West Sacramento Short Sale Information: February 2013

Thursday, February 28, 2013

West Sacramento Short Sale Information – FHA West Sacramento Short Sale II

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 FHA West Sacramento Short Sales

FHA is a weird duck for West Sacramento Short Sale to say the least. The technical term for a FHA Short Sale is PFS or Preforeclosure Sale Program and because it is a government program the level of detail required is beyond ridicules but what else would you expect. So what is required to qualify for a FHA West Sacramento Short Sale or PFS? That part is easy to answer.

The sale must be an Arms- Length sale meaning you can sell the property to a family member or close friend

With VERY Few exceptions the property must be owner occupied and no strategic defaults, “walk aways” or investment properties are allowed

The mortgagor must be 31 days delinquent at the close of escrow but should never be encouraged to default on their loan – tell me how that makes sense but ok

The Mortgagor must provide documentation substantiating a reduction in income or an increase in living expenses and documentation they must vacate the property

The maximum a mortgagor can receive for relocation assistance is $1000 and FHA will only allow a 1% credit for the buyers closing casts if it is a new FHA loan – so pretty different from a tradition West Sacramento Short Sale

FHA will also only pay up to $1500 to clear a second lien where most other West Sacramento Short sales will cover 6% give or take.

If the Mortgagor is deemed eligible for the FHA West Sacramento Short Sale an Authorization To Participate, or ATP as it is commonly referred to, will be issued detailing the terms of the West Sacramento Short sale including the minimum net the servicer can accept.

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.

Wednesday, February 27, 2013

West Saramento Short Sale Information – FHA West Saramento Short Sales PART I

West Saramento Short Sale Specialist, Default Advocate, Distressed Property Expert and West Saramento Short Sale Agent Mike Rigley here bringing you the latest West Saramento Short Sale Information. Thank you for joining us. Today let’s talk about FHA West Saramento Short Sales.

Now we have completed well over 100 short sales since 2010. We have cleared 1st, 2nd and even 3rd liens on a property. We have cleared State and Federal tax liens. We have cleared UCC-1 liens and have worked with most lenders from credit unions to private lenders to the big five- Wells Fargo, Chase, Bank of America, Citi and Ally / GMAC. We have even worked with some of the toughest servicers like PNC and Green Tree but I have to say that our most challenging West Saramento Short Sales are those where the loan is FHA insured.

You see the Department of Housing and Urban Development – HUD as they are commonly called have different rules to participate in an FHA insured West Saramento Short Sale and every lender is different in how they handle the process.

In an FHA West Saramento Short Sale the homeowner must first be approved to enter the FHA short sale program before the file will even be reviewed. The interviewer may suggest a loan modification is the better route and steer the file in that direction.

Once approved for the FHA short sale program the financials will be further reviewed and a value for the property established. If all checks out FHA will agree to what is referred to as an ATP or Authorization to Participate. The ATP will dictate the terms of the short sale and what the minimum they will accept in the West Saramento Short Sale.

With the ATP in hand, if there is already an offer the servicer will then review the offer and if it meets all requirements, approve the West Saramento Short Sale. Typically the process should only take 60-90 days but our experience is it can and usually does take far longer. It is going to greatly depend on not only the servicer but the specific negotiator as much as anything else.

Next time we’ll talk about the specific requirements of an FHA West Saramento Short Sale

Is a West Saramento Short Sale right for me ?

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

Tuesday, February 26, 2013

West Sacramento Short Sale Information – West Sacramento Short Sale Financial package

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 what the West Sacramento Short Sale Financial package looks like.

Now keep in mind each Servicer is a little different and it will also depend on who the investor is. Fannie Mae and Freddie Mac have different forms than FHA and VA and they all have different forms than a portfolio loan but they are all similar in these respects, the information must be updated and accurate.

So what is commonly asked for in a West Sacramento Short Sale financial package? Here is the general list:

2 months of your most recent pay stubs from all employers or a letter of explanation why you don’t have them. An example would be a homemaker who does not work outside the home would need to write a letter to that effect
2 months bank statement including all pages even if one is blank
2 years most recent federal tax returns with all scheduled and signed on page 2 of the form 1040
2 years most recent W-2’s or profit and loss statement if self employed
An IRS form 4506T. This is the form authorizing the servicer to contact the IRS directly should they want to pull your tax returns directly from the IRS
A financial recap for showing all your income and expenses. Many servicers have their own format or in the case of Fannie and Freddie use a form 710.
A signed Dodd-Frank form stating you have never committed loan fraud. Now this is not always required but a god idea to include.
Many servicers have their own specific West Sacramento Short Sale financial package that will need to be completed as well.

The key to a successful West Sacramento Short Sale is to have all our documents up to date and submitted as soon as you have an offer. Your West Sacramento Short Sale Specialist will guide you through this process. Because the West Sacramento Short Sale can take more than 30 days to receive approval be prepared to send your West Sacramento Short Sale specialist your updated pay stubs and bank statements as they come in

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.

West Sacramento Short Sale Information – What Should Go In to Your West Sacramento Hardship Letter

For some this is easier than for others but in either case the letter should be factual, accurate and compelling and is not as easy as it would seem. For many, writing the West Sacramento Short Sale Hardship letter is a very emotional event. It involves admitting on paper that your plan did not go exactly as hoped. It can also be an invigorating event. For some writing the West Sacramento Short Sale Hardship letter means accepting the situation as it really is not how we had hoped it had been. It can signify the beginning of a fresh start emotionally and financially.

So what goes into the West Sacramento Short Sale Hardship letter? I refer to it as the Joe Friday (of Dragnet fame) letter – Just the facts mam. Really the banks don’t care about declining home values. What they want to see in your West Sacramento Short Sale hardship letter are the Five W’s –What is the hardship? What caused it? What is the length of time the hardship will last (long term or short term) What did you try to do to remedy the situation and What are you intentions.

Clearly state what the hardship is be it unemployment, divorce, under employment, increased expenses etc. State what caused it such as state furlough days, cut backs, eminent termination. What is the length of time? Is it a short term hardship or long term and lastly what did you try to do to remedy the situation (loan mod etc.) and what are your intentions? Usually it is to sell the property in a West Sacramento Short Sale to avoid foreclosure. Make the West Sacramento Short Sale Hardship letter one page or less and make sure you sign and date it.

Monday, February 25, 2013

West Sacramento Short Sale Information – Chase Rebates on West Sacramento Short Sales

What is up with all the Rumors of banks giving away money to entice you to do a short sale in West Sacramento? Well, in many cases it is the truth. Chase has a program where you can get as much as $30,000 when you short sale your West Sacramento home. $30,000 – that’s a lot of money.

The story is they own a number of portfolio loans that they have no idea where the documentation on them is. Most of the loans came from Washington Mutual subprime when Chase bought WAMU a number of years back. Now Jamie Dimon President and COE of Chase is no dummy. In fact the truth is just the opposite – the guys a genius when it comes to finances and making money. He knows that it is cheaper to pay West Sacramento homeowners who are both delinquent and upside-down in their mortgage than risk a class action law suit.

I have personally completed two short sales under this scenario. One was an investor who bought the property for $20,000, rented it for 10 years, refinanced it to $80,000, was going to let the property go to foreclosure – we sold it for $30,000 and Chase paid him $10,000 at the close of escrow. The other was just as crazy. The owners owed $200,000 we sold it for $70,000 and Chase paid them $20,000 at close of escrow. In both cases they walked away from the entire debt with no deficiency. Pretty good deal if you can get it. Now – not all Chase, WAMU or oldEMC loans qualify and every situation is different. As a Certified Default Advocate I want you to know all your options. Whether you are late on your payments, possibly facing foreclosure or maybe you just owe more than your home is worth, we are here to help.

Is a West Sacramento Short Sale right for me ?

Friday, February 22, 2013

West Sacramento Short Sale Information – Why Let Your Bank Select Your Short Sale Agent

There is a trend of late where several of the big banks – Bank of America and Chase to name a few are starting to refer a West Sacramento Short sale agent to sellers in need of a West Sacramento Short Sale. The programs are called many different things such as “Preferred Partner” or “Alternative Right Party Contracts”. To become one of these “Preferred Partners” as an agent you basically have to sell your soul to the retail lending arm of the particular bank and promise to send them business. I know because of the success we’ve had was contacted by both to participate. I chose not to participate so my loyalty to the seller could never be questioned.

While good in theory, the real question about these programs is who do they really benefit – the homeowners looking to short sale their West Sacramento home, the Bank or the West Sacramento Short Sale Agent?

Now that’s a Great question.

So lets thisnk about this for a minute the bank, is sending you their recommendation of who to use for your West Sacramento Short Sale Agent? Now legally and ethically the West Sacramento Short Sale Agent has a fiduciary duty to you the seller but who is your West Sacramento Short Sale Agent working for? You or the bank? Whose best interest do they have at heart – yours or the source that is giving them regular steady business in an uncertain market? Makes you think doesn’t it. AND what are the qualifications of this West Sacramento Short Sale Agent. Did they have experience in the trenches or did they make a deal with the Retail lending arm of your particular bank.

Now, I know some agents who are “Preferred Partners” with a specific bank and I would NEVER even doubt their motivation and ethics in representing the seller in a West Sacramento Short Sale. But keep in mind a West Sacramento Short Sale is an us vs. them negotiation. My job as your West Sacramento Short Sale Agent is to get you the best deal I can including any relocation incentives available, getting values changed or postponing foreclosure sale dates. If this means I have to step on some toes or go over the banks head directly to the investor, CFO, EVP or other so be it – I work for you not them. Is a West Sacramento Short Sale agent whose livelihood depends on getting these assignments from the same bank willing to pull out all the stops for you and risk his referral source? Hopefully they are.

I am sure this post will piss off a lot of people, agents and lenders alike – but who cares. My obligation is to the West Sacramento homeowner and no one else.

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

West Sacramento Short Sale Information - How soon before we can buy again ?

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?

Is a West Sacramento Short Sale right for me ?

Wednesday, February 20, 2013

West Sacramento Short Sale Information – Loan Modification vs. 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. This week we are talking about loan modification vs. short sale.

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 2013 and state laws forbidding the banks from pursuing you for the deficiency after a West Sacramento 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.

Is a West Sacramento Short Sale Right for Me?

Tuesday, February 19, 2013

West Sacramento Short Sale Information – How to Avoid Foreclosure in West Sacramento

Is a West Sacramento Short Sale the only alternative you have to avoid foreclosure in West Sacramento? The answer is a resounding NO. A Short Sale in West Sacramento is but one of the nine alternatives. Last time we talked about options 1-4. Today let’s explore the options 5-9.

Partial Claim – This would involve getting a second mortgage to cover the missed payments and back interest. Really – if your West Sacramento home is already upside down and you are struggling to make payments, what sense would that make?

Deed in Lieu of Foreclosure. It has such a nice sound to it doesn’t it. Just turn the keys back to the bank and all is forgiven right? WRONG. This is still a foreclosure. It still shows up on your credit as a foreclosure and is really only a good deal for the bank not you

Bankruptcy – An answer but not an end all to be all. In most circumstances the property will have to be disposed of one way or another be it short sale or foreclosure. The bankruptcy will allow you to stay in the property a little longer but in 3-6 months you will be right back in the same boat you are in right now property wise

You can do nothing – Odd as it sounds this is a solution. You won’t avoid foreclosure but if you are willing to risk the credit hit and potential liability for the unpaid balance on the second, nothing says you have to do anything but wait for the property to sell on the court house steps.

Sell the property – If you have equity you can sell the property and close the loan. If you owe more than your West Sacramento home is worth you can short sale. There are pros and cons of a short sale as well so it is always best to get a free consultation.

Is a West Sacramento Short Sale Right for Me?

Friday, February 15, 2013

West Sacramento Short Sale Information – How to Avoid Foreclosure in West Sacramento

Is an West Sacramento Short Sale the only alternative you have to avoid foreclosure in West Sacramento? The answer is a resounding NO. A Short Sale in West Sacramento is but one of the nine alternatives. Today let’s explore the options 1-4.

Reinstatement - You can bring the loan current. Quite frankly if you have the money to do so you more than likely would not be reading this blog

Pay off / Refinance – You can pay of the loan or refinance. If you owe more than yourWest Sacramento property is worth, it is your principle residence and your loan is owed by Fannie Mae or Freddie Mac this is an option. Do keep in mind, if you refinance, you are in essence buying back your West Sacramento property for what you owe, not what you worth. If you are upside down, you will still be upside down

Loan Modification – In a few cases you can get a loan modification from your lender. Only 15% of all loan mods that are applied for actually end up in permanent modifications and then 65% of those end up back in foreclosure. The issue is regardless of the modification rarely is a principle reduction given meaning once again, if you owe more than your West Sacramento home is worth, you will still owe more than it is worth.

Forbearance – This is a form of loan modification where your lender agrees to put the missed payments on the back end of the loan. They do not forgive the debt and you still owe the money but at least you do not have to come up with the missed payments right away. You will still owe the money plus interest but if your situation is short term, this could be a viable option

Next time we will cover options 5-9.

Is a West Sacramento Short sale Right for me?

West Sacramento Short Sale Information – West Sacramento Short Sale Myths 6-10

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 we’re covering West Sacramento Short Sale Myths 6-10 so let’s get started…

Myth #6: Damage to the homeowner’s credit standing is comparable in a West Sacramento short sale 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 homeownermissed 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 FHA insured 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 and pay taxes on that money.

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 lieu of 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 West Sacramento Short Sale Agent before hiring them. They should have completed 10 or more West Sacramento short sales and have successfully worked with your lender in the past – there is a difference.

Is an West Sacramento short sale right for me?