November 25, 2013

Is a Short Sale Right for You?

Posted by martikilby under Experienced Short Sale Realtor, foreclosure, loan modification, Short Sale | Tags: , , , , , |
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SHORT SALE BUTTON

There are many factors that go into determining if a short sale is right for you. A short sale occurs when your lender agrees to; 1) allow you to sell your home for less than what is owed and 2) accept that reduced amount as pay-off on your loan, releasing you from any further obligation.

So here are some questions to consider if you are thinking about a short sale:

Are you upside down? Do you owe more than your house is worth?
Despite the fact that there have been significant increases in home values throughout much of the country over the last year, most people who purchased a home between 2005 and mid 2007 have yet to regain the equity they thought they had acquired. To determine fair market value of your home, consult a Realtor. Do not rely on online value estimators as they can be terribly inaccurate.

Are you struggling to make your payments? If keeping your home is creating a financial hardship, and the market in your area is relatively soft, continuing to make payments on negative equity may not be a sound financial decision.

Have you been unable to obtain a loan modification? While most lenders are reluctant to reduce the principal amount that you owe, a loan modification is an option you should explore with your lender before considering a short sale.

Will you qualify? Increasingly, lenders are allowing short sales due to negative equity, but for the most part, borrowers must demonstrate a financial hardship and an inability to continue to make payments.

What are your housing plans for the future? If you are hoping to buy again, a short sale is far less damaging to your credit than a foreclosure. Many lenders will now approve a loan in as little as 1 – 2 years following a short sale.

There are some additional benefits to a short sale including the fact that the lender will generally pay all commissions and closing costs, and unlike a foreclosure, a short sale does not have as negative an impact on your credit score. Before considering whether a short sale is right for you, it is advisable to consult an attorney and your accountant.

For a confidential consultation, please don’t hesitate to give me a call. I have successfully closed many short sales throughout San Diego County and would be happy to provide references.

 

November 22, 2013

Can’t Pay Your Mortgage?

Posted by martikilby under Experienced Short Sale Realtor, Mortgage delinquency, Short Sale | Tags: , , , , , , |
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Despite the fact that home prices are on the rise, there are still thousands of people in San Diego County who owe more than their home is worth and are struggling to pay their mortgage. Have you fallen behind on your payments? Have you been unable to work out a loan modification? Just don’t know what to do?

I wrote a free guide book entitled, “What to Do When You Can’t Pay Your Mortgage” to help answer some of your questions and explore your options. Just go to http://cantpaymymortgagehelp.com to request your free, no-obligation copy.

For many, selling their home in a short sale has been a solution that immediately put an end to the harassing phone calls and sleepless nights. Did you know…?

Relocation Allowance: Though a relocation allowance cannot be guaranteed, it is not uncommon for the seller to be paid $2,000 – 3,000 by the lender at the close of escrow to help with the costs of moving. It all depends on who the investor is on the loan.

No Deficiency Judgment: In California it is against the law for a bank to file a deficiency judgment against you after a short sale when the loan was a first mortgage on a property from 1-4 units.

No Cost to the Seller: In a traditional equity sale, the seller usually pays the real estate commissions to the listing and buyer’s agent, along with his/her share of the closing costs. In a short sale, the bank pays all of those costs.

Here are comments from a few of my clients about their short sale experience:

“Marti was able to quickly secure a qualified buyer for our home and smoothly handled all of the negotiation with our bank. It was a huge relief to be out from under a mortgage we could no longer afford.” Megan M.

“Our situation with both a first and second mortgage and different lenders was very stressful, and I was leery of doing a short sale… I had heard so many horror stories. But Marti patiently walked us through the process and thoroughly explained every step along the way. Despite a reluctant 2nd lien holder, Marti was able to negotiate the sale and get it done.” Amber B.

“My only regret is that we waited so long to list our home for sale. I would highly recommend Marti to anyone faced with a mortgage they just can’t pay.” Lane M.

If you can’t pay your mortgage, please don’t ignore the problem. It is okay to ask for help and advice. Just remember that time is of the essence. Acting early allows you to make the decision that is best for you. Wait too long and your choices disappear. Get your free booklet today or call me at 619-846-9249 for your confidential consultation.

 

August 21, 2013

FHA Reduces Wait Time to Borrow after Short Sale

Posted by martikilby under Experienced Short Sale Realtor, FHA, foreclosure, Short Sale | Tags: , , , , , |
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Great news for homeowners who experienced a short sale and are ready to buy again! HUD announced yesterday that they will reduce the wait period to qualify for an FHA backed mortgage to 1 year! Previously, the wait time to qualify for an FHA backed mortgage was 2 years following a bankruptcy and 3 years following a foreclosure or short sale. According to FHA Commissioner Carol Galante, “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

This of course does not mean that everyone will qualify. Borrowers must prove that they experienced an “economic event” where their household income fell by at least 20% for 6 months or longer. They must also document that they have fully recovered financially, and agree to take a housing counseling course prior to close of escrow.

This is very encouraging news for those of us who have helped clients through a short sale, as many have recovered and are ready to buy again while housing prices and interest rates are still relatively low. Reducing the wait time should also encourage overall housing market recovery as more people will be eligible for FHA financing. Likewise, this is good news if you are currently facing a short sale as you will now be able to buy again much more quickly.

If you have any questions about FHA reducing the wait time to borrow after a short sale, or short sales in general, please don’t hesitate to give me a call.

 

August 19, 2013

How to Select a Short Sale Agent

Posted by martikilby under Experienced Short Sale Realtor, foreclosure, Mortgage delinquency, Short Sale, Short Sale Negotiation, Underwater homes | Tags: , , , , , |
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If you are considering selling your home in a short sale, the selection of who will represent you is an important decision. Not only will the agent be marketing your home, but they have the added responsibility of representing you in negotiations with your lender(s) and securing approval of your short sale.

So if you are wondering how to select a short sale agent, here are some questions you will want to ask when interviewing potential agents:

• Does the agent personally do the short sale negotiation or do they hire an in-house or outside negotiator? If they use the services of a negotiator, the following questions should be directed to that person or company.
• How much experience do they have? No number of certifications will make up for lack of experience.
• What is their success rate? It is likely they have had at least one unsuccessful negotiation. Ask them why it did not get approved.
• Ask them to explain the short sale process and what you can expect in terms of a timeline and the documentation you will need to provide. (They should provide you with some sort of a handout explaining the process and describing the required documents.)
• Will they request a preliminary title report? (This is important in order to determine if there are additional liens on the property that will have to be cleared).
• Do they request that the buyer deposit their earnest money into escrow BEFORE the short sale is approved? (This is a good way to make sure you have a serious buyer and keep them in the game and not out looking at other properties. If the sale is not approved, the buyer of course gets their money back).
• How often do they contact the bank during the review process? (They should be in contact with the bank at least once, but preferably twice a week.)
• How often will they provide you with updates? (You should expect an update at least once a week.)
• If you have received a Notice of Default, and/or a sale date has been set, what steps will the agent take to have the sale postponed?
• Are they familiar with HAFA guidelines? Are they familiar with Equator? (If they do short sales on a regular basis, the answer to both should be “Yes”).
• Can they supply you with a reference from at least one client that was happy with their short sale services? Just because they advertise on TV doesn’t mean their clients are happy.
• And finally, are they empathetic regarding your situation, or is their only concern getting the listing? A short sale can be emotionally tough for you the seller and you should work with an agent who cares about you and what you are experiencing.

Do NOT believe them if they tell you they have an inside connection at your bank and can guarantee that your short sale will be approved. That is simply not true. Investors have the final say on approvals and it is highly unlikely that the agent even knows who the investor is at this point, not to mention that investors do not speak directly with negotiators.

If you have any questions about how to select a short sale agent for your San Diego County home, please don’t hesitate to give me a call for a confidential consultation.

 

June 15, 2013

The Heart of Real Estate

Posted by martikilby under Selling your home | Tags: , , |
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Heart of Real Estate

This afternoon as I took a listing, I had finished explaining the agreement to the seller and was showing him where to sign, when he paused, pen raised, sadly stating, “This is the first time I’ve done this alone.” He had lost his partner of 40 years to cancer last September and now needs to sell their home.

In that one moment, the enormity of his loss and the task ahead of him seemed to come into focus and he struggled as he signed the agreement. I asked him if he would like to wait, but he insisted that he needed to turn the page and move on with his life. Selling their home was the first major step.

I put the rest of the disclosures aside, and asked him about his morning. He had taken a drive earlier in the day to explore some different neighborhoods that he is considering as a good area to meet new people. He brightened-up and spent the next 15 minutes telling me about how pleased he was with what he had discovered and seemed genuinely excited. We talked about what he would be looking for in a rental, and I of course told him I would be happy to help him in his search. We chatted about the logistics of actually moving and downsizing and he asked if I could help him locate a good moving company. I smiled and told him that I would do whatever I could to make this transition as smooth as possible.

Sometimes in the flurry of our dollar-crazy real estate world, I think that it is easy to lose sight of the fact that a home for most people is not only a financial investment, but a huge emotional investment. It’s the place where babies are raised, birthdays are celebrated, and loved ones are nursed. When a house has to be sold in a short sale, or because of divorce or death, or sometimes even relocation, I think there is a process of grieving that is often overlooked. Home is our stage, the backdrop for our lives. We paint it, decorate it and instill a little, or a lot, of who we are into the house, which makes the home distinctly ours.

As we walked around and I took photos, he shared little stories about the house and their time there and seemed to relax just being able to talk. I’m sure there will be several moments in the sales and moving process when he needs to stop and take a deep breath. I can’t be his therapist or his best friend, but I’ll do my best as his Realtor to provide a smooth transaction, support him by being responsive to his questions and needs, and most importantly, honor the real significance of his moving on.

 

June 11, 2013

La Mesa Short Sales

Posted by martikilby under Experienced Short Sale Realtor, La Mesa CA, Short Sale | Tags: , , , , |
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Thus far in 2013, here are the La Mesa short sale numbers; 41 detached homes have closed escrow, and 19 other types of homes, including condos and mobile homes. This is down considerably since 2012 when for the same period; there were La Mesa short sale closings for 69 detached homes and 31 for other types of homes.

Although these numbers have decreased in the past twelve months, it is likely that short sales will continue to play a significant role in our real estate market. According to Zillow CEO, Spencer Rascoff, 44% of U.S. homeowners with a mortgage still owe more than their home is worth. For the thousands of folks that remain underwater, a short sale might be a good solution.

If a short sale is an option that you’re considering, you’ve probably heard horror stories about how long it takes, and how few sales are ever approved. That’s often because the listing agent doesn’t understand the short sale process, or lacks the necessary experience and negotiation skills. Steele Group Realty has been negotiating short sales for 5 years and has a 95% success rate for successfully selling and closing short sales throughout the county. Here’s how we take the mystery out of La Mesa short sales and improve your possibilities for a successful close:

• Before listing your home, we determine if a short sale is an appropriate option and if you qualify according to general lender guidelines.
• We research your title report to identify any potential issues and develop a strategy to overcome obstacles.
• If approved to enter our La Mesa short sale program, we aggressively market your home on over 100 high-traffic websites to quickly secure an acceptable offer.
• Our professional short sale negotiating team works with your lender to win approval. We have an unbeatable track record, successfully closing over 95% of all transactions.
• All fees and commissions are paid by your lender, not you.
• Depending on the investor for your mortgage, we may be able to negotiate a relocation allowance ranging from $2000 to upwards of $10,000.
• From start to finish, we guarantee to keep you informed of the progress on your sale with regular phone and email updates.
• Click here for references

For a confidential, no-obligation consultation regarding a La Mesa short sale please contact me at 619-846-9249.

 

April 22, 2013

La Mesa Short Sale Specialist

Posted by martikilby under La Mesa CA, Short Sale | Tags: , , , , , |
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La Mesa Short Sale Specialist

SHORT SALE BUTTON

For many, selling their home in a short sale has been a solution that immediately put an end to the harassing phone calls and sleepless nights. As your La Mesa short sale specialist, here are 3 things you might not know:

Relocation Allowance: Though a relocation allowance cannot be guaranteed, it is not uncommon for the seller to be paid $2,000 – 3,000 by the lender at the close of escrow to help with the costs of moving. It all depends on who the investor is on the loan.

No Deficiency Judgment: In California it is against the law for a bank to file a deficiency judgment against you after a short sale when the loan was a first mortgage on a property from 1-4 units.

No Cost to the Seller: In a traditional equity sale, the seller usually pays the real estate commissions to the listing and buyer’s agent, along with his/her share of the closing costs. In a short sale, the bank pays all of those costs.

I have lived and worked in the La Mesa, Fletcher Hills, and Mt. Helix area for years and have been a La Mesa short sale specialist for over 4 years. Here is what a few of my clients have said about their short sale experience:

“Marti was able to quickly secure a qualified buyer for our home and smoothly handled all of the negotiation with our bank. It was a huge relief to be out from under a mortgage we could no longer afford.” Megan M.

“Our situation with both a first and second mortgage and different lenders was very stressful, and I was leery of doing a short sale… I had heard so many horror stories. But Marti patiently walked us through the process and thoroughly explained every step along the way. Despite a reluctant 2nd lien holder, Marti was able to negotiate the sale and get it done.” Amber B.

“My only regret is that we waited so long to list our home for sale. I would highly recommend Marti to anyone faced with a mortgage they just can’t pay” Lane M.

There are more than 3 things to know about a La Mesa short sale and your options. If you can’t pay your mortgage, please don’t ignore the problem. It is okay to ask for help and advice. Just remember that time is of the essence. Acting early allows you to make the decision that is best for you. Wait too long and your choices disappear. Call me, your La Mesa short sale specialist at 619-846-9249 for your confidential consultation or click here to request your free guide book.

 

December 19, 2012

Is Bank of America Writing Their Own Rules, Again?

Posted by martikilby under Bank of America, Experienced Short Sale Realtor, Short Sale, Short Sale Negotiation | Tags: , , , , |
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For any real estate professional negotiating a short sale, the moment you receive that magical approval letter there is usually a sense of celebration and relief. Not so on Monday when I received an approval letter for a standard short sale I am negotiating for another agent in my brokerage.

All of the terms looked fine, EXCEPT there was no allowance for relocation assistance. This is a Freddie Mac loan serviced by Bank of America that I am managing through the Equator platform, so I messaged back immediately. Money for relocation assistance has been an expectation since day one of the short sale process as the homeowner is a single mom with four children under the age of eleven who is currently off the job and receives disability as her only source of income. If anyone ever needed help with the expenses of moving, it is this poor woman!

The reply back from B of A was that the “borrower did not meet the investor guidelines for relocation assistance.” Are you kidding me? She is penniless! So I requested further clarification regarding the specific guidelines. I was told that “any borrower with a loan with MI (mortgage insurance) is automatically disqualified from receiving relocation assistance.”

Does that make ANY sense? I scoured the Internet and contacted a couple of fellow brokers who are short sale experts and no one could find anything to support this “rule”. In fact, everything I discovered supports that fact that as of 11/1/12 Freddie Mac would pay up to $3000 for relocation assistance, with no mention of an MI exception.

So yesterday morning I called Freddie Mac directly. They were incredibly responsive and helpful. The gentleman I spoke with put me on hold for quite a while as he researched the question, finally coming back on the line to tell me that he needed some additional time to investigate and would get back to me before 5:00 pm. At 4:45 he called to report that in all of his inquiries, no one he spoke with at Freddie Mac could find any reason why MI would disqualify a borrower from receiving relocation assistance. So Freddie Mac has opened an internal investigation to determine if the ruling by Bank of America is within guidelines or if they have overstepped the limits of their authority by denying relocation assistance. Ha!

I was told it might take up to a month to receive results of the investigation, but I feel better knowing that we are doing everything we can to help get our client the money she so desperately needs. And I have to admit it felt pretty good to have my hunch regarding this rule, somewhat vindicated by a giant like Freddie Mac. I’ll be letting Bank of America know about the investigation this morning 🙂

I guess that if it just seems wrong, it never hurts to question.

 

October 9, 2012

Will HAFA II Make Short Sales Easier?

Posted by martikilby under Experienced Short Sale Realtor, Fannie Mae, HAFA, Short Sale, Underwater homes | Tags: , , , , , , , , |
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Effective November 1, 2012, there are new guidelines for all Fannie Mae and Freddie Mac short sales.  The new program, dubbed the Standard Short Sale /HAFA II requires Fannie and Freddie servicers to manage short sales under one uniform process.  It is anticipated that this new streamlined process will make short sales faster, easier and more accessible to underwater borrowers.   Under the new program:

  • Homeowners do not need to be delinquent on their mortgage payments if they meet other hardship criteria.
  • Deficiency judgments will be waived in exchange for a cash contribution from certain qualified homeowners.
  • Military personnel who are relocated will automatically be eligible.
  • Up to $6,000 will be offered to  2nd lien holders to speed the process.

The new hardship criterion includes:

  • Death of a borrower or  co-borrower
  • Divorce
  • Unemployment
  • Disability
  • Relocation for a job

The good news is that this program should allow more homeowners to participate in a short sale and get out of a negative equity situation, even if they are not delinquent on their mortgage.  The bad news is that even with no missed payments; their credit will suffer as they will have settled their mortgage debt for less than the amount owed.  In the world of credit reporting, a short sale is a short sale, whether or not there was ever a missed payment or a Notice of Default recorded.

Overall, HAFA II should allow more homeowners to take advantage of a short sale and standardized processing can’t help but improve the whole experience for everyone involved.  As a Realtor who lists and negotiates short sales, I welcome anything that will streamline the often cumbersome and lengthy process.

If you live in San Diego County and are considering a short sale, or if you’re an agent looking to out-source negotiation, please call me for a confidential no-obligation consultation.

 

June 7, 2012

More Short Sale BS with Bank of America

Posted by martikilby under Bank of America, Short Sale Negotiation, VA loans | Tags: , , , |
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Well they’ve done it again.  B of A has figured out one more way to stall a deal, and waste the time and money of all parties.  I’m furious.

We have an approved Bank of America short sale that is currently in escrow and scheduled to close on June 20th.  The only condition for final loan approval for the buyers is an IRS form 4506T, which basically just confirms that their tax return has been received and processed.  The buyers have checked with the IRS, and it appears that their 2011 return has not yet been processed so the 4506T probably won’t be issued in time to close on the 20th.

I asked Bank of America for a 10 day extension and was told that they don’t allow extensions on VA short sales and that if we don’t close on time we must start the entire process all over!!  From the very beginning!  This means re-submitting the seller’s financial information, listing agreement, and offer to purchase and then waiting to be assigned a negotiator.  The VA would then order another appraisal and we would again wait for approval. The entire process will take at least 2-3 months.  All of this extra effort and wasted money because they won’t extend our closing date for 10 lousy days!

And of course during this process, there is no guarantee that our buyers won’t get frustrated and just walk away…..how can anyone run a business like this???

 

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