West Sacramento Short Sale Information: August 2013

Sunday, August 11, 2013

West Sacramento Short Sale Information – Wells Fargo – What is a Short Sale?

Wells Fargo – What is a Short Sale 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.

Wells Fargo – What is a Short Sale? Great question. Simply put a West Sacramento Short Sale is any sale where the bank gets less than what is owed and the bank agrees to forgive the balance of the loan.

Now depending on what state you are in or the type of short sale you have the bank may or may not waive their right to seek a deficiency judgment and / or pursue the borrower for the balance still owed.

Fortunately for most borrowers in California to complete a West Sacramento Short Sale both the first and second mortgagor must agree to waive their right to seek a deficiency judgment and forgive the debt. Now because the lender can’t seek to collect on the unpaid balance they will report the unpaid balance as income to the borrower to the IRS on a form 1099C. Under most circumstances the borrower can avoid paying income taxes on the phantom income but it is always best to contact a qualified tax professional before completing the West Sacramento Short Sale.

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

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 – Why Would Wells Fargo Accept A Short Sale?

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

Why Would Wells Fargo Accept A Short Sale? Real simple – it’s all about the money. That’s the short answer. The long answer – in a West Sacramento Short Sale the lender or end investor stands to lose about 15-20% less in a foreclosure. Wells Fargo, like all the other lender / servicers are for profit companies. Their job is to, make money for the Wells Fargo shareholders. Millions in executive compensation and bonus depend on it. So if you are the CEO, CFO, Senior Vice President or any other high level executive and you have to decide to accept a West Sacramento Short Sale or foreclose and lose an additional 20% what are you going to do? Take the West Sacramento Short Sale of course. It’s called first loss is best loss. If the future loss looks greater than the current loss it is prudent business to take the first loss and move on.

Now, what is important here is the Wells Fargo Short Sale has to net Wells Fargo more than the foreclosure. If the Wells Fargo Short Sale offer is so low it makes better sense to foreclose, you can bet they sure will. Again it’s about the money and where Wells Fargo will lose the least amount. Generally a fair market value short sale offer will trump a foreclosure for mitigating loss.

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

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

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.

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.

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

West Sacramento Short Sale Information – Why Do Wells Fargo Short Sales Fail?

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.

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

1) Ego and emotions: A vast number of Wells Fargo Short Sales fail because the Wells Fargo 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 Wells Fargo 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 Wells Fargo 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 Wells Fargo 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.

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

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

Wells Fargo 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 Wells Fargo Short Sale, or any other West Sacramento Short Sale for that matter, you can generally buy again in two to three years. VA loansare 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 Wells Fargo 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

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

West Sacramento Short Sale Information – Bank of America Short Sale or Foreclosure?

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

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

When considering a Bank of America 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 aforeclosure 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 Bank of America Short Sale but generally I would advise against it. To be safe, make sure you get a no obligation consultation from a Bank of America Short Sale Specialist like myself before doing anything

West Sacramento Short Sale Information – Bank of America – 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.

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

West Sacramento Short Sale Information – Bank of America Short Sale – What does it Cost?

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

Bank of America Short Sale – What does it Cost? Great question. The short story – almost nothing and as always it depends on what state the property is situated in. For California the answer is pretty simple – almost nothing. I say almost because there are some fees and expenses that the bank won’t pay for that need to be addressed. Those fees are city / county utilities such as water, sewer and garbage and usually HOA dues. Now if we know ahead of time that making those payments are going to be a hardship on you we can work on a work around early in the transaction. All the rest of the expenses including commissions, negotiating fee, closing costs, escrow fees and the like are all paid for by either the bank or the buyer. How great is that. So what does it cost the seller to complete an Bank of America Short Sale? Next to nothing if anything.

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

West Sacramento Short Sale Information – Bank of America Short Sale Package

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

The Bank of America Short Sale Package. So what goes into a good Bank of America Short Sale Package or any Short Sale package for that matter? Now many banks like Bank of America, Wells Fargo, Ocwen and Chase have their own specific forms and format the West Sacramento Short Sale package is pretty standard. There are deviations if it is a HAFA Short Sale or a Fannie or Freddie Short Sale but the basics are the same.

In addition to the lender specific Short Sale application, generally what is required in a Bank of America Short Sale package is two years tax returns, two months of your most recent paystubs, two months of your most recent bank statements, a hardship letter describing the reason for the Bank of America Short Sale, a financial statement showing your income and liabilities, an IRS form 4506T, and depending on the loan type and West Sacramento Short Sale type you may also need a form 710, RMA or a Dodd Frank form stating you have not been convicted or felony larceny, theft, forgery, fraud, money laundering or tax evasion in the last 10 years. The form 710 and RMA are similar but different in that each is a government form asking for the same information in a different format. You normally don’t need both in the same Bank of America Short Sale.

While this all sounds overwhelming, it’s really not all that bad. The key is to turn in a near perfect Bank of America Short Sale package from the beginning and the negotiations will go much smoother

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

West Sacramento short sale information – Bank of America 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.

Bank of America 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.

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

West Sacramento Short Sale Information – Avoid Foreclosure

Avoid Foreclosure in West Sacramento 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.

Avoid Foreclosure in West Sacramento. So how do you do that you ask? Well the simplest way is to make your payments on time every month but I know that’s not the answer you were looking for. Here are your options:

1. Like I said make your payments. If that is not possible read on

2. If you owe more than your home is worth, under most circumstances a principle reduction is not in the cards although there are some programs such as Keep Your Home California that can assist you.

3. Loan Modification: To get a loan mod you have to have income. No income, no loan mod. Most loan mods fail because all they really are are re-payment plans. We work with an attorney who can tell you within a couple of days whether you qualify for a loan mod or not and what that payment would look like. Call me for details.

4. Deed in Lieu of foreclosure: Guys it’s still a foreclosure.

5. Bankruptcy: Depending on the type of BK you still have to liquidate the property

6. Sell the property outright: If you have Equity – that will work.

7. Short Sale: Sell the property for less than owed.

No matter what option you choose know we offer a free no obligation consultation to discuss all your options

West Sacramento Short Sale Information – Ocwen Short Sale Approvals

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

Ocwen Short Sale Approvals. What’s better than an Ocwen Short Sale Approval? How about two Ocwen Short Sale Approvals and A Citi Short Sale Approval in the span of 3 business days? That’s the kind of week we just had. All three short sales were approved in less than 30 days and they were with two of our favorite banks.

So why does Ocwen approve Short Sales so much faster than say Bank of America or Chase? A lot of it has to do with systems and bureaucracy. A lot has to do with who owns the underlying note and a lot of it has to do with, in the case of Bank of America and Chase, media exposure.

The folks over at Ocwen seem to understand the way to cut costs and mitigate their losses is to not drag the Ocwen Short Sale process out over months when they can make a decision in weeks. Remember, the smart bankers mantra is “first loss is best loss” meaning, is the loss you are going to take today greater or smaller than the loss you will take as you drag this out. Usually the loss today is less than the loss later down the road. Ocwen seems to get that while I doubt Bank of America ever will.

So what’s the secret to a quick Ocwen Short Sale approval? Give them what they want, when they want it and do it right the first time. Real simple. Like I’ve said before, this aint Burger King, you either get it their way or you don’t get it. Treat the Ocwen Short sale associates with dignity and respect and you too will find your Ocwen Short Sales getting approved in record time

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

West Sacramento Short Sale Information – HARP Extended by Two Years

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

HARP Extended by Two Years – Possible HARP 3.0. So the Federal Housing Finance Agency (FHFA) recently announced the extension of HARP for another two years. Set to expire December 31st of this year, the program has been extended until December 31st of 2015. That’s good news for those of you who have Fannie Mae or Freddie Mac loans, owe more than your home is worth and wants to refinance to a lower interest rate.

So what about those who owe more than the home is worth, want to stay in their homes, but can’t refinance to a lower interest rate because their loan isn’t owned by Fannie or Freddie? What now? Well are indications are that there will be an announcement this July on HARP 3.0 is expected to have provisions to allow the upside down homeowner the opportunity to refinance into a lower interest rate. You’ll still more than the property is worth but at least you payment will be better.

And what if you owe more than the property is worth and you don’t want to stay? West Sacramento Short Sale is generally the preferred method of liquidating the property vs. foreclosure ordeed in lieu

West Sacramento Short Sale Information – What is Shadow Inventory?

What is Shadow Inventory? You hear on the news all the time about the Shadow Inventory of foreclosed or distressed homes that loom out there threatening to de-rail the housing market but what exactly is Shadow Inventory and why should you be concerned?

Shadow inventory is defined as those properties that are in some stage of foreclosure or even possibly bank owned that are not currently on the market for sale and as importantly those loans that are seriously delinquent but not in foreclosure. Now, keep in mind this does not take into account those who are upside down in their mortgage who may choose to walk away or short sale rather than wait for the market to come back. With 25% of all homeowners in West Sacramento County owing more than their home is worth that’s a whole other concern.

So how big is the Shadow Inventory number? In West Sacramento County on average 1500 -1600 homes are sold each month. As of June 23, there are over 2600 homes that are in either in foreclosure or ready to be sold at auction within the next 21 days. That’s a two month supply of homes. With the current shortage of homes for sale, dropping this two month supply on the market might not be catastrophic but it will certainly stop the rapid price appreciation we’ve had over the last few months.

But that’s not the number that concerns me so much. No the bigger number that is included in the Shadow Inventory is the number of homeowners that are seriously delinquent, meaning more than 90 days delinquent. By most reports, for the greater West Sacramento area that number is right around 22,000. That represents about an 18 month supply of homes and how those properties are liquidated either through Short Sale, foreclosure or the Hail Mary Loan Mod will determine how long this housing crisis will last and if we are near the end or headed for a prolonged recovery.

If you are considering selling now is the time to act. You may get slightly more if you wait but is at any time that inventory starts to come on the market you could get less. Owe more than your home is worth? Short Sale might be the answer.

Saturday, August 10, 2013

West Sacramento Short Sale Information – Keep Your Home California Expands Unemployment Assistance

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

Keep Your Home California Expands Unemployment Assistance. Great news for those who qualify or are currently on the Keep Your Home California UMAP or Unemployment Assistance Program. The great folks over at Keep Your Home California have extended the unemployment benefit from 9 months to 12 months.

So what’s this mean? It means that before you could get up to $3,000 a month for 9 months to help make your house payment while you were unemployed. That’s $27,000 in potential assistance that you don’t have to pay back.

With the California job market slow to respond the decision was made to extend the benefit by 3 months and $9,000 for a maximum benefit of $36,000.

Now we always have to out a disclaimer in here that there are certain guidelines and program requirements you must meet to qualify, but for those that do, this is a great program to help you stay in your home while you get back on your feet.

Call the good folks over at Keep Your Home California or visit them on Face Book for details and to see if you qualify.