Category Archives: Short Sales

A Testimonial for Fastcash4homes.biz from Beverly and Marshall Oesterblad

Facebook Twitter Linkedin Email

How to Buy Another Home IMMEDIATELY After a Short Sale

Yes, it’s possible to buy a home ONE DAY after you short sale another home.  Sound too good to be true?  Well, wait a minute.  There are certainly terms and conditions and restrictions that apply.  Here they are in a nutshell.

You’ve probably heard that you have to wait at least 3 years after a short sale to buy another property.  This is true IF you are in default:  If the property has an NOD or an NOTS filed against it or you’ve missed payments, you will have to wait.  You would not be eligible for this special loan program.

First and foremost, you MUST be CURRENT on ALL mortgages on the current property.  No late payments are allowed on any of the mortgages.  Secondly, you MUST stay CURRENT while the short sale is going on and is being processed.  The short sale may take 2 to 8 months to get approval and to close, so all mortgage payments MUST be made and MUST be current to qualify for this special financing program.  NO LATE payments are allowed.  You also MUST have excellent credit overall as well.

The next biggest requirement is that this financing program requires a 20% down payment.  For example, a house sold for $400,000 would require a $80,000 down payment, which is a substantial amount of money.   You also cannot buy a house in the same neighborhood or general area that you live in currently.

The benefits to this program are huge!!  First of all, you get pre-qualified and pre-approved for your new loan BEFORE you put your house on the market.  So you know exactly how much you are qualified to buy before you even decide to commit to selling your current residence.  You have tremendous peace of mind knowing this BEFORE your house is up to sale.  Then you can start looking for a new house while the short sale is taking place.  So you are simultaneously selling your current house as a short sale and looking for a new residence.

The goal, of course, is simultaneous (or as nearly simultaneous as possible) closings.  You can literally buy another house ONE DAY after you complete the short sale on your current residence.

Cautions, however:  The credit requirements are stringent, and not everyone will qualify.  You must have excellent credit and no delinquent payments.  There is no guarantee that the short sale lender/s will actually approve the short sale.

To summarize, this loan product is not for everyone.  However, it does give some borrowers alternative options to renting for 3 years until buying their next residence.

If you are interested in this program, let’s talk!  My phone is 909-972-1616 and my email is docrealtors45@gmail.com. Please contact me for a free, 100% confidential, no obligation consultation.

Facebook Twitter Linkedin Email

HUGE Incentive for Short Sale

FORECLOSURE = ZERO

SHORT SALE = Up to $30,000 for You!!!

Did you know that some banks (Chase and now Bank of America) are giving HUGE incentives to homeowners if they choose to short sale a home rather than let it foreclose?

I just got an email from Bank of America a few days ago explaining the program.  It’s called a Streamlined, Cooperative short sale, and it has a number of key advantages for the homeowners.

  • The homeowner is guaranteed a payment of at least $2,500 and UP TO $30,000 if you qualify for this program.  This is called “Relocation Assistance.”
  • The program requires very, very little in the way of paperwork.  It’s not necessary to gather 2 years of income tax returns, bank statements, pay stubs, hardship letter, and a financial statement.  You only have to fill out 3 very simple documents.

The best part of this, is that in California, there are no deficiency judgments.  That means if a short sale is approved, there is no balance due.  The short sale lenders approve the short sale and forgive the balance.

So if you are having a hard time with your loan and want to discuss a short sale, please call me at 909.972.1616 or email me at  docrealtors45@gmail.com.   Again, remember that there is no cost or obligation for this FREE consultation.  And all costs involved in selling your property are paid for by the lender.

 

 

Facebook Twitter Linkedin Email

If You Have 2 or More Loans and Your Home is Under Water in CA, You MUST Do a Short Sale.

In July 2011, Governor Jerry Brown of California signed the landmark SB 458, which is HUGE for CA homeowners and investors. It basically protects them against all junior lien holders if they complete a short sale on their property in CA.

Previous law, SB 931, only applied to senior lien holders. Junior lien holders had the choice to approve a short sale only if the borrower would agree to sign a promissory note to pay the full balance.

This new law, however, doesn’t require or force the junior lien holders to approve the short sale. But if they do approve the short sale, then they must accept the short payoff as full payoff and must agree NOT to pursue the deficiency judgment and must NOT go after the homeowner to sign a promissory note for the balance amount after the short sale closes.
Here are the excerpts from the Bill:

“Effective immediately for transactions closing escrow from this day forward, both senior and junior lien holders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.”

Although lenders are prohibited from pursuing borrowers to pay any additional compensation in exchange for a short sale approval, the law allows the seller to voluntarily offer a monetary contribution as an incentive to the lender for providing short sale approval. A lender is also permitted under this new law to negotiate for a contribution from someone other than the seller, such as other lenders, agents, relatives, the new buyer, etc.

This bill applies to single family homes, duplex, triplex and 4-plex residential, owner occupied or investment properties. This law does NOT apply to lenders seeking damages as a result of fraud. Also, the law does NOT apply to borrowers who are corporations, LLCs, limited partnerships, or political subdivisions of the state, liens secured by bonds, public utility liens, and HOA liens.

This is HUGE for California homeowners and investors!! This law protects you if it’s your own personal primary residence and if it’s an investment property that you own. However this plays out eventually, rest assured that if the junior lenders DO approve the short sale, you are much better off as a homeowner or an investor.

However, BEWARE if you opt for foreclosure instead of a short sale and the protections offered by this law. If you opt for a foreclosure, here’s what generally happens: Usually, the 1st lender is the one foreclosing. Let’s use some actual numbers. Let’s say that the fair market value of the property is $175,000. The 1st lender is owed $325,000. The balance on the 2nd loan is $42,000. The 1st lender will try to sell the property on the court house steps (at auction) for the balance owed ($325,000), but there will be no takers. Why? Because no investor will pay $325,000 for a property only worth $175,000!!! So the property goes back to the 1st lender and becomes an REO asset. What happens to the 2nd loan, you ask? Great question! It gets wiped out!!! This makes the 2nd lender furious! They are owed $42,000, but they get zero, nada, bupkus. Well, it doesn’t stop there. The 2nd lender can and does typically go after the homeowner very aggressively by generally selling this debt to a collection agency of some sort. That collection agency will then pursue the homeowner to the ends of the Earth with phone calls, letters, etc. demanding payment. And that’s not all!! These collection agencies will demand the FULL amount of the debt owed (in this case, $42,000). That is not a fresh start, to have these collection folks harassing you for payment after losing the property!

The HUGE advantage to this law is choosing a short sale protects you. All the junior lienholders and the senior lienholder have to agree to the amounts of the proceeds that they will receive from the short sale (and that’s where negotiation skills and experience are crucial), but once they do agree and the short sale closes , YOU ARE DONE!! Your debt is resolved!! No lender can ask you to bring money to the table. No lender can ask you to sign a promissory note to pay back a portion of this debt in the future. No collection agency will harass you. This is truly a fresh start and an amazing protection for California homeowners! Again, this protection applies to most people (please read exceptions above). So if you have more than one loan, do a short sale and protect yourself. Go forward in the future with a fresh start and a zero balance sheet.

Facebook Twitter Linkedin Email

Banks Are Paying Homeowners A LOT to Do Short Sales!

Facebook Twitter Linkedin Email

A more closer look into SB 458 and how it protects homeowners who elect to do a short sale

Facebook Twitter Linkedin Email

REALTORS: Avoid This Pitfall & Close Your Short Sales More Successfully!

I’m going to share a valuable lesson that I learned several years ago through the “School of Hard Knocks.”  This is when I was just getting started doing short sales.  Hope that you will chuckle, but more importantly, hope that this will prevent you from making the same mistake!

This involves doing a short sale on a property that has the 1st and 2nd mortgages with the same lender (referred to below as ABC Bank).

We prepared the short sale pkg meticulously, as we always do.  We got the authorizations signed by the borrowers for the 1st and the 2nd lenders (same bank) and faxed both of the authorizations to the same fax number (given to us by Customer Service).  We faxed the entire short sale package to the Loss Mitigation fax number that Customer Service of ABC Bank gave us.  About 2 days later, I was planning to call to follow up, to ensure that the package had been received.  To my surprise, Edward of ABC Bank called me first, to say that, “I am your Loss Mitigator on this file.”  Great!!  We now had Edward’s email address, phone #, all contact info, and he had assured us that he had received the package.

About a week went by, and I called to get status to find out when the lender was going to do a BPO on the property.  I was told to wait another week, and I called again.  After leaving multiple phone and email messages for Edward and getting no response for about 2 ½ weeks, I then just talked to the Loss Mitigation customer service phone rep who answered the phone lines.  After reviewing the file, he gave me astonishing news:  “We can’t order the BPO.  The 1st has to do that.  They haven’t even assigned a mitigator to this file yet.”   I pointed out that the 1st and the 2nd were ABC Bank, both the same lender.  I pointed out that Edward had called us first, stating, “I am your Loss Mitigator on this file.”  Nonetheless, to my amazement, he told me that the 1st was not in an office just down the hall.  The 1st was not in an office on another floor of this building.  The 1st was not in a different building in a different part of this city.  No, the 1st was in a different CITY and STATE altogether!! Not only that, the 1st had not even seen the short sale package, had not received the authorization, etc.  The 2nd Loss Mitigator (Edward) did not even communicate with the 1st.

Wow!  Was my face red!!!  Well, to make a long story short, the deal closed just fine.  I dropped what I was doing, faxed the authorization immediately to the 1st lender, faxed the entire short sale pkg immediately to the 1st lender, got the name & contact info for the Loss Mitigator for the 1st, and closed the deal.  It did take longer because the 1st was 2 ½ week behind the 2nd as far as evaluating the deal, approval, etc.  Now, I deserve most of the fault for this, but being a “newbie” at that time, I took Edward’s word for it when he said, “I am your Loss Mitigator for this file.” He absolutely did not state, “I am your Loss Mitigator for the 2nd lien for this file.”

So, lessons learned:  Never, ever, ever assume that the 1st and 2nd liens for the same bank are covered/handled by the same group of loss mitigators. In fact, always assume the opposite.  Always assume that you will be talking to 2 different loss mitigators in different cities, states, etc.  Treat the lenders like they are from 2 different banks, companies, etc.  Then you will be pleasantly surprised if and when you find out that you only have to deal with one person for both the 1st and 2nd liens!

This could have ended very badly.  We could have lost much more time finding out that the 1st was entirely different; we could have lost a buyer who got frustrated with the delays, etc.  But there are so many ways that a short sale can go wrong.  Put success on your side, and make sure to do the little things well, to dramatically increase your chances of closing!

Facebook Twitter Linkedin Email

Foreclosures. A Guide for Homeowners

You may have read one of the many articles in the newspapers lately about increasing mortgage defaults. A foreclosure is a forced sale of property by the lender when the borrower has been unable to make payments on his or her loan. No one wants to be in this position. You may be feeling very stressed, worried, scared, anxious, concerned about the future. We are trying to do 2 things here: (1) Educate you regarding the whole process here in California (knowledge = power); (2) let you know that you do have options.

Usually in California, the lender uses a deed of trust that has a power-of-sale clause. You need to check your documents carefully. A power-of-sale clause gives the lender the right to sell the property if you, the borrower, default on the loan. Also, most CA foreclosures are done non-judicially. Non-judicial foreclosures do not require the court system, are much faster, and typically take only 120 days from the day that the NOD is recorded.

When you miss mortgage payments, the lender can decide to begin the foreclosure process. In California, this usually occurs between the 60th and 90th day after you have missed the first payment. The first step is the NOD. The lender records a document called an NOD with the county recorder in the county where the property is located. NOD stands for “notice of default,” and is the first public appearance that the foreclosure process has started. You will get a letter from the lender telling you that the NOD has been recorded. You may wonder how people knew that the loan was in default. The NOD filing is published in a newspaper under the legal notices heading. This is required by law, as this is public record.

From the date that the NOD is recorded, the borrower has 120 days (4 months) until the sheriff’s auction. You have approximately 4 months to pay the lender all the missed payments, late fees, attorney fees, and any other fees associated with the default. This is by far the easiest way to stop the foreclosure. This will cure or reinstate the loan on good terms again. Three months after the NOD is recorded, if the fees, back payments, and late fees are not paid in full, the lender will set a sale date for the sheriff’s auction. You have 5 days before the scheduled sheriff’s sale to pay the lender everything that is owed. (For example, if the sheriff’s sale is set for May 10 and you owe $6703, you could pay $6703 on May 5 and stop the foreclosure.) If the back payments and fees are not paid to the lender, the property will be sold at a sheriff’s sale. This means that the property will be auctioned off on the courthouse steps to the highest bidder.

WHAT WE DO

I’ll be that you are getting a lot of postcards, letters, calls, and visits from investors looking to buy your home. You may be wondering who these people are, whether you can trust them and what they have to offer. In fact, you may be overwhelmed by the sheer number of people who suddenly seem interested in helping you with your situation.

If you are trying to figure out what your options are, won’t you please call me first? I can help you even if you owe too much on your property (your loans are more than the property’s value). Each situation is different. Every person has unique needs. Just call or email me, and I’ll be happy to discuss your particular situation with you. I can suggest some things that you can do to work with your bank, delay the sale, salvage your credit, and move on with your life. If you are committed to staying in the property, we can help direct you to companies that help with that, too.

PUT MY EXPERIENCE TO WORK FOR YOU TODAY!!
I DON’T CHARGE ANYTHING FOR MY SERVICES.
NO RISK TO YOU!!

You do have options besides selling. This is very important, though. The sooner you get started, the more options and the more power you will have. Put time to work in your favor and get started NOW. Do not delay! You don’t have to choose us or our company. That is fine. But please do something TODAY!

Once you consider all your options, if you decide to work with us, our company offers you 2 choices: (1) We will buy your property directly from you, all cash, and close within 30 days or less. OR (2) We will work with your bank (with your permission) to stop the foreclosure, salvage your credit, and give you a fresh start.

If you decide that selling is your best option, we’ll make a cash offer to you. If it works for you, we’ll close in 30 days or less. You can get on with your life. We can give you peace of mind. You will know exactly how much you will have from the sale and when you will have it. If you decide to work with our company, our other option involves working with the bank to try to stop the foreclosure, salvage your credit, and get on with your life. We will never make promises that we cannot keep. If you decide not to work with us, that is okay, too. Please work with somebody and take action today!

TAKE ACTION TODAY!!
NO RISK OR UPFRONT COSTS!
Please call or email us today! 909-972-1616; docrealtor45@gmail.com

Facebook Twitter Linkedin Email

Don’t let foreclosure spoil your credit report! Consider HAFA.

Read details here: http://ping.fm/rNPKb

Facebook Twitter Linkedin Email

Have you received Notice of Default?

Another Trustee Sale–May 6–postponed successfully! If you’ve received a Notice of Default, call me now for free consultation 909-972-0041.

Facebook Twitter Linkedin Email