West Sacramento Short Sale Information: June 2012

Saturday, June 30, 2012

West Sacramento Short Sale Myths II

Today we are covering West Sacramento Short Sale Myths 6-10. Let’s get started…

Myth #6: Damage to the homeowner’s credit standing is comparable in a West Sacramento and a West Sacramento foreclosure.

Debunked: No way - In most cases, credit repercussions and deficiency protections are more damaging with a foreclosure. West Sacramento Short Sale transactions can often lead to faster financial recovery for you the homeowner. In certain instances if the West Sacramento homeowner missed no mortgage payments, they may be eligible to finance the purchase of a home immediately following a West Sacramento short sale transaction.

Myth #7: Following a West Sacramento short sale, the homeowner will be ineligible to purchase another property for the next 5-7 years.

Debunked: Not true. Using conventional lending guidelines, some consumers may obtain a Fannie Mae backed mortgage a short 24 months after the close of their West Sacramento short sale.

Myth #8: After a West Sacramento short sale transaction, the homeowner will receive a 1099 and be forced to declare the loss as income.

Debunked: The owner may indeed receive a 1099, but due to the 2007 Mortgage Forgiveness Debt Relief Act which expires at the end of this year, among other considerations, the West Sacramento homeowner may not owe any taxes on their transaction.

Myth #9: The lender will sue the homeowner after the close of a West Sacramento short sale (or foreclosure, or deed in lieuof foreclosure) for the deficiency.

Debunked: While I can’t give you tax or legal advice, I can tell you that when a lender agrees to a West Sacramento short sale they also have to agree to not seek a deficiency judgment

Myth #10: Any Realtor or self-proclaimed “West Sacramento Short Sale Specialist” can manage my West Sacramento short sale successfully

Debunked: This could not be further from the truth. There truly is a difference in agents and how the job gets done. Handled in correctly, as the homeowner you could be left liable for deficiency on the loan and income taxes to boot. Be sure to qualify your Short Sale Agent before hiring them. They should have completed 10 or more West Sacramento shortsales and have successfully worked with your lender in the past – there is a difference.

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. Call me today and sleep better tonight; you’ll be glad you did

West Sacramento Short Sale Myths

Today we are debunking West Sacramento ShortSale Myths. We’ll tackle Myths 1- 5 today and cover 6-10 next time. Let’s get started

Myth #1: The West Sacramento homeowner must fall behind on mortgage payments in order to qualify for a short sale.

Debunked: Years ago this may have been true, but not now.

A financial hardship must exist, such as the ARM (Adjustable Rate Mortgage) increasing in monthly payments.
Loss of job or income.
Health or medical issues.
Extraordinary loss in home value (which may be considered a hardship).

Myth #2: Banks would rather foreclose on a property than approve a West Sacramento short sale.

Debunked: Not true. For the banks it’s all about the money and where will they lose the least amount - short sale or foreclosure. If the Bank will lose less money on a West Sacramento short sale than on a West Sacramento foreclosure they will take the West Sacramento short sale plain and simple.

Myth #3: West Sacramento Homeowners must be pre-approved by their lender to be eligible for a short sale.

Debunked: Absolutely not true. By and large, most lenders will consider West Sacramento short sale offers if it makes sense. Remember, for the banks it’s all about the money – where will they lose the least amount Short sale or foreclosure?

Myth #4: West Sacramento Short sales never close.

Debunked: Obviously not true. Nationally only about 40 – 50% of short sales close. We close 94% - well above the national average

Myth #5: West Sacramento Short Sale take months (and months) to close.

Debunked: Nationally it takes 90-120 days to get a short sale approved. We average 42 days from offer submission to approval. While we can get it done quickly, we tailor the negotiations to fit your situation. If your desire is to stay longer we can do that too.

Next time we’ll talk about myths 6-10.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. Call me today and sleep better tonight; you’ll be glad you did

Ocwen HAFA Short Sale Success in West Sacramento

Ocwen is one of those Servicers who you love to hate. Many West Sacramento Short Sale Agents complain about the poor service and lack of response from Ocwen Associates. I firmly believe it is the West Sacramento Short Sale package and preparedness of the West Sacramento Short Sale Specialist and processor that make all the difference.

Let me explain. We just recently submitted a Short Sale package where Ocwen was the first and second Lienholder. We submitted what we refer to as, our “perfect Short Sale package”. We used the required Ocwen forms, completed the Ocwen Check list and basically gave them everything they could possibly want the first time. Now true to form Ocwen did come back requesting information we had already submitted and rather than argue, we promptly sent them the requested information. Well guess what? 17 days after submitting the Short Sale package we received approval from Ocwen. Not only did we get the approval, we were able to secure the seller $3,000 for relocation assistance AND a 2% credit to the buyer to help cover their closing costs.

Think about it – The seller will walk away from well over $320,000 in debt without any responsibility for the unpaid balance, done correctly will have no liability for income taxes on the forgiven debt, gets $3,000 to help with relocation expenses and the buyer gets 2% towards their closing costs. How great is that?

Are all West Sacramento Short Sales that easy – no not really, but done correctly they are getting easier and easier for those West Sacramento Short Sale Agents who fully understand the process.

A Recent Nation Star / Fannie Mae Short Sale in West Sacramento

So here is a great success story. Since we frequently hear so many West Sacramento short sale horror stories about Fannie Mae and Freddie Mac I thought I would give you a success.

We had a recent short sale where Nation Star serviced the first mortgage, there was no second mortgage and Fannie Mae was the investor. As is usual with Nation Star they demanded the seller / borrower contribute to the short sale with either a cash contribution or carry a promissory note. Because we are aware of both California state law and Fannie Mae guidelines, we pushed back and were successful in having Nation Star retract their demand for seller participation and closed the short sale in less than 30 days. The seller was able to walk away from $280,000 in debt, owe no income taxes on the debt forgiveness and have a fresh start financially. If she takes care of her credit she will be able to buy a house similar to the one she sold for about $100,000. Her payments would be cheaper than renting a 2 bedroom apartment. How do you beat a deal like that? The best part was, while she took a small hit on her credit, by not making the mortgage payment for 3 months she was able to save enough to cover all her moving expenses and then some. Not a bad deal in my book.

If you want to learn about your options and how we can help, call me today. 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. Call me today and sleep better tonight; you’ll be glad you did

Loan Modification vs. Short Sale in West Sacramento

This week we are talking about loan modification vs. short sale in West Sacramento. Most homeowners do not want to have to short sale or face foreclosure – I can’t blame them – who would? The honest truth is as long as you owe more than your home is worth all you are really doing is renting – that’s right renting.

If your West Sacramento home is 40% or more upside down, you will pay off the loan before the house is worth what you owe. The rest of the story is your mortgage payment is more than likely considerably higher than rent would be for the same exact house – think about it. If you get a new 30 or 40 year loan mod at an initially lower interest rate that caps out in 3-5 years, didn’t you just but back your house for a longer term? If your house is worth $200,000 and you owe $400,000 and you get a new 40 year loan mod you still owe 400,000 on a 200,000 property. Ask yourself, would you pay $400,000 for any house worth $200,000? Would you pay $2500 a month to rent a house that usually only rents for $1400 – the answer is oh hell no, but isn’t that exactly what you are doing with a loan mod? The answer is yes.

I would like to encourage you to look at your current mortgage strictly as a business decision. If Chevron or Procter and Gamble or any other large corporation bought an underperforming asset that they were continually losing money on and they sold it their stockholders would reward them for making a good business decision.

Isn’t time to treat your West Sacramento mortgage situation the same way? With the favorable tax laws expiring in December 2012 and state laws forbidding the banks from pursuing you for the deficiency after a short sale shouldn’t you make the same good business decisions the large corporations are making to remain profitable?

As Certified Default Advocates it is important to us that you understand all your options. 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. Call me today and sleep better tonight; you’ll be glad you did

Unemployment Benefits KYHC West Sacramento

Today we are discussing the Keep Your Home California Unemployment Mortgage Assistance Program (UMAP) which provides mortgage payment assistance to eligible West Sacramento homeowners who have experienced an involuntary job loss and are receiving California EDD unemployment benefits.

Benefit assistance through UMA can be up to $3,000 per month and can last up to nine months not to exceed $27,000.

The West Sacramento Homeowner must qualify as a low-to-moderate income household, as follows:

You must be in the low-to-moderate income bracket of 120% or less of the Housing and Community Development Area Median Income 120%. The HCD median income for a family of 4 in West Sacramento County is currently $91,320
You will need to complete and sign a Hardship Affidavit / 3rd Party Authorization documenting the reason for the hardship
You will need adequate income to sustain modified mortgage payments per CalHFA MAC approved investor guidelines.
You must agree to provide all necessary documentation to satisfy program guidelines established by CalHFA MAC.
You must be currently approved to receive or receiving unemployment benefits from the California Employment Development Department (EDD).
And your Mortgage loan is delinquent or at risk of imminent default as substantiated by homeowner’s hardship documentation. Loans in foreclosure are eligible.

Unfortunately West Sacramento Homeowners in an “active” bankruptcy are ineligible for KYHC program assistance consideration.

Those who do not qualify include homeowners where a Notice of Default has been recorded on the subject property

If the Homeowner’s “hardship” is a result of voluntary resignation of employment.

Homeowners in an active HAMP trial modification is not eligible for UMA consideration unless the trial modification is cancelled.

Or if yhe homeowner is no longer eligible for unemployment benefits

To find out if your lender is participating in the program and to see if you qualify, call for a free confidential consultation. As Certified Default Advocates it is important to us that you understand all your options.

To get a better idea of when your West Sacramentohome 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. Call me today and sleep better tonight; you’ll be glad you did

The Keep Your Home California Transfer Assistance Program

Today we are discussing the Keep Your Home California Transition Assistance program or TAP. Let’s say none of the other Keep Your Home California programs worked out for you or you did not qualify. Whether you opted to short sale or Deed in Lieu of foreclosure you may qualify for TAP.

TAP provides one-time funds up to $5,000 to help eligible West Sacramento homeowners relocate into a new housing situation after executing a West Sacramento short sale or deed-in-lieu of foreclosure program. To qualify the West Sacramento Homeowner must qualify as a low-to-moderate income household, as follows:

You must be in the low-to-moderate income bracket of 120% or less of the Housing and Community Development Area Median Income 120%. The HCD median income for a family of 4 in West Sacramento County is currently $91,320
You will need to complete and sign a Hardship Affidavit / 3rd Party Authorization documenting the reason for the hardship
You must agree to provide all necessary documentation to satisfy program guidelines established by CalHFA MAC.
And your Mortgage loan is delinquent or at risk of imminent default as substantiated by homeowner’s hardship documentation. Loans in foreclosure are eligible.

Unfortunately West Sacramento Homeowners in an “active” bankruptcy are ineligible for KYHC program assistance consideration.

If you are involved in a West Sacramento short sale and you meet these criteria and your lender does not offer relocation assistance, be sure to contact KeepYour Home California for assistance. Your West Sacramento Short Sale Agent should know about the program but in case they don’t it is worth your efforts to follow it up. Currently 26 lenders are participating in this program. To find out if your lender is participating in the program and to see if you qualify, call for a free confidential consultation. As Certified Default Advocates it is important to us that you understand all your options.

To get a better idea of when your West Sacramentohomewill 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. Call me today and sleep better tonight; you’ll be glad you did

Principle Reductions through Keep Your Home California

Today I want to talk about the Keep Your Home California Principle Reduction Program or PRP. The Principal Reduction Program through Keep Your Home California provides assistance to eligible West Sacramento homeowners who have experienced an economic hardship coupled with a severe decline in the home's value.

Homeowners who qualify for the PRP could be eligible for up to $50,000 in assistance from Keep Your Home California. The PRP requires a dollar-for-dollar match from the participating servicer, so the total amount of reduced principal could be up to $100,000.

West Sacramento Homeowners must qualify as a low-to-moderate income household, as follows:

You must be in the low-to-moderate income bracket of 120% or less of the Housing and Community
Development Area Median Income 120%. The HCD median income for a family of 4 in West Sacramento County is currently $91,320
You will need to complete and sign a Hardship Affidavit / 3rd Party Authorization documenting the reason for the hardship
You will need adequate income to sustain modified mortgage payments per CalHFA MAC approved investor guidelines.
You must agree to provide all necessary documentation to satisfy program guidelines established by CalHFA MAC.
And your Mortgage loan is delinquent or at risk of imminent default as substantiated by homeowner’s hardship documentation. Loans in foreclosure are eligible. Unfortunately West Sacramento Homeowners in an “active” bankruptcy are ineligible for KYHC program assistance consideration.

Currently there are 12 lenders nationwide who are participating in the Principle Reduction Program through Keep Your Home California

To find out if your lender is participating in the program and to see if you qualify, call me today. As Certified Default Advocates it is important to us that you understand all your options. To get a better idea of when your West Sacramento homewill 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. Call me today and sleep better tonight; you’ll be glad you did

Keep Your Home California Programs West Sacramento

Today we are going to discuss the “Keep Your Home California” program. It’s a 2 billion dollar State run program designed to assist low to moderate income homeowners in distress

Fifty-five mortgage servicers—representing 90 percent of the mortgages in California—are now participating in this program that offers mortgage assistance to help California families stay in their homes. To date, more than 10,000 homeowners have either received funding or are in the process of getting financial help from Keep Your Home California.

The 55 participants include six of the largest servicing companies in the state: Bank of America, JPMorgan Chase, Wells Fargo, GMAC, CitiMortgage and EMC Mortgage. These important programs include:

Unemployment Mortgage Assistance: Mortgage assistance of up to $3,000 per month for homeowners collecting unemployment benefits and are in imminent danger of defaulting on their home loans.
Mortgage Reinstatement Assistance Program: As much as $20,000 per household to reinstate mortgages to prevent foreclosure. The funds are available to homeowners who have fallen behind on their mortgage payments due to a temporary change in household income, such as reduced pay or work furloughs.
Principal Reduction Program: Lowers the principal owed on a mortgage by as much as $50,000 when the homeowner is facing a serious financial hardship and owes significantly more than the home is worth.
Transition Assistance Program: Provides up to $5,000 in relocation assistance for homeowners who can no longer afford their home when their lender agrees to a short sale or deed-in-lieu of foreclosure.

Keep Your Home California is aimed at helping low and moderate income homeowners who are struggling with their mortgage payments amid the worst real estate crisis in generations. The programs are limited to homeowners who meet a number of criteria, including income limits and facing a documented financial hardship.

For a complete description of the programs and to find out if your lender is participating in these programs or if you qualify, call me today.

To get a better idea of when your West Sacramento homewill 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. Call me today and sleep better tonight; you’ll be glad you did

Mortgage Assistance Program KYHC for West Sacramento Homeowners

What would you say to an offer of $20,000 to bring your West Sacramento loan current? Heck ya in most cases right? That is exactly what the Keep Your Home California Mortgage Reinstatement Assistance Program or MRAP is. MRAP provides assistance to eligible West Sacramento homeowners who, because of a financial hardship, have fallen behind on their payments and need help to reinstate their past due first mortgage loan.

Benefit assistance through MRAP can be a one time payment of up to $25,000 to cover principal, interest, taxes and insurance, as well as any homeowner's association dues.

To qualify the West Sacramento Homeowner must qualify as a low-to-moderate income household, as follows:

You must be in the low-to-moderate income bracket of 120% or less of the Housing and Community Development Area Median Income 120%. The HCD median income for a family of 4 in West Sacramento County is currently $91,320
You will need to complete and sign a Hardship Affidavit / 3rd Party Authorization documenting the reason for the hardship
Your Payment including Principle, interest, taxes and insurance cannot exceed 38% or your gross monthly income and you must have adequate income to sustain the payment
You must agree to provide all necessary documentation to satisfy program guidelines established by CalHFA MAC.
You must be no more than 2 payments delinquent
And your Mortgage loan is delinquent or at risk of imminent default as substantiated by homeowner’s hardship documentation. Loans in foreclosure are eligible.

Unfortunately Homeowners in an “active” bankruptcy are ineligible for KYHC program assistance consideration.

How soon you can buy a new property after a West Sacramento short Sale?

We get asked this question quite frequently when helping families with their West Sacramento short sale and the answer really is – it depends. It depends on how well you take care of the rest of your credit, it depends on your debt to income ratios and it depends on all the other criteria that goes into getting a home loan.

All things being equal, you can usually purchase a new West Sacramento home in 2-3 years after your West Sacramento short sale.

You see, it is really not the West Sacramento short sale that hurts your credit, it is the missed payments. The West Sacramento short sale itself is a minor 30-50 hit to your FICO scores and usually falls off in 12-18 months. Now, if you are relocating more than 90 miles away and are never late, you can get a new loan immediately. Something to think about if you are looking at a job transfer.

It is good to know that just in the last month alone we helped a VA buyer get into a new home. They had completed a short sale about 24 months prior, took good care of their credit and made sure they did not have excessive or outstanding debt. We were able to get them into a great four bedroom home, bigger than their rental and in the end were paying less than they were previously paying for rent – How Great is that?

How Long will it take for My West Sacramento Property to be worth what I Owe?

Now there is the 11 Million Household Question. Why 11 Million Households? Because Nationally that is how many households owe more than their home is worth. 11 MILLION. That’s a big, big number.

As with everything in this market there is no one answer. I does depend on what part of the country you live in, how much you owe and what is going on with the market in your specific neck of the woods.

Let’s use the greater West Sacramento Metro-plex including West Sacramento County, Placer County, Yolo County and Eldorado County as an example.

Historically appreciation for the 100 year period 1903 to 2003 averaged 3-5% annually. Based on 4% straight line appreciation – which has never happened in the previous 100 years, and your home is currently 30% underwater it will take 14 years to be worth what you currently owe. 18 years if you are 40% upside down and 22 years if you are 50% or more.

Let’s face it, if you are 30% or more upside down in your West Sacramento home or if you have an interest only loan, you my friend are renting, not buying. Based on the numbers chances are good you will never own the West Sacramento home and your current house payment is more than likely 20-30% higher than if you really were paying rent AND in this scenario if something breaks you are on the hook for repairs not the landlord. Unless you are planning on never moving, if you are upside down 30% or more it really does not make sense to stay. With the Debt Forgiveness Act of 2007 expiring this calendar year it is really something to really think about.

To get a better idea of when your 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. Call me today and sleep better tonight; you’ll be glad you did

Fannie & Freddie Principal Reductions West Sacramento Short Sale

Let’s talk about why Fannie and Freddie don’t want to allow principle reductions. Right now the Federal Housing Finance Agency, the agency who oversees both Fannie & Freddie are analyzing how much principal reduction under a revamped Home Affordable Modification Program could cost or save FannieMae and Freddie Mac. The results are expected in the next few weeks.

FHFA Acting Director Edward DeMarco said in a recent interview with the Financial Times that several hurdles remain. Notably, reducing the first lien without addressing the second would unfairly push more dollars to the big banks that hold those positions. He feels that reducing the monthly payment instead would be just as good a deal at a fraction of the cost.

From a first lien holder's point of view, and in the case of Fannie & Freddie, it might not make sense to write down the first lien if the second lien holder does not reduce at least a proportionate amount of principal. Think about it. If the taxpayers – me and you, take the hit on principal reductions and the second lien holder be it B of A, Chase, Wells or whoever, don’t participate, didn’t we just improve their position and in essence give more taxpayer dollars to the banks? Now I’m not anti-bank but I am anti-tax dollar give-a-ways

Now, it's still unknown how many GSE mortgages even have a second lien, and DeMarco is convinced re-default rates on forbearance plans and principal reduction plans are similar. But the biggest unknown is how much moral hazard a program could create. HAMP is for delinquent borrowers, and doing GSE principal reduction under the program could convince some to strategically default on their West Sacramento loan. Could be a real interesting turn of events should this come to pass.

Who owns your West Sacramento loan and Why it is important

Today we are talking about who owns your West Sacramento loan and why it makes a difference. As you probably know the bank you are making the payments to seldom actually own the loan or note as it is referred to. When the bank does own the note that type of loan is called a portfolio loan because it is held in the banks own investment portfolio. For the most part your bank is more than likely acting as the servicer meaning they made or bought the loan or note and sold the debt to an investor but is getting paid to service the loan you know – collect the payments and take a fee for doing so.

Why is this important to know? It’s important because with all the good intentions of the Federal Government and their attempts at mortgage relief – none of it makes any difference if the investor does not participate in that particular program. Who are the investors you ask? Good question. The two largest investors are Fannie Mae and Freddie Mac both Government Service Entities or GSE. Fannie and Freddie are quasi private corporations backed by the federal government – that’s right – me and you. Other investors could be mortgage backed securities or union pension funds and the like. He are the facts about Fannie and Freddie. Backed by our tax dollars, they hold approximately 60% of all home loans and foreclose faster than any private investor. Getting an extension on the foreclosure is next to impossible. Several times we have received our West Sacramento short sale approval less than a week before the foreclosure date and Fannie foreclosed on the property. Never mind that it costs them an average 20 -25% more to foreclose than to accept the short sale. On a $200,000 short sale that’s $50,000 of our tax dollars wasted when had they given us 30 days we could have closed the escrow. Pretty crazy. I tell you this because if you are considering a West Sacramento short sale, it is important to know who the investor is. If you have a GSE backed loan and a notice of default you had better get going fast or you will lose the property to foreclosure. You can find out real easy. Go to Fanniemae.com or Freddiemac.com, enter your information and it will tell you if the loan is Fannie or Freddie backed.

HELOC in a West Sacramento Short Sale

A client called us the other day confused. He had a first and second loan and owed more than their West Sacramento property was worth. He had refinanced and pulled money out to improve the West Sacramento property. In calling his bank to discuss a loan modification he found out that the second was not a true mortgage second but a Home Equity Line of Credit or HELOC as they are often referred to. He was surprised to find out that the bank would not consider a loan modification unless he settled the HELOC for a minimum of 20%. Now let’s face it, how many people have an extra 10 or $20,000 to give to their lender on a property already 50% upside down.

His question to us was, can he short sale in West Sacramento if he has a HELOC second and, if so what will it cost. Our answer was yes, you can West Sacramento shortsale with a HELOC second, have the debt forgiven and if done correctly, owe no income taxes on the forgiven debt.

You see HELOC’s are treated the same as credit card debt. If the West Sacramento property was foreclosed on you would still be liable for the unpaid balance of the HELOC second. This is why in most instances a West Sacramento shortsale is superior to a West Sacramento foreclosure.

On a HELOC second for the most part we have been very successful in getting the first to clear and the second to accept for about 6% of the unpaid balance with no cash contribution from the seller. In fact, without giving tax or legal advice, it is illegal for the second to require the seller to make a cash contribution or sign a promissory note in order to get the second to approve the West Sacramento shortsale.

Don’t let the HELOC second scare you. Properly done a West Sacramento shortsale will allow you to walk away from the debt, avoid tax liability for the unpaid balance and get a fresh start financially.

Call me today for a free no obligation consultation. Call me today and sleep better tonight; you’ll be glad you did

Can I short Sale My West Sacramento Rental?

I just got off the phone not 15 minutes ago with a very confused investor that really needed guidance. She owned a couple of rentals in West Sacramento and had a little money in the bank but owed more than the West Sacramento rentals were worth. To make matters worse she was taking a negative on them every month. Think about that – she was losing 500-600 dollars a month per rental on properties that were 50% or more upside down. She had been told by what was I’m sure a well-meaning “West Sacramento shortsale specialist” that because she had some assets she could not short sale. Friends that could not be further from the truth. Now – she may have to pay income taxes on the debt forgiveness but she can absolutely do a West Sacramento short sale and walk away from the debt with no risk of deficiency.

Can you see how dangerous bad information can be? Had this woman listed to that individual she would have let the properties got to West Sacramento foreclosure and because she had a recourse second, would have had an income tax problem from the debt forgiveness on the first and still had liability for the second. With a West Sacramento short sale she will have no liability but will have to cover the income taxes.

The moral of the story is not all West Sacramento short sale agents are created equally. Make sure you check out their qualifications before selecting your agent. The wrong choice could financially haunt you for years.

CalHAFA West Sacramento Short Sale Approved

We got exciting news the other day. We had a short sale where Guild Mortgage was the servicer for a Cal HAFA backed loan. This young family had outgrown the house and still owed more than twice what it was worth. They had applied for and received a loan modification but even though the loan mod made the home more affordable it still did not meet the needs of their growing family.

We placed the property up for sale in early December, received multiple offers and went into short sale negotiations on December 10th, 2011. Our file was turned down without review not once, not twice but three times. Now keep in mind, because we are Certified Default Advocates and Distressed Property Experts, know and understand the numbers and are passionate about our business we don’t take no for an answer.

Since short sale over foreclosure was a far better financial decision for the investor we continued to escalate and pursue the file. Slowly but surely we wore them down with logic and data. Guess what – this week after 122 days of negotiating we received the full approval releasing the this young family from any and all liability for the unpaid debt and when they complete the correct forms, will have no liability for the income tax either.

What a difference we are going to make in the lives of this family. In 2-3 years they will be eligible to buy a new home and right now they are getting the fresh start they deserve. 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. Call me today and sleep better tonight; you’ll be glad you did

CalHFA Short Sale Success in a West Sacramento Short Sale

Let me start by saying the CalHFA programs are great programs. They have helped thousands of homeowners get into their first West Sacramento home and through the KeepYour Home California program have kept thousands more stay in their West Sacramento home. They offer principle reductions, money to make you payment while unemployed, money to get you caught up if you fell behind and if all else fails, relocation assistance if you short sale or are foreclosed on. We have personally directed a number of clients to the KYHC program and even have a video series on its benefits. It is a good program if you qualify.

We just recently completed a West Sacramento short sale for a young family that had a CalHFA backed loan. Because they had chosen not to accept the loan modification the servicer was to say the least, reluctant to review the file for a short sale. The truth of the matter was this young couple had out grown the home, owed twice what it was worth and had made the decision to either short sale their West Sacramento home or let it go to foreclosure. They stopped making their payment in October and receive the notice of default in February with an anticipated auction date of May 30th.

Because they had been approved for a loan modification, the servicer would not review the file. Our file was declined three times before the servicer decided we were not going to give up and agreed to review the file. Now CalHFA is no different than any other investor. While their guidelines are strict it is still about mitigating loss. Will they lose more on a short sale or foreclosure? In this case the data was overwhelmingly in favor of the short sale. After 122 days in negotiations (our average is 42 days) our West Sacramentoshort sale was approved and closed escrow 30 days later. This was a true testament of our persistence and refusal to accept no for an answer. The result? Another West Sacramento homeowner saved from foreclosure AND through the KYHC program we were able to get them $5000 for relocation expenses.