am going to submit this to the Investors and let's see what they say.."  At least he's giving it a go. 

I just like to report on sane responses because so many of them are not.  To Be continued...

It’s a sign of the times!

Most of us grew up thinking that if we planned well and played by the rules, we’d never have to stand by as our financial lives unraveled. Here in Phoenix, Arizona many owners have done Short Sales in order to Avoid Foreclosure.

 With the upheaval on Wall Street, unacceptable rates of unemployment and plummeting real estate values have taken their toll.  Since 2007, 7.9 million homeowners have lost their homes to foreclosure. Current estimates are that one in four homeowners owe more on their mortgages than they could get from the sale of their home. Millions more homes will be lost to foreclosurebefore this real estate crisis runs its course.

 The sad fact is that foreclosure is not an isolated event. For months leading up to the loss of a home, financially strapped homeowners live under a cloud of uncertainty.  And then for many years afterwards, the blow to credit gets in the way of buying another home or buying anything on credit. Foreclosureeven complicates employment prospects.

 The impact of foreclosure in 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.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially strapped homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

 Get your FREE REPORT.....

Among the most important facts to keep in mind: the sooner help is sought, the better the options.

To find out if a Phoenix ShortSale is right for you...Click here for your FREE REPORT NOW .....

These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of an unmanageable mortgage and realize that hope and blue skies are within reach, contact me today and let’s get started.

 

Is Your Mortgage out of Balance with your Budget?

 It can happen quickly....

An expensive car repair, an unexpected hospital visit, a missed week of work – just a few little things and the life you’ve worked so hard to build can feel like it’s tipping dangerously out of balance.

This is happening to many people here in Phoenix, Arizona.  Many hard working homeowners may even be having their hours at work cut back which has a huge impact on their financial stability.  One missed mortgage payment and it feels like you are always trying to play "catch-up".  It turns into a snow ball effect.

 Once the scales turn against you, it can feel like it is impossible to ever tip them back in your favor again. When your financial problems reach the point where they threaten your home, it is difficult to manage the stress. Sometimes it is even difficult to force yourself to seek help.

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...Click here for your...

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 foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

 Choose to face the challenge with a professional on your side.  Choose a Phoeinx Short Sale Agent.

 I can help you realign the balance in your financial life and tip the scales Backin your favor. Call or email me and schedule your free, confidential consultation. We can work together to make sure you end up ahead.

Arthur Wainio

www.shortsalewitharthur.com

Do you live in Rocklin CA? How about Granite Bay CA? Or Lincoln CA maybe? Folsom CA? Well, even if you live in El Dorado Hills CA or Roseville CA this message may help you if your home mortgage is underwater or you have considered a Short Sale.

BLOG SERIES – “What Does a Notice of Default Mean?” CALIFORNIA SHORT SALES FAQ's RETURNS!!! for Rocklin, Roseville, Granite Bay, Folsom, El Dorado Hills, Lincoln and Sacramento CA

As a Rocklin CA Short Sale Listing Agent serving places like Rocklin CA, Granite Bay CA, Folsom CA, Roseville CA, El Dorado Hills CA, Citrus Heights CA, Sacramento CA and Lincoln CA... And others in the area, I get many questions regarding the process, lenders, what course of action should be taken... There are an endless number of questions that come up. So, I decided to start a BLOG series in 2011 regarding those Short Sale questions that I get asked. Here s a link to 10 Short Sale Questions and Answers and my answers BLOGGED previously.

That said here is the next question I hear from Sellers & General Public a lot:

"What does a Notice of Default mean?" ANSWER – In California, your first missed payment is technical default.  However, most loan servicers (i.e. – Bank of America and Wells Fargo are Loan Servicers) do not begin the formal process until the third payment is missed.  A Notice of Default is a document filed with the county recorder officially beginning a non-judicial foreclosure timeline. Once you receive a Notice of Default, foreclosure has begun.  You have approximately 111 days before the property will be SOLD AT AUCTION or taken by the bank if nothing is done to prevent foreclosure.  After a Notice of Default, the next document received will be a Notice of Trustee Sale.  We will summarize the Notice of Trustee Sale in a later post.  If you are not making your mortgage payment, it is highly recommended that you seek advice from a qualified Realtor or Real Estate Attorney immediately.

I have read several news and Blog pieces about 2012 being the bottom of the market and how the best time to purchase a home is now. In good conscious I cannot sit idly by without voicing my opinion.

The news and columnists have based their analysis on the low number of inventory currently on the market for sale and the fact that it is 22% less than this time last year. They further site a 30% increase in property searches on Realtor.com which is one of the top search websites where consumers make purchase decisions. The reporters further substantiate their point by stating that interest rates are the lowest they have been since the great depression. Well folks, I am here to let you in on a few things. I am a distressed property real estate broker and live in the numbers and happenings on the ground. Last year alone I personally closed $17 Million in real estate. More than three quarters of my sales were short sales and bank owned property sales. My job revolves around tracking properties that have defaulted on their mortgage payments and listing the property for sale before it ends up in foreclosure. When properties do end up going to foreclosure the banks also contacts me to sell the properties back into the marketplace as a bank owned property. This is also known as a REO (Real Estate Owned) property.

In dealing with the lenders on a daily basis I have the ability to see how many mortgages are current or behind in any part of California. The numbers are staggering! One in three properties in San Diego County is currently underwater (owe more than what the property is worth).
Many of you may have heard of the “Mortgage Debt Relief Act of 2007” which is set to expire at the end of 2012. This means that anyone wanting to do a short sale has until the end of this year to get it done to avoid the enormous tax and deficiency implications. As homeowners scramble to do short sales, the banks are absolutely inundated with files. Banks have increased their loss mitigation departments to handle the amount of short sale requests as the deadline draws near.

So to shed further light on the subject of a “recovery,” I would have to say that the reason there is a 22% decrease in inventory on the market for sale is due to the “Robo-signing” debacle which simply held up the foreclosure process for a few months. Furthermore, the lenders have started issuing three month extensions to foreclosure sale dates rather than the standard 30 day extensions. The numbers are artificially adjusted to modify the supply and demand ratio. Also, the news columnists have stated that the average nationwide sales price has started increasing and the market is recovering. This is not quite correct because the number of higher end distressed sales has dramatically increased. In other words, if 100 homes sell at $200K and 900 homes sell at $500K, the average home price may have increased.  However, what they are not saying is that the home that is currently selling at $500K was purchased in 2005 for $900K.  See how they are messing with the numbers. Just because the average nationwide sales price has increased, does not mean we are recovering.

So I would maybe agree that the lower end has reached the bottom whereas the middle and higher end have room to fall.  Far be it from me to state that 2012 is the “Big Housing Recovery.” New young families or recent college graduates will also add to the lower end recovery as they will need to purchase in this range.

The number of Baby Boomers now wanting to downsize will further hamper the prices of the middle and higher end as they add to the supply. There are currently 30 million Americans in this segment of the market.

The FED made an error in judgment a month ago when they stated interest rates would remain low through the end of 2014, which took away the immediate driving force to purchase now. If interest rates would remain low for an extended period of time, why would anyone be in a hurry to purchase when they know how much shadow inventory the lenders are sitting on?

As the world has become a global economy, few have shed light on the fact that China has begun their housing crisis with more than half the cities reporting huge decreases in home prices. This may have an influence on our economy further down the road as this may affect the cost of consumer goods locally.

Gas prices are at an all-time high and could further contribute to inflation and gyrations in the consumer price index.

Unemployment is still stubbornly above 8% and steam rises from the printing presses at the Fed.

I don’t know folks. Recovery 2012?  I am not so sure. And over the years I have learned that in the long run it pays to be honest rather than bending a situation for personal gain. There is a reason I am renting right now. Though the rents are higher, cash will soon be back on the thrown to be crowned King. Don’t be in any hurry to purchase unless you find a great deal.

This is my honest humble opinion.

Is Bank of America Still Terrible at Short Sales?

I would have to reluctantly say no.  Bank of America is no longer terrible at short sales.  This coming year will mark four years since my first Bank of America short sale, and as critical as I am of Bank of America, I must admit they they have improved.  That first short sale took 8.5 months and at least 3 buyers to complete, and most of the time we were lost in a wilderness of bureaucracy.  The market was still rapidly declining, so by the time they approved the short sale, the property did not appraise.  Thankfully, the property was unique enough to the last and final buyer that they didn’t just move on.  And, it didn’t hurt that the buyers were also using Bank of America for their loan.  The loan officer did help in escalating the file as there was at the time no clear cut and effective method for escalating a file.

I think Bank of America has improved their processing time and in general they are becoming more accountable.  Two improvements in particular stand out 1) They now use Equator. Equator is a secure online platform that allows you to upload documents and communicate directly with Bank of America about your files. 2) The Twitter Team.  BofA_Help on Twitter has proved to be a fantastic resource when ridiculous issues crop up on files.  After you’ve exhausted the traditional channels to no avail, the Twitter Team can help you push that short sale off the tracks before the oncoming train arrives.

In my experience, Bank of America currently takes about 5 – 10 weeks processing short sale files.  What is frustrating is that often they are capable of having approvals in 5 – 6 weeks, and there seems to be no rhyme or reason as to why one file takes 5 weeks and another 10 weeks.  Often they get into a really great rhythm, and then they decide to tweak something in their internal processes, and if you happen to initiate a short sale at that time you end up being a 10 week file instead of a 5 week file.  In my experience, currently most of the delays happen up front in their efforts to qualify every borrower repeatedly for HAFA or the Bank of America Cooperative Short Sale program, or because of a delay getting an appraisal ordered on the property.  In addition, they often outsource their HAFA files and BofA Cooperative Short Sale files to outside entities which include UTLS, AMS Servicing, and REDC and getting a file back to BofA in Equator once it has been sent out can be difficult and time consuming.

Bank of America still has a ways to go.  I don’t particularly care for the fact that they constantly tout their real estate agent website as a resource for short sales, but last time I looked I couldn’t even find any standard forms for a short sale on that site.   And of course their new “introductory calls” are also annoying — on a recent one I told the rep that I would call her back if I ran into a problem down the road and she informed me that it was only a one time call and I couldn’t call her again.  Kind of like when you go into a store and look for a salesperson to help you and can’t find one, but if you look like you don’t need any help, five different people offer you assistance.  So, although they have improved, a certain amount of it is just showmanship.  As a person that values substance over show — I find that part of it annoying, but the part that actually works — such as the Twitter Team, I like.

Before deciding whether to short sell your Santa Maria home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent.She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. 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.

Copyright© 2011 Tni LeBlanc *Is Bank of America Still Terrible at Short Sales?*

Bank of America is making a process change that will reduce the processing time and improve customer service for HAFA Short Sales (Home Affordable Foreclosure Alternative Program) that are submitted with an offer.

The proposed change goes into effect Dec. 1, 2011, and impacts all short sales submitted with an offer in which the homeowner is eligible for the Home Affordable Foreclosure Alternative (HAFA) program.

When a short sale is submitted with an offer and the homeowner is HAFA eligible, we will no longer halt work on the file while waiting to contact the homeowner. HAFA eligible homeowners are no longer required to call our Short Sale Customer Care to indicate whether they will participate in the program.

Instead, real estate agents specializing in short sales can indicate a homeowner's HAFA interest by submitting the necessary documents to Equator within 14 days. During that 14-day window, the short sale will continue moving forward. By the end of the 14 days, if we have not received the requested HAFA documents, we will continue to process the file as a traditional short sale.

This change is being made because we are transitioning the processing of all HAFA short sales with an offer from our outsourced vendor partners to Bank of America associates. A Bank of America specialist will be able to seamlessly transition a file from our traditional process to the HAFA process, thus improving customer service and the borrower and agent experiences. Homeowner's and agents should be aware that Bank of America's outsourced vendor partners will, however, continue to process all short sales submitted without an offer.

Action required:  

Short sales initiated on Equator.com that receive a HAFA eligibility message no longer require homeowners to call Customer Care to confirm their interest.

-  If homeowners wish to participate in HAFA, agents must submit the requested documents within 14 days.  (Note: the 14-day period begins the day the HAFA solicitation letter is mailed to the homeowner. Agents can obtain the date of the letter from homeowner.) 

-  If you are unclear about which documents to submit, contact your short sale specialist via Equator messaging. 

Additional Recommendations:

Homeowners interested in understanding the benefits a HAFA short sale, including the $3,000 relocation incentive at closing are encouraged to review HAFA Program or the HAFA education guide to learn more.

Bank of America also has put together a HAFA Eligibility FAQ for interested homeowners

We have all seen Back to the Future Part II and all know that in 2015 we are supposed to have all these great advancements and technology…The truth is we already have most of the things they came up with in that movie.  Everything except for the ever elusive flying car…but I also know that we are getting close on that too…But what about real estate…

Do you think homes being built in 2015 will be any different than today’s home?  Do you think that we will miraculously adopt the thumbprint entry rather than your traditional doorknob and handle? What about the door itself? Will we all of a sudden start building homes that lose the normal door altogether and start using the Star Wars “blast door” style? Or perhaps we will have coolers on our ceilings that drop on command…

The truth is that homes most likely will not change that drastically in 3 years.  I think the only things we will see are continued upgrades to items already being used.  Items that will help save on energy costs and electricity.  I think we will start to see a lot more solar powered appliances and roof solar panels.  I also think we will see a lot of innovation in windows and insulation.  Lets face it, the trend is and will be for awhile is energy conservation and the environment.  The more “green” we can build new homes the better it will be for the environment…Which is a really good thing and I think a lot of innovation will come out of energy efficiency and solar energy research.  I just saw the other day a paint that you can use that will conduct solar energy and with the right equipment installed can be utilized for household energy use.

What are some things that you think we will see in the next couple years…Where will the new home building focus be? What kinds of interesting things have you seen lately in this arena?

Tim Brown
Realtor ®, BROKER, ABR, CRS, CDPE ®, SFR, Auctioneer NCAL#8560
Hines & Associates Realty
Direct Line: 704-619-1008
www.CarolinaHomes4Sale.com

How clever some of these companies that keep popping up claiming to be our good buddies and stick with us throughout the transaction.

Something didn't sound right when I started questioning the guy. Sure he said he was with the National Group(s) or something. When I started to ask how they got paid he let me know that they get a 1% fee and that commissions are reduced to 5%. When I pressed about how they intend to get around Fannie Mae's guidelines that they're not allowed to reduce our commissions below 6% he started back pedaling.

In the end he said I didn't have to work with him and he could send my file back to LBPS/Seterus, although, he didn't know how long it was going to take for them to get to the file. Hmm...that sounds like a not so subtle intimidation tactic.

That begs the question of who they are working for and whether or not it's legal? You see, in the great state of Idaho, you're not allowed to collect a fee for short sale negotiation unless you're a licensed agent and it is standard of practice in your regular business of helping clients to list and sell homes or you're licensed with the Department of Finance.

If I'm given the choice of whether or not I want them to work my file and they're collecting a 1% fee taken from a reduction in my commission who's behalf are they working on?

Sure, I'm arguing semantics here, however, it's not right that they don't disclose their game up front. When push came to shove he hung up on me.

Should we as agents push back against the tactics and business practices of companies like this?

P.S. It reminded me of a similar go round I had with another company recently, Titanium Solutions, only in that case it was an agent who called upon one of my clients directly knowing full well the property was already listed. That's an interference with a brokerage agreement and against the law, I checked with the real estate commission. Same type of threat from them about not running the transaction through their company. Guess what? Bank of America said they could go pound sand and took the file and ran with it anyway. It's amazing the amount of knowledge and protection short sale agents have to have to service their clients properly.

Bank of America Short Sale in Los Angeles

Are you thinking of a Bank of America Short Sale in Los Angeles? Many homeowners in the Los Angeles area have their 1st mortgage, 2nd mortgage or both 1st & 2nd mortgages with Bank of America. You might not be able to pay your monthly mortgage payments anymore or are in danger of falling behind on your loan. If so, a Bank of America Short Sale may be an option. Many of my clients have also tried to get a loan modification with B of A and have been unable to. Bank of America may suggest the short sale of their home. Bank of America uses a special online platform known as Equator to process their short sales.

The number of Bank of America Short Sales in the Los Angeles area has increased. Some homeowners bought their homes when the values were high and are not able to refinance due to the decrease in home values. Others took advantage of the previous market and refinanced. If you live in your home or have lived in the house in the last 12 months, you may qualify for the Bank of America HAFA Short Sale. Otherwise, you can attempt the traditional short sale.

Feel free to contact me directly at 818-903-2040 with any questions regarding a Bank of America Short Sale in Los Angeles and the surrounding areas. I also provide a FREE estimate of value of your property.

Areas Serviced:

Agoura Hills, Arleta, Beverly Hills, Box Canyon, Burbank, Calabasas, , Canoga park, Canyon Country, Castaic, Chatsworth, Encino, Glendale, Granada Hills, Hidden Hills, Lake Balboa, Lakeview Terrace, Los Angeles, Mission Hills, Newhall, North Hills, North Hollywood, Northridge, Pacoima, Panorama City, Pasadena, Porter Ranch, Reseda, San Fernando, Santa Clarita, Saugus, Sepulveda, Sherman Oaks, South Pasadena, Stevenson Ranch, Studio City, Sun Valley, Sylmar, Tarzana, Toluca Lake, Topanga, Universal City, Valencia, Valley Glen, Valley Village, Van Nuys, West Hills, West Hollywood, West Los Angeles, Westlake Village, Woodland Hills, Winnetka

Bell Canyon, Camarillo, Moorpark, Newbury Park, Oak Park, Oxnard, Simi Valley, Thousand Oaks, Ventura, Westlake Village

IF YOU DO NOT SEE YOUR AREA HERE, PLEASE CONTACT ME. THANK YOU

Well Bank of America did it again.  They foreclosed on a home owned by a single mother of five children, one a newborn last Monday after we were told numerous times that her short sale was approved.

This hard working mother of five commutes to work every day from Victorville to Manhattan Beach, a 103 mile one-way trip in order to keep a roof over her family’s head.  With the job market in such a slump she cannot afford to risk her current employment and has been making this commute for nearly 4 years now.  Until now.

She attempted a loan modification with Bank of America two years ago but was declined.  She attempted the process again only to be turned down for allegedly not returning her documents to the bank by their deadline.  When we met her earlier this year, her loan was not in default yet.  With the news of her recent pregnancy, she began falling behind in her mortgage payments. 

In April 2011, we listed her home in attempt to short sell it so that she could retain some hope of home ownership again by making every effort to avoid foreclosure.  I am a HAFA certified real estate broker trained to work out short sales.  She was a prime candidate for the program.

In May 2011, we received a full price offer on her home at $99,000 all cash.  She was also served with a notice of default that same month from Bank of America.  We tried to assure her the best we could that the short sale would be approved and not to worry about the bank foreclosing on her.  We had plenty of short sale negotiations on homes with Bank of America that have been postponed for months if not years before the threat of foreclosure. 

After submitting her complete short sale package, the new offer and estimated HUD-1 through the Equator system, we received a counter offer from the negotiator basically accepting the terms of the purchase agreement with some minor tweaks.  The closing date was to be completed by September 23, 2011.  Not a problem.  We accepted all the terms.  This was in July 2011.

This process was moving along quite quickly in comparison to other files we have worked.  But no indication of any red flags or reasons to question the system.  After submitting her most recent updated pay stub and bank statement, Bank of America stated that they were waiting on final investor approval before we would open escrow. 

On August 10, 2011 she received a notice of trustee sale notice posted on her front door.  The sale date is scheduled for September 6^th at 9:00 a.m., the day after Labor Day (no pun intended but ironic since she just gave birth to her new baby boy). 

We began to call the negotiator immediately in an effort to postpone this looming sale date in light of the short sale approval we were waiting on.  Bank of America assured us that the foreclosure date would be postponed but that it may not show up in the system until three days before the sale date.  We called the trustee directly to verify that the sale date had not been postponed yet.  On the first of the three days before the sale date we began to make repeated calls, email requests, Equator notifications regarding the pending sale date.  Each time we are told that it should be postponed at any time.  The trustee notifies us that an opening bid has been published for $64,000.  What?  How could that be possible when Bank of America is working on the $99,000 all cash offer we submitted two months ago?  It must be a mistake.  We kept calling. 

Bank of America did not postpone the foreclosure sale as it promised to do.  The home went to sale for $64,500.  Oddly enough, it was not purchased by a third party.  It reverted to the beneficiary to be sold as an REO.  Fannie Mae failed this hard working woman, Bank of America failed her.  And ultimately, we failed her miserably too. 

How could this happen?  What could we have done differently?  We are attempting to contact the asset manager for Fannie Mae to inform them that we have an offer for $99,000.  Bank of America told us that it would take a few weeks for the property to be assigned.  I didn’t believe that and was correct when I was told that Fannie Mae introduced himself to my client by knocking on her door with the news. 

My head is still spinning with ideas and attempts to understand why this home went to sale without a single postponement when so many others we have with Bank of America are declared “cancelled” for other unknown reasons.  I’m furious and saddened by this foreclosure system we are forced to bargain with.  Any thoughts?

DISCLAIMER:
****DIANE WHEATLEY IS NOT A LICENSED ATTORNEY. THIS INFORMATION IS COMPRISED OF HER OPINIONS, OBSERVATIONS AND INTERPRETATIONS AND IS NOT INTENDED TO BE CONSTRUED AS LEGAL ADVICE.  PLEASE CONSULT WITH AN ATTORNEY BEFORE RELYING ON OR TAKING ANY ACTION BASED ON THE INFORMATION PROVIDED HERE.****

Bank of America Short Sales Made Easier?

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

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

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

Originally published at Bank of America Short Sales Made Easier.

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

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

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

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

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

Federal Government Disclaimer (MARS) 

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

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