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Any one have the new Auth Letter or can tell me where to find one?

Any one have a new Auth letter as of 9/1/2012.

Or where I can find one?

Trying to figure out what the best financial option is for your living situation? If you live in Seattle or other major areas in Washington State, some statistics may help you put into better perspective how you should handle your future living situation.

The first nugget of information is from an article by MSN 5 Places Where Renting Beats Owning. Seattle was one of the lucky five stated in the article.

A recent study done by Marcus & Millchap discovered that the average monthly rents in Seattle are $377 lower than mortgage payments. Using a suburban example in the Green Lake area, we can use a 1,800 sq. ft. home that rents for $1,795 a month. If the individual(s) decides to purchase the home with a 10% down, 30-year fixed mortgage at a 3.7% interest rate, they would be paying $2,130/month.

Homeowner’s should consider property taxes, insurance, maintenance, and other expenses that come with homeownership as well. We can conclude that renting in Seattle is the CHOICE way of living. Or at least until you are financially ready to purchase.

What if I am currently a homeowner?

The second nugget of information is from an article by Business Insider 12 Cities Where Homeowners Are Deep Underwater. Again, Seattle happened to be one of the lucky twelve.

Seattle, Washington
Negative Equity Share: 37.8%
Total Amount In Negative Equity: $23.0 billion
Delinquency Rate: 10.3%
37.6% of underwater homeowners owe 20 percent or less, while 9.1% of underwater homeowners owe more than double what their home is worth.

Negative equity means the borrower owes more on their mortgage(s) than their home is worth which is also known as “Underwater.”

Why are short sales so popular especially in Seattle and other places in Washington State? Because it is an opportunity to walk away from a home that is probably deep underwater, rebuild credit and ultimately your financial wellbeing.

Hope this helps

Peter

Wife is in the middle of a short sale and husband has nothing to do with that property.  Husband is doing a short sale on another property with Wells Fargo that they own (wife is on title only).  They want to cash in their Retirement Funds to buy another property and purchase the property in a corporate name.    If Wells Fargo doesn't waive the deficiency could they file a judgment against the new property?  They want to close on the new property before the short sales are approved and closed. 

Good morning Superstars.

Here are this week's Superstar discussions.

Discussions	Replies	Latest Activity
Nightmare Short Sale, Now Loan is Being Sold? I need to know whether you all think it is worth trying to proceed with this short sale. The "short" story is: I represent the buyer. Mad… Started by Sharon Burgos	9	8 seconds ago Reply by Bryant Tutas
Approved Short Sale...Buyer/Agent Holding Closing! Hello All, Looking for any input. Short Sale: BofA 1st and Greentree 2nd. All cash offer was received on 8-15-12, the buyer is the broker w… Started by KARLA ELKEBIR	6	51 seconds ago Reply by Bryant Tutas
BofA Short sale question from a Buyer Hello All, We have been seller approved since April on a home in So California, and are awaiting bofa approval. We just found out that th… Started by Tanyia Pfennighausen	4	1 minute ago Reply by Bryant Tutas
Any success fighting BPO's when the bank insist that no short sales/REO's be included in the comp.s? I know this has been an ongoing issue. When I show them that comp.s for a particular property are say 6 short sales/REO's and only 1 or 2… Started by Wayne Brooks	6	3 minutes ago Reply by Bryant Tutas
Auction.Com - Bank of America One of my sellers is being "offered" Auction.com with Bank of America. Can anyone provide input with their experiences? Here is their sale… Started by Wendy Rulnick	12	5 minutes ago Reply by Bryant Tutas
Nationstar will only allow 2nd to get 6,000 even though buyer is willing to pay the difference - 2nd is requiring 13,500 I have a first with Nationstar and have approval. The max they will pay and allow the 2nd to get paid is 6,000. I have the approval from t… Started by Lacey Hamilton	10	7 hours ago Reply by Kevin - Greenville, SC
2nd lienholder wont agree to deficiency waiver Hello, Is there any way to get the 2nd lienholder to waive the balance. What is that procedure? Guaranty bank says that it is their policy… Started by Summer King	3	12 hours ago Reply by Jessica Eisenhauer
HOA fees and short sale: especially in CA? Some posts says that many times the new owner in the short sale has to pick up all the old defaulted HOA payment/ fees of seller. There al… Started by Larry Davis	20	13 hours ago Reply by Larry Davis

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This sound familiar? You’ve never had to deal with a short sale in your life – until a few years ago, when foreclosures became so common it was rare that you had a seller without one. Now you can no longer avoid short sales.

So you sign up and get your CDPE and your SFR designations. Maybe you have even closed on dozens of short sales. But still...........

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Any input is much appreciated.

I have a Green Tree SS (yuck). Green Tree has been difficult with this file. The home was originally a mobile reconstructed to look like a home.   The property appraised value is $72,000.  I spoke to the agent who did the BPO and it came in at $78,000.  The offer is $80,000 and Fannie Mae needs to net $86,000 which means the buyers offer needs to be approx $96,000.  This will never appraise for $96,000.  Have any of you had to deal with Fannie Mae wanting more that what a home will appraise for?  I have thought since the sellers haven't been paying the mortgage maybe they need to get an FHA appraisal, will this work.  Does Fannie Mae work like this or are they just stuck on that price? Any suggestions. I need your Help!

Is a Loan Modification Right For You? | Carson | Short Sale | Leesa Hammond

Have the circumstances in your life changed whereby you can’t make the payments? Job layoffs, reduced hours which equates to reduce pay?  Now, you can’t afford your mortgage payments and you are desperate for a solution.

The interesting fact is the banks and the federal government would love for you to believe that a loan modification is the end all to put you back on track to stabilizing your finances.  So, let’s examine why you can’t believe them:

Jeopardizing your credit rating

Generally, most banks will tell you to be late on your payments. Interesting.. This is such a catch 22 trap that can put you in a very difficult position by lowering your credit score.

After the initial review, you still have to make timely payments dunring the “trial period”.

Let’s see.  Is this a scam or what?  You just submitted all your financial documents, the bank supposedly approves your loan modification for a “trial period”, then tell you that part of the approval requires 3 monthly payments which the final modification documents are being prepared.  Really?  Are you kidding?  Okay, so now you made your 3 trial payments and what happens? A letter or call is received from your bank saying they are still reviewing your application. So, continue making your trial payments. Let me ask you.. does 3 months seem realistic for any normal business to resolve any issue with client? I would think that a business would want to resolve client issues within a month. y resolve any issue within a month. If they really wanted to help you, why not process the loan modification sooner rather than later?

Loan modifications is not the resolution to the problem.

Let’s say that you receive a loan modification, you are making payments on a house that is worth less than what you owe.   A reduction in the prinicaple amount does not happen with a loan modification, the bank merely reduces the interest rate.  Let’s say you owe $300,000 which is the amount you must pay back even if the house is worth only $230,000.  That explains why over 70% of loan modifications fail.

Good morning Superstars,

Are you spending too much time working with buyers who want to look at "cheap" properties? Do you cringe when you look at the size of the co-broke?

Why not utilize a Buyer Broker Agreement?

This post explains one reason why a Buyer Broker Agreement (BBA) should be important to the Buyer. In fact, it's my opinion, that a BBA is MORE important to the Buyer than it is to the REALTOR® and here‘s why.

I spoke with a Buyer recently who has cash and is ready to buy. It seems he has been trying to find an agent to assist him but everyone is too busy. Of course, after reading how slow the market is, he finds this hard to believe. So being the good little Broker that I am I explained it to him.

His problem is....he is looking to purchase a deal, a foreclosure, a cheap rental property. And he should. There are some good properties that he can purchase for less than $50,000. As an Investor, these properties are the ones he SHOULD be buying. The only issue is the prices are so low, that the co-brokes aren't worth the time involved in helping him find the right property. So he gets placed on the back burner. We may help him.....but only when we get some extra time.

In fact, I have the same problem. He wanted me to go look at a property before he made an offer and I said I would......tomorrow. Today I was busy doing other things......that have a higher return.

The reality is I can't afford to spend hours previewing cheap foreclosures that he may or may not be able to or want to purchase.

This is where the BBA comes in. If an Investor is truly wanting to get a deal, in the very low price ranges, then it is to his advantage to give his Broker/agent an incentive to put in the time. Maybe he'll have to chip in $1,000 or so to meet the minimum compensation outlined in the agreement but surely, by agreeing to this, he'll get better service and therefore a better deal on a property.

I have always been a firm believer in getting the commission out of the equation right up front. The best way to do this is to get a BBA signed. Unless of course you like working for peanuts. I don't. And won't. My Buyers deserve better than that. Do yours?

Bank of America has and will continue to release pools of loans. No loan is safe from a service release even if it is an already approved short sale. This seems to be even more interesting because the lender the file is going to seems to be largely dependent on the state the property is in. A large amount of the serviced released loans in the state of California seem to be going to Ocwen Loan Servicing while other states such as Nevada seem to be going to Green Tree Loan Servicing.

WHAT DOES SERVICE RELEASE MEAN? WHAT IS LOAN SERVICING?

In most cases the lender you make your payment to is not actually the beneficiary of the loan. In other words when the loan was created they were not the ones that put up the money; Even if they were the ones that originated it. The lender you make your payments to make money by receiving a portion of the interest that you pay. These “Serving Rights” are sold in pools depending on many different variables so often when your loan is being sold it is going along with possibly hundreds of others.

CAN MY SHORT SALE APPROVAL BE TAKEN AWAY IF MY LOAN IS SOLD?

Please do not be fooled that because your short sale has been approved that it... For the entire article click here

If you were stationed at Eglin Air Force Base, Hurlburt Field or Duke Field, were PCSd and need to sell, your HAP option is about over.  You must act NOW if you think you qualify for the program, to avoid VA Compromise Sale, short sale or foreclosure, or to recoup funds if you don’t have a mortgage. The programs ends on September 30, 2012.

Email or call Wendy Rulnick itswendy@rulnickrealty.com for details and assistance.

Well, today began another day of an outlandish counter from Fannie Mae on another short sale. This now will be my 3rd in the last 2 months that I have fought til the death and Fannie basically said they will not let seller sell for a "fair market value price". I wish instead they would just deny the short sale and save us all the time. One I put back on the market at the price they were requesting and lowered until I received a offer that even a friend appraiser told me he would appraise the property at. Fannie came back and said no. I even went around the servicer and disputed it with Fannie and still they asked for a price that was 26k over fair market value.

My one now is with Greentree who have not had the best reviews but again Fannie Mae has come back and not only asked for 39k over fair market value but also 36k contribution from seller. The crazy thing is right now it is just better for them to foreclose. And, guess what folks it seems to me that is EXACTLY want Fannie Mae wants to happen. The attorney that I work with said that in the last 3 weeks he has had and heard more people tell him almost the exact same story.

I truly believe that 4th quarter and 1st quarter are going to be a wild ride. I'm on my way to Target right now to purchase a new tool for listing appointments. It's one of those 8 balls that you shake and ask a question to, then turn upside down so the answer can be revealed. Hard work and persistant follow up just does not seem to cut the cookie when you are dealing with a saboteur on the other end.

Frustrated for my clients.

Lori

If I'm going anywhere to obtain answers to overcome objections in short sale situations it's Short Sale Superstars!. I'm confident that there's someone out there who can assist. My company handles association-owned short sales where the condo or HOA has foreclosed on the unit owner for non-payment of maintenance fees. On behalf of the association as Owner of Record we negotiate short sale settlements with the borrower's lender(s) to release the lien. While we've had tremendous success with the majority of lending instiutions (both those that own the loan and others that service them on behalf of Fannie Mae and Freddie Mac) we've been unable to get approval on Wells Fargo loans backed by Freddie Mac. Since this is the only lender that objects I have to believe that it's a Wells Fargo thing not a Freddie Mac guideline restriction. Is there anyone you know higher up in Wells Fargo who can assist? I understand that it only takes the "right" person to get it done; however, trying to find that one special person in a position of authority who can think outside the box is like looking for a needle in a haystack. Feel free to contact me directly via phone (954) 600-8339 or email Amanda@HomesbyAmanda.com if desired. Thank you!

I am a buyer that has been trying to buy a short sale since May 2012.  The house was abandoned in 2011 and thieves have stolen the copper plumbing and the wiring and the house is a mess.  Regardless of that, we think the house has potential and want to refurb it.  We are not house flippers and have no intention of reselling it.  The problem is that the house was overappraised, and as it sits, it continues to deteriorate but the investor is not yet willing to take our offer.  Our offer is about 25K below their asking price.  All that being said.....the house has now went through the foreclosure process and I see that it is set for some kind of auction at the courthouse in October.  I am assuming it is a "Sheriff Sale" but what does this mean??  Is this auction just a part of the process so that the bank will officially own the property or is this our chance to buy it for our offer price??  I can't seem to get a straight answer from the real estate agent on this question.  The owner still owed about $115K on the loan when he defaulted and abandoned the property.

Good morning Superstars.

Here are some of this week's Superstar discussions.

When the Debt Forgiveness Act ends in December, will Short Sales also end... or not? We aren't hearing much about this act expiring in December. http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-De… Started by Cheryl Retterath	5	yesterday Reply by Ron Scribner
Freddie Mac investor Citibank Servicer We have a situation what to do: Freddie Mac investor CitiBank is the servicer they will not process a short sale without a offer has anyone… Started by Cynthia	4	yesterday Reply by Ron Scribner
wells fargo equator system HELP :) work for a small office and no one is familiar with the wells fargo short sales let alone the equator system and to top it of...thi… Started by Katrina Ferguson	4	8 hours ago Reply by Brett Goldsmith
Shady short sale I'm a buyer who was told my first offer was rejected by us bank. We've asked the selling agent a few times for the rejection letter, but he… Started by Trevor Keyes	9	yesterday Reply by Beverly Cibulsky
Chase Incentives Plus Hafa!!! I know this has been discussed before, but kinda tired and not finding the discussions I remember! Have seller with 20k Chase incentive, go… Started by Beverly Cibulsky	3	on Thursday Reply by Brian Avery
How much will Freddie Mac allow a Jr lien holder to receive? My Wells Fargo negotiator (servicer for the 1st Freddie Mac lien) is claiming that Freddie Mac will allow $6,000 or 10%, whichever is les… Started by Jim Brown	3	on Thursday Reply by Ron Scribner
HELP - FHA Short Sale with BoA forcing the owner to be foreclosed on eventually.... I have a FHA SS right now with BoA, and here is the situation: -owner is retired with pension and social security for income = about $2800/… Started by Trong Dang	4	on Friday Reply by Trong Dang

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In processing Bank Of America short sales where borrowers have FHA loans we have seen serious delays in getting files into active short sales where the homeowners have not previously attempted a loan modification. Some people may ask " was a new policy put into effect that in order for a homeowner to do Pre Foreclosure Sale that they must first attempt to do a loan modification ?" In fact this is not a new policy and is a requirement for all FHA loans. The only way to get around from a borrower attempting a loan modification prior to a short sale is if the reason for delinquency is one of the following: DEATH of borrower, DIVORCE, NO INCOME, RELOCATION OF JOB, all requiring proper documentation (divorce decree, death certificate, etc).  If the hardship is any other reason it will have to be reviewed for all workout options available. This information was provided to us directly from a member of the BOA escalation team who is assigned to assist us in all the short sales our team is assigned too.

If you have any additional questions regarding short sales please feel free to send me a message.

CT Short Sale Real Estate Agent, CT Short Sale Listing Broker, CT Short Sale Realtor 

    If you need a dedicated Short Sale Realtor or just have questions about Short Sales in CT, please feel free to contact me anytime.

Phil Zimbardi
Real Estate Broker
Short Sale Specialist

TOP END Properties
www.topendproperties.com

Phone: 203-936-7776 (Cell/Text)



We are the future of Real Estate. 

Yesterday I got a call from a client I will never forget. She said "I was able to modify my loan, I can keep my Blossom Valley house, and you were the only one who believed I could do this, so thank you." This made me so incredibly happy.

So what happened was this client and her then husband were pregnant with their first child and ready to buy a home together. They found their dream home in Blossom Valley with my help, purchased it in 2006 with 10% down. In 2007 they had enough appreciation to take out a 2nd loan which they did. In 2010 they had just had their second baby, the home was $250,000 under water, and they split up. 

My client did not want to leave the house and try to find a home for herself, the two young children, and her 2 large dogs. She was determined to stay put, get her husband off title, and not disrupt her children any more than necessary. Her lawyer said short sell, her ex stopped helping to pay the mortgage, and her efforts to refinance went nowhere.

I encouraged her to keep trying and not move her children or her border collies from their dream home and lot.

After 2 years she got her principal reduced by 100K (thanks to First Horizon selling the loan to Nation Star who then was very co-operative in modifying her loan). Her ex signed a quick claim deed (don't know why, but he did), and she was able to pay off the second with savings, stock money, and cutting expenses.

So now she has her home, her kids are not disrupted, and with home prices appreciating she probably even has a good investment. 

While I always like to help out on Blossom Valley short sales, in this case I am much happier that I did not have to.

If you have any questions about 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

Homeowner Tax Fairness Act | Short Sale | Carson | Leesa Hammond

Since 2007, homeowners whose banks have forgiven unpaid mortgage loan debt after a short sale, principal reduction or foreclosure have not had to count that money as income on their tax returns.

It’s meant savings of thousands of dollars on the so-called “phantom income” depending on the amount of debt canceled and a person’s tax bracket.

But the Mortgage Forgiveness Debt Relief Act of 2007 will expire Dec. 31.

With only a few months left before the scheduled expiration, accountants and Realtors are urging homeowners considering a short sale to put their properties on the market now so they can sell before year’s end.

A short sale is where the lender agrees to sell a property for less than what the homeowner owes on the mortgage. Although banks are getting better at processing short sales, finalizing a contract can still take months.

“People are unaware that they could get a huge whack from this,” said real estate attorney Clifford Hertz of Broad and Cassel in West Pam Beach about the tax break expiration. “If they know what’s coming, they can make the right business decision.”

That’s just what Palm Beach Gardens homeowner Jeff Shingledecker did.

He put his home up for a short sale in April after researching the best exit strategy from his underwater mortgage. One day later of listing the home, he had a full price offer of $105,000 and is currently under contract.

Nevertheless, a successful sale will still leave him with $118,000 in unpaid mortgage debt, the money is taxable income.  Considering Shingledecker’s tax bracket, he would owe approximately $29,500 in taxes on that cancel debt. Under the the debt relief act, he won't owe anything.

“This make's the most sense,” Shingledecker said about his short sale decision. "I looked at all the options and assuming everything goes as planned this is the best route". 

During the first quarter of this year, 6,649 short sales were completed in Palm Beach, Broward and Miami-Dade counties, according to the market research company RealtyTrac. That was once a nearly 55% percent increase from the similar time in 2011.

Statewide, 15,949 brief sales have been carried out within the first quarter of the 12 months, an 18 % build up from the similar time in 2011.

However, everyone can’t benefit of the debt relief act. It covers forgiven debt on most main residences up to $2 million, or $1 million if married but filing separately. The act does not apply to second position loans where the money was used for non-household expenses.

If a debt is $600 or above is forgiven, the lender has to send the homeowner tax for 1099C by February of the following year. The tax form must indicate the debt forgiven as well as the fair market value of any property process through foreclosure or short sale. The homeowner must report the forgiven debit of tax form 982.

There are other tax rules that can affect how homeowner’s different tax benefit from the debt forgiveness act, but any relief for a homeowner right now is helpful, stated Realtor Jared Dalto.

“Let’s face it, they didn't have the cash to pay the mortgage in the first place so what makes the IRS think a homeowner can pay taxes on $200,000?” said Dalto, a short sale specialist with the Palm Beach Group at Seawinds Realty.

Josh Angell, an investment adviser with Moore Ellrich and Neal P.A. in Palm Beach Gardens, stated depending on how so much debt is forgiven, a homeowner could be in a higher tax bracket.  Which means they’d not only owe on the forgiven debt but a higher rate.  “It’s a very scary thing to think about when people are financially destitute,” stated Jon Maddux, CEO of YouWalkAway.com, a company that advises homeowners on short sales and strategic defaults. “It can put people in a situation where they will most likely have to file bankruptcy. They’d be insolvent”. 

In March, a bill was introduced in the U.S. House of Representatives to extend the Mortgage Debt Relief Act through the end of 2015.  

Sponsored by Rep. Jim McDermott, D-Wash., the “Homeowners Tax Fairness Act,” may exclude from taxable income cash received for wrongful foreclosure through the $25 billion attorneys general settlement.

The settlement is expected to offer homeowners between $1,500 and $2,000 if they were wrongfully foreclosured.

Jupiter resident Michael Schoenewolff, who hopes to benefit from the debit relief act this year, said he believes Congress will vote to extend the tax break.

Schoenewolff has a short sale contract on his home that would leave him with $95,000 in forgiven debt.

“The average person can’t handle another $100,000 income to be taxed”, he said. “I think they have to vote to extend it in order to allow the housing market and economy to recover”.

Who’s impacted?

Homeowners selling their homes through a short sale or who are in foreclosure may have the unpaid mortgage balance forgiven by their bank.  If that is the case, the debit would be considered taxable income. The Mortgage Forgiveness Debit Relief Act excludes that income from being taxed through December 31, 2012. 

What’s happening?

The debt relief act is scheduled to expire at the end of this year. If no extension is granted, homeowners should pay taxes on any unpaid balance forgiven by a lender after short sale, modification or foreclosure. 

What’s next?

A bill called the “owners Tax fairness Act” was once filed in March that will extend the tax debt forgiveness software via 2015. It requires congressional approval.

mrsleesa@gmail.com

Leesa Hammond

Century 21 Amber

(310) 890.4439