West Sacramento Short Sale Information: October 2012

Wednesday, October 31, 2012

West Sacramento Short Sale Information - Fannie Mae - Stay Current and Short Sale

West Sacramento Short Sale Specialist, Default Advocate, Distressed Property Expert and West Sacramento Short Sale Agent Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us. Today let’s talk about the new Fannie Mae and Freddie Mac West Sacramento Short Sale Changes.

Mortgage giants Fannie Mae and Freddie Mac have issued new rules, which will take effect Nov. 1, that will allow West Sacramento short sales for underwater borrowers who have never missed a mortgage payment.

Previously, Fannie and Freddie allowed only home owners who had missed payments to qualify for a short sale. Eligible borrowers under the new rules will still need to show a hardship to qualify for a short sale.

Great news for those who are trying to do the right thing by staying current. There are a number of other changes as well including requiring servicers to acknowledge receipt of a short sale offer within three business days and notify the borrower within five business days if the information is incomplete.

Within thirty days, the servicer must send an evaluation notice or notify the borrower that the offer is still under review. If the offer cannot be fully evaluated within 30 days, the servicer must update the borrower on the status each week thereafter. Servicers will also be required to keep Fannie Mae apprised if a short sale evaluation takes longer than 30 days.

Now don’t get evaluation confused with approval. Under the new guidelines Fannie and Freddie still have up to 60 days after a complete Borrower Response Package or BPR to respond to the borrower. Notice emphasis on complete. Experience tells us that the package can be rejected for even the tiniest of details further delaying the process and extending the time to receive approval.

Is a West Sacramento Short Sale Right for Me?

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did

Tuesday, October 30, 2012

West Sacramento Short Sale Information - Greentree Success

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about another win with Greentree.

Sports Fans I gotta tell you while most agents hate Ocwen and Greentree, I gotta tell you I truly like working with them both. We received another approval from Greentree. The loan was a first and second with Greentree and both were more than 6 months late. That 6 months is the key issue. It’s key because many times once a second is 6 months or more behind the loan gets charged off and sent to a collections company.

When we initiated the short sale we confirmed that Greentree would be working both the first and second at the same time. As we worked the file we continued to confirm the two loans were being worked simultaneously. Well wouldn’t you know it, when we received the approval letter only the first was included. Bummer

As it turns out during the final phase of the approval process the second was charged off and sent to collections. We were fortunate enough to have caught this as soon as we received the approval on the first and went right to work on the second. It took us about a week or 10 days to get the second approval but all’s well that ends well. We are going to be able to get this homeowner out from over $350,000 of debt including a $100,000 HELOC that would have stayed in place if the property was foreclosed on. A new homeowner gets to move in and because this was an above asking cash offer with no appraisal required we will actually help home values in that area. Life is good!

Is a West Sacramento Short Sale Right for Me?

Monday, October 29, 2012

Woodland Short Sale Information - Bank of America Foreclosure

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about a Bank of America set back we had recently.

Guys, those who have been following us for a while that it is rare when we lose a Woodland short sale to foreclosure. Truth be told our approval success rate is well over 95% but every now and again one gets away from us. We had that happen this week. Why would I bring up a negative in these posts – because as a Default Advocate it is about the truth pure and simple.

So here’s what happened. We took on a short sale with less than 20 days to the foreclosure sale date. We quickly got an offer and submitted the short sale package to Bank of America. Our offer was close enough that Bank of America postponed the foreclosure sale date for 30 days. During that 30 days and roughly 3 weeks until the next foreclosure date, Bank of America countered our offer to a higher price and modified the counter offer terms slightly. We quickly responded accepting their counter offer and requested another postponement giving us time to get the investor approval and close the escrow.

Well we started the requests 14 days prior to the sale date and followed up religiously. Come the day before the sale the foreclosure still had not been postponed. We escalated the file because the negotiator would not respond. As we worked through the process and by the admission of our escalation contact Bank of America screwed up. The negotiator never requested the postponement even though on all our follow up calls & messages she said she did. Basically she lied to us. As it turned out the property was sold on the court house steps to a third party making getting the sale reversed nearly impossible.

We are human and 95% plus approval rating is not 100%. Just when you think the banks have stopped lying you find a bad apple like this one. It’s not Bank of America’s fault – or maybe it is because she worked for Bank of America, but it still comes down to people. I wonder if that dishonest negotiator fully realizes the harm their dishonestly has caused…

Is a Woodland Short Sale Right for Me?

To get a better idea of when your Woodland home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest Woodland short sale information. Call me today and sleep better tonight; you’ll be glad you did

Friday, October 26, 2012

West Sacramento Short Sale Information - HARP Refinancing

West Sacramento Short Sale Agent, Default Advocate, Distressed Property Expert and West Sacramento Short Sale Specialist Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us. Today let’s talk about how many homeowners have been helped by HARP

As reported recently by Carrie Bay in DS News nearly 99,000 homeowners refinanced their mortgages in August through the Home Affordable Refinance Program (HARP), according to a new report released by the Federal Housing Finance Agency (FHFA).

The federal government’s HARP initiative, which is applicable for borrowers with loans owned by Fannie Mae or Freddie Mac, has put over 618,000 homeowners into new mortgages with lower interest rates since the beginning of this year.

According to FHFA, HARP is on target to reach a million borrowers in 2012. The agency attributes the continued high volume of HARP refinances to record-low mortgage rates and program enhancements that included the elimination of its maximum loan-to-value (LTV) ratio limit.

HARP refinances for borrowers with LTV ratios greater than 105 percent accounted for more than 60 percent of the HARP refinances in California. Nationwide, LTV ratios above 105 percent characterized more than half of new HARP loans made in August.

Since the program’s inception in 2009, FHFA reports, Fannie Mae and Freddie Mac have financed more than 1.6 million loans through HARP. My only thought is, no matter how great the interest rate is, does it make sense to still owe more than your home is worth when you could short sale and buy a similar property 2-3 years from now at what is expected to be these same great rates and prices?

Is a West Sacramento Short Sale Right for Me?

Thursday, October 25, 2012

West Sacramento Short Sale Information - Chase / Freddie Mac Short Sale

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about our longest Chase / Freddie Mac Short Sale

Those who have been following our blog for a while know we are the never say die folks. If one negotiator says no we escalate and escalate and escalate until we either get the file approved or we know we have exhausted EVERY single option available to us to save that homeowner from foreclosure. Well we just closed our longest short sale ever - 607 days from the time we listed the property to the time we closed escrow – 607 days – that’s 20 months! CRAZY.

Over the past 20 months we have talked about this file many times. It had a $300,000 Chase first and a $30,000 Chase HELOC second with a $20,000 UCC-1 Lien too boot. We went through 2 or 3 buyers, had no less than six foreclosure sale dates postponed and have escalated the file so many times we had it on speed dial.

When we finally we able to resolve the $20,000 UCC-1 lien and get the seller $3000 in relocation assistance the deal nearly fell apart at the 11th hour over $279.86. You heard me right, 20 months of blood sweat and tears nearly down the drain over less than $300. You know there was NO WAY I was going to let that happened. After numerous calls to the buyer’s agent and my seller we were finally able to resolve the less than $300 issue and close escrow on the day our approval letter expired and a mere two days before the property was scheduled to be sold on the court house steps. Talk about a nail biter. In the end we persevered where many would have given up and saved this homeowner from foreclosure. All’s well that ends well but this one was not without its trials and tribulations.

Is a West Sacramento Short Sale Right for Me?

Wednesday, October 24, 2012

West Sacramento Short Sale Information - US Bank / GMAC Success

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about our recent successful short sale involving US Bank and GMAC.

Here was a case of never say die and never give up. This homeowner had a GMAC first for $400,000 and a US Bank HELOC second for $90,000. As you know, if the property is foreclosed on the HELOC is not wiped out like the first mortgage and the second still owes the lender the full amount of the HELOC. This is important because unlike a traditional second trust deed, the HELOC lender is not afraid of the property being foreclosed on – they retain the right to collect the debt.

With that said we knew we had to find a way to make this work for all parties. As was the case GMAC offered US Bank approximately 8% or $7200 to settle the debt. US Bank started out wanting 20% or $18,000 to settle. Through our back and forth negotiations US Bank finally agreed to accept $9000 to settle. Great news except GMAC was still only willing to offer US Bank $7200.

We escalated the file to US Bank Sr. Management and they held firm at the $9,000. We went back to GMAC and they were firm at $7,200. With what looked like an impossible impasse we escalated the file once again to US Bank. After more than a week of follow up US Bank came back with its final offer - $9,000. Oh man it would appear we were dead in the water and our deal was finished except - we don’t give up.

We simultaneously escalated the files to GMAC and US Bank. GMAC came back with the offer to approve $9,000 to US Bank to settle the second! That was music to our ears.

We are now in process of closing this file and helping yet another homeowner avoid foreclosure and get a financially fresh start – life is good!

Is a West Sacramento Short Sale Right for Me?

Tuesday, October 23, 2012

West Sacramento Short Sale Information – Relocation Assistance in a West Sacramento Short Sale

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about Relocation assistance in a West Sacramento Short Sale.

I have had a number of instances lately where the seller was not allowed relocation assistance when completing the short sale and the sellers were more than a little upset. It is important that we discuss this because West Sacramento Short Sale relocation assistance is not a right or entitlement, it is a benefit for selected loan types, selected investors and qualified borrowers. Not every homeowner who participates in a West Sacramento Short Sale will get relocation assistance. Now think about what I just said. If I used this platform for the sole purpose of getting people to call me to list and short sale their house I would be touting the benefits of relocation assistance and how plentiful it is – but those who know me, know that is not the case. Unlike some West Sacramento short sale agents, as a Default Advocate I have a responsibility to dispense the truth and offer assistance to distressed homeowners, not prey on their needs with false hope and offers of cash at closing when I know it won’t happen. We apply for it every time regardless if the homeowner qualifies or not. Ok off the soap box let’s get back on topic.

West Sacramento Short Sale relocation assistance differs by loan type, participating servicer and investor and lastly the seller / homeowner. News flash here guys, the servicers don’t have to offer relocation assistance if you don’t qualify.

If you have an FHA loan the most you might get is $750 - $1000. If it’s HAFA, $3000. For HAFA your payment on your first mortgage must be 31% or MORE of your gross household income or you don’t qualify. Under certain circumstances Bank of America and Chase have offered up to $30,000 although the most I have ever seen is $10,000. The large amounts are for certain special loan types only.

What you need to keep in mind is this: You are walking away from a tremendous debt with zero responsibility for the unpaid balance and in most cases zero responsibility to pay the income taxes on that forgiven debt. In many cases you have enjoyed the benefit of living rent free for as much as a year. In the case of a second lien that was a HELOC, however the money was spent you don’t have to pay it back.

Now I know this is not going to be a popular post because it does not promise living free and getting paid to move but I would rather not work with you than tell you something I believe not to be true.

Is a West Sacramento Short Sale Right for Me?

Monday, October 22, 2012

West Sacramento Short Sale Information - Getting Back into the West Sacramento Housing Market

West Sacramento Short Sale Specialist, Default Advocate, Distressed Property Expert and West Sacramento Short Sale Agent Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us. Today let’s talk about Getting back into the West Sacramento Housing Market following a West Sacramento Short Sale.

According to Realtor.Mag as reported in the Wall Street Journal, Families who had once lost their home to foreclosure following the housing crash are now re-emerging and looking to buy again.

As Stuart Miller, chief executive of national homebuilder Lennar Corp., puts it: More people are “coming out of the penalty box.”

Some builders have a growing interest in reaching out to these “boomerang” foreclosure buyers. For example, builders like K. Hovnanian are providing sales staff with fliers that detail mortgage eligibility rules for families who have undergone a foreclosure or bankruptcy.

"The industry is saying, 'Pay your dues and then get back into the market,' " says Dan Klinger, president of K. Hovnanian American Mortgage.

In order to qualify for a mortgage backed by FHA, families must wait three years or more to apply again following a short sale, seven for a foreclosure. Using that benchmark, about 729,000 households that were foreclosed on during the housing crash are now eligible to apply for an FHA mortgage–up from 285,000 a year ago, The Wall Street Journal reports.

But just because “boomerang” families are allowed to apply again for financing for a home purchase doesn’t mean they’ll qualify for a loan, housing experts say. These families will still have to show a strong credit score and meet stringent underwriting standards.

Knowing this, doesn’t a West Sacramento Short Sale just make good business sense?

Friday, October 19, 2012

West Sacramento Short Sale Information - Inventory Shortages and West Sacramento Short Sales

West Sacramento Short Sale Specialist, Default Advocate, Distressed Property Expert and West Sacramento Short Sale Agent Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us. Today let’s talk about the lack of inventory and how it affects West Sacramento Short Sales.

Just this past week I went on two consultations where because of the pent up demand for housing and the number of buyers in all price categories, what would have been short sales I now think I can get them out without having to short sale.

How is that you say. Well in both cases the sellers were less than 10% short. While we will list both properties 10 -15% over fair market value from what I have seen we expect to get enough that the seller will not have to come in with money to close or have to short sale.

In the temporary rising market like we have, there is a small window of opportunity to make this happen. For those fence sitters expecting large increases in home prices later this year or early next year I think you are going to be very disappointed. Once the 5 largest lenders work thought the Global Settlement and the election is over I truly believe we are going to see a dramatic increase in foreclosures and the number of homes that come on to the market. Time is of the essence.

Is a West Sacramento Short Sale Right for Me?

Thursday, October 18, 2012

West Sacramento Short Sale Information - Wells Fargo / FHA Short Sale

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about a recent Wells Fargo / FHA Short Sale we are involved in.

This is a particularly frustrating Short Sale for us. It is a NASTY divorce where Mr. Seller won’t cooperate short of a court order and Wells Fargo - the most anal retentive of all the banks, is the servicer and FHA is the investor. Talk about a perfect storm for frustration.

We have been working this short sale for months. After chasing paperwork from the reluctant Mr. Seller we finally received our Authorization to Participate (ATP) from FHA. Good news right? You would think so. We already had an offer that exceed FHA’s net requirement and all Wells Fargo had to do was approve the offer. After 30 plus days of promises and miss-information the negotiator at Wells Fargo finally admitted the file had been sitting with no one looking at it he whole time. Never mind the fact that we were getting twice weekly responses to our inquiries to the contrary.

Well you know we never take no for an answer so once we got to the truth we escalated the file to Wells Fargo senior management. Good news / bad news. The good news was we got the file moving forward. The bad news is we pissed off the negotiator and he started asking for redundant documents and closed the file for non-response within his unrealistically tight time frames. Normally we can make the unrealistic requests work but in this case where we had to get two different attorneys involved to get one form signed we couldn’t make it happen fast enough.

Now after Wells Fargo sitting on the file for better than 30 days with no activity we are having to escalate the file to Wells Fargo and directly to FHA. What a waste of our taxpayer dollars over the poor performance of one bitter Wells Fargo marginally competent employee.

Naturally being used to agents who roll over for this kind of (pardon my french) crap I am sure he did not think we would take our case directly to FHA /HUD or the consequences that go along with that type of exposure.

In the end, we will get the short sale approved in spite of our negotiator and we will save a family from foreclosure. It will just take us a little longer than normal. As they say – no hill too high for a climber

Is a West Sacramento Short Sale Right for Me?

Wednesday, October 17, 2012

West Sacramento Short Sale Information - How Shadow Inventory is Calculated

Looking for West Sacramento short sale information? You have come to the right place. Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about How Shadow Inventory is Calculated and why it is important

According to the good folks at Keeping Matters Current, Shadow inventory includes 3 categories of houses:

1. Properties already foreclosed on but not brought to market yet

2. Houses currently in the foreclosure process

3. Properties where the homeowner is seriously delinquent on their mortgage payment (at least 90 days behind).

Categories 1 and 2 seem obvious for inclusion, but why category 3 – properties where the homeowner is seriously delinquent on their mortgage payment? They include these because studies show that 95+% of all those who fall 90 days behind on their mortgage payment never catch up, and these properties do eventually come to the market as distressed sales (either short sales or foreclosures). The percentage of those who do catch up on their mortgage payment is often referred to as the “cure rate.” Unfortunately, the cure rate is incredibly low in this new market reality. From 2000 to 2006, the cure rate averaged 45%. Since then, the cure rate has been at record lows of less than 5%. Since we now have a less than 5% cure rate those properties should be included in the shadow inventory numbers – one way or another they will need to be liquidated either though Short Sale or foreclosure.

In the County of Sacramento there are approximately 550,000 SFR and condos. Of those 550,000, approximately 27,000 or 4.9% are seriously delinquent. On average about 19,000 homes sell per year in that same area. Just the seriously delinquent properties account for an approximately 18 month supply of homes for sale and that is just the serious delinquent. That does not even take into consideration those who short sale without ever missing a payment. A six month’s supply is considered a balanced market

While many pooh-pooh the shadow inventory numbers, I say we truly need to be mindful of how it will affect pricing once those properties are liquidated. Falling prices will force more homeowners into negative equity and foreclosure.

Is a West Sacramento Short Sale Right for Me? Call me and let’s find out

Tuesday, October 16, 2012

West Sacramento Short Sale Information - FHA Short Sales

Towards the end of 2007 and 2008 there were a great number of homes sold that were guaranteed by FHA. With that said since 2007 home values have decreased considerable and the current economic climate has radically changed. With that change has come a greater number of West Sacramento Short Sales where FHA is the investor. Why is this important to know?For starters FHA has their own set of rules and as a government agency they rarely stray from those rules.

A couple of the nuances that cause FHA to be so different is the fact that FHA does not allow walk aways. The property must be owner occupied. And when I say occupied, with the exception of very rare circumstances, I mean not just recently occupied but the seller actually having a physical presence in the property. The seller must also be in default, have a proven financial hardship that was out of their control, meaning by no fault of their own they have a negative at the end of the month and cannot be involved in a “buy and bail” scenario where they bought one house and are short selling the other.

FHA will also only allow $1500 to a second lien holder and the maximum the seller can get for relocation assistance is $1000.

With an FHA Short Sale, FHA will first issue an Authorization to Participate also known as an ATP. Once the ATP is issued the West Sacramento Short Sale offer must be approved as well.

FHA short sales will take 30 – 60 days longer than a traditional West Sacramento Short Sale so be prepared. Also, unless you have an offer, the file will not even be considered if the sale date is within two weeks of the West Sacramento Short Sale being initiated. As you can see FHA is a West Sacramento Short Sale process all into its own.

Is a West Sacramento Short Sale Right for Me?

Monday, October 15, 2012

West Sacramento Short Sale Information - Wells Fargo Short Sale Approval in 30 days or less!

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about a recent Wells Fargo Short Sale we received approval on in less than 30 days

You heard that right. We recently received Short Sale approval on a Wells Fargo short sale in 29 days. 29 days! Pretty unreal.

This was a family that checked the value of their home vs. what they owed on my Short or Stay calculator. In conversation with the sellers they mentioned that they had contacted a realtor about the Elk Grove Short Sale but after a day or so the agent had not called them back. Talk about red flags. To make matters worse when the agent did call them back, she told the sellers that she worked another job and could only work the short sale after hours and weekends. If that wasn’t bad enough, there was a sale date less than 3 weeks away.

I had some serious conversation with the sellers and basically told them that even if they did not use me for the Elk Grove Short Sale they should absolutely use not only a Short Sale Specialist but a full time one at that.

As it turns out they interviewed me for the job. Not only were we able to get the foreclosure sale date postponed at the 11th hour, we were able to get the short sale approved in record time AND get the sellers $3000 in relocation assistance.

Guys, short sales are an art form not to be dabbled in by the not so serious casual or part time Realtor. When you decide to short sale your home, select a full time Realtor with extensive short sale experience. This is not the time to let your cousin’s sister’s boyfriend’s mechanic try their first short sale. Get with a Certified Default Advocate – there is just too much riding on this to risk with an amateur.

Is a West Sacramento Short Sale Right for Me?

Thursday, October 11, 2012

West Sacramento Short Sale Information - Can I short Sale and Stay in My Home?

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about if you can stay in your home after a West Sacramento Short Sale.

The answer is “maybe” and then only if you qualify for the HAFA Short Sale Lease Back Program. You see, most West Sacramento Short Sale Lenders require you to sign an Arm’s Length Affidavit that states there is no agreement, written, verbal OR implied that will allow the seller to remain in possession of the property either as a tenant or with the possibility of buying the property back at some future time.

Now, while for the most part this is true with most of the West Sacramento Short Sales completed, there is a new program available that will allow you as the seller to not only lease back the property but potentially buy it back at a later date.

HAFA directive 11-02 released on March 30, 2011 included ground breaking instructions to, and I quote “allow servicers the discretion to approve sales to non-profit organizations with the stated purpose that the property will be rented or resold to the borrower, so long as all other HAFA requirements are met.”

Not everyone will qualify and not every lender will approve the total package but for those who meet the criteria it can be a heck of a program.

Because the program is in its infancy, there are relatively few West Sacramento Short Sale Specialists authorized and approved to administer this program. In fact to my knowledge, in Northern California I am the only West Sacramento Short Sale Specialist pending approval for the program. I have had to make a number of trips to Southern California for training in an effort to get my certification and believe me there are quite a number of hoops to jump through to become certified. Once everything is in place I will be able to share more with you and see if you qualify.

Is a West Sacramento Short Sale Right for Me? Call me and let’s discuss your particular situation.

Wednesday, October 10, 2012

West Sacramento Short Sale Information - Deficiency Judgment in California

Looking for West Sacramento short sale information? You have come to the right place. Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about the possibility of a Deficiency Judgment in California.

According to trusted advisor and Real Estate Law attorney Steven J Beede at BPE Law (BPELaw.com) the possibility of a deficiency in California is still possible under certain loan types. Steve writes in his July 2nd Blog:

“In 2010, the California Association of Realtors (CAR) created a new Disclosure addressingHomeowner Liability after Foreclosure which actually included references to short sale as well. In that Disclosure, CAR noted that these California laws might not preclude deficiency liability on loans insured or guaranteed by VA or FHA. CAR’s analysis was apparently based upon two Federal cases:Herlong-Sierra Homes, Inc. v US (1966); and US v Rossi (1965). However, in both of these casesforeclosure occurred in Federal Court, not California, and therefore California’s protections did not apply.”

Steve continues with “The recent communication being circulated cites another Federal case: Carter v Derwinski (1993) which addressed whether a State prohibition against recourse (such as SB458) could bar the VA from suing for deficiency after a State foreclosure action. The Court said that the VA did have this right based upon the fact that in a VA loan, the VAseparately guarantees the lender from loss on the loan. Therefore, if there is a loss, VA has recourse against the borroweron the guarantee, not on the loan itself. Significantly, the Court was very divided in its decision. Similarly, in 1998, another Federal Court relying on the Carter case, ruled that Farmer’s Home Administration (FmHA) had deficiency recourse following an Arizona trustee Sale (US v Rezzonico). “

Steve goes on to say “Although my research to date has not discovered an FHA case with a similar holding, the rationale in both cases above would lead to a similar conclusion for FHA insured loans.

In Summary, if the loan is guaranteed or insured by the Federal Government, the Federal agency may pursue deficiency recourse regardless of a State’s laws barring recourse after a Trustee Sale. Whether that same result would occur after a short sale is not at all clear and does not appear to have been decided by any cases as yet.”

Now many of you have FHA and VA loans. Are there grounds for concern? Sure there is. The key to the process is getting the West Sacramento Short Sale approval letter that specifically states “the debt is being settled for less and the lender is waiving their right to seek a deficiency”. To date all of our FHA and VA West Sacramento Short Sale approval letters have had this verbiage. Again, not all West Sacramento Short Sale Specialists are the same. Make sure yours is aware of these terms. And if you need a good Real Estate Attorney call BPE Law in Sacramento at 916-966-2260. Tell them you heard about them from me.

Is a West Sacramento Short Sale Right for Me? Call me and let’s find out.