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Bank of America has a couple of new and updated news releases they just sent out..

1.  Bank of America Second Lien Release Guidelines: New and enhanced guidelines for Agents handling prperties with second liens on them.

• The Short Sale must be initiated on or after June 1, 2012.
• The Second must be attached to the First lien mortgage owned by B of A.

This Waiver Enhancement is based on the Department of Justice settlement and went into effect June 1, 2012.

2.  HAFA short sale update:  These enhanced HAFA guidelines went into effect 6/1/2012 and apply to current HAFA Short Sales.  The program has been extended to 12/31/2013.  If you write a contract 12/31/2013, it must close no later than September 30/2014.

• Second lien release amount raised from $6,000 to $8,500
• Relocation fee ($3,000) is paid ONLY to primary Residents
• Home can now be occupied by Tenants or relatives and still qualify for HAFA.  Tenants or occupants must vacate by Close of Escrow.

Great additions to Bank of America Short Sale programs.  For more information, give me a call at 760-285-3578 or go to www.kimberleyjoykelly.com 

ANOTHER SHORT SALE CLOSED; Indio, California   This one took some fancy footwork, but got it listed and closed in less than 90 days..whew!

Sellers came to me two weeks before Sale Date end of August.  There was a tenant in the house, and they would not allow entry to Buyers..so "contingent upon Inspections" was in order.  Done.

Lender was Chase..not one of my favorites, but only one loan so hoped for the best.  Got it!  This BPO came in on target and the Negotiator was very sane.  Sweet! 

Buyers financed with a VA loan..not always the beset for Short Sales as they are 100% financing and tons of conditions, but this time it worked. 

Sellers are relieved and the Buyer is thrilled.  The sweet smell of happiness in the Short Sale world..

Closed another Short Sale in Rancho Mirage, California.  Recorded yesterday for $265,000.  Bank of America notes at approximately $485,000.  

My Seller is a lovely woman who LOVED this condo.  She and her husband spent many happy years there.  Her husband died a couple years ago, and it just became too emotional for her to live there.  Emotional as well as expensive.  She finally gave in and decided to short sale it with me. 

My Buyer is a Canadian who was looking for a gated community with lakes.  He got it!  This community on the Northern side of Rancho Mirage, Lake Mirage Racquet Club, is fantastic.  He has a lovely condo with a private boat dock, and Western views of the Santa Rosas' over the lake..yes, here in the desert!!!  We truly do have it all.

My Seller is relieved and her stress level plummeted yesterday with Recording.  My Buyer is thrilled to have his desert winter retreat..all is well in the Short Sale world. 

Short Sales truly are a tremendous way out for both Buyers and Sellers...I list, work and CLOSE my Short Sales.  No negotiation company used or needed.  I actually enjoy the negotiations!

Two loans..each with a diffferent Lender.  I have received BOTH approval letters.  COE is 5/27.  Buyers' money in the bank, inspections done, buyers on their way to Palm Springs..BOOM!

My cell rings..

"Hello, this is Kim"

"Yes, Kim, this is Bob, your closer for your loan #______"

"Hey Bob, great to hear from you!  What a surprise!  We're all set up to close on Friday."

Silence.

"Uh, well, actually, I just talked to the Investors and they saw that your Buyers are contributing $3200 to the 2nd lien and their new guidelines won't allow that..."

"Bob, I don't want to interrupt you, but you specifically told me when I asked you, that the Buyers could indeed contribute to the 2nd."

"Well, I did, but I was wrong.  They have new guidelines and now won't accept ANY cash contributions from ANY source to the ANY outside lien."

Well, call me crazy, but it would've been less illegal to not break our contract and finish this deal, then post the new Guidelines for future Short Sales..Nope.  These Investors want another $10,000 to buy the house and I had to figure out how to get the 2nd their money and not show it on the HUD.  Oh, and get it done to close by Friday.

I'm still working on this one, but talk about unfair, unscrupulous and just plain WRONG.  After 5 years in the Short Sale solution industry, you'd think I'd have a thicker skin.  Nope.  This curveball caught me off guard, but as usual, I'll scramble and run numbers and use my creative abilities and see if I can get it done. 

Are you kidding me????  Any wonder who's running the economy into the ground???  I don't.

If you like the rush, the careening highs and crashing lows that makes your Adreneline course through your veins like you've being chased by an unknown intruder..try a Short Sale!  What a rush!  What a ride!  Kind of like a huge roller coaster zipping along....up, then down..back up, then down..yippee!

Even if you're a list agent used to the stress, it is NEVER predictable.  The great ones blow you away because they are great-unexpected, but great.  The crappy ones (generally crappy negotiator driven), drive you to scream at the computer, and in my case, get up from my desk, steam around the house for awhile, do some stretches, perhaps throw myself into the pool for a refresher..whatever.  I come back to the computer with renewed vigor and energy..determined to overcome.

I have to admit I am an Adreneline Junkie..always have been.  Polo playing satisfies that physically, but mentally, I have found that Short Sales are a perfect parallel to the game of polo and keep me focused and driven.  I HAVE to beat the banks..I'm hyper competitive, and NOTHING gets me fired up like a challenge. 

So..Short Sales are not for the feint of heart, but if you're an Adreneline junkie like me..they fit perfectly..

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

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

Short Sale First Quarter Status..

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

Short Sale , Deed in Lieu, Loan Modification, Foreclosure, HAMP, HAFA in California and what they mean to you.

Under the HAFA program you have the option of doing a Short Sale or Deed in Lieu. According to current FHA guidelines you can buy another home 2 years after the short sale. The lenders are required to give you at least 120 days to market the home and obtain an offer. The lender does not have to give you more time and you are required to follow the guidelines set forth by the lenders. Many lenders are closing short sales sooner than 120 days so be prepared to move. The only thing I have seen that has been extending the short sale timelines is Mortgage Insurance.

A Deed in Lieu is when you sign the deed over to the lender and walk away from the house. The lender has to give you permission to do so and it has to be a clean marketable title. That means no other liens on the property, second mortgage, mechanics lien, taxes are paid, etc.

Visit my website: www.edsellsre.com

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..