Short Sale With Two Lenders — US Bank & PHH Mortgage Short Sale Successfully Closed

US Bank PHH Mortgage Short Sale

Short sales with more than one lender are more complex.  These two lender plus short sales tend to take longer for approval because you must meet each lenders unique short sale requirements, coordinate approval timelines and keep your buyer engaged during the entire process.  This is no easy feat!  People’s lives don’t stand still during the approval process, so it is not uncommon for sellers or buyers to encounter a change in circumstance during an extended approval process.  So, a short sale that takes longer has its challenges.

This US Bank and PHH Mortgage short sale was no exception.  Although ultimately we got everything that we needed for the short sale seller from both lenders, it did take time.  In addition, the buyer used VA financing to purchase the home.  Buying a short sale with a VA loan is also no easy feat either, however, I do have a good deal of experience with it and was able to coordinate it with the lenders for this very happy buyer.  The rewards of closing this sale right next to the holidays (and by year end) were tremendous.  We funded on Christmas Eve and closed the day after Christmas.  Happy sellers, happy buyers, and happy real estate brokers, just in time for the holidays.  

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing,  HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, Fannie Mae, Freddie Mac,  and others.  She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.  

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Tni LeBlanc and MInt properties are not affiliated or endorsed by any lender.

Copyright© 2012 Tni LeBlanc *Short Sale With Two Lenders — US Bank & PHH Mortgage Short Sale Successfully Closed*

Will Short Sales Be Pushed Off the Fiscal Cliff?

We can’t seem to hear enough about the fiscal cliff these days.  Undoubtedly, the decision to extend the Mortgage Forgiveness Debt Relief Act is bound up in the logjam of the fiscal cliff.  Indeed, given the current financial crisis, even the mortgage interest deduction seems up for grabs.  As a result of Debt Relief possibly not being renewed, many potential short sale sellers are wondering whether they should proceed with a short sale.

Every potential short sale seller’s situation is different.  Homeowner’s considering a short sale should begin the process by meeting with a real estate attorney, their tax adviser and a short sale agent.  For some, regardless of tax relief under the Mortgage Forgiveness Debt Relief Act, a short sale may still be the best option as bankruptcy is not an option, or because the person will still qualify for some tax relief under the rules for insolvency, and they truly must sell.   Divorce, job loss, drastic reduction in income, distant job transfer, and death of a borrower are traditional hardship reasons that will still affect many.

I’m not sure if our leaders will push the Mortgage Forgiveness Debt Relief Act over the fiscal cliff, but I do not think that short sales will go over with them.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of yourGrover Beach, Arroyo Grande, or Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Will Short Sales Be Pushed Off the Fiscal Cliff?*

Is 6 Months Too Long For Short Sale Approval?

I think 6 months is way too long for short sale approval.  Short sale approval doesn’t happen in one day and buyers need to understand that — I get it.  Lately, I’ve come across several short sale listings where the listing agent asks the buyer to wait tremendous amounts of time for short sale approval, between 4 – 6 months.  If you’ve done enough short sales, you’ve experienced a 6 month short sale, they do happen here and there.  For sure at the beginning of this crisis I would say a 5 – 6 month short sale was pretty typical for some lenders who shall remain nameless (or should I say shameless!).  However, I would have to say that 6 months for short sale approval is now very far from the norm.

As a short sale agent myself, when I’m told that my buyer needs to expect to wait an entire half of a year for short sale approval, I give pause.  I want to know why the agent thinks this file will take so long.  Are there two loans to negotiate and the second won’t process until the first gives approval?  Is there mortgage insurance on the note?  Did the Republic of Iceland file a lien on the property?  Does all information need to be coded and sent over to the lender in morse code?  Please explain… and make it good.  Often I find out that these agents are handing off their files to third party negotiators who are handling hundreds of short sale files.  I personally don’t think it makes much sense to hire a bureaucracy to deal with a bureaucracy and that may be the reason why their approvals are expected to take so long.

Even with low inventory, the prospect of sidelining my buyer for 6 solid months is not appealing in the least.  Something else WILL

come along.  Before signing a listing contract, potential short sale sellers should be aware, how their file will be handled, and the agent’s track record on approval.  I handle all of my short sale within my own brokerage and manage the communication on them personally to ensure a reasonable response time from the short sale lender.

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

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Is 6 Months Too Long for Short Sale Approval?*

CHASE Home Loans & CHASE Home Equity Short Sale Approved in 37 Days!

We closed this CHASE short sale in record time – 37 days total for approval.  This short sale was handled well by CHASE – it seems they have made some improvements in their processing, or at least it let’s you know when they want a short sale they know how to manage it fairly well.  In fact, CHASE reached out to the homeowner directly, offered a relocation  incentive, assigned it to a negotiator quickly, and ordered a valuation right off the bat.

There were two loans, both with CHASE, and instead of requiring two separate packages and dealing with CHASE Home Equity separately (as we’ve been required to do in the past), the file was handled by one negotiator.  This made the process super smooth and all parties were pleased as punch to close this short sale.  The buyer was able to close well ahead of the Christmas holiday and the seller was able to close well ahead of  the expiration of the Mortgage Forgiveness Debt Relief Act.  Have you received a letter from CHASE offering a short sale?    Are you considering it?

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

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Mint Properties is not endorsed by CHASE or an affiliated business of CHASE.

Copyright© 2012 Tni LeBlanc *CHASE Home Loans & CHASE Home Equity Short Sale Approved in 37 Days!*

BofA Introduces “Negotiation Agreement” for Loan Modifications

Recently, I was forwarded a recent loan modification agreement packet sent to a Bank of America borrower.  It included a document I hadn’t seen before.  It is entitled a “negotiation agreement.”  I’m not sure if they are using this agreement throughout the country or just California.  Definitely this was a document that has been needed for at least 4 years.

The following is a quick summary and is by no means complete.  It does not substitute for legal advice, and each borrower should definitely obtain legal advice before signing any written loan modification agreement with Bank of America or any other lender.  The new BofA “negotiation agreement” attempts to make clear that:

• Bank of America is working for the investor’s best interest not the borrower applying for a loan modification.
• Unless you have something in writing from them and signed by both parties — it is not an agreement.  (And of course, there is only one signature block on the document — for the borrower!  So, are they going to sign and return this document?  You gotta love BofA!)
• Until there is a new signed agreement they have the ability and right to enforce the existing loan documents.
• If your circumstance materially changes during the loan modification process you have an obligation to inform BofA.

This is important.  It’s been a long time coming for BofA to make clear that basically what people are told verbally on the customer service line is not meant to bind BofA.  How many stories have I heard on short sales, where borrowers were given bad information verbally and they relied on it to their detriment.  Situations where borrowers were told after a loan modification denial that they would be given 45 days for a short sale only to be foreclosed on by the bank in a couple weeks.  It is also important to point out that throughout the process the bank is working for the investor, not the borrower.  The bank is not truly there to “help” the borrower, they are there to protect the investor who owns the loan.

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

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *BofA Introduces “Negotiation Agreement” for Loan Modifications*

Probably not. I think the hey day of the “strategic short sale” is at least taking a breather while the future of the Mortgage Forgiveness Debt Relief Act is still being debated. However, there is still a ton of negative equity out there. And even though many are reporting housing prices trending upward, it would take a rabbit being pulled out of a hat to transform the situation of many borrowers who are more than 50% underwater into a positive equity position any time soon. And just as the lack of inventory drives buyers to bid up prices, many report that low appraisals are hindering those same bid up sales from closing. So, the upward price trend seems guaranteed to be a slow process, and some borrowers simply can’t hold on that long.

I do think short sales will be around for quite awhile. That is unless or until the negative equity goes away. Whether the number of short sales will trend up, or whether we have already seen the peak is yet to be seen. However, some borrowers who receive the proper tax advice while batting around the idea of a short sale may learn that they qualify for tax relief due to “insolvency,” so the Mortgage Forgiveness Debt Relief Act may not be their only pathway to some “relief.” And, the principal hardship reasons that cause many short sales continue nonetheless: divorce, unemployment, death of a borrower, disability, and employment transfer.

In my opinion, the biggest influence on the high number of short sales continues to be massively underwater borrowers. Whether it is a wise decision or not, I know many borrowers who would gladly gut their 401K to avoid a short sale if they were anywhere close to breaking even. However, many borrowers still cannot “afford” to avoid default when they encounter hardship. Very little has been done to address the negative equity problem and extension of the Mortgage Forgiveness Debt Relief Act will not escort that elephant out of the room. So, while some would-be “strategic short sale” sellers wait in the wings over the Mortgage Forgiveness Debt Relief Act, short sales will continue to happen due to massive negative equity and the need to sell now.

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

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Is the Heyday of the Santa Maria Short Sale Over?*

My Bank Sold My Loan – Can I Still Do A Short Sale?

Has your mortgage loan been sold or “service released?”  This should not affect your ability to apply for a short sale on your property.  As a practical matter, it may cause a delay in processing.  It may also affect your ability to apply for the HAFA program, if your new servicer does not participate in the HAFA program.  You should receive notice of a change of servicer promptly — this is usually provided by mail unless you have given your bank permission to provide communication electronically.  If you have not received a notice, you should contact your old servicer (in writing) and demand this information.

The typical situation I see is where a client stopped making payments on a second loan months or years ago and often by the time they contact me for a short sale the loan has been sold or “charged  off.”  If they stopped reading their mail, they may have missed the notice.  If the loan has been sold several times, this can lead to a lot of detective work.  So, it may take a little time to trace who the short sale package should be directed to.  In some cases “charged off” seconds can be more difficult to negotiate especially if there is no purchase money protection on the original loan, but other than that dealing with a sold or service released loan will not block your short sale — it may simply slow it down a bit.

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

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

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *My Bank Sold My Loan – Can I Still Do A Short Sale?*

Significant Freddie Mac Short Sale Changes

This week I sat in on a webinar offered by Freddie Mac.  The purpose was to educate short sale agents and would be short sale agents on recent changes Freddie Mac made to the way they handle short sales.  It was overall a useful webinar full of lots of great information.   Notably, in some circumstances, Freddie Mac will approve short sales without a missed payment.  And now, Freddie Mac gives delegated authority for short sale approvals to the servicer when the borrower meets one of the “Four Ds” of short sale hardship eligibility.

What are the “Four Ds” of short sale eligibility:

• Divorce
• Death
• Disability
• Distant Transfer (50 Miles)

What does this mean to prospective short sale sellers?  “Delegated authority” to the servicer means a quicker short sale approval time frame.  So, now when you apply for a short sale with Bank of America or CHASE or another servicer, if you meet one of the 4 eligibility categories, the servicer has the ability to issue a short sale approval without sending the decision to Freddie Mac.  They can make the decision at the servicer level using Freddie Mac’s well established guidelines.  If the reason for hardship does not fit without the “four Ds,” the borrower may still be able to qualify for a short sale without a missed payment; however, the approval decision will have to be forwarded to Freddie Mac.

Does Freddie Mac own your loan?  Check here.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent.  If you are considering a short sale of yourSanta Barbara County or San Luis Obispo County home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.

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

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Significant Freddie Mac Short Sale Changes*

.........if you don't want to do Short Sales then please quit wasting everybody's time pretending you do. On November 1st you implemented the new "streamlined short sale"guidelines. Read the new servicer guidelines here.

Excerpts:

Determining the Market Value of the Property

• Fannie Mae requires that the property valuation for a short sale be based on an interior and exterior inspection of the property which can be either a broker price opinion (BPO) or, if licensing requirements in the state dictate use of an appraisal for these purposes, an appraisal (performed in accordance with the Uniform Standards of Professional Appraisal Practice(USPAP). The property valuation must be dated or have been refreshed by Fannie Mae within 90 calendar days of the short sale approval

Evaluating Short Sale Offers

• The property valuation is the basis for the determining the minimum net required (MNR) proceeds and list price guidance from Fannie Mae. The servicer can only approve a short sale if proceeds from the short sale meet or exceed the MNR. The servicer must document Fannie Mae's MNR in the mortgage loan servicing file. The MNR must be kept confidential and must not be shared with interested parties to the transaction (for example, the buyer, seller, or real estate agents).

From the Federal Housing Finance Authority:

• These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said HFA Acting Director Edward J. DeMarco.

Well Edward, it all sounds great on paper but know that Short Sales are far more difficult now than they were prior to November 1, 2012.

Fannie Mae is now making getting a Short Sale approved very, very difficult. I guess they forgot to mention that even though it is now easier to qualify for a Short Sale it won't happen because Fannie Mae will only accept deals that are far higher than market value.

Why do you continue to keep agents in the dark about the value of the property? Why not sort out the price first and then let us do what we do to find a buyer. After all we are the experts when it comes to pricing and selling property.

Countering every contract we submit at far more than market value achieves nothing. And it's funny that this issue didn't exist until you decided to make Short Sales "easier".

And did you know that your servicers are giving us "approved" listing prices, based on your criteria, only to have you counter the price? We find a buyer at the approved price or higher and yet you, Fannie Mae, decide the price you gave us 30 days ago is no longer any good.

Here's a recent example of a failed Short Sale due to Fannie Mae's incompetence. You recently denied one of my Short Sales over price. We priced at $88,000 based on a full blown appraisal ordered by the servicer that was only 45 days old. Seemed like this price would be acceptable since it was also very much in line with market value. You countered at $125,000!! This over priced property now sits on the market. Maybe in 4 months time you will consider taking a deal at $88,000?

Sorry, Fannie Mae but your new  property valuation method is not working. Properties are not going to sell at the prices you want. So save us all a lot of frustration and time and just move straight to foreclosure. Why continue to make us go through the motions?

Short  Sales would not happen without hard working experienced agents pushing the deal forward. And that's a fact. Lenders, servicers, investors and the borrowers would all fail at getting the deal done. Yet you continue to crap on is.

Selling properties multiple times is not an efficient method of disposing of a non performing asset.

Fannie Mae please get your act together. The market is turning and we can see the light at the end of the tunnel. Let's work together to clean up the rest of this mess so we can all move towards a brighter future.

I call the new streamlined Short Sale process BS. Please get your act together while us agents are still willing to help you unload these bad debts. Is that asking too much?

Here's a good discussion on this issue at http://ShortSaleSuperstars.com 

Feels like they isn't as many short sales coming across my desk. Could it be possible that short sales could be going back down to a minimum??

Just received a charming Christmas Eve short sale "decline" after patiently waiting since August 2012 for an approval.  Reason - "strategic default" - DECLINED.  

This loan is through the SchoolsFirst Federal Credit Union formerly the OCFTCU.  My seller had to relocate her mother and father to care for them as her mother was diagnosed with cancer early last year.  She and her parents purchased a home together where they live now.  She is $150,000 upside down on her existing home.  She has a tenant in the home but it does not pay the mortgage with a $1,000 negative each month.  She cannot afford to keep both homes and pay for her mother's care.  

This hardship is not considered a hardship in the eyes of the CU.  It breaks my heart to tell her the news the day before Christmas.  No one expected this.  The credit union obviously ran her credit and found the new mortgage and made their decision.  We explained the situation just as I have here.  The new mortgage has all three names on it.  

Be careful of the strategic default!

Dedicated to bringing homeowners across the nation the latest news on short sales, we’ve discovered new information on the Home Affordable Foreclosure Alternatives program (HAFA) for 2013. Let’s explore the updates on HAFA’s success for 2012, what these new policies are for 2013, and when they will be in effect.

For those who do not know what HAFA is, it is a short sale program that is a part of the Making Homes Affordable (MHA) program run by our Government. Their success has been increasing with the latest data showing completed short sales for October at 38,518 which is a 13% increase from September. New and improved policy changes continue to incentivize lenders and homeowners to complete short sales through HAFA.

What Are These New Policy Changes?

Data provided from dsnews.com

Here are some of the significant updates:

• The decision on a borrower’s request for a short sale must be made by the servicers within 30 days as opposed to the previous 45 day policy.
• Introduction of the “pre-determined hardship.” If the borrower is delinquent on payment 90 days or more and has a FICO score less than 620 (probable if 90 days late), then they are considered to have a pre-determined hardship. However, they still need to execute a hardship affidavit prior to closing the sale. Lenders will not have to further validate the hardship.
• HAFA provides short sales for non-delinquent borrowers who own non-owner occupied properties and offer relocation assistance to the tenants who are occupying the space at the time. This is an old but modified policy.
• Another change involves the solidification of the sale to be an “arms-length” transaction. This means no money between the buyer and seller is given or received without it being reflected on the HUD 1 Settlement statement.
• Treasury increased reimbursement amounts to up to $5000 (increase from $2000 previous) to primary mortgage investors for payments to the subordinate lienholders.
• Fraud prevention is increased by stating a resale of a HAFA short sale cannot be made 30 days after closing. Also, HAFA short sale resale’s of more than 120 percent are not allowed if they occur between 31 and 90 days after closing.
• Certain HAFA documents are now optional such as the SSA, DIL agreement, Request for Approval of Short Sale (RASS), and Alternative Request for Approval of Short Sale (Alt RASS).

When will these updated policies go into effect?

The HAFA policy updates are set to be in effect February 1, 2013 but changes may be implemented earlier by servicers.

Hope this helps!

Peter

Anybody use this company on Equator for Hafa short sales.

Like, Dislike feedback?

Whether you are dealing or have dealt with a short sale, foreclosure, BK, delinquency on your mortgage payments, or have a number of late payments elsewhere, your credit score is damaged and your finances are most likely in lockstep. However, recovering with bad credit will be difficult as interest rates inflate the cost of living and affect various other facets of your life and naturally you get caught in a downward spiral of poverty.

The best example of this is a home mortgage. Do not even consider pushing for another home without rebuilding your credit prior. The figures below will show you why.

The Ding Of A Delinquent Payment, Short Sale, Foreclosure, and/or Bankruptcy

Take a look at the impact of each situation on your FICO score. As you can see, regardless which consumer type you are, you will have incurred a significant ding on your credit score.

Can You Obtain Credit?

There are great deals out there on the housing market but a big problem these days is the inability for homeowners to obtain credit to finance their home. Large agency investors such as Fannie Mae changed their minimum credit score requirement from 580 to 620. Anything under 620 is considered high risk. Your local bank may require a credit score of up to 660 or higher. The question is, even if you were able to qualify for a mortgage, should you finance with sub-par credit?

A Bad Credit Score Will Cost You!

These figures are based on rates from 9/12/11. The example below clearly shows you how much you will be affected from obtaining a mortgage without an outstanding credit score.

How Can I Quickly Rebuild My Credit Score?

Whatever situation you may be in, the longer you are stuck in a bad credit rut, the more exacerbated your financial situation may get. Here is how to prepare: If you have a low credit score and/or want to prepare your credit situation to qualify for excellent loans for your next home purchase, by the end of this article, talk to a Lexington Law credit specialist. I have personally researched and found them to be the absolute best company to work with in rebuilding credit scores. Here is a direct number provided through the short sale blog for a free consultation: 888-586-6113 or you can apply through their website.

Hope this helps!

Peter

Good morning Superstars.

Here are this week's Superstar discussions.

Discussions	Replies	Latest Activity
BANK OF AMERICA SHORT SALE SUCCESS STORIES I went online to see if I could find a Bank of America, FHA, short sale success story, but I could not find any thing. Everything I read is… Started by Karen Booker	5	12 seconds ago Reply by Bryant Tutas
Is buyer entitled to copy of approval from Fannie Mae Hello all and happy Holidays. Is the buyer entitled to see a copy of Fannie Mae approval letter?? I feel like before going forward with… Started by Jeff Kaster	3	16 hours ago Reply by Wayne Brooks
How to deal with reluctant short sale sellers? I am an investor and recently a property caught my eye. A similar property in the same community I really like was available some time bac… Started by Jack Hampson	2	17 hours ago Reply by Thom Colby 888-391-5245 CA Brkr
With all these lower appraisals..... What is the reason they are coming in so low? I do keep reading how low appraisals are interferring with real estate deals ev… Started by Lauren O	1	18 hours ago Reply by Wayne Brooks
BofA Initiation Docs On EVERY file I initiate in Equator for BofA, my initiation docs task gets rejected or my docs are unacceptable. The docs are DL'd directly… Started by Brent Innocenzi	5	yesterday Reply by Patricia Bravo
Chase Recovery Department We need to escalate on a file. The name of a decision maker in the Chase Recovery Department will be appreciated. Needless to say we will o… Started by David Zagorsky	5	yesterday Reply by David Zagorsky
Feedback on BMO Harris Short Sales? Has anybody closed a short sale with M & I Bank / aka now BMO Harris Bank where they forgave the deficiency amount? I see a comment in… Started by Beth Larsen	0	yesterday
HSBC Short Sale Approval letter in 3 days! WOW! HSBC is a second lien holder on my deal. HAFA approved. Offered $8500 by 1st lien Holder BOA. All they needed was a prelim HUD, listing… Started by Travis Harris	5	yesterday Reply by Wendy Rulnick

I have an upcoming short sale with Ocwen on the 1st and BofA on the 2nd.  The couple has been divorced for at least 4 years. He is living in another state, she is in charge of the residence.  He has really washed his hands of the house.  I am suspecting it will be like pulling teeth to get his paperwork for submitting the short sale. Can he be quit claimed off title hoping that I only need to get her paperwork?  Your experience will be greatly appreciated. Thanks

Monday and Tues of this week I spend 2 full days at a seminar presented by Alex Charfen of the Charfen Institute.  The seminar is called AgentGPS, which stands for Growth Profitability & Stability.  What a wonderful course.  Instead of a presenter force-feeding you information, Alex presented us with the tools needed to basically either start your business over from scratch or make some minor adjustments to your business to get it to the next level.  The seminar is just the start.  It's not material to memorize, but questions to ask and answer about what kind of business you are looking to create/change to.  Highly recommended! Of course I get nothing from promoting this but I just feel everyone trying to improve their business could benefit from this course.  I hope everyone out there in SS Superstar Land has a great 2013!

Communities in Beaumont CA

According to a real estate study conducted by USC, the Southern California commercial real estate market is on the rise, which could include the Banning CA commercial real estate market as well.

According to the article:

"The office and industrial real estate sectors continue to improve for Southern California landlords, a report said, but high office vacancy will remain common for the foreseeable future as businesses put more workers into less space.
The regional economy has strengthened the past year and enabled some businesses to hire more workers, according to USC’s annual Casden office and industrial property forecast.

That has resulted in higher occupancy and rising rent for industrial buildings, while office landlords are seeing rising occupancy and smaller declines in the amount of rent they can charge.

“We predict office market rents to stabilize in as little as six months, but a sustained recovery could be many years off,” said Casden report author Tracey Seslen.

Office occupancy probably won’t return to pre-financial crisis levels until some of the region’s office buildings are taken out of commission or converted to other uses.

“A paradigm shift in the way tenant firms use office space will force landlords and developers to rethink their investment strategies even as the economy improves,” she said.

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