Wednesday, August 13, 2008
Tuesday, August 5, 2008
My short sale blew up!
We almost made it! We were so close and 6 months into it, but we couldn't take it anymore! We finally had to give up. We found a house 3 days later, made an offer, they countered, we accepted and we were off to the races! We are going to close August 18th. So, this process, from initial offer to closing will take exactly 19 days. Can you believe it? We waited 95 days for a response from the lender on our first offer on the short sale. They countered and we waited 60 days to hear about that. Then we ran into MAJOR issues with the Home Inspection and the VA wouldn't appraise it high enough. Our deal finally sputtered to a stop 6 long months into it. I took another class on short sales and the consensus was that a short sale averages 5-7 months from initial offer to closing. Unfortunately, most short sales never make it to closing at all. Before the process can be finalized, the home goes into foreclosure, or the buyers give up and move on to a property that's not a short sale.
Short sales are a challenge, but I think they are here to stay! I have 2 listed but no buyer-side deals pending now.
I think that maybe I will have to pass on the next one! The stress, patience and energy required is just more than I can handle! :) I had a wonderful buyer that hung in there a very long time. I don't know if I could be that lucky again.
A short sale is manageable if you can communicate with the lender. That's the key. That's the magic key! It's so hard to get to the right person, but when you do, the process can move forward faster.
Good luck with your short sale adventures. I'd love to hear either your horror story or your fairy tale, happy ending.
Short sales are a challenge, but I think they are here to stay! I have 2 listed but no buyer-side deals pending now.
I think that maybe I will have to pass on the next one! The stress, patience and energy required is just more than I can handle! :) I had a wonderful buyer that hung in there a very long time. I don't know if I could be that lucky again.
A short sale is manageable if you can communicate with the lender. That's the key. That's the magic key! It's so hard to get to the right person, but when you do, the process can move forward faster.
Good luck with your short sale adventures. I'd love to hear either your horror story or your fairy tale, happy ending.
Monday, July 28, 2008
Sunday, July 27, 2008
Who Will the New FHA Relief Bill Help?
The Senate passed the new housing rescue bill today and President Bush is expected to sign it in just hours. The bill goes into effect October 1st.
Who's eligible to participate?
Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.
Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.
To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.
If you sell or refinance your home within one year of using the FHA restructured mortgage programs, you will have to give FHA 100% of the profit. The amount goes down every year with the final amount being 50%.
Use this program wisely. More to come........
Who's eligible to participate?
Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.
Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.
To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.
If you sell or refinance your home within one year of using the FHA restructured mortgage programs, you will have to give FHA 100% of the profit. The amount goes down every year with the final amount being 50%.
Use this program wisely. More to come........
Wednesday, July 16, 2008
Short Sale Update
Can you believe we are STILL trying to negotiate a deal with the loss mitigator?? We have been working on this for FOUR MONTHS! Now, we found out that the house has to have a NEW ROOF ($6500)!! OMG. What next? We are still trying to negotiate a lower price, to cover the cost of the roof replacement! You know what the lender is saying: AS-IS...You are buying the property AS-IS. We can't even get financing without a roof! Good luck to us. I'm not so confident that we can make it happen. I'll keep you posted...
Saturday, June 21, 2008
Update on my Short Sale Deal
I promised you I'd give you a heads up when we finally heard from the lender about our short sale offer. WE FINALLY RECEIVED A COUNTER OFFER from the lender this week! We immediately countered and hopefully they'll take our offer. The listing agent warned me that it might be 2+ weeks before we hear from the lender again! We rec'd a response/counter offer from the lender on day 70. If we hear back from them in 2 weeks, that will mean that it's been 90 days to get acceptance of our offer! TEXT BOOK SHORT SALE! Unfortunately, it will probably be 30 days after that before we close!
Short sales are a great way to save money when you buy a house. But you have to understand that it might take MONTHS until you close. This all depends on how far along the process is when you find the house. If it's still early in the process--be prepared for a 3-5 month wait until closing.
The interest rates are creeping up at a pretty fast clip. Please don't continue to wait too long to find your dream home. The rates are expected to continue to rise steadily until September and then the Feds are expected to raise rates. This will probably cause a substantial rise almost over night in the mortgage rates. Don't hold out too long! Take advantage of the current rate today.
Call if I can help. (904) 241-2386
Short sales are a great way to save money when you buy a house. But you have to understand that it might take MONTHS until you close. This all depends on how far along the process is when you find the house. If it's still early in the process--be prepared for a 3-5 month wait until closing.
The interest rates are creeping up at a pretty fast clip. Please don't continue to wait too long to find your dream home. The rates are expected to continue to rise steadily until September and then the Feds are expected to raise rates. This will probably cause a substantial rise almost over night in the mortgage rates. Don't hold out too long! Take advantage of the current rate today.
Call if I can help. (904) 241-2386
Thursday, June 19, 2008
Jacksonville Beach Home You Must See!
Please take a moment to look at this fabulous tour of my favorite listing at the Beach. If you'd like more information, please give me a call.
Virtual Tour Jacksonville Beach Gem
Virtual Tour Jacksonville Beach Gem
Monday, June 2, 2008
Jacksonville Short Sale Update
For those of you that have wondered if it REALLY takes 90 to 120 days to close on a Short Sale, I'm here to tell you that it does!! At least that long! We put an offer on a property on April 3rd and here it is June 3rd (almost) and we have NOTHING from the lender! I have talked to the listing agent at least once a week since this game began and she is on the ball, but the lender isn't! They told her last week that they would look at the offers on this property on June 10th and try to have an answer by the end of June! agggggggghhhh. My poor buyer is about to blow a gasket! I warned him, but the reality is hard to accept. I never dreamed that it would REALLY take this long. Looks like this is going to be a "text book" short sale. 90 days until we find out if they accept our offer and then 30 days until we close. I'm not real crazy about these short sales. Patience never was my strong suit.
Can you get a good deal on a home that's a short sale? Absolutely. Does it really take 120 days? Absolutely. Buying a short sale is not for everyone. It's not for the faint of heart or anyone with patience or anger management issues.
If you think you're a candidate for a short sale deal, give me a call. I've been there and done that...
Can you get a good deal on a home that's a short sale? Absolutely. Does it really take 120 days? Absolutely. Buying a short sale is not for everyone. It's not for the faint of heart or anyone with patience or anger management issues.
If you think you're a candidate for a short sale deal, give me a call. I've been there and done that...
Saturday, May 31, 2008
Thursday, May 29, 2008
New FHA Loans not as great as they appear!
This article was written by Donna Robinson. I found it so informative that I wanted to share it. It's a real eye opener about how the proposed FHA Loan program will work. It's well worth the read!
Well, the new FHA expansion bill appears to be rocketing through
congress with virtually no opposition.
I got my email from NAR last week, (several times in fact) asking
me to make sure that I contacted my congressional representatives
to request passage of this bill.
NAHB is in strong support of the measure, saying that it will help
stablize the housing market. In fact, if you read the mainstream
media, you would get the impression that this bill has no
opposition anywhere. You may even think that this idea will be
beneficial for you if you are an agent or broker who is suffering
under the strain of the present slump in retail sales.
However, there is a HUGE downside to this bill. The problem is not
in wanting to help people and stabilize the largest single asset
class in America. That is a noble goal, but the means to achieve
the end simply do not add up.
In my opinion, and that of most other real estate market analysts, this expansion of FHA will not solve the subprime problem. It will simply move it from the banks and professional capital investors and instead place it squarely in the laps of the American taxpayers, as subprime lending practices move from the world of capital investors to the world of government guaranteed loans.
Most folks don't realize what "government guaranteed loans" actually are.
Under FHA the taxpayer actually guarantees the mortgage payoff.
When a home that has an FHA loan on it gets foreclosed on, the
lender does not lose their money, as happened with the recent
subprime losses that wiped out some investors and investment
companies. When an FHA loan gets foreclosed, the government
actually reimburses the lender for the balance of the mortgage
note. Meaning - the lender gets paid off by Uncle Sam and HUD
becomes the proud owner of a foreclosed home.
Ever wonder where all those HUD houses come from? They are homes
with government guaranteed loans that were foreclosed. Now Uncle
Sam is the proud owner. Problem is, Uncle Sam is using taxpayer
dollars to provide these guarantees. Then HUD tries to resell the
home and recover it's expenses. When HUD homes sell at a loss, it
is you and I that foot the bill. The real loser in this scenario is
the same hard working American taxpayer that the government claims to be helping.
Expanding FHA to allow for higher Loan To Value limits, "no
downpayment" loans, and adding easier condo financing is tantamount to moving subprime lending from the little known corners of capital investing, and secondary mortgage markets, into the living rooms and pocket books of middle America.
"No Downpayment" and "High LTV Loan Amounts" are considered
"subprime" for a reason. That reason is their tendency to produce
much higher default rates. Well duh...that is exactly what has
happened to subprime.
Higher default rates caused by relaxed lending standards
have nearly led to a world economic crisis.
It makes absolutely no sense to me to throw good money
after bad. Especially when the taxpayers are the ultimate source
for these loan guarantees.
Everyone in Washington wants to be seen as doing something to "fix"
this problem. "Broadening" and in effect lowering FHA's lending
standards will fix things alright. In my opinion, this idea is a
violation of every common sense rule for smart investing. I predict
that this program will only move FHA into the subprime lending
business, and set the US (and the US housing market) up for an even
bigger financial disaster in the future.
Below is a list of the highlights of the new FHA expansion act.
Where would the US economy be today if these items had already been
in place prior to 2005? What if they had been enacted prior to the
collapse of the current housing market? With condos overbuilt in
many cities, and home values falling like rocks, and a few million more
properties with no equity and 40 year payoffs, where the heck would
the US economy be right now?
The only reason we survived the current storm is the fact that the
Federal Reserve injected money into the system to help keep it
afloat. We came very close to a 1929 style crisis. It was narrowly
averted. The average taxpayer does not realize that next time, it
will be their money that will be paying back these loans. It really
makes me wonder what our government leaders are thinking...no wait I know what they are thinking..."get me re-elected", that's what they are thinking.
Meanwhile, next time you pass a HUD house, or show one to a
prospective buyer, take pride in knowing that you own a small piece
of it. And now, you'll get the chance to buy even more...say,
doesn't that make us all real estate moguls? I'll bet you didn't
even know you owned so many houses already! If you are a working
taxpayer in America you can start bragging about your extensive
real estate portfolio.
FHA Expansion Act Includes The Following Items:
1- There won't be a minimum 3% down payment which
means you need less cash at closing.
2- New 40-year loans will lower your monthly payment.
3- The FHA loan amounts can be higher which
means more homes would qualify for financing.
4- Condos will be more easily insured with an FHA loan.
5- You don't have to have perfect credit.
6- More seniors will be able to get reverse mortgages.
None of the measures being added to the expansion act has any basis
in common sense financial principles. Only a return to solid
fundamental financial principles will save our housing market and
stabilize it over the long run.
We have to realize that there are no quick fixes for poor financial
management. It's high time that our leaders realized that you cannot
solve financial problems by creating more debt.
You may disguise the problem, but you won't get
rid of it. But this time, they have me really worried. This bill is
cleverly disguised as help for homeowners, but in reality it is you
and I who are behind the mask.
Well, the new FHA expansion bill appears to be rocketing through
congress with virtually no opposition.
I got my email from NAR last week, (several times in fact) asking
me to make sure that I contacted my congressional representatives
to request passage of this bill.
NAHB is in strong support of the measure, saying that it will help
stablize the housing market. In fact, if you read the mainstream
media, you would get the impression that this bill has no
opposition anywhere. You may even think that this idea will be
beneficial for you if you are an agent or broker who is suffering
under the strain of the present slump in retail sales.
However, there is a HUGE downside to this bill. The problem is not
in wanting to help people and stabilize the largest single asset
class in America. That is a noble goal, but the means to achieve
the end simply do not add up.
In my opinion, and that of most other real estate market analysts, this expansion of FHA will not solve the subprime problem. It will simply move it from the banks and professional capital investors and instead place it squarely in the laps of the American taxpayers, as subprime lending practices move from the world of capital investors to the world of government guaranteed loans.
Most folks don't realize what "government guaranteed loans" actually are.
Under FHA the taxpayer actually guarantees the mortgage payoff.
When a home that has an FHA loan on it gets foreclosed on, the
lender does not lose their money, as happened with the recent
subprime losses that wiped out some investors and investment
companies. When an FHA loan gets foreclosed, the government
actually reimburses the lender for the balance of the mortgage
note. Meaning - the lender gets paid off by Uncle Sam and HUD
becomes the proud owner of a foreclosed home.
Ever wonder where all those HUD houses come from? They are homes
with government guaranteed loans that were foreclosed. Now Uncle
Sam is the proud owner. Problem is, Uncle Sam is using taxpayer
dollars to provide these guarantees. Then HUD tries to resell the
home and recover it's expenses. When HUD homes sell at a loss, it
is you and I that foot the bill. The real loser in this scenario is
the same hard working American taxpayer that the government claims to be helping.
Expanding FHA to allow for higher Loan To Value limits, "no
downpayment" loans, and adding easier condo financing is tantamount to moving subprime lending from the little known corners of capital investing, and secondary mortgage markets, into the living rooms and pocket books of middle America.
"No Downpayment" and "High LTV Loan Amounts" are considered
"subprime" for a reason. That reason is their tendency to produce
much higher default rates. Well duh...that is exactly what has
happened to subprime.
Higher default rates caused by relaxed lending standards
have nearly led to a world economic crisis.
It makes absolutely no sense to me to throw good money
after bad. Especially when the taxpayers are the ultimate source
for these loan guarantees.
Everyone in Washington wants to be seen as doing something to "fix"
this problem. "Broadening" and in effect lowering FHA's lending
standards will fix things alright. In my opinion, this idea is a
violation of every common sense rule for smart investing. I predict
that this program will only move FHA into the subprime lending
business, and set the US (and the US housing market) up for an even
bigger financial disaster in the future.
Below is a list of the highlights of the new FHA expansion act.
Where would the US economy be today if these items had already been
in place prior to 2005? What if they had been enacted prior to the
collapse of the current housing market? With condos overbuilt in
many cities, and home values falling like rocks, and a few million more
properties with no equity and 40 year payoffs, where the heck would
the US economy be right now?
The only reason we survived the current storm is the fact that the
Federal Reserve injected money into the system to help keep it
afloat. We came very close to a 1929 style crisis. It was narrowly
averted. The average taxpayer does not realize that next time, it
will be their money that will be paying back these loans. It really
makes me wonder what our government leaders are thinking...no wait I know what they are thinking..."get me re-elected", that's what they are thinking.
Meanwhile, next time you pass a HUD house, or show one to a
prospective buyer, take pride in knowing that you own a small piece
of it. And now, you'll get the chance to buy even more...say,
doesn't that make us all real estate moguls? I'll bet you didn't
even know you owned so many houses already! If you are a working
taxpayer in America you can start bragging about your extensive
real estate portfolio.
FHA Expansion Act Includes The Following Items:
1- There won't be a minimum 3% down payment which
means you need less cash at closing.
2- New 40-year loans will lower your monthly payment.
3- The FHA loan amounts can be higher which
means more homes would qualify for financing.
4- Condos will be more easily insured with an FHA loan.
5- You don't have to have perfect credit.
6- More seniors will be able to get reverse mortgages.
None of the measures being added to the expansion act has any basis
in common sense financial principles. Only a return to solid
fundamental financial principles will save our housing market and
stabilize it over the long run.
We have to realize that there are no quick fixes for poor financial
management. It's high time that our leaders realized that you cannot
solve financial problems by creating more debt.
You may disguise the problem, but you won't get
rid of it. But this time, they have me really worried. This bill is
cleverly disguised as help for homeowners, but in reality it is you
and I who are behind the mask.
Friday, April 25, 2008
Monday, April 21, 2008
Jacksonville Real Estate Market
The market continues to chug along. The majority of the homes being sold right now are short sales and/or foreclosures. I am personally working with 3 right now. I am beginning to believe that the instructors in the classes I attended on Short Sales were right!! It is really taking a long time to get the lenders to even acknowledge that they received our offer!! We submitted it 3 weeks ago and so far the listing agent hasn't been able to get us any information. We have requested a reply from the lender or we are walking. Our offer expiration date was last week and my client (thankfully) didn't submit a binder fee with the offer. We were to process the binder fee within 3 days of acceptance of the offer. I am so GLAD we didn't throw any money on the table! If we don't hear something in the next couple of days, we are going to start looking for another home. We really, really like this house, but we can't wait forEVER! I'll let you know how it all plays out.
It continues to be a buyers market. Credit is getting tighter though, so please don't wait too long to buy your dream home! Lenders are making it harder to get approved for a loan. I have several EXCELLENT lenders that will work with you to get the very best mortgage possible. Call me today.
It continues to be a buyers market. Credit is getting tighter though, so please don't wait too long to buy your dream home! Lenders are making it harder to get approved for a loan. I have several EXCELLENT lenders that will work with you to get the very best mortgage possible. Call me today.
Sunday, March 30, 2008
Jacksonville Short Sale Market Update
I can't believe it! In less than 24 hours I sold one short sale home and listed another one! I learned enough in my seminars to make them both happen fairly smoothly. Just in case, I brought in a back up agent to watch my back and to help me with the bank negotiations. I think that after submitting our offer on a cute house in the West Beaches area, it's time to "hurry up and wait!!" I've been warned that sometimes it takes 3-6 months to close on a short sale! I think this one just might happen faster. I hope to get a response to our offer in less than 2 weeks. If our offer wasn't enough, then I hope to have the opportunity to go back to my clients lender and get more money!! I don't know if that will fly or not. I feel like our offer was fair. My client really likes the house and I went by and met one of the neighbors over the weekend. They would love to have my client as a neighbor!! I hope it all works out.
In a perfect world, here's the way it will play out. The lender will review our offer, compare it to the amount owed on the loan. Decide whether or not they want to keep paying the interest and insurance and other fees on the house, or do they want to cut their losses and take our offer. I'm thinking they'll choose the latter. The house needs a roof, there are NO appliances in the house, so it needs a dishwasher, range, microwave and a refrigerator. I don't think the bank wants to fool with all of that. I'm hoping they'll just cut their losses and run...with us!
My seller is in a real bind. This is a text book short sale. My seller just got overextended and now the payments can't be paid. So, tomorrow, the negotiations will begin. The house is fabulous. It's in Neptune Beach and it's East of A1A. A real cream puff. Now, I'll be sitting on the OTHER side of the fence! I'll be getting beat up by a buyer!! That's okay. This house needs to be sold ASAP. I think the lender will entertain offers for sure. We'll see how it all plays out....
To be continued...
In a perfect world, here's the way it will play out. The lender will review our offer, compare it to the amount owed on the loan. Decide whether or not they want to keep paying the interest and insurance and other fees on the house, or do they want to cut their losses and take our offer. I'm thinking they'll choose the latter. The house needs a roof, there are NO appliances in the house, so it needs a dishwasher, range, microwave and a refrigerator. I don't think the bank wants to fool with all of that. I'm hoping they'll just cut their losses and run...with us!
My seller is in a real bind. This is a text book short sale. My seller just got overextended and now the payments can't be paid. So, tomorrow, the negotiations will begin. The house is fabulous. It's in Neptune Beach and it's East of A1A. A real cream puff. Now, I'll be sitting on the OTHER side of the fence! I'll be getting beat up by a buyer!! That's okay. This house needs to be sold ASAP. I think the lender will entertain offers for sure. We'll see how it all plays out....
To be continued...
Tuesday, March 25, 2008
Good news for Sellers
I think the buyers have come out of hibernation! My listing on Ashglen Dr North has been shown non-stop! Not only that, but the official numbers were released by the National Association of Realtors today and they were good. The number of homes on the market has dropped (less competition) and the number of sold homes was up. Finally! For the past 6 months sells have steadily dropped. Maybe this is the beginning of the end of the housing slump. Inventory numbers are better too. It now takes 9 months to sell a listing, I know that sounds awful, but it's a 3% improvement over January. I'll keep you posted...
Tuesday, March 11, 2008
Jacksonville, FL PreForeclosed Homes
The Mortgage Bankers Association reported that nearly 3 million homeowners were behind on their mortgages at the end of last year. An additional 1-million-plus borrowers were at risk of imminent foreclosure. Wow! As if that's not bad enough, a lot of the borrowers are finding out that they're so upset down, they just mail in the keys! Don't leave your house without a fight! The lenders can't help you, they can't work with you, they can't do a thing except foreclose if you mail in your keys and walk away from your house. Do NOT use this crazy option if you're upside down. Lenders are working harder to help you keep your home. FHA has programs to help with the ARM loans out there right now. The lenders are working with home owners after recieving pressure from the Feds to help them. Hundreds of thousands of distressed homeowners are reaching out for help. The Homeownership Preservation Foundation, part of the Hope Now Alliance, fields more than 4,000 calls daily to its toll-free hotline (888-995-HOPE).
Before you give up and mail your keys to your lender and move out--call me. I'll be happy to tell you what your house value might be based on recent sells and overall market activity. Don't give up yet! I'll try to help.
Before you give up and mail your keys to your lender and move out--call me. I'll be happy to tell you what your house value might be based on recent sells and overall market activity. Don't give up yet! I'll try to help.
Wednesday, March 5, 2008
Jacksonville Realtor On Active Rain
You can find great local Jacksonville, Florida real estate information on Localism.com Ronda Densford, REALTOR is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
Tuesday, March 4, 2008
Jacksonville PreForeclosures
I have been trying to research the subject of foreclosures in the Jacksonville area. It's really sad. Depending on exactly what search criteria I use, the average number is somewhere in the neighborhood of 1300 homes. This does not include Condos. There are approximately 100 of those. These homes are either in some stage of preforeclosure, have already been foreclosed on and are now owned by the lender, or they are currently offered on the market as a short sale. I think that the community of Realtors needs to figure out how we can HELP these people that still have a chance to keep their homes. There are a whole lot more people that are just one late payment away from getting into arrears on their home loan. These are the folks we need to concentrate our energy on. There is hope! If you are in trouble, please read the following tips taken straight from the HUD web site. This will keep you out of trouble!
If you are unable to make your mortgage payment:
1. Don't ignore the problem.The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm
6. Contact a HUD-approved housing counselor.The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
7. Prioritize your spending.After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
8. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery scams!If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
Please! Do NOT let your situation get worse! I don't want to sell your house if there is ANY way you can keep it. I could care less about listing your house if it doesn't HAVE to be put on the market. Please exhaust all means of relief before you give up. I will help if I can.
If you are unable to make your mortgage payment:
1. Don't ignore the problem.The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm
6. Contact a HUD-approved housing counselor.The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
7. Prioritize your spending.After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
8. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery scams!If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
Please! Do NOT let your situation get worse! I don't want to sell your house if there is ANY way you can keep it. I could care less about listing your house if it doesn't HAVE to be put on the market. Please exhaust all means of relief before you give up. I will help if I can.
Friday, February 29, 2008
What is a Short Sale???
Here is the "official definition" of a short sale
Qualifications for a Short Sale
Before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer yes to all four requirements, you may not qualify for a short sale.
The Home's Market Value Has Dropped.
Comparable sales must show that the home is worth less than the balance due the lender. This unpaid balance may include a prepayment penalty. Have your Realtor do a CMA or BPO on the house to be sure. A Realtor will do a CMA for free. Some lenders might require a appraisal.
The Mortgage is in Default.
A lender will not consider a short sale if the payments are current. As long as the lender is receiving timely payments, the lender is satisfied. You should probably be 60-90 days late on the mortgage payments. Please contact your lender direct to see if they will work with you to get the payments current. Some are being more helpful than others. Some may take a partial payment or even forgive a payment to help you. Call yours TODAY if you're late. Don't bury your head in the sand!
The Seller Has Fallen on Hard Times.
The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has stopped making the monthly payments. This letter should give details about the sellers situation. Maybe you've had medical issues? Maybe a divorce is in the works? Tell your lender your situation!!
A few examples that do NOT constitute a hardship are:
Bad purchase decisions. OOps. I paid too much for this house! Not good enough...
Unhappy with the neighbors. Does their dog keep you up at night barking? Not good enough...
Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family. We found a real bargain in a brand new home that the builder was liquidating! Not good enough...
Pregnancy. Increasing the size of your family or starting a family is not considered a hardship. Enough said! Not good enough...
Moving into an apartment. If you decide to move out of your home, because you can't afford it, this is not a good reason to leave your home. This just doesn't qualify as a hardship...not good enough... I think you get the picture.
Examples of hardship are:
Unemployment Did you lose your job?
Divorce Enough said......
Medical emergency / sudden illness Do you have medical bills even though you have health insurance? Let your lender know.
Bankruptcy Enough said...
Death Did your spouse die? Let your lender know!
The Seller Has No Assets
The lender will want to see a copy of the seller's tax returns and / or a financial statement. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference.
For example, if the seller has cash in a savings account, 401K, owns other real estate properties, stocks, bonds or IRA accounts, the lender will most likely determine that the seller has assets. The short sales that get accepted are those where the seller has no money or assets. In other words, they have NO OTHER OPTION but to sell the house at a loss.
I can't give you legal advice, unfortunately, I'm not an attorney. I strongly recommend that you speak to an attorney if you're considering selling your home as a short sale. If you can't afford an attorney, I have contact info for agencies that will advise you for free or reduced prices.
I was fortunate enough to be able to attend a seminar offered by NEFAR on this issue. The class was taught by one of the best communicators I've ever had the pleasure of listening to. This was my second seminar that Ulrich Leinhase, GRI, has presented. He is the President and CEO of Real Estate Classes Florida. I tell people that he is the Guru of Real Estate Seminars. I learn more in his classes than in any others and appreciate NEFAR for offering his classes on a regular basis.
Please don't wait too long to get some input on this issue you're facing. The worst thing to do is not face it square on! A caring, knowledgable Realtor can help you get things started. Oftentimes, this does NOT lead to you selling your house!! The lenders may work with you. Call me today and let's see where things stand. I'll be happy to help in any way.
Qualifications for a Short Sale
Before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer yes to all four requirements, you may not qualify for a short sale.
The Home's Market Value Has Dropped.
Comparable sales must show that the home is worth less than the balance due the lender. This unpaid balance may include a prepayment penalty. Have your Realtor do a CMA or BPO on the house to be sure. A Realtor will do a CMA for free. Some lenders might require a appraisal.
The Mortgage is in Default.
A lender will not consider a short sale if the payments are current. As long as the lender is receiving timely payments, the lender is satisfied. You should probably be 60-90 days late on the mortgage payments. Please contact your lender direct to see if they will work with you to get the payments current. Some are being more helpful than others. Some may take a partial payment or even forgive a payment to help you. Call yours TODAY if you're late. Don't bury your head in the sand!
The Seller Has Fallen on Hard Times.
The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has stopped making the monthly payments. This letter should give details about the sellers situation. Maybe you've had medical issues? Maybe a divorce is in the works? Tell your lender your situation!!
A few examples that do NOT constitute a hardship are:
Bad purchase decisions. OOps. I paid too much for this house! Not good enough...
Unhappy with the neighbors. Does their dog keep you up at night barking? Not good enough...
Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family. We found a real bargain in a brand new home that the builder was liquidating! Not good enough...
Pregnancy. Increasing the size of your family or starting a family is not considered a hardship. Enough said! Not good enough...
Moving into an apartment. If you decide to move out of your home, because you can't afford it, this is not a good reason to leave your home. This just doesn't qualify as a hardship...not good enough... I think you get the picture.
Examples of hardship are:
Unemployment Did you lose your job?
Divorce Enough said......
Medical emergency / sudden illness Do you have medical bills even though you have health insurance? Let your lender know.
Bankruptcy Enough said...
Death Did your spouse die? Let your lender know!
The Seller Has No Assets
The lender will want to see a copy of the seller's tax returns and / or a financial statement. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference.
For example, if the seller has cash in a savings account, 401K, owns other real estate properties, stocks, bonds or IRA accounts, the lender will most likely determine that the seller has assets. The short sales that get accepted are those where the seller has no money or assets. In other words, they have NO OTHER OPTION but to sell the house at a loss.
I can't give you legal advice, unfortunately, I'm not an attorney. I strongly recommend that you speak to an attorney if you're considering selling your home as a short sale. If you can't afford an attorney, I have contact info for agencies that will advise you for free or reduced prices.
I was fortunate enough to be able to attend a seminar offered by NEFAR on this issue. The class was taught by one of the best communicators I've ever had the pleasure of listening to. This was my second seminar that Ulrich Leinhase, GRI, has presented. He is the President and CEO of Real Estate Classes Florida. I tell people that he is the Guru of Real Estate Seminars. I learn more in his classes than in any others and appreciate NEFAR for offering his classes on a regular basis.
Please don't wait too long to get some input on this issue you're facing. The worst thing to do is not face it square on! A caring, knowledgable Realtor can help you get things started. Oftentimes, this does NOT lead to you selling your house!! The lenders may work with you. Call me today and let's see where things stand. I'll be happy to help in any way.
Short Sales in the Jacksonville, FL area
I attended a 3 hour seminar today about the Short Sales opportunities we now have in the Jackonville market. There are SO MANY of them on the market! I found out that not all "upside down" homes are true short sales. The criteria is very clear on what qualifies as a short sale. The seller must a) be insolvent with NO ASSETS (no IRA, no 401K, car paid for car, no boat NOTHING of value. b) must be behind on the payments (60-90 days) c) mortgage balance must be higher than actual market value d)Seller didn't cause the problem that caused the issue (medical bills, act of nature etc). Wow. That's not quite what I thought a short sale was. I thought if you were upside down, and you wanted the bank to take less than you owed; you were a short sale. Wrong. The guidelines are very clear.
Are you facing troubled times with your mortgage? There is help out there. I have contact numbers for several agencies that can help. Please call me before the situation gets any worse. The future effects on your credit report can be devastating.
I'll help if I can. I can't give you legal advice, unfortunately, I'm not an attorney. I strongly recommend that you speak to an attorney if you're considering selling your home as a short sale. If you can't afford an attorney, I have contact info for agencies that will advise you for free or reduced prices. Just call me or email me.
Are you facing troubled times with your mortgage? There is help out there. I have contact numbers for several agencies that can help. Please call me before the situation gets any worse. The future effects on your credit report can be devastating.
I'll help if I can. I can't give you legal advice, unfortunately, I'm not an attorney. I strongly recommend that you speak to an attorney if you're considering selling your home as a short sale. If you can't afford an attorney, I have contact info for agencies that will advise you for free or reduced prices. Just call me or email me.
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