West Sacramento Short Sale Information: November 2012

Friday, November 30, 2012

West Sacramento Short Sale Information - Ways to Stay in Your Home – Loan Modification

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 we continue our “Ways to Stay in Your Home” series as presented by Fannie Mae on their Know Your Options website. Let’s talk about a Modification.

Many homeowners have fallen behind on their mortgage, and could soon be on the path to foreclosure without permanent help. If this sounds like your situation, you may be eligible to modify your mortgage. You may also qualify for the government’s Home Affordable Modification Program, which was designed to help borrowers make their payments more affordable.

What is a Modification?

Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount.

A modification may be an option if:

You are ineligible to refinance
You are facing a long-term hardship
You are several months behind on your mortgage payments or likely to fall behind soon

What are the benefits?

Resolve your delinquency status with your mortgage company immediately
May reduce your monthly mortgage payments to a more affordable amount
Change the original terms of your mortgage permanently, giving you a new start
Less damaging to your credit score than a foreclosure
Stay in your home and avoid foreclosure

How does it work? A modification involves one or more of the following:

Changing the mortgage loan type (e.g., changing an Adjustable Rate Mortgage to a Fixed-Rate Mortgage)
Extending the term of the mortgage (e.g., from a 30-year term to a 40-year term)
Reducing the interest rate either temporarily or permanently
Adding any past-due amounts, such as interest and escrow, to the unpaid principal balance, which is then re-amortized over the new term

Next steps

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

your mortgage statements, including information on a second mortgage (if applicable);
your other monthly debt payments (e.g., car or student loans, credit card payments); and
your income details (paystubs and income tax returns).

Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment and if this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.

Contact your mortgage company or a Fannie Mae Mortgage Help Center—Tell them you are interested in a Modification and you want to see if you qualify.

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.

Thursday, November 29, 2012

West Sacramento Short Sale Information - Ways to Stay in Your Home – Forbearance

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today we continue our “Ways to Stay in Your Home” series as presented by Fannie Mae on their Know Your Options website. Let’s talk about forbearance.

Are you in a situation that requires special consideration for the difficulties you are experiencing, such as a recent job loss or reduced income? Many times, homeowners simply need short-term payment relief to get back on their feet. A Forbearance may be an option.

What is a Forbearance?

With this option, you and your mortgage company agree to temporarily suspend or reduce your monthly mortgage payments for a specific period of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.

Forbearance may be an option if:

You are ineligible or do not want to refinance
You are facing a temporary hardship

What are the benefits?

Lower or temporarily suspend your monthly payment—giving you time to improve your financial situation and get back on your feet
Less damaging to your credit score than a foreclosure
Stay in your home and avoid foreclosure

How does it work?

Forbearance reduces your monthly mortgage payment—or suspends it completely—during the forbearance period. If you qualify for forbearance, you and your mortgage company will discuss the forbearance terms:

length of forbearance period,
reduced payment amount (if the payment is not suspended), and
the terms of repayment.

After the forbearance period has ended, you will need to repay the amount that was reduced or suspended. However, there are a few options available if you qualify— making a one-time payment for the amount due (reinstatement); adding a specific amount to your payments each month until the entire amount is repaid (see Repayment Plan for more information); or moving the delinquent payments to the end of your mortgage, which will lengthen the term (see Modification).

Next steps

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

your mortgage statements, including information on a second mortgage (if applicable);
your other monthly debt payments (e.g., car or student loans, credit card payments); and
your income details (paystubs and income tax returns).

Contact your mortgage company or a Fannie Mae Mortgage Help Center—Tell them you are interested in a Forbearance and you want to see if you qualify.

Is a West Sacramento Short Sale Right for Me?

Options to Stay in Your West Sacramento Home – The Repayment Plan

If you are having trouble with your mortgage payments because of past due amounts and mounting late fees, you may feel like you can’t catch up. To help get you back on track, you might be eligible for a Repayment Plan.

What is a Repayment Plan?

With this option, you spread out your past due amount—added on to your current mortgage payments—over several months in order to bring your mortgage current.

A Repayment Plan may be an option if:

You are ineligible or don’t want to refinance
You are facing a short-term hardship
You are a couple (or several months) behind on your mortgage payments
You can now afford your monthly mortgage payment

What are the benefits?

Bring your mortgage current and resolve your delinquency
Catch up on your past due payments over an extended period of time
Less damaging to your credit score than a foreclosure
Stay in your home and avoid foreclosure

How does it work?

If you qualify for a Repayment Plan, typically your past-due amount will be spread out over a set time frame (e.g., 3, 6, 9 months) and added on to your existing mortgage payments. Other repayment terms may also be available during the repayment period (check with your mortgage company for details on your specific options).
Your mortgage company may have you sign an agreement that will outline how you are going to repay your past-due amount, such as the length of the repayment period and the specific terms.

Next steps

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

your mortgage statements, including information on a second mortgage (if applicable);
your other monthly debt payments (e.g., car or student loans, credit card payments); and
your income details (paystubs and income tax returns).

Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble bringing your loan current, and whether this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.

Contact your mortgage company or a Fannie Mae Mortgage Help Center —Tell them you are interested in a Repayment Plan and you want to see if you qualify.

Is a West Sacramento Short Sale Right for Me?

Wednesday, November 28, 2012

West Sacramento Short Sale Information - Options to Stay in Your West Sacramento Home - Refinancing

If you are worried about an adjustable rate mortgage and variable interest rates increasing your payment, or if you are just beginning to have payment problems, you may be able to Refinance.

What is a Refinance?

With this option, you receive a completely new mortgage with new terms, interest rates and monthly payments. The new loan completely replaces your current mortgage and may lower your payment, which could help improve your monthly financial situation.

Refinancing may be an option if:

You are current on your mortgage payments
If you haven’t been late on your mortgage payment in the last 6 months, you may also qualify for the government’s Home Affordable Refinance Program
You have an adjustable rate mortgage or a high interest rate
You have equity built up in your home
If you don’t have any equity, you may still qualify for the government’s Home Affordable Refinance Program.

What are the benefits?

Make your payment more affordable by lowering your interest rate or adjusting the other terms of your loan
Creates no negative activity or event on your credit history
Stay in your home and avoid foreclosure

How does it work?

If you qualify to refinance your mortgage, you’ll go through an application, approval and closing process (similar to when you got your original mortgage). Your mortgage company will work with you through every step, and will help determine the best mortgage option for your specific needs.

Next steps

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:
your mortgage statements, including information on a second mortgage (if applicable);
your other monthly debt payments (e.g., car or student loans, credit card payments); and
your income details (paystubs and income tax returns).

Contact a mortgage company— Tell them you are interested in Refinancing and you want to see if you qualify. If you need a good referral call us and we’ll be happy to supply the names of some great lenders. We hope this helps

West Sacramento Short Sale Information - Options to Stay in Your West Sacramento 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 Options to stay in your West Sacramentohome.

This week we are bringing you a series detailing your options to avoid foreclosure and stay in your home courtesy of the Fannie Mae help Site KnowYourOptions.com.

Fannie Mae suggests that if you are facing financial difficulties—whether they are short or long term—start exploring your options today.

Even if you haven’t yet missed a mortgage payment, but are worried you might fall behind soon, now’s the time to take action. You may be eligible to refinance or modify your mortgage loan, lowering your payment and making it more affordable.

Or, if you’ve missed payments and find yourself buried under late fees and past-due amounts, you may qualify for a temporary (or permanent) solution to help you get your finances back on track and avoid foreclosure.

Here’s an overview of possible options to help you stay in your home and avoid foreclosure:

· Refinance

· Repayment Plan

· Forbearance

· Modification

· Deed-for-Lease™

Over the next few sessions we are going to discuss each option at length.

Is a West Sacramento Short Sale Right for Me?

Friday, November 23, 2012

West Sacramento Short Sale Information - Cost of a West Sacramento Short Sale to the Homeowner

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 what it will cost the homeowner to complete a West Sacramento Short Sale.

The fast answer is nothing. That’s right, all real estate commissions, escrow fees, title insurance and other related closing costs are paid for by others. When I say others I mean either by the bank or the buyer.

Now let’s qualify that for a minute. While it is true the bank pays the commissions and most of the closing costs the seller remains responsible for some costs during the transaction. As a rule banks are reluctant to pay for unpaid or past due utility charges that are not a part of the tax bill. They also push back pretty hard on HOA fees and other related expenses.

What we require from our sellers is for them to remain current on the county utilities – water, sewer and garbage as well as the HOA fees. If doing so is an extreme hardship we work out other arraignments.

We also ask the seller to maintain the property especially if vacant. Mow the yards, take out the trash but for the most part that’s it.

Think about. In a West Sacramento Short Sale, if you choose to not make a house payment during the process, you have the opportunity to live rent free for 4-6 months, often longer, walk away from all the of debt and your only expense is HOA fees, utilities and keeping the property maintained. If you owe more than your home is worth it just makes sense to explore your options.

Is a West Sacramento Short Sale Right for Me?

Wednesday, November 21, 2012

West Sacramento Short Sale Information - How Long Does a West Sacramento Short Sale Take

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 how long a typical West Sacramento Short Sale takes.

Now typical West Sacramento Short Sale – is there such a thing or is it an oxymoron like “jumbo Shrimp” or “bankrupt millionaire.” While there really is no typical short sale there is a format that many tend to follow. The length of time of course is going to depend on a number of variables such as who the lender is, how long it takes to get the financial package submitted and the length of time it takes to get an accepted offer.

With that said, in a balanced West Sacramento real estate market, it’s reasonable to expect to get an accepted offer within the first 30 days of the property being listed. In the market we are in now, 2 days is more like it.

Now the key to a quick approval is submitting a complete West Sacramento short sale package to the lender. This is where the cooperation of the seller is paramount. The longer the seller takes to supply the information the longer it takes to submit the package. Ideally before we get the offer we have everything from the seller except the most recent bank statements and pay stubs.

With the package submitted and confirmed recieved we can anticipate 1-2 weeks in review before the liquidation valuation is ordered in the form of either a BPO or full appraisal. The valuation process can take 7 -10 workdays.

With the West Sacramento Short Sale package in and complete and the valuation back, if it has not already, the file will be assigned to a negotiator or asset manager. Some banks assign the file before the valuation task, others after. It’s really bank specific.

Once the file is with the negotiator it will be reviewed again to confirm the information is complete and updated. The negotiator may request updated financials or other minor details many of which have already supplied. Count on about another 7 – 10 work days for this to happen.

If the package is complete, the offer matches the investors minimum net and the servicer has delegated authority the file will be approved and the West Sacramento Short Sale letter issued. If the servicer does not have delegated authority or the offer does not meet the minimum net the negotiator will either counter or reject the offer. The offer could also be sent to the investor for review. Again expect another 7 – 10 work days if this happens.

Once the West Sacramento Short Sale is approved the close of escrow will depend largely on the ability of the buyer to perform. Most banks will give one 30 day extension to the approval letter with VA being the exception with zero extensions.

So how long does a “typical” West Sacramento Short Sale take ? From start to finish, on average plan for about 4 – 6 months. Some will be less. Some like FHA and CalHFA will certainly be longer.

Is a West Sacramento Short Sale Right for Me?

Tuesday, November 20, 2012

West Sacramento Short Sale Information - How Value is Determined in a West Sacramento Short Sale? The APV & Appraisal

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 value is determined in a West Sacramento Short Sale.

Before the lender / servicer / investor can make a decision on your West Sacramento Short Sale, they have to determine the Fair Market Value of the property. There are several ways lenders go about this with some being more accurate than others depending on the property type. They include the Broker Price Opinion or BPO, the Assessed Property Value or APV and the full appraisal. Last time we discussed the BPO. Today let’s talk about the APV and Appraisal.

The APV is what value the county is showing for property tax purposes. The APV can be misleading. Assessed Value and Market value can be two very different numbers. In a declining market when West Sacramento Short Sale are most prevalent the APV will be high giving the short sale servicer / investor an inaccurate value. The APV is generally used when the West Sacramento Short Sale lender / investor needs a ball park value when deciding to move forward with the file or not.

The last method is the full on appraisal by a licensed appraiser. These are generally considered the most accurate when determining market value. The issue with an appraisal is the same as with any human generated report where the preparer is compensated by the piece not the quality of the work. If the appraiser is from out of the area or is unfamiliar with the nuances of the neighborhood a value too high or too low can realized.

In an appraisal the appraiser will measure the exterior of the property to determine square footage, take a full set of interior and exterior photos and even take photos of the comparable properties he is using for the report. Much more time consuming and hopefully more accurate an appraisal usually costs between $350 - $450 depending on the servicer’s agreement with the appraiser.

So there you have it. You can see how it is possible to get such a wide range of value on a property. Really the true value of a property is exactly what someone is willing to pay for it.

Is a West Sacramento Short Sale Right for Me?

West Sacramento Short Sale Information - How is Value Determined in a West Sacramento Short Sale?

Before the lender / servicer / investor can make a decision on your West Sacramento Short Sale, they have to determine the Fair Market Value of the property. There are several ways lenders go about this with some being more accurate than others depending on the property type. They include the Broker Price Opinion or BPO, the Assessed Property Value or APV and the full appraisal. Today let’s talk about the most common valuation technique, the BPO

A BPO is basically another agent’s estimate of the value of your property. The BPO agent will come to the property take a series of interior and exterior pictures, pull comparable properties in the area and supposedly make adjustments for condition, square footage and other discrepancies between the comparables and the subject property. The issue with a BPO is the agent is often paid as little as $50-$75 to complete the BPO. For all that needs to be done that’s not much for the time involved.

While there are some very good BPO agents, there are an equal or greater number who don’t put much thought into adjustments of value or condition. Their concern is not that a bad BPO may cause a homeowner to lose their home to foreclosure, but how fast they can get the BPO completed and paid.

A BPO for a tract home should be fairly close but for older, rural or unique properties it can be a disaster. Once the lender has the valuation they pretty much stick to it right, wrong or indifferent. So you can easily see how a bad value will screw up a West Sacramento Short Sale negotiation. Why a lender will spend so little on something so very important is beyond me but as they say, it is what it is.

Next time we’ll talk about the APV and appraisal.

Is a West Sacramento Short Sale Right for Me?

Friday, November 16, 2012

West Sacramento Short Sale Information - Why West Sacramento Short Sales Fail?

While the number of West Sacramento short sales has surged in recent years, closing on such transactions still poses plenty of challenges.

There are a number of reasons West Sacramento Short Sales fail including:

The property was priced too far under Fair Market Value and truly the offer was dead on arrival. We know from experience that there is a number below Fair Market that the investor will accept before it makes more financial sense to foreclose. If your property is priced below that level you are done before you even begin

The Lender approves the West Sacramento Short Sale but doesn’t allow enough time to close the escrow before the property is sold at auction

You get a bad appraisal or BPO causing the investor to believe the West Sacramento Short Sale property is worth more than it really is. Fighting a bad value is difficult and time consuming. Many times you are better off closing the file and waiting until the appraisal expires and hoe the next one is more realistic

The West Sacramento Short Sale gets approved but the property fails the inspection or the loan falls apart and there is not enough time to get a new buyer before the foreclosure sale date. Even after the West Sacramento Short Sale is approved you still have to close the escrow and there are no guarantees even on cash offers

And my all-time favorite – Ego. Ego is the one deal killer that is tough to get around. As a West Sacramento Short Sale Specialist we have to remember that no matter how arrogant or uninformed the negotiator is, we have to work around them for fear of the file getting closed and losing the West Sacramento Short Sale to foreclosure. While we won’t let anyone kill a good deal, more than once we have been on the receiving end of a negotiator retaliating against us for escalating a file over their head

Is an West Sacramento Short Sale Right for Me?

Thursday, November 15, 2012

West Sacramento Short Sale Information - California Homeowners Bill of Rights

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 latest additions to the California Homeowners Bill of Rights as recently reported by DS News

California attorney general Kamala Harris announced Tuesday that the final parts of the California Homeowner Bill of Rights were signed into law by Governor Jerry Brown.

“California has been the epicenter of the foreclosure and mortgage crisis,” Harris said. “The Homeowner Bill of Rights will provide basic fairness and transparency for homeowners and improve the mortgage process for everyone.”

The governor signed three bills: SB 1474, AB 1950, and AB 2610. SB 1474 gives the Office of the Attorney General the ability to use a statewide grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple counties. AB 1950 extends the statute of limitations on mortgage-related crimes to three years.

AB 2610 requires purchasers of foreclosed homes to give tenants at least 90 days before starting eviction proceedings. If the tenant has a fixed-term lease, the new owner must honor the lease unless the owner can demonstrate certain exceptions.

The governor previously signed into law three other components of the Homeowner Bill of Rights that provide protections for struggling homeowners and offer tools to local governments and receivers to fight neighborhood blight caused by vacancies.

All aspects of the California Homeowner Bill of Rights will take effect at the start of 2013 which include:

No Dual Tracking meaning your servicer cannot be considering your West Sacramento Short Sale or Loan mod and be moving forward with the foreclosure at the same time
Single Point of Contact – one source for contact on your West Sacramento Short Sale or Loan Mod
Enforceability–allowing borrowers to seek redress of material violations of the California Homeowners Bill of Rights
Verification of Documents – Recording and filing of unverified documents by the servicer are now subject to civil penalties of up to $7500 per loan

Is a West Sacramento Short Sale Right for Me?

Wednesday, November 14, 2012

West Sacramento Short Sale Information – How to Bullet Proof Your 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 how Bullet Proof your West Sacramento Short Sale.

Now there really is no way to 100% bullet proof your West Sacramento Short Sale but today we are going to give you a number of ways to do the absolute best you can. Any way you look at it a West Sacramento Short Sale has a lot of moving parts and any miscue at any step can spell disaster. So let’s talk about some ways to increase the chance of approval.

For us it starts at the initial consultation. During that meeting we are trying to ferret out the true reason for the West Sacramento Short Sale. Is there really a hardship or is the seller’s desire to short sale more of a strategic default. How many banks are involved? Is there a first, second or even a third lienholder? How many payments have been missed or are they current? Has a notice of default or notice of sale been filed? How motivated is the seller? Are they willing to provide the financial documentation and updates in a timely manner? Based on the responses to these questions we develop a pretty good idea of whether or not the West Sacramento Short Sale has a chance at getting approved or not.

On our end we make sure we do all we can to ensure a successful West Sacramento Short Sale including submitting the correct and updated lender specific forms as required by each individual servicer / investor. We ask the right questions on each follow up call even if the question was asked and answered on a previous call such as; has a notice of default been filed, is there a sale date, is the loan scheduled to be sold or service released, has the BPO / appraisal been ordered and when – if so has it been returned, has a negotiator been assigned, has the file been submitted to the investor for review and if so when, and the list goes on.

Another big piece of bullet proofing the transaction is keeping the buyer and their agent fully engaged in the transaction. We email every buyer and seller once a week updating them on the status of the file and ask the selling agent to confirm their buyer is still in the deal.

Communication and follow up are key to a successful transaction. Much like the law of the farm, the better preparation you do up front and the amount of care you give during the process largely determines your success when it comes time to harvest the fruits of your labor.

Is a West Sacramento Short Sale Right for Me?