Blog

Does anyone have a name of someone higher up...I have a FHA I'm trying to do and Fannie is coming back wanting Full price of what is owed even with showing to model matches that are way under. Need some help???? 

I am wondering if anyone has ever done a short sale with Teachers Credit Union? It is not a huge branch but they are not small either.

I was told by the mortgage department (since they don't have a loss mitigation dept) that they will not accept an offer for less than $200,000 since their unpaid balance is $230,000. They are not going to entertain any lower value. They also never waive the deficiency.

I am looking for some good news from anyone who has dealt with this particular lender. Maybe even a success story..?

We have a first with Midland (FHA) and a second with Navy Federal

Midland won't work a short sale without an approval in writing from Navy Federal accepting $1500 (balance is aprox. $70k).

Navy Federal won't look at the short sale without an approval in writing from Midland showing what offer they will accept and what Midland will approve for Navy Federal.  Navy Federal will not order a BPO until they have the Midland approval in hand.

Any ideas?

I, the buyer, have received approval for a short sale that is HAFA II. The only problem is that the 2nd lien holder wants more than $6000 for a GSE.  The first lien holder is claiming it is illegal to ask for more than $6000. But it is my understanding that the 2nd lien is "offered $6000", but is not forced to accept only $6000? Also how do you handle this? Fannie Mae's instructions state no one (buyer, seller,...) can pay the extra amount.

Understanding a short sale approval letter is a critical skill for a real estate agent, homeowner selling on a short sale, investor buying on a short sale, and anyone affected by a particular short sale transaction.

Most banks approving short sales are national.  This means they have loans in most states.  However, they often have legal council for the states they have loans in.  Because of this, often they will adjust their short sale approvals based on what works on the state were the property collateral to the loan is located.

This subject can get real technical.  That would be outside the scope of this blog post.  Lets focus on what the person selling on a short sale (homeowner) really want as first choice.  That is to not owe after the short sale. 

Just to not miss any components, there are three important concepts to understand.  Here I am simplifying to the maximum.

• Short Payoff:  The bank gets paid less than the total present value of the loan balance and releases its interest on the property.  So the property is no longer collateral.
• Release of Lien:  A type of short payoff in which, the shortfall between what is owed to the bank and obtained from the sale, is still owed by the homeowner.   Basically the homeowner still owes to the bank
• Short Sale:  A type of short payoff in which the homeowner does not owe anything to the bank after the property is sold. 

Needless to say, all homeowners want a short sale.  The question now is to know what is that the short sale letter actually means behind all that legalese wording.

How to Distinguish a Short Sale Approval Letter:

A short sale approval will always clearly state that the loan will be satisfied in full for less than the amount owed or very similar wording.  See sample below.

How to Distinguish a Release of Lien:

A release of lien letter will always indicate that the lien will be released but the debt will not be satisfied in full.  In addition, most likely, the homeowner will have to sign a promissory note at closing.

Oscar Morante
Ph:  971-222-3734
Fax: 866-844-7009
PDX Experts Real Estate, LLC
www.PDXExperts.com
534 SW 3rd Avenue
Suite 305
Portland, OR 97204

Real Estate Agent
Realtor

Because I am very active in Short Sales in the Portland, OR metro area, I get all kinds of questions by email and phone.

As much as possible, I try to keep the questions and answer in email form.  One of the most common questions I get is:

"should I short sale or not".  My answer is almost always "it depends".  Basically, whether a short sale is a good strategy to unload a property, or not, depends on the specific situation.  The email sequence below is a good example of this.

Email Sequence:

Customer questions are in navy.  My replies are in blue.

Hi -

I have an initial question on my possible options. I got divorced 2 years ago and still jointly own a house with my ex wife, which is under water by aprx $55k, I owe $260k. I am current on my mortgage.

I have a first for $200k and a second for $60k. My problem is I could afford to pay the defect, but don't want to pay her 1/2. Additionally I'd like to not impact my credit or damage my chances of buying a new house in the next few years.

Please could you let me know possible options from your perspective, so I can begin a plan on selling my house.

Thanks.

Ken

Ken,

Thanks for contacting me. 

It seems to me you are not much underwater.  Maybe you need to buy her off the title and keep the house.  The ticket is to do it now rather than when there is equity, because you will get there.  At that point she will want her cut, even if she is not paying now.  Cash plus resentment area bad combo.

Is the property vacant?

Another option is for you to pay the short fall of the sale if you want to sell with no default.   That would be around $80K by the time you add the second mortgage, the unpaid part of the first, the real estate commissions and other things.

Hopefully this helps.  For a short sale you need to default.

Oscar

Thanks for the quick response Oscar. The house is not vacant, I am actually currently residing there.

I assume that default is the worst possible option and would completely ruin my credit (and potentially leave me exposed to lenders wanting to come after debt recovery)?  I have a feeling this would be my ex's preferred option, which I want to steer clear of. Do you know if a default in her name would impact her new husband or just limit their future lending options as her credit will be poor (that could be a good deterrent).

I guess my other option could be to buy her out, then potentially look at renting it, although my mortgage is currently at 6.5% :(

Thanks again.

Ken

Ken,

It seems you are better off buying her out.  You will have to pay for rent or mortgage anyway.  Offer her $2K for getting out of the title.  Do it at a title company.  I can connect you.

Don't take this as legal or tax advice.  Just a pointer.

Let me know if you need anything else. 

Oscar

Oscar Morante
Ph:  971-222-3734
Fax: 866-844-7009
PDX Experts Real Estate, LLC
www.PDXExperts.com
534 SW 3rd Avenue
Suite 305
Portland, OR 97204

Real Estate Agent
Realtor

Hi all, I have been doing a short sale with Nationstar and its been in equator for quite a long time now. They promised us the approval letter when we met the net they required. It was in November 2013 and since then there hasn't been any response from them. I tried emailing negotiators and managers in equator, tried calling them, but no response at all. Does anyone know somebody at the top level who can help me get an update on the file and keep it moving.

Please share your suggestions...Thanks

Spiking Foreclosure and the Statistics, those pesky little numbers! Can consumer emotions be tied to those same numbers?  As a Realtor®, businessman I look at the statistics and then try and apply them to my client and community needs.  For some time  strong honest market influences have been advising the public to research the market and if they are considering short selling.  They advise to select a real estate broker who is familiar with the short sale process.

To instill, in the mind of a new visitor to my blog, I have the experience necessary to be considered knowledgeable, I share the following. For three years (2010 -2013) I severed on the California  Association of Realtor® “Distressed Property Task Force” working to advise C.A.R.  Leadership and Realtor® members as to the best practices, to aid distressed clients.  During these “task force” meetings  we shared with some of the Nations largest banks, elected officials and regulators the issues Realtor® and the community faced by the meltdown in real estate values.    In 2013 I was a recipient of the C.A.R.  Champion of Home Award for the work I had done to aid save homes, never charging a penny for my help.    Also in 2013 I was awarded Realtor® of the Year honors by the Pacific Southwest Association of Realtor®.

Now let’s get to the statistics, we are going to provide some numbers to look at.   I am going to try my best not to influence your view of the market,  but as I see things there is still a need for one of my skill sets, that being helping with short sales.  First I would like to take you to some Federal Reserve Numbers. (from this point forward this symbol  (#) will be an active link, just click on it to see the reference point.)   At the following site location (#) you will see that the Federal Reserve tracks the percentage of delinquent loans.

I see great value in this chart as it covers a long time period.  We can look back into the 1990s for the numbers to compare.  First let’s look at the date that Lehman Brothers collapsed as that is  the commonly accepted date we entered this economic cycle.(#) it was September 15, 2008. So what was the default ratio on Mortgages according to the Federal Reserve then?   Looking at column 3 labeled Residential1   it reads, it was 5.22% in the Third Quarter of 2008.

Using this as a point of historical reference it would appear to be truthful to say; Today more than 5 year later, the number of defaulting loans is greater than what caused the melt down that lead to TARP and then HAMP the Treasury Loan Modification Program. Now let’s scroll up the page and compare this in historical reference.   Today’s number of defaulting mortgages is in fact higher!  Again I am trying not to make statements, rather allow you,  to see the trends and the real numbers.

Just to be fair let's view a random point in history say the first quarter of 2005.  The ratio was about 1.48  or about 7 percent lower than it is today.  Let’s look at this 2008 collapse, again with it was at 5.22 and it’s effect on Banks.  Going to the FDIC Site (#) it is not surprising to see it there is a correlation in the number of  failures by date and the Default  numbers from the federal Reserve.  In 2006 there were no Bank closures the default rate at the Fed was 1.60 (first quarter %)

Let’s  make this a little more visual and compare some numbers using the last "quarter" of the year’s Federal Reserve default number  and the FDIC number of Bank Closures.

Year      Federal Reserve Default Percentage     Number of Banks Closed By FDIC    

2006                         1.95                                                      0  (zero)

2007                         3.8                                                        3

2008                         6.66                                                     25

2009                       10.52                                                    140

2010                       10.2                                                      157

2011                       10.31                                                     92

2012                       10.04                                                     51

2013                         8.59                                                     24

At this time there has been a large number of loans transferred to NON BANK companies like Ocwen and its unclear if their inventory of loans is considered in the Federal Reserve number, thus skewing the number of actual loans in default.  (Here are two interesting reference points on Ocwen (#) and the New York State Attorney General (#) and their potential growth, as non Bank Servicers.)

In one of the zip codes which I work, 91915  the percentage of distressed properties listed in the MLS is 15.4%.  These properties fall into the category of  short sales  or foreclosures.   This number is easily seen at the (#) Market Advisory that is provided to my clients at my web site.  BuyOrSellYourEastLakeHome.com I can not say anything for certain.   But it appears by  looking at the default numbers we are still not in a truly healthy market.

The reverberations from 2007 and 2008 are still with us according to the Federal Reserve numbers.  I want to link to one site that states in July of 2013 the default number "increased".  DNS the author of this information is considered a prime source of industry information (#) but their method of data collection is different creating some sort of factored numbers.  For this reason,  I place more credibility in the Fed Reserve numbers.

Either way, the indication irrespective of source is  not positive, in my view. My heart continues to go out to my community.   Some people may argue that by looking at just these  statistic indicators and ignoring there has been  an increase in price, is unfair. Price increase that was good for some, but many people are still stuck in a situation that looks like it will take a decade or more to resolve.

With the current default number as provided by the Federal Reserve, I don’t see how anyone could argue with the idea of some continued pain. The warning of more negative is on its way before we achieve a stable market is getting louder, which seems to be in line with the still high default ratio. You may like to read these articles which come as no surprise to me.  What else can be done if the bank is not collecting the payment?

"Foreclosure starts suddenly rise by 57 percent."  January 2014  (#)

"LA Times Southern California housing market loses momentum in January" 2014 (#)

DNS News - Defaults rise in December of 2013, but better over all for 2013 (#)

I will be following the numbers, but more important  to me, I will be ready to help any person that needs to make a transition or understand the system that they are in.   The bundle of California laws known as the “Homeowners Bill of  Rights”  has brought more control over Banks, relative to the Loan Modification and Foreclosure process.   It is my belief this gave some people, as much as a year of grace, while the banks made sure they were in compliance with California law.   The period of changing the banks internal systems  seems to be over. Factoring in the  57% rise in filings as it detailed in the article above, what else could be the reason?

My next article will be on another issue, related to a growing concern.  "Short Sale Blight!"

George Kenner, Broker Associate  BRE. Lic 01229951   Tel.  619-723-5714  

This is a being copied and published here for my fellow professionals to view.  I can see where our unique "kind and caring" skill set is going to be needed in our communities again.  These numbers are not secret, they are just not in the common media.  Frankly it is beyond me why the media cooks there own numbers when the Federal Reserve has been posting this default rate for over 20 years.  It is amazing looking at the chart in total, the truth is in the numbers.

Where would you like to be when you are old? I don't know how to read minds but I am sure you don't want to be homeless. I am sure you don't want to helplessly see your home foreclosed by a bunch of crooks driven by greed.

Many old people, cancer patients, newly married couples, single moms, among others have been evicted by the loan servicer Ocwen. Many have seen their short sale requests turned down only to watch their homes sold for lower prices to builders and investors. As per the allegations, Ocwen used deceptive and unfair means while working with borrowers who were delinquent and underwater. The company has been accused of misrepresenting facts while filing foreclosure documents, charging unjustified fees for default-related services and forcing borrowers to buy unnecessary insurance policies, among others.

Greed of the lenders led to the subprime mortgage crisis which in turn created an economic crisis which led to people losing income and jobs. People struggled to meet their high-interest mortgage repayments. Some requested for forbearance, some wanted their loans refinanced, some thought a short sale would help ease the strain on their finances.

Greed, though, was not dead yet. Those engulfed by greed only seek profits. To them it does not matter even if it comes from someone else's misfortune. One man finds himself standing against an organization driven by greed of such intensity that has seldom been seen before.

Benjamin Lawsky, Superintendent of the Department of Financial Services, had little option but to block the Ocwen-Wells Fargo deal in a bid to prevent more Americans being unwittingly led towards foreclosure by a loan servicer with a consistent track record of delay in providing statements, adding expensive and at times unnecessary insurance to accounts, not applying payments to account or applying them late. What more, its Chairman is the single largest shareholder in a company (Altisource Portfolio Solutions) that profits immensely from foreclosures and snatches away the livelihood of real estate agents trying to feed their families.

Mr. Lawsky's grandparents, immigrated from Nazi Germany to an apartment on 192nd Street after his grandmother’s father had been killed at Auschwitz; his parents, in turn, had made good through public schools, graduating from Bronx Science and C.C.N.Y. His father was in the U.S. Public Health Service, and Mr. Lawsky and a twin sister were born on a Navy base in San Diego before the family moved to Pittsburgh, where Mr. Lawsky grew up waiting tables and selling funnel cakes out of a food cart. As a high school point guard, he was recruited by several small schools but chose to attend Columbia, where he played briefly as a walk-on before taking up long-distance running. He wanted to study architecture, but, faced with drawing cubes, switched to art history. He became interested in the law when a controversial exhibition of Robert Mapplethorpe photographs in 1989 sparked a national conversation about art and the First Amendment. He graduated cum laude and enrolled in Columbia Law.

Mr. Lawsky has, in the past, questioned Ocwen and gotten them to agree to monitoring but more is expected this time around. For a man who threatened to take away Standard Chartered's license, he can surely do more than just deliver a gentle slap on the wrist to Ocwen.

"For almost 10 years," Lawsky wrote, "SCB schemed with the government of Iran and hid from regulators roughly 60,000 secret transactions, involving at least $250 billion, and reaping SCB hundreds of millions of dollars in fees. SCB's actions left the U.S. financial system vulnerable to terrorists, weapons dealers, drug kingpins, and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity."

I quote Ana Merlan, "Lawsky wanted to know why he shouldn't pull Standard's license to operate in New York—a move that would cost the bank billions. The financial world erupted in chatter.

From a sleepy federal investigation that was going nowhere fast to punishment that threatened Standard's very existence, it was clear there was a new sheriff in town."

It is time to be brave, Mr. Lawsky. Give the people some hope.

(The author, Saurabh Singh, is a student of the Buddhist monk Thich Nhat Hanh. He is a Foreclosure Prevention Activist and a vegan. He is also a member of People for Ethical Treatment of Animals(India), Consumer Advocates in American Real Estate, UNITES Professionals and supports charitable causes and crowdfunding.)

According to Forbes, Kathy Patrick is the woman wall street fears most. “The toughest lawyer you will see,” works out of an unassuming 33-lawyer Houston firm. She teaches Bible study on Sundays and sings in her church band, while raising two teenage boys with her husband.  Her $8.5 billion Bank of America settlement over bad mortgage deals was just the beginning. "Who else has ever gotten $8.5 billion out of anyone? Go find a settlement where anybody in history got $8.5 billion in a private settlement,” says Jason Kravitt, a lawyer who represented Bank of New York Mellon in the Bank of America settlement talks. “She manages to be sufficiently aggressive and constructive with the right combination of threats and creativity.”

This remarkable woman will take on William Erbey to avenge the distress caused by his firms to countless individuals, families, senior citizens, helpless little children, investors, employees, animals and nature. William Erbey's mother sent him to Harvard. He used his education to earn millions evicting helpless mothers from their homes, displacing poor families, disrupting the education of innocent little children. Kathy's mom sent her to Harvard as well and here she is fighting to stop the growth of antisocial market participants like Ocwen who are contributing towards the creation of an economy that hurts humans, animals and nature. What a contrast!

As news reached that she will be taking on Ocwen, shareholders of the loan servicer sold their holding in fear sending the stock crashing by over 9% on February 11, 2014. Here are just a few certifications of her ability:

* Named overall  “Outstanding Practitioner” by Euromoney Legal Media Group, Second Annual Americas Women in Business Law Awards, 2013

* Named “Overall Female Litigator of the Year” and “Texas Litigator of the Year,” Benchmark Litigation Inaugural Awards - South, 2012

* Named one of the “Top Ten Change Agents” by the Financial Times in its feature report: “US Innovative Lawyers 2012”

* Named “Best in Litigation” by Euromoney Legal Media Group, Inaugural Americas Women in Business Law Awards, 2012

* Named to Leading Trial Lawyer list by Legal 500, 2011-2013

* Named to Winning Women by Texas Lawyer, 2011 - One of 20 Texas litigators and appellate lawyers recognized for prevailing in high-stakes cases and having statewide and national impact

* Listed in Legal Media's Guide: Benchmark Top 250 Women in Litigation, 2013 - Recognized as one of the top ten women litigators in the U.S. in this inaugural edition

* Named in Euromoney’s  “Guide to World’s Leading Women in Business Law,” 2013

* Listed in Chambers USA America’s Leading Lawyers for Business, 2006-2013 - Named a top-tier Leading Individual for Securities Litigation, Texas, since 2006. Named on Nationwide Securities Litigation Leading Lawyers List, 2010-2013. Named a top-tier Leading Individual for Commercial Litigation, Texas, 2013

* Named an Extraordinary Women in Texas Law by Texas Lawyer, 2008 - One of 30 women recognized for excellence in the legal profession in Texas.

* Listed in Best Lawyers in America, 2008-2014 - Named in the areas of Bet-the-Company Litigation, Commercial Litigation, and Securities Law

* Listed in Legal Media's Guide: Benchmark Litigation, 2009-2014 - Recognized for expertise in Complex Commercial, Securities and Legal Malpractice matters.

* Named a Top Litigator in Legal Media’s Benchmark Plaintiff, 2012-2014.

* Named to the Leading Commercial Litigators in the World list by Who’s Who Legal, The International Who’s Who of Commercial Litigators, 2012-2013

* Named to the Leading Commercial Litigators in the World list by The International Who’s Who of Business Lawyers, 2013 - Recognized for expertise in Securities and Legal Malpractice matters since 2007

* Named a “Texas Super Lawyer” by Law and Politics, 2003-2013 - Named to "Top 50 Women" Texas Super Lawyer List, 2010, 2012-2013. Named to “Top 100 Houston” Texas Super Lawyer List, 2012-2013.

* Named one of The University of Texas at El Paso’s “Distinguished Alumni,” 2013.

* Listed in PLC Which Lawyer? Yearbook, 2008-2010 - Named a “Highly Recommended Individual” in Commercial & Securities Litigation.

* Listed in PLC’s Cross-Border Dispute Resolution Handbook, 2011-2012 - Named a “Leading Dispute Resolution Lawyer”
Named to Lawdragon’s 500 Leading Lawyers in America List, 2010-2013.

* Named to Euromoney Legal Media Group's World's Leading Litigation Lawyers, 2010, 2014.

(The author, Saurabh Singh, is a student of the Buddhist monk Thich Nhat Hanh. He is a Foreclosure Prevention Activist and a vegan. He is also a member of People for Ethical Treatment of Animals(India), Consumer Advocates in American Real Estate, UNITES Professionals and supports charitable causes and crowdfunding.)

Superintendent Benjamin Lawsky's office at the Department of Financial Services have raised certain concerns about Ocwen's ability to service mortgages and have halted indefinitely a $2.7 billion deal by Ocwen Financial Corp. to purchase mortgage-servicing rights from Wells Fargo.

Ocwen typically acquire loan servicing rights from lenders like Wells Fargo, Deutsche Bank, Bank of America, Chase, HSBC etc. and by acquiring companies like Homeward, Litton etc. who possess such loan servicing rights. The consumer has no ability to prevent his loan from being serviced by Ocwen.

The Consumer Financial Protection Bureau investigated Ocwen in the year 2013 and came to the conclusion " that Ocwen violated federal consumer financial laws at every stage of the mortgage servicing process" and "Ocwen made troubled borrowers even more vulnerable to foreclosure."

You may wonder what a loan servicer could possibly gain from a foreclosure. According to Ron Faris it would be an account lost! In order to understand this you need to understand that a company by the name Altisource Portfolio Solutions shares common ownership with Ocwen. Ocwen's Chairman William Erbey is also the chairman of Altisource and its single largest individual shareholder. Altisource sell foreclosed properties through their website www.HUBZU.com. In most cases these properties are listed through Altisource or Real Home Services and Solutions which is, no prizes for guessing, owned by Altisource. Altisource are also responsible for maintenance of these properties and provide title and escrow services to real estate transactions. In fact their Purchase and Sale Agreement states that the seller offers to pay the title insurance fees should the buyer elect to use Premium Title as BOTH an escrow and title company, thereby ensuring that escrow fees can be earned by Premium Title, who are an Altisource company! So Altisource and entities associated with and owned by Altisource earn from selling and servicing foreclosed homes in the following manner:
1. Real Estate commissions (usually up to 3%  of the net purchase price).
2. Buyer's Premium (usually 3-5% of the offer price, can be very high in some cases).
3. Web Technology Fee.
4. Escrow fees.
5. Title Insurance fees.
6. Property Preservation fees.
7. Closing coordination fees (if applicable).

In addition to this, Western Progressive, Altisource's wholly owned trustee subsidiary, processes residential non-judicial foreclosures in California, Nevada and Arizona.

So, while Ocwen do not stand to gain from these foreclosure related activities, Altisource do and thereby benefit the "common ownership".

You are vulnerable to foreclosures if:
1. You do not receive your statements on time.
2. If the payments you make are not credited to your loan account on time.
3. If your mortgage repayments rise due to higher insurance or other fees after the loan was transfered to Ocwen.
4. If your refinance/short sale/loss mitigation request was not given appropriate consideration or was rejected on flimsy grounds or was delayed while Ocwen were simultaneously attempting to foreclose on your loan.

If you are noticing early signs of such symptoms, it is better to take preventive measures. It is your right to approach regulatory authorities with your concerns. Please carry out due diligence to your satisfaction and don't just take my word for anything.

There is no place for foreclosures in a humane society.

While I strongly believe that as a responsible organization, Ocwen genuinely wish to help its customers, here is the link to submit your complaint to the DFS should you need to:

www.dfs.ny.gov/consumer/fileacomplaint.htm

(The author, Saurabh Singh, is a student of the Buddhist monk Thich Nhat Hanh. He is a Foreclosure Prevention Activist and a vegan. He is also a member of People for Ethical Treatment of Animals(India), Consumer Advocates in American Real Estate, UNITES Professionals and supports charitable causes and crowdfunding.)

Exciting News! FHA Is Allowing People that Suffered through Recent Economic Hardships to Apply for a Home Loan with the FHA Back to Work Program.

In the not so distant past people had to wait 3 years or more after suffering through a financial hardship. Bankruptcy, foreclosures and other major financial disasters would sideline people for a number of years before they could buy a house again. However, all that has changed with the FHA Back to Work Program.

Previous Guidelines

For years the FHA program has helped people finance the purchase of a home with a modest 3.25% down payment. In general, the FHA rules for credit and employment history were more forgiving than conventional loan guidelines. However, there were strict rules about waiting a significant length of time after filing bankruptcy, losing a home to foreclosure, getting a loan modification or a deed-in-lieu.

New Guidelines

The Back to Work program waives waiting periods based on certain hardship situations. People that have suffered through the following types of problems are no longer forced to wait multiple years to apply for an FHA loan

* Bankruptcy (either Chapter 7 or Chapter 13)

* Short sale of previous home

* Foreclosure

* Modification of previous mortgage

* Sale of a home due to pre-foreclosure status

* Deed-in-lieu

Due to the recession of the past few years the government has given FHA the ability to relax their rules in order to help people qualify for home loans. Now people will only have to wait 12 months.

Meeting the New Qualifications

For borrowers that have faced a hardship like the ones described above they will need to meet a few qualifications.

First the borrower will need to prove that their current financial condition is recovered from the impact of the financial hardship.

Second, the borrower will need to provide proof that their income declined by a minimum of 20% for 6 months or longer. This can usually be shown by presenting federal tax returns and the supporting W-2 forms.

Finally the borrower will have to agree to complete a counseling session aimed at educating home buyers.

In addition to these items the borrower must re-establish their credit. This does not mean that the scores must be 700+. However, once the hardship has ended the borrower will need to have good payment history on all credit accounts in order to prove that they are able and willing to make their monthly obligations.

Types of Borrowers

The Back to Work program can be used for people buying their first home as well as people buying their second, third, fourth, etc. home. It can also be used with the FHA 203(k) program for people that wish to renovate or modernize a home. Even people that are currently in a Chapter 13 plan could be approved for the FHA back to work program. The court will have to grant permission for the loan and the borrower will have to meet the other requirements.

The recent recession has hit a lot of people and left a lasting impact on them. The Back to Work program is aimed to help these people put the past behind them and return to the stability of owning a home.

Additional Mortgage Information: Mortgage Home Loans Financing

Hi guys,

If you some good examples of issues with FNNMA please post in the comment section. Thanks

I have a property in Oakdale that only 170,000 was owed. The servicer  added attorney fees and processing fees that took it way up.. it was a short sale with squatters in it. It took me 4 months to get them out, of which I paid. the bank said they would take 159,000.. but when we got an offer for 159,000.. they countered with 184,000.. then when we got an offer for 184,000.. they countered at 201,000.. This house is not  livable, flooring all gone, stove damaged, dishwasher damaged, master bathroom damaged. roof leak.. all landscaping destroyed by unwanted tenants animals. They have for the past year made verbal promises on speaker phone in front of seller and another agent of what it would take to close, then when we finally get that offer they raise it. They finally contacted the seller ask him to sign a deed in lieu.. They informed him that a deed in lieu does not appear on his credit. He decided not to accept the deed in lieu, so it is going to foreclosure. Ocwen is the servicing bank.. This is the only short sale I have not closed.

Simple Ways to Get Your Home Ready to Sell

For those homeowners that have waited to sell their home, heed the advice of Nike: “Just Do It.”  Interest rates are still really low and the upcoming changes in mortgage lending may disqualify some buyers.  Now is the time to sell your home.  In order to help your home sell quickly follow the timely advice offered below.

Spend a Little Now to Get More Later

With so many homes available many buyers are seeking out a property that is move-in ready.  This means that small repairs and maintenance items will possibly turn off some buyers.  Take a walk through the home and pick out the small things that need to be fixed.  Leaking faucets, a chipped tile, a flaky bit of paint and other similar items can negatively impact the appearance of your home.

You should also consider spending a little money to get the carpets thoroughly cleaned and ask a local heating/air conditioning company to service your unit.

Put Yourself in the Shoes of the Buyer

If you are looking for a new home, what items are important to you?  The majority of people want to live in a clean home that smells nice with lots of room in the closets, cabinets and other storage areas.  Therefore, you should put a lot of time in to making your home look clean, neat and organized. Start with the cabinets and closets.  Remove as much clutter as possible and even add some shelves if it helps improve the look.  Go through all the rooms and put everything away in a nice, orderly fashion.  Finally, get a few aroma dispensers and put them throughout the house.

Make People Interested in Coming Inside

So many homeowners spend time, money and a lot of effort improving the inside of the home that they ignore the outside appearance.  It is important to have an inviting appearance.  Homeowners should trim all the bushes, clean out the gutters, make sure the driveway and walkway are clear and clean the windows.  For people that have siding, consider power washing the siding as well.  It is really important that the front door and the surrounding entrance area look clean and homey.

Two Important Rooms: Bathrooms and Kitchens

The bathroom and kitchen will usually have more influence over selling a home than any other part of the house.  It is a good idea to go through these rooms and spend extra time, and even money, to make sure they look attractive and modern.

Many types of cabinets can be painted with a little bit of planning and work.  All bathroom plumbing should be in good working order.  Make sure there is plenty of light with good looking fixtures and that the ventilation to both the kitchen and bathroom is more than adequate.  Also, make sure the counters are clean and devoid of clutter.

It may seem like a crazy idea to spend money on a home that you are planning to sell.  However, spending money in the right areas can greatly improve your chances of selling the home faster and may yield a good return on the investment.

Why list your home with Rock Realty?? Rock Realty Marketing Outline

Recent Testimonials: Rock Realty Client Testimonials

I have been using a service for past few years and their data is often outdated and has errors. I am looking for a best service. Any suggestions based on your experience? Thank you in advanced.

There are many lenders and investors that have no issue with any party to the transaction, including the agents, making payments to junior liens or other expenses not approved by the short sale lender. In fact BofA and other large servicers place this right in their approval letters.

• "Please be aware that any additional fees that were not approved on January 14, 2013 will not be covered by Bank of America, N.A., and will become the sole responsibility of the agent, the buyer or you to pay at closing."

I've had buyers and sellers pay towards the junior lien. They have paid at closing, after closing and before closing. Always with full disclosure to the lenders.

However, Fannie Mae and Freddie Mac both have this as part of their guidelines for their Standard Short Sale.

• 
  Fannie Mae is requiring any payments to subordinate lienholders to be paid from the sales proceeds at closing for either a short sale or deed-in-lieu of foreclosure, in exchange for a lien release and full release of liability for the borrower. Allowable payments from the sales proceeds to all subordinate lienholders to facilitate lien releases must not exceed $6,000 in aggregate.

The servicer may offer the maximum payment of $6,000 for subordinate lien amounts of $6,000 or greater in order to facilitate the transaction. If there are multiple subordinate lienholders, the servicer has discretion to divide the subordinate lien payment among subordinate lienholders so as to maximize the chances that all subordinate lienholders will release their liens. The servicer must not authorize the settlement agent to pay more than an aggregate of $6,000 of sale proceeds as payment(s) to subordinate mortgage lienholders. If an individual subordinate lien, or total subordinate liens are less than $6,000, the payoff can only be up to the subordinate lien amount owed. No exceptions will be made to the $6,000 aggregate cap.

Prior to releasing any funds to a subordinate mortgage or lienholder, the servicer must obtain written commitment from the subordinate lienholder that it will release the borrower from all claims and liability relating to the subordinate lien in exchange for receiving the agreed-upon payoff amount. The servicer must require the closing attorney or agent to either confirm that they are in receipt of this commitment from subordinate lienholders or request that a copy of the written commitment provided by the subordinate lienholder be sent to the servicer with the HUD-1 Settlement Statement which is provided in advance of the closing.

Subordinate mortgage or lienholder(s) may not require contributions from either the real estate agent(s) or borrower as a condition for releasing its lien and releasing the borrower from personal liability.

So.....the answer is that sometimes you can and sometimes you can't. But always ask. The answer you get  may may your job a whole lot eaiser.

Or...just contact Bryant Tutas. Your Orlando Florida Short Sale Specialist.

****Always seek competent legal advice before implementing any of my ideas and techniques. I am NOT an attorney and I do NOT play one on TV. This is not legal advice but just one Broker's opinion.