West Sacramento Short Sale Information: June 2013

Thursday, June 27, 2013

West Sacramento Short Sale Information – Market Update III

Why this Might Not be the End to the Housing Crisis Part III. 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.

West Sacramento Short Sale Market Update. Why this Might Not be the End to the Housing Crisis Part III. Well we talked about interest rates and what buyers were buying and why sellers weren’t selling, now let’s wrap this up with inventory and jobs.

Jobs first. West Sacramento metro-plex unemployment still stands at 10% +/-. Until it gets to 8% or better we will not see any appreciable long term real growth. This temporary uptick will last as long as the investors are in. Once they pull back, and they will, we will be right back where we were before they came into the market. Jobs are key to any economic growth.

Now inventory. We talked last time about why sellers weren’t selling now let’s talk about shadow inventory. I’m not talking about property that has been foreclosed on and not released. There is much less of that than you would think. What worries me is, again in the greater West Sacramento Metro-plex, there are nearly 22,000 homeowners who are seriously delinquent on their mortgages. That’s 91+ days DQ. The cure rate is about 5%. That means that there are right at 21,000 homes that need to be either short sold or foreclosed on for the market to recover. That represents about an 18 month supply of homes. That does not even take into consideration the more than 190,000 homeowners who are underwater.

So what to do? If you have equity and want out or to move up, do it now before it is too late. If you are a buyer, be patient your turn will come and you’ll get that home of your dreams eventually. It may take several moves, but you’ll get it if patient enough. And if you owe more than your home is worth by 15% or more, take advantage of the favorable tax laws and get out while you can. The government is not going to bail you out. Take your hit before you have to pay income taxes on the forgiven debt and start fresh.

I certainly hoped this helped. Again it’s my opinion based on the market conditions and having seen and survived several market corrections in the last 10 years.

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 – Market Update II

Why this Might Not be the End to the Housing Crisis Part II. 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.

West Sacramento Short Sale Market Update. Why this Might Not be the End to the Housing Crisis Part II. So last time we talked about the Fed propping up interest rates. This time let’s talk about supply and demand. Remember to have a market recovery we need to have buyers willing to buy and sellers willing to sell. Right now we have buyers willing to buy but relatively few sellers willing to sell. Why is that?

I think first we have to look at why prices are going up and who exactly is doing all the buying. In the greater Sacamento metroplex, historically 15% of the monthly home sales as cash, which usullay indicates investor purchases – not always but usually. Last month the number of cash sales we nearly 40%. 37.2% to be exact. That means that nearly 4 or of every 10 homes sold went to an investor. Who are these investors? They are everyone from the large Hedge Funds to mom and pops looking to get a better return on their money. Some are those looking to flip properties for a profit and later sell to another investor or end user but not always.

So why is this a bad thing? I am not saying it’s good or bad – it just is. What it has done is increased completion for the existing inventory and has caused prices to go up. With multiple offers on nearly every property sold the prices can’t help to go up. Potential homeowners are frustrated and giving up hope of getting a home of their own while they can afford it.

But what happens when prices get to the point that the investors stop buying? That’s right, less competition and prices flatten and or goe down. Carrington, one of the first to get into the rental market recent announced they were no longer buying single family residences. Hmmm who’s next?

So, why so few sellers willing to sell? With nearly 40% of all homeowners owing more than their home is worth and the hope of rapid appreciation, we believe many are holding out hope that they will be able to sell without a West Sacramento Short Sale. For some that will be the truth, but for most it won’t happen. Remember to get out from under your mortgage you not only need to pay off the existing loan but closing costs and commissions as well. That can add another 6-8% to what you need to break even. If you are 10% upside down, you would need prices to up 18% to walk away with zero at closing. Zero.

So next time let’s talk the remaining funamentals of this false market and what you can do to be prepared.

Sunday, June 16, 2013

West Sacramento Short Sale Information - Market Update

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.

West Sacramento Short Sale Market Update. Why this Might Not be the End to the Housing Crisis Part I.

At the risk of being a real downers let’s talk today about the current West Sacramento Real Estate Market and what we should be on the lookout for. Please keep in mind that this is my opinion on what’s going to happen based on market data.

The local news is full happy news about double digit increases in the price of homes and extolling the end of the housing crunch. As a West Sacramento Real Estate Professional, no one wants to believe that more than me, but looking at the data I cannot help but believe this is a false market propped up by government intervention and investors looking for above average return on investment not the fundamentals we need to sustain recovery.

For any market to improve there has to be buyers wanting to buy and sellers wanting to sell. Interest rates, the economy (read jobs) and inventory will generally dictate a seller’s market or buyer’s market. So let’s look at the fundamentals here:

Interest Rates: Interest rates are at all-time lows. Is it because the economy is so great or is because of a little thing called QE I, II and III? Quantitative Easing is the sole reason rates are so low. If not for the intervention of the federal government rates would be considerably higher than they are now.

So what happens when the government decides to stop buying up mortgage backed securities and lending money at zero interest? You guessed it, rates will go back up. When rates go up fewer will qualify for home loans. The difference between 30 year fixed rate loan at 4% and 5% is about $60 per month per $100,000 borrowed principle and interest and can be the difference between the new borrower qualifying and not qualifying for the loan. Eventually rates will go up. It’s not if but when.

Next time we are going to look at the remaining fundamentals and lastly what it all means to you.

West Sacramento Short Sale Information – Chase Short Sale Process Improvements

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.

Chase Short Sale Process Improvements. As recently reported in the KMC Blog, in an attempt to improve the Chase Short Sale process, Chase recently announced improvements to their process.

One of those improvements is you can now submit for a Chase Short Sale before you have an offer. The caveat is you must have one or more of the following financial hardships:

Loss of employment
Business Failure
Damage to the property (could have been under insured)
Death of a Spouse or wage earner
Death of a non-wage earner. For example, a family member who was watching the seller’s children and now the seller has to pay to put the children in child care; or they were a financial contributor even though they weren’t on mortgage.
Severe illness
Inheritance (inherited an underwater property, cannot pay taxes etc…)
Relocation
Divorce
Military Service
Payment increase or mortgage adjustment
Insurance or tax increase
Legal separation
Too much debt vs. income
Incarceration

In addition, you must be able to fully document the hardship. Initiating the Chase Short Sale before an offer is submitted allows Chase to get a head start on the Chase Short Sale with the hopes of a quicker decision. Typical timelines for Chase serviced / investor owned loans are:

FHA backed mortgage 45-60 days from receipt of complete offer
Fannie-Freddie backed 60 days
USDA 60-75 days
VA 60-75 days
Portfolio owned 45-60 days

Got a Chase loan? Give me a call to discuss your options. We also offer a short sale lease back program for those who qualify allowing you to short sale and stay in your home. Call me for details.

Wednesday, June 12, 2013

West Sacramento Short Sale Information - Fannie Mae Short Sale Process Improvements

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us.

Process Improvements. Fannie Mae just announced that they are stepping up their efforts to improve the Fannie Mae Short Sale process. Jay Ryan, VP for Fannie Mae Real Estate Sales recently stated that “Fannie Mae recognizes the very important role real estate professionals play in the short sale process and we want to work closely with them to get short sales done.”

With that said Fannie’s new program allows West Sacramento Short Sale Specialists to register their offer with Fannie Mae at the same time they submit the offer to the servicer. Fannie Mae is also asking the Short Sale Agent to basically submit the complete West Sacramento Short Sale package to them as well. Their thought being the more information they have upfront the sooner they can make a decision and move the file forward.

All indications are that Fannie Mae is pushing hard for delinquent borrowers to complete a West Sacramento Short Sale or Deed in Lieu this calendar year if possible. Our sources say that this year will be short sales but next will be foreclosure. Good to know if you are hopelessly underwater.

Is a West Sacramento Short Sale Right for Me? Give me a call and let’s find out. We also offer a short sale lease back program for those who qualify allowing you to short sale and stay in your home. Call me for details

Monday, June 10, 2013

West Sacramento Short Sale Information – Wells Fargo Short Sale Incentive’s to $30,000

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us.

Wells Fargo Short Sale Incentive’s to $30,000. You heard me right. Wells Fargo announced that they have sent out several thousand letters to home owners with old World Savings orWachovia Pick-A-Pay loans offering up to $30,000 as an incentive to complete a Wells Fargo Short Sale. Now don’t get confused. This is not for all Wells Fargo Short Sales or loans. It’s for select portfolio loans that were originally a World Savings or Wachovia loan, especially the Pick-a Pay loans.

So why would they do this you ask? Great question. Honestly for Wells Fargo to offer a large incentive to the homeowner to sell it has to make good business sense first. The old World Savings / Wachovia Pick-A-Pay loans were bad loans to begin with. Most should have never been made to the borrower but let’s face it, those loans were made at a time when lending guidelines were loose and it was the wild, wild west out there lending wise. Now Wells Fargo looks at them as a huge liability and their effort is to get rid of them as quickly as possible. Remember before the real estate market crash a default rate of 1-2% was considered high. At the peak of the crash banks were experiencing default rates in the area of 10% or better. Wells Fargo and all the other banks can’t really get back to “business as usual” until they get all the litigation and bad loans off the books. The Wells Fargo Short Sale incentive is just one more way to clear the books.

So how do you qualify for the Wells Fargo Short Sale incentive? First off, if you have one of these loans, open your mail! The offer may be sitting on your desk already. If you have not gotten a letter call me and I will be able to contact the Wells Fargo Short Sale department on your behalf to see if you qualify or not. Cal me lets find out.

Sunday, June 9, 2013

West Sacramento Short Sale Information – Why Do Green Tree Short Sales Fail?

Why Do Green Tree Short Sales Fail? That’s a pretty fair question with a generally easy answer. Most Green Tree Short Sales fail for one of three reasons:

1) Ego and emotions: A vast number of Green Tree Short Sales fail because the Green Tree Short Sale became personal and one or more of the parties, be it the short sale negotiator / agent, the banks short sale negotiator, the buyer or the seller made it personal and let their feelings over ride what was best for all parties

2) Poor understanding of the Green Tree Short Sale process: All too often an inexperienced so called West Sacramento Short Sale “Specialist” gets in over their head and takes “NO” for an answer. When the banks say no on a Green Tree Short Sale, it only means “No I don’t have the authority to answer” and as an experienced West Sacramento Short Sale Agent you need to know when to escalate the file. Never say die. And lastly…

3) Lack of documentation / follow through by the seller or agent. Most Green Tree Short Sales can be completed with a minimum of documentation but you still have to supply an explanation why you aren’t supplying the requested information. Give the banks an explanation or documentation and it usually is enough to keep the file moving forward

Notice lack of hardship was not one of the reasons? That’s because if the bank knows it is going to get the property back either as a Short Sale or foreclosure they would much rather prefer the Short Sale – again it’s all about the money.

West Sacramento Short Sale Information – Chase Short Sale – Why Do Loan Mods Fail?

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us.

Chase Short Sale – Why Do Loan Mods Fail? It’s a proven fact that only 21% of those who apply for a loan modification actually get a true modification. Most Loan Mods are extensions of the current loan with new terms with the missed payments tacked on to a new 40 year loan.

Once a homeowner figures out that their new loan mod leaves them still owing more than the property is worth the vast majority end up defaulting on the new loan mod and opting for either Short Sale or foreclosure.

Even with the current appreciation in many of the real estate markets across the country, if your home is more than 25% upside down the chances of your home appreciating to the point where you owe what it is worth is remote. Where you are 20% or more upside down it should then become a business decision for you. If you were buying your house today, you wouldn’t pay 20% or more for it would you? Of course not. But isn’t that exactly what you are doing with a loan mod? The answer is Yes, that’s exactly what you are doing. Without a principle reduction a loan mod is nothing more than a new loan that still leaves you underwater and that just doesn’t make good business sense.

Saturday, June 8, 2013

West Sacramento Short Sale Information – Wells Fargo Short Sale – Who Owns My Loan?

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us.

Wells Fargo Short Sale – Who Owns My Loan? Great question and a better follow up is why does it matter? Most people realize that the bank they make the payment to usually is not the institution or investor that actually owns the loan or note as it is usually referred to. The real question is why that is important.

It is important in a Wells Fargo Short Sale because the investor’s guidelines will impact how the Wells Fargo Short Sale is negotiated. Each investor has different guidelines as far as being late or current on the payment, whether relocation assistance is allowed or not and even so far as if the investor on the Wells Fargo Short Sale will even consider the Wells Fargo Short Sale in the first place.

Who are these investors you ask? They can be retirement plans, Hedge Funds or other commercial entities but the largest are Fannie Mae and Freddie Mac, the government sponsored entities or GSE’s that you and I the tax payers support.

There are several ways to find out who the investor is on any given Wells Fargo Short Sale. We use a couple of different websites that tells us with a certain degree of accuracy. If you are unsure or need to know, give me a call and I will see if we can help.

West Sacramento Short Sale Information - Bank of America Short Sales with Dignified Transition Solutions

Bank of America Short Sales with Dignified Transition Solutions – can you say “what a knarled up mess?” With Bank of America reducing their payrolls through job layoffs we are seeing more and more Bank of America Short Sale negotiations going to third party negotiators like Dignified Transition Solutions or DTS for short.

We just received an approval from Bank of America through DTS that took almost 120 days. Our average with Bank of America Short Sales when dealing directly with Bank of America Short Sale personnel directly is about 48 days. We had to escalate this file no less than 8 times to Bank of America Short Sale senior management just to keep the file on track. Heck, it even took an escalation to get the approval letter because the DTS agent told us on a Friday we were approved but did not submit the final paper work to Bank of America for final review for another 10 days. Unreal.

Fortunately the first and the second were both with Bank of America so the delay did not mess us up with the other lender and at the end of the day, while it took nearly 3 times longer than average we still got the approval, the seller walks away from $250,000 in debt and the new owners are pleased as punch. All’s well that ends well!

West Sacramento Short Sale Information – Can My Spouse Buy Right After a Citi Bank 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.

We got a call the other day from a homeowner considering a Citi Bank West Sacramento Short Sale. As is the case with many homeowners who refinanced or bought between 2003 and 2006, only one of the owners name was on the loan and title. The question was, since I am not on the title, “Can we short sale and buy right away under my name?” Now this brings up an interesting point. On its merits alone you would think this makes a lot of sense. It’s my spouse / significant other taking the hit why should I be punished too.

So let’s look at this. Not considering the several loan products our lender partners offer that allow you to buy one day after s Citi Bank West Sacramento Short Sale, the typical waiting period for a person to re-purchase in the same area after a Citi Bank West Sacramento Short Sale is 2-3 years. So the question is if my name is not on the loan or deed can I buy right away and the answer is generally no. Why you ask? The Banks tend to look at the situation and if there is a legal connection between the parties, be it marriage, registered domestic partners or other relationship the determination generally is that the party not on the deed / loan is considered to have enjoyed the benefits of living in the property even though they were not technically responsible for the debt. With that said most conventional lenders are going to require you to wait the 2-3 years. They are pretty much considering you guilty by association for lack of a better description.

Do keep in mind our lender partners have several proprietary products that allow a seller who completed a Citi Bank West Sacramento Short Sale to buy right away so if that is of interest to you, call me and we can discuss your options before you miss a payment.

West Sacramento Short Sale Information – Chase Short Sale or Foreclosure – which is better?

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us.

Chase Short Sale or Foreclosure – which is better? Rarely is a foreclosure better than a Chase Short Sale. That’s the short version.

When considering a Chase Short Sale vs. foreclosure there are several circumstances that have to be considered.

First and foremost is what state the property is located in. Every state has different laws revolving around deficiency and if the bank can pursue you for the unpaid balance after a foreclosure or not.

Secondly what is the type of loan you have. Is it a true purchase money first mortgage only or do you have a HELOC second or any other type of second for that matter.

Third is what profession you are in. Will a foreclosure jeopardize a security clearance or other job requirement?

There are times that other than the hit to your credit that a foreclosure is not that big of difference than a Chase Short Sale but generally I would advise against it. To be safe, make sure you get a no obligation consultation from a Chase Short Sale Specialist like myself before doing anything

Monday, June 3, 2013

West Sacramento Short Sale Information – Can I get Relocation Assistance?

Wells Fargo West Sacramento Short Sale – Can I get Relocation Assistance? Heck ya. Through the many, many, programs, banks like Wells Fargo, Chase, Bank of America, Citi, Greentree, Ocwen and the like are all offering some type of relocation assistance for West Sacramento Short Sales.

Now let’s be clear not every Wells Fargo West Sacramento Short Sale will qualify for relocation assistance but most do. Typically the offer is $3,000 to $5,000 and there have been reports of Banks like Chase and Bank of America offering upwards of $30,000 but that’s pretty rare.

Generally to qualify for Wells Fargo West Sacramento Relocation assistance the property must be owner occupied, you must be delinquent and there has to be a verifiable hardship. On a Wells Fargo West Sacramento Short Sale the relocation assistance may come from HAFA, Keep Your Home California or from Wells Fargo direct. The key here is you have to ask. On a Wells Fargo Short Sale they not going to give you relocation assistance if you don’t ask. Now in a rental property on a Wells Fargo HAFA Short Sale, the tenant can get the relocation assistance but the homeowner cannot.

West Sacramento Short Sale Information – Do I have to miss a payment?

In a Bank of America West Sacramento Short Sale – Do I have to miss a payment? Great question and as is usually on a Bank of America Short Sale, the answer is maybe. Once again, Bank of America, as is the case with many of the lenders are usually just the servicer on the loan. They don’t actually own it. The determination of whether you have to be late on not on a Bank of America Short Sale usually depends on the lenders guidelines.

For the most part you can get the Bank of America Short Sale done and not miss a payment. Recently both Fannie and Freddie revised their guidelines to “Being in default or eminent risk of default”.

Deciding to stay current or not will pay into how long it takes before you can buy again. There are now programs out there that will allow you to buy right away providing you did not miss a payment. If your intention is to get right back into West Sacramento Real Estate then before starting the West Sacramento Short Sale process, talk to a qualified lender to find out exactly what the guidelines are for buying after the Bank of America Short Sale.

The short answer is – yes you can complete a Bank of America Short Sale and stay current on your mortgage

West Sacramento Short Sale Information - CalHFA Short Sale Deficiency

West Sacramento Short Sale Specialist Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us.

CalHFA Short Sale Deficiency. What happens to the unpaid balance in a CalHFA Short Sale or any other West Sacramento Short Sale for that matter? Now when I am talking about the unpaid balance or deficiency I am talking about California only. As far as the rest of the country I am not familiar with those states laws and cannot speak tothem.

In California be it a first mortgage, second mortgage or even a Home Equity Line of Credit orHELOC second, if the lender agrees to a West Sacramento Short Sale, they cannot pursue you for the unpaid balance or deficiency. CalHFA and all the others cannot come after you for the difference providing you have not committed fraud or course.

Now with a CalHFA first mortgage only the deficiency part is the same in a CalHFA Short Sale or non-judicial foreclosure, you have no liability for the unpaid balance. Where a West Sacramento Short Sale is truly superior to a foreclosure as far as debt relief goes is if you have a Home Equity Line of Credit or HELOC. In a foreclosure the HELOC does not go away. You still owe the money regardless if you have the property or not. In a West Sacramento Short Sale the HELOC lender has to agree to release you from owing the unpaid balance. Big, big difference. HELOC’s are treated differently than true mortgage seconds so be sure which you have before considering foreclosure over West Sacramento Short Sale.

West Sacramento Short Sale Information – How Long Before I Can Buy Again?

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.

Citi Short Sale – How Long Before I Can Buy Again? We get asked this question a lot. Most folks who West Sacramento Short Sale really do want to be homeowners, they just got caught in an unfortunate set of circumstances. As is so much when dealing with West Sacramento Short Sales the answer is – it depends. It depends on a number of circumstances. For instance, if you remained current throughout the process and moved more than 90 mile away, you can actually buy again right away presuming your credit is good and your debt to income levels are within the lenders guidelines.

As a rule of thumb, once you have completed your Citi Short Sale, or any other West Sacramento Short Sale for that matter, you can generally buy again in two to three years. VA loans are two years, FHA and Fannie Mae are three.

Now it is important to know that the wait is not because of your credit or debt to income, it all has to do with the lending guidelines. As mentioned before you also have to have good credit, your debt to income levels have to be right and of course qualify for a loan.

The key to life after a Citi Short Sale is to take advantage of the debt relief and get your financial house in order. Pay off those credit cards and start to save the difference between your new rent payment and your old house payment so when it does come time when you can buy again you can get into a home you can comfortable afford and are not living on the financial edge