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Posts Tagged ‘deed in lieu’

Study Finds Consumers Will Pay Credit Cards Before Mortgages

Tuesday, April 5th, 2011

Chicago-based credit bureau TransUnion recently conducted a study about bill-paying. The results showed that, when consumers are choosing which bills they can afford to pay, they are more likely to pay on their credit cards than their mortgage payments.

Unfortunately for mortgage companies, this is not a new trend, but one that TransUnion has been consistently finding in its surveys for the past three years. The only slight positive TransUnion could report is that the number of consumers current on credit cards, but delinquent on their mortgages had slightly declined. The number, however, is still more than 70% higher than at the start of what’s now being called the “Great Recession.”

“The percentage of consumers current on their credit card payments and delinquent on their mortgages first surpassed the percentage of consumers current on their mortgages and delinquent on credit cards in the Q1 2008,” the company said in a statement. “Although many industry analysts believed that a reversion to the conventional payment hierarchy would ensue once the recession had concluded, this has not been the case.”

Apparently, current economic and housing environment has consumers reevaluating their priorities.

Tags: 100 short sales, bank of america, countrywide, deed in lieu, foreclosure, loan mod, short sale, Short Sale questions, unemployment
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The HAFA Failure

Friday, April 1st, 2011

The Treasury Department released a new report on the government’s foreclosure prevention efforts Friday.

Treasury reports that as of the end of February, 4,488 homeowners completed a short sale or deed-in-lieu under the Home Affordable Foreclosure Alternatives (HAFA) program. The federal program provides up to $3,000 for relocation assistance after a homeowner exits the home.

Another 10,177 homeowners have agreements in place with their servicers for HAFA short sale transactions. Treasury notes in its report that the HAFA short sale timeline “lasts at least 120 days,” and requires the cooperation of junior lien holders in order to complete the transaction.

In addition, Treasury reported that 26,147 homeowners were put into permanent first-lien HAMP mods during the month of February, bringing the total number of active permanent modification under the program to just over 557,000.

The number of borrowers who have fallen out of the program stands out in the Treasury’s list of program stats. Since HAMP began in early 2009, over 1.5 million trial modifications have been initiated. More than 746,000 trials were canceled, and 76,600 mods have been cancelled after they were made permanent, for a fall-out rate of more than 50 percent.

Tags: barack obama, deed in lieu, foreclosure, HAFA, HAFA short sale, president obama, short sale, short sales, treasury
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2nd Annual Wine and Cheese Event

Thursday, September 16th, 2010

UPCOMING EVENT 9/30/2010: You are invited to the 2nd Annual Short Sale Pros Wine and Cheese Event. We look forward to you joining us and many of San Diego’s leading Agents for a fun afternoon of networking, wine and cheese! We are announcing our Guaranteed 3% Commission to agents on ALL deals!!

You will have the opportunity to meet the entire Short Sale Pros team and get to know everyone behind the scenes who are dedicated to making sure you and your homeowners have a successful short sale!

We will be giving away a chance to receive DOUBLE COMMISSION on your next short sale and a new Apple i-Pad!

RSVP now by emailing events@shortsalepros.com or Call Now and Get Registered Today –> (858) 346-1600

Tags: 100 short sales, agent, deed in lieu, foreclosure, housing market, loan modification, short sale, short sale pros, Wine and cheese
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New HAMP Report Disappoints

Monday, August 23rd, 2010

The administration released new numbers Friday on its principal foreclosure prevention initiative, the Home Affordable Modification Program (HAMP). Housing analysts and market observers say the results are disappointing at best.

The latest performance report shows that nearly half of the homeowners approved for trial modifications have fallen out of the program. As of the end of July, 616,839 HAMP trials have been canceled, out of the 1,307,489 trials started since the program began.

The government and “distressed” homeowners are seeing Short Sales more and more as a viable option. Statistics like these released Friday compliment our feelings that the free market and capitalism will ultimately provide the solution to this unprecedented market correction.

Tags: 100 short sales, agent, barack obama, california, countrywide, deed in lieu, foreclosure, president obama, short sale, short sale pros, short sales, unemployment, washington
Posted in Homeowners, Realtors, Short Sales | No Comments »

2nd Commercial Short Sale CLOSED

Wednesday, June 16th, 2010

Short Sale Pros successfully completed their 2nd Commercial Short Sale this week!!! We are beginning to see more and more of these deals surface. We will be launching a Commercial Short Sale program to the public shortly. If you have any deals now, we will review them on a case by case basis.

Michael Corradini

CEO, Short Sale Pros

Tags: 100 short sales, california, commercial, commercial short sale, deed in lieu, foreclosure, obama, short sale
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1.7 Trillion in foreclosures still ahead?

Sunday, May 23rd, 2010

RealtyTrac and Trulia announced last week that 41% of people would consider a “Strategic Default”, or choose to stop paying their mortgage even if they are capable because of negative equity (owing more than your home is worth).

First American Core Logic says there are 130 million homes in the United States. If 20% of them are upside down, or 26 million homes, and 41% walk, then 10.4 million homes would go into default.

The National Association of Realtors says the median home price is $166,100, so if you take 10.4 million homes by $166,100, you have over $1,727,400,000,000 in foreclosures ahead.

Let’s hope strategic defaults reach no where near the 41% level. It is a big problem and Short Sale Pros always advises against it.

Tags: 100 short sales, agent, bailout, bankruptcy, california, deed in lieu, foreclosure, foreclosure alternative program, obama, short sale, short sale pros, short sales
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Short Sale, Deed-in-Lieu, Foreclosure – How do Each Affect When You can get Your Next Mortgage?

Monday, April 20th, 2009

Monday, April 20, 2009

Too many homeowners act on bad advice, false assumptions or allow themselves to be conned when choosing one of these options.

Over the last couple of weeks, in speaking with numerous homeowners, real estate agents and investors, I’ve noticed that there’s a lot of confusion and misunderstanding about the impact of Short Sales, Deed-in-Lieu’s and Foreclosures on one’s ability to get a new mortgage.

Over and over again, I’ve heard self-proclaimed experts make many incorrect statements. So many, that I felt compelled to do my best to separate reality from myth, fact from fiction.

Getting a New Mortgage
It’s actually pretty easy to provide concrete proof of when it’s possible to qualify for a new mortgage after a Short Sale, Deed-in-Lieu or Foreclosure.

The mortgage meltdown has reduced the main players in the mortgage industry to FNMA, FHLMC, FHA, VA and RD. Gone are the numerous subprime and Alt-A players that seemed to have a mortgage program for anyone.

FNMA – FEDERAL NATIONAL MORTGAGE ASSOCIATION

Guidelines changed regarding these issues on June 25, 2008 with Announcement 08-16.

Short Sale: FNMA refers to these as “Preforeclosure Sales” and requires a 2 year waiting period after the sale, with acceptable re-established credit.

Deed-in-Lieu: minimum waiting period of 4 years, with a minimum of 10% down required for 7 years. There is a 2 year exception for extenuating circumstances.

Foreclosure: standard of 5 years waiting period, with minimum of 10% down & 680 credit score for 7 years. Primary residences only, no second homes or investment property loans for 7 years. There is a 3 year exception for extenuating circumstances.

Bankruptcy: Chapter 7 requires a 4 year waiting period, but there is a 2 year exception for extenuating circumstances.
Chapter 13 is 2 years from discharge date or 4 years if the Chapter 13 is dismissed (not completed).

FHLMC – FEDERAL HOME LOAN MORTGAGE CORPORATION
Guidelines changed regarding these issues with the release of Bulletin October 17, 2008. For some reason FHLMC isn’t as user-friendly with their updates in comparison to FNMA. Instead of listing the specific changes in their Bulletins like FNMA, they force you to refer to their guidelines to find the changes. The ones related to our topic are found in Chapter 37-7. FHLMC could definitely use some PR coaching to be more user-friendly.

Short Sale: FHLMC refers to these as “Short Payoffs” and requires a 4 year waiting period after the sale, with acceptable re-established credit. There is an exception for extenuating circumstances of 2 years.

Deed-in-Lieu: minimum waiting period of 4 years, with a minimum of 10% down required for 7 years.

Foreclosure: standard of 5 years waiting period, with minimum of 10% down for 7 years. Primary residences only, no second homes or investment property loans for 7 years. There is an exception for extenuating circumstances of 3 years.

Bankruptcy: Chapter 7 requires a 4 year waiting period.
Chapter 13 is 2 years from discharge date or 4 years if the Chapter 13 is dismissed (not completed).

FHA – FEDERAL HOUSING ADMINISTRATION
FHA is a part of HUD and as of this point does not differ in how they address Short Sales, Deed-in-Lieu’s or Foreclosures. They’re all treated the same. Their great source for their guidelines can be found at http://www.fha-lending.com/CD/HUD%204155r-5.pdf.

All: standard of 3 years waiting period required. There is an exception for extenuating circumstances.

Bankruptcy: Chapter 7 requires a 2 year waiting period, minimum 12 months with extenuating circumstances.
Chapter 13 requires 12 months of timely payments and must have court’s authorization.

VA – VETERANS ADMINISTRATION
The credit requirements are the same as FHA. More information can be found at: http://www.homeloans.va.gov/veteran.htm

RD – RURAL DEVELOPMENT
A part of the U.S. Department of Agriculture. The credit requirements are mostly the same as FHA & VA. More information can be found at http://www.rurdev.usda.gov/CA/pdf%20files%20and%20documents/GRH%20UNDERWRITING%20GUIDEL.pdf

Bankruptcy: minimum 3 year waiting period required, no difference between Chapter 7 or 13. Extenuating circumstances may be considered for exceptions.

I highly recommend checking out some of the links I’ve included. Direct anyone giving you contradictory information to them, so they may reference the correct facts.

Tags: credit, deed in lieu, foreclosure, short sale
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