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This was a Non-GSE mortgage.

Here is the answer: The HAMP Solutions Center is established under Fannie Mae and located in Dallas TX. What I found out was that any email with attachments (I had included an Authorization Form signed by the Borrowers  and a statement of the case history with supporting documentation) originated form a non-company or non-business ISP (gmail, yahoo, cox, verizon, comcast, etc.) is treated by Fannie Mae as unfriendly email and strips off any attachments and then sends you an email stating the following:

Subject: Undeliverable:FW:Request for Escalation Assistance with Bank of America/AMS

on a HAFA SS

Date: Thursday, September 29, 2011 1:29:33 PM ET

From: postmaster@fanniemae.com

To: dduft@comcast.net

This message originally contained an attachment, which was removed per Fannie

Mae policy.

This leads one to believe the email was not delivered - when in fact it was & I received an encrypted email from the HAMP office which stunned me at first as to how to open it as it needed a password. I decided to click on the forgot PW link and that allowed me to "reset" my PW which I never had in the first place. The email let me establish a new password without having the original and Wallah - the email opened. Basically this advised me that they would assist however I needed to use their specific forms for Authorization and Case History, to go to their web links to retrieve their unique Third Party Authorization (https://www.hmpadmin.com/portal/hamp_servicer/thirdparty/authorization.doc) and Case Submission(https://www.hmpadmin.com/portal/resources/docs/counselor/casesubmission_v3.pdf) forms. 

Once completed and signed you can submit by email to escalations@hmpadmin.com or fax to 240-699-3883. Once received they agree to give you start the escalation contact and provide an update within 7 days.  I will let you all know how it goes.  

PRESENTING THE SHORT SALE ADDENDUM YOU CAN'T SIGN!   Agents hold on to your wallets as this could cost you big time!  This is just too big and important to let one blog article suffice.  And developments on this are occurring quickly.  The problem was pointed out in my ActiveRain re-blog Freddie Mac Short Sale Addendum - Item #13 - I DON'T THINK SO!! on September 9, 2011.

On September 3^rd there was a telephone conference call between ALTA (American Land Title Association) staff in Washington, DC and Freddie Mac’s Short Sale team to specifically discuss the addendum reproduced in Freddie Mac Short Sale Addendum - Item #13 - I DON'T THINK SO!! .  No resolution was then reached and as of today, none has been presented.

According to the below emailed alert to certain ALTA members (including our title underwriter), the problem with the document goes much further than even reported in my earlier blog article.  ALTA points out that (1) the document requires closing and escrow agents to certify information that is not available to them; (2) the document places a negligent misrepresentation standard on the escrow / closing agent that requires the escrow / closing agent to use reasonable efforts to determine if the transaction is arm’s length – without setting forth what those reasonable efforts would or could be; and (3) the document requires that the document be signed by the escrow / closing agent individually, without corporate protection, meaning that if there is a loss because of fraud or misrepresentation by any party to the transaction, the agent could be fully and personally liable. SINCE REAL ESTATE AGENTS ALSO SIGN THIS DOCUMENT, THE SAME LIABILITY AND RISK AFFECTS THEM AS WELL.

I am checking with my E&O carrier to see if they will cover such a claim.  If they don’t, then I cannot risk my own capital and family wealth for the meager fees of a short sale closing, and I suspect anyone who actually realizes what this document does, also will not close such a sale.

For any of you that think this is negotiable, here is a response I got today when I told a Bank of America negotiator on a Freddie Mac loan that I can’t sign if the E&O won’t cover the claim. “Thank you for letting me know.  Without the document we cannot proceed with the short sale and must decline the file.  How long do you think it will take for your E & O carrier to make a decision as to allow you to sign the document?  I cannot have any outstanding files, so should I decline the file at this time or do you think this is something that can be checked on quickly?”

Fraud is a big problem with some markets of distressed property and I have written about it in several articles - often times with flipsters phoo phooing the concept as being fraud: SHORT SALE FLIP - QUESTIONABLE METHODS;  Short Sales and Title Insurance - Critical Look at Hybrid Closing Schemes;  IS SHORT SALE FLIPPING CRIMINAL ACTIVITY?.

ALTA is looking for examples where the Addendum is causing hardship to borrowers and consumers.  If you have any please send the information to Steve Gottheim, Legislative and Regulatory Counsel to ALTA at steve@alta.org.

Here is the information transmitted by ALTA:

 ALTA Meets With Freddie Mac Short Sale Team About Troublesome Addendums
On Friday, ALTA staff held a conference call with members of Freddie Mac's Short Sale team about the industry's concerns over new short sale addendums. These addendums are intended to help prevent short sale fraud (which is on the rise) by requiring all of the parties involved in the transaction to sign an affidavit attesting that it is a true arms-length transaction.

The addendums present three concerns for the industry. First, the affidavit requires a closing or escrow agent to certify information that is not available to them, in particular whether the transaction is arms length. The relationship between the buyer and seller may not be evident from the public record information or their identification documents. Second, the affidavit places a negligent misrepresentation standard on the escrow agent. Unlike a "to the best of my knowledge standard" a negligence standard requires the escrow agent to use the reasonable efforts of an ordinary person to determine whether the transaction is arms length. Instead of laying out clearly what the escrow agent must do to release themselves from liability, the escrow agent is at risk of liability if fraud is discovered after signing the affidavit. Lastly, the affidavit requires the escrow agent to sign the transaction in a personal capacity as well as in a corporate capacity. Thus if fraud is discovered, then Freddie or the servicer can go after the escrow agent's personal property and monies in addition to going after the corporation.

Before signing any of these addendums, ALTA suggests escrow agents reach out to their attorneys to discuss the legal risks and whether the agent has the authority to sign the document. It might also be good practice to review your companies E & O insurance policy to determine whether these addendums are within the scope of that policy.

While the short sale team expressed sympathy for the title industry's concerns and were open to discussing potential solutions, Freddie's general counsel is not keen on removing the requirement all together unless the problem becomes a bigger issue. Over the next few weeks, ALTA staff will be working with interested parties to develop potential solutions. If you would like to learn more or have any comments please contact ALTA's Legislative and Regulatory Counsel Steve Gottheim at steve@alta.org

I have still not heard from my errors and omission carriers on this issue.  An initial "from the hip" reaction was that E&O did not cover this as it was not the performance of legal services.  But the respondant did not realize that a "short sale facilitator" is just the title on the document and we have a written retainer with the client to perform legal services including legal advice and guidance on the completion of these and the other myriad forms.  So "the jury is still out".

________________________________________________________________________

Copyright 2011 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660   RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com. 

See our easy to understand articles at:

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

Got an expired listing that was priced too high and scheduled for auction in 20 days. I priced it aggressive, yet competitive. Received an offer within 2 weeks.  The bank cancelled the auction and is negotiating the short sale. Very happy sellers!

FHA has specific rules when it comes to purchasing a home that is in Pre-Foreclosure with a FHA mortgage on it.  FHA doesn’t make mortgage loans, they Insure them – and so as the Insuring Agency (kinda’ like a PMI company) they get to set the rules!  In those Pre-Foreclosure, Short Sale transactions, they set out what fees CAN be included from the Seller, and which fees can not.

 Pre Foreclosure Seller Fees per FHA

The process for purchasing a FHA Short Sale is similar to other short sale situations in that the HUD-1 must have prior approval.

The item people need to realize, though, is that if the buyer is obtaining a FHA mortgage,  the Seller can only pay up to 1% of the Buyer’s First Mortgage Amount.

We don’t have that many of these cases in the Raleigh, Holly Springs, Cary, Apex area – but when we do, the buyer needs to remember that they will probably need a little more cash upfront for the purchase.

If you are considering a mortgage loan in North Carolina, and you want more details on FHA  Mortgage Loan Guidelines – please call Steve and Eleanor Thorne, 919-649-5058 Raleigh FHA Mortgage Loan Specialists!  We have over 20 years of experience providing homebuyers with the BEST mortgage rates available!

My husband and  are just embarking on the shortsale route. Our home is worth about $30,000. less than we owe. We both get a government pension. Can the bank get any of that money from us? Also what about tax refunds, can the bank take that money? Thanks!

Hi Everyone,

I just want to tell everyone about my success with an IndyMac shortsale. The property was in good condition. There were two liens on the property (same bank). I had excellent Sellers because they cooperated in everyway they were asked to. IndyMac was very responsive with responses within 10 days. Midway through, the contact negotiator changed and so then everything had to be resubmitted because it had been some time since the first submission. I used their shortsale package from their website and made sure the loans were referenced in all pages (bottom righthand). The second negotiator took more time to get back and their letter to my client indicated that they would do so within 30 days. After about 3 weeks, I received a response and everything went smooth from there. We closed in 10 days. The entire process did take about 6 months because the first time an offer was submitted to them they wanted a higher price and time passed as we waited for an offer to materialize when the first one walked.

But I did not technically wait for an offer. I got busy pitching it, door knocking, holding open houses, contacting everyone possible to let them know it was available and praying alot. One item of interest is that IndyMac did not like that my client vacated the property and my client had to move back to safeguard the home. The asset manager had someone enter the property with a master key which my client was not happy about. However, my client did write them a letter to let them know that they would continue to stay in the property so it would not be vandalized. Besides that and the long wait for a buyer to materialize, things went very well.

Hope this provides some hope to others.

Sold the above properties representing the bk sellor as "Debtor in Possession". Had several properties to dispose of , all in the state of California and in ch 11 bk. Sold properties were BofA loans from CountryWide and processed through "Equator System". Takes time and patience.  

Dealing with a short sale where we have waited with our buyers for an approval over three months. We were told it could take up to five months to get an approval or decision. All of a sudden we received a verbal approval last week. Chase Bank is the first and second. We were told from the title company doing the communications that Chase had just recently changed it procedures to have the first tell the second what they will receive thus alleviating the need to wait on a decision from the second. This has reduced the waiting time. It just makes sense that a bank should do this. Why argue with yourself?

Hello Group-

I am gathering information on experience with servicers in relation to share best practices when Mortgaghe Insurance is involved. I am hearing some pretty intriguing things that are occuring which SHOULDNT be.... does anyone have anything to share?

i.e.

Radian requested $40,000 note and ended up killing deal.

Servicer would not share who MI company was.

 MI company stated the decision is based up to servicer.

MI companies have over 100 different types of policies to offer.

etc.....

Janet and I have been doing shout sales for over 3 years now and have a 98% success rate to approval.

What we are running into now are sellers with a big case of denial.  Denial is the major reason sellers don’t reach out for help.  The NOD is filed and with head in the sand the seller can’t move.  Sellers must take action before they start missing payments, getting a jump on the selling short will help in getting out-from-under a toxic mortgage.

Are best advice is, don’t wait until the banks comes a knocking, you can make the first move… Janet can help www.Shortsalebyjr.com 

Milpitas Single Family homes

Active Short Sale Listings:  23

Active Bank Owned Homes: 9

Pending Short Sale Homes: 49

Pending Bank Owned Homes: 11

Sold Short Sale Homes: Last 6 months 23

Sold Bank Owned Homes: 19

Milpitas Condo Townhomes

Active Short Sale Listings: 12

Active Bank Owned Condos:  4

Pending Short Sale Condos/Townhomes: 43

Pending Bank Owned Condos/Townhomes: 4

Sold Short Sale Condos/Townhomes: 19

Sold Bank Owned Condos/Townhomes 26

Unlike San Jose, where short sales far outnumber bank owned transactions, the numbers are much closer for short sales and bank owned homes in Milpitas. There are many more pending short sale listings than bank owned, but short sales take so much longer to close that number is not surprising.

If you have any questions about short sales or foreclosures in Milpitas please feel free to contact me.

Marcy Moyer C.D.P.E.

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Novi MI MACPA's Short Sale Guru, Mike Sher to teach at The Michigan Association of Certified Public Accountant's Construction Industry Conference
In Novi September 27, 2011

Mike Sher will be this years Short Sale Expert Speaker for the MACPA's Michigan Conference September 27th in Novi MI

Mike will be speaking about the Strategies Short of Foreclosure: Real Estate, Short Sales and Beyond.  To learn more about Mike Sher check out his blog.

You can contact Mike Sher at his Max Broock Office (248) 644-4700 or email him at ShortSale@mikeRealtor.com

I’m excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners who may need my help, have them contact me immediately! Together, we can put them back on the path to financial stability.

The Mike Sher Team has assisted homes-owners in over 100 short sale payoffs.  We work with all banks and can help homeowners get out from under their loan(s)!   Most homeowners do not get a 2nd chance with a short so seek a Realtor with a long track record of succes.  Request references and ask lots of questions.  You do not want to find out too late that they are unable or unqualified to help you.

Mike Sher, Max Broock Realtors (248) 496-1572

If you receive an approval letter stating the following -- will you still be 1099'd as income on the it:

Upon receipt of the agreed amount, BAC Loan Servicing and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligagion therein, and waive all rights to pursue further judgment or deficiency.



This is a BofA Short Sale.  Should get an offer tomorrow, but have 30 days to bring it to closing.  Seller moving and will not be back for at least a year or mayble more.  No family to assign power of attorney.  Any ideas, comments, solutions for this critical scenario.  Help...

Anyone out there have a comment about how long it takes to be assigned an negotiaor from Indymac. I received seller acceptance for a SS offer on 7/12/11 The complete package was submitted days later and still no negotiator.  I read other posts that said they are 90 days behind.  

Any Arvada Agents out there listening? I am out here in San Diego and a gentleman was transferred here for his job and is upside down on his home in Arvada. One loan and is worried about deficiency and pursuit by the bank. I would like to help him find a home here, so he may just decide to rent the house out, but if the market doesn't improve, he may not be able to hold onto that house in Arvada since the rent will probably not cover the payments. 

Here in CA, we have laws protecting the short sellers against deficiency pursuit on the primary residence. I am on track to do 20 short sales this year here in Southern California and no deficiencies. Anyone have success negotiating away deficiency pursuit on short sales in Arvada?

According to a recent report by California based RealtyTrac, distressed properties accounted for one third of all US housing sales in the second quarter of 2011. The glut of inventory is only going to increase as lenders slowly bounce back from the robosigning crisis and foreclosure filings begin to pick up around the country. A large portion of distressed sales are undoubtedly pre-foreclosure sales, or short sales. If you are a real estate professional, odds are that you worked on a short sale transaction in 2011. For those real estate agents who are yet to work on a short sale, you can no longer afford to ignore this segment of the housing market. If you are refusing to work on short sales, you are ignoring nearly 1/3 of your potential earnings. What makes these transactions so difficult is that every short sale is unique. The housing market is not getting better anytime soon, and short sales will likely account for a large portion of all housing sales in the next few years.  Below are five things a listing agent should do on all Massachusetts short sales in order to ensure a successful transaction.

1. Ask The Homeowner Specific Questions Prior To Accepting The Listing

Contrary to popular opinion, a homeowner does not automatically qualify for a short sale just because the amount they owe on their mortgage is greater than fair market value of their home. All short sale lenders require a financial hardship, yet very few listing agents ask the homeowner why they are requesting a short sale. As a listing agent, it is imperative that you first determine whether the homeowner qualifies for a short sale. Once you determine that your seller is a qualified short sale candidate, it is equally important to inquire as to the status of the foreclosure process. Most lenders no longer require homeowners to be delinquent on their mortgage in order to initiate a short sale, but the last thing you want to do is spend time working on the transaction if the foreclosure auction is imminent. A large percentage of all short sales that fail get denied because the seller is unable to postpone the foreclosure auction. Short sales are complex transactions that can be very frustrating for inexperienced real estate agents, but taking the initial steps of asking why the seller is pursuing a short sale, as well as making sure that a foreclosure auction isn't scheduled, will greatly increase your chances of closing the deal.

2. Ascertain The Amount and Identity Of All Lien Holders

The listing agent should always ask the seller how many loans are on the property. You must obtain short sale approval from each lien holder. Thus, the more lien holders, the more complex the short sale transaction. Furthermore, the primary lien holders must agree, or at least approve, all payoff amounts to subsequent lien holders. Keep in mind that all lien holders need to approve the short sale, not just the lenders, so it is important to inquire as to any potential tax liens, unpaid condominium fees and any other debts the homeowner may have that could prevent you from obtaining short sale approval. It is equally important to identify the lenders from whom you will be requesting a short sale. All lenders have specific short sale procedures. Some lenders can process a short sale request in as little as 30 days, while others can take months to respond. Thus, by identifying the lien holder, a listing agent can take a lot of the guesswork out of a short sale transaction by simply ascertaining the identity and amount of lien holders.

3. Submit A Complete Short Sale Package

One of the biggest mistakes a listing agent can make is submitting an incomplete short sale package to the lender. Lenders receive hundreds of short sale requests every day. Upon submitting a complete package to the lender, the file is immediately assigned to a short sale negotiator. The sooner your file is with a negotiator, the faster he or she will schedule the lender's appraisal. In contrast, if you submit an incomplete short sale package to the lender, your short sale is dead in the water. At that point, the only way to get someone to work on your file is to get a customer service representative to grant a review of the previously submitted documents. By the time that happens, most of the homeowner's financial documents will have expired and you will be asked to re-submit those items. Most lenders can process a complete short sale package in the first 30-45 days, but the clock doesn't start ticking until they receive a complete short sale package. If you make the mistake of submitting an incomplete short sale package, you make the short sale process infinitely harder than it needs to be.

4. Attend The Lender's Appraisal

One of the most common short sale misconceptions is the belief that the lender calculates the potential loss as the total amount owed on the mortgage minus the short sale offer price. Instead, when you apply for a short sale, the lender is making the determination as to whether a short sale or foreclosure will result in a greater loss to the investor. In order to make this conclusion, the lender sends a representative, usually a local real estate agent, to come up with a fair market value of the property. Once the fair market value is assigned to the property, the lender uses this figure as the amount they expect to recoup if they sell the property at foreclosure. Consequently, if the short sale offer price is at least within the ballpark of the lender's appraised value, the lender will approve the short sale because they can recoup the same amount of money without having to incur additional legal and carrying costs associated with a foreclosure.  In other words, the entire short sale transaction hinges on the result of an independent third-party property valuation conducted by a local real estate agent on behalf of the lender. As a result, the listing agent can greatly improve the likelihood of getting their short sale approved simply by attending the appraisal and presenting the lender's representative with current market data and property condition issues that substantiate the current offer price.

5. Manage The Buyer's Expectations

Aside from a foreclosure auction, the most common reason that a Massachusetts short sale fails is due to the buyer walking away from the transaction prior to obtaining short sale approval. While there are some steps the listing agent can take to prevent the buyer from walking away, the most effective method to keep a buyer a party to the transaction is through constant communication and managing the buyer's expectations. As long as you are familiar with the lender's short sale process and you submit a complete short sale package, you should be able to provide the buyer's agent with an accurate estimate of how long the short sale approval should take at the outset of the transaction. This way, the buyer does not have unrealistic expectations and they are more likely to remain a party to the transaction, even when unforeseen events occur. As a short sale negotiator, there is nothing more frustrating than working on a file for 30-45 days only to have the buyer walk away days before obtaining short sale approval.

Related Posts:

Five Things To Avoid When Writing Your Short Sale Hardship Letter

How Does A Short Sale Affect Your Credit Score?

Short Sale Tax Consequences: Understanding The Qualified Principal Residence Exception

About the Author: Greater Boston Short Sales, LLC (GBSS) is Massachusetts’ leading short sale negotiator. GBSS assists buyers, sellers, real estate agents and attorneys with getting their short sales closed. Contact us today at(617) 264-0376 if you are a homeowner facing foreclosure or a Realtor seeking assistance with a Massachusetts short sale transaction. GBSS is a MARS provider. Please read our disclaimer HERE.

I have an approved Sun Trust short sale that is on day 6 of the 12 day inspection period.  My buyers factored necessary repairs into their bid price however additional unforseen repairs have been uncovered via inspection.  If we knew about these additional repairs, the offer would have been for about $20,000 less.  

Are we able to reduce our offer price at this point in the short sale process, or will Sun Trust pay/send out their own people to complete the repairs.

What is the best approach in this situation.  After waiting so long we'd hate to lose it, but the offer was not low enough to account for this!!!

Thanks in advanced everyone!!!