Real Estate Know How From RRES

Robo-Signing Settlement is Historic: Not Without Controversy

2012-02-17T13:51:00.000-08:00

Robo-Signing Settlement is Historic: Not Without Controversy

On the historic date of February 9th, the United States Justice Department released the details of a $25 billion dollar settlement they reached with 5 major banks. “The settlement occurred because the banks were accused of widespread use of “Robo-signing,” said Donna Tashjian, CDPE with Keller Williams.

Robo-signing is a practice employed by banks to automate the processing and approval of foreclosure proceedings against homeowners. “In many cases,” said Tashjian, “the banks were discovered to have processed thousands of foreclosures in a single day, all signed by one person.”

Donna Tashjian, a Certified Distressed Property Expert (CDPE), believes that the settlement presents a unique opportunity for homeowners who are in danger of losing their home. “The reality is, the banks would rather explore other options than foreclosure and this settlement gives them both the motivation as well as the funding to explore them,” said Tashjian.

Although the settlement is the largest government industry settlement since the $250 billion Big Tobacco settlement in 1998, there has been opposition on the grounds that the settlement does not go far enough to alleviate the $750 billion in negative equity in the country.

The participating banks are Bank of America, Ally, Chase, Citi and Wells Fargo. 5 billion dollars consisting of $2000 payments to borrows who were foreclosed on between Jan 1, 2008 and December 31, 2011 and who were subjected to the fraudulent practices. The other 20 billion will be used towards foreclosure alternatives. It is important to note Fannie Mae and Freddie Mac insured loans are not impacted by this settlement. Money will be distributed differently for the different states.

If you would like more information and contact numbers fore each of the lender, you may contact me if you wish. This is an important time as we all do our part to help homeowners avoid foreclosure. We bring tangible results with knowledge.

To your Success,

Donna

Where is the Real Estate Market Headed in 2012?

2012-01-18T15:50:00.000-08:00

Where is the Real Estate Market Headed in 2012?

On Thursday, Veros Real Estate Solutions released its VeroFORECAST real estate market forecast for the 12-month period ending Dec. 1, 2012.

Their findings indicate “the national housing recovery will continue to be gradual and slow without any significant changes in markets.”

Veros predicts up to four percent appreciation in the strongest markets, including Fargo and Bismark, North Dakota; the Washington, D.C. area; Honolulu, Hawaii; and Anchorage, Alaska.

Veros projects the five weakest markets—which include areas of California, Nevada and Florida—to depreciate five to six percent over the next year.

While this is welcome news for the country’s strongest markets, the reality is, 1 in 5 homeowners are underwater on their mortgage. For many of them, the recovery isn’t coming quickly enough. Housing prices remain 33% below 2006 levels, so even at four percent appreciation, millions of homeowners remain in serious peril.

There is opportunity to help many homeowners with foreclosure advoidance. We would love to help you here in Grand Rapids Area and beyond.

Please check out our websites or call for more information.

To Your Success!
Rapid Real Estate Team

www.ShortSaleRRES.com
www.RRES-ManageMyShortSale.com

Take action now to turn it around in 2012

2011-12-02T09:25:00.001-08:00

Take action now toturn it around in 2012

Recent economic upheaval has taken a hefty toll. Lookingforward to 2012, it’s impossible to know what’s next and the kind of an impactthat an upturn or a downturn at the national level stands to have on yourfamily’s finances.

Regardless of what happens in Washington or on Wall Street,two things are very clear: you are not alone and now is the time to prepare fora new normal.

With a national epidemic of unemployment or underemployment,and 25 percent of the homeowners in the country owing more on their home thanthey could net for it in today’s market, homeownership for many has become afinancial liability. Not being ableto make payments on a home that you can’t afford to sell feels like an awfultrap, but the fact is, there are solutions—and foreclosing on your mortgage isnot one of them.

Loan modification is an option for many and banks areincreasingly willing to negotiate short sales. In many cases, they’re offeringsizable financial incentives to help financially strapped homeowners to get afresh start on their lives.

As real estate professional who has achieved the CertifiedDistressed Property Expert (CDPE) designation, it is my mission to givehomeowners the gift of a fresh start.

Contact me TODAY and let’s get started.

Donna Tashjian

Keller Williams

616-803-9456

DonnaT@grar.com

www.DonnaHelpsHomeowners.INFO

Foreclosure Fears Foster True Grief

2011-11-02T13:40:00.001-07:00

Reports of foreclosures by the millions have been in the news so much over the past few years that to some, it might seem like the new normal.

But as a real estate professional who is in the trenches with financially stressed homeowners every day, it never for a second feels to me like business-as-usual.

The prospect of losing ones home is right up there among the major sources of grief, and often, it goes hand in hand with other tragic setbacks such as the loss of a job, a divorce, death of a loved one, mounting medical bills or skyrocketing mortgage payments.

Unfortunately, the first stage of grief is denial, and that’s even more the case when the threat of foreclosure is looming. No one wants to talk about or admit financial troubles—even when millions of others have founds themselves in a similar spot. It’s completely understandable, but for homeowners who are behind on mortgage payments, decisive action is often the most critical step toward ensuring the best possible solution.

As a real estate professional who has sought out the Certified Distressed Property Expert (CDPE) designation, I help homeowners to deal with every aspect of the grief and uncertainty that accompanies a mortgage which is no longer manageable. In the process, I help them to get on a path of financial solvency.

If you or someone you care about would like to change the course of a life that’s facing foreclosure, I get it and I can help.

Contact me today at 616-803-9456 or email to DonnaT@grar.com

Donna Tashjian

Keller Williams

630 Kenmoor SE

Grand Rapids, MI 49546

Foreclosure Market Trends-Oct 2011

2011-10-24T15:50:00.001-07:00

Nationwide Agent Network

Donna Tashjian

Keller Williams

630 Kenmoor SE Suite 101, Grand Rapids, MI 49546

“I am able to assist you in the prevention of foreclosure. I can help you find the property best suited to your needs. I am here to act as your local real estate specialist, CDPE. Buying or Selling”

Phone: 616-942-9540

Email: DonnaT@grar.com

License #: 6501350915

October 2011 Volume 5, Issue 15

Download PDF File

6 month Michigan Foreclosure Trends

NOD

NTS

NFS

LIS

REO

Search for Investment Properties>

Michigan Foreclosure Activity Rises in August

Foreclosure filings — default notices, scheduled auctions and bank repossessions — rose in Michigan, where 13,016 properties were reported in August, a 19 percent increase from July but 27 percent below the level reported for August 2010, according to the latest RealtyTrac® U.S. Foreclosure Market Report.Complete Story

Foreclosure Activity on Slow Burn

By RealtyTrac Staff

Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 610,337 properties in the third quarter, an increase of less than 1 percent from the previous quarter and a decrease of 34 percent from the third quarter of 2010, according to RealtyTrac. The report shows one in every 213 U.S. housing units with a foreclosure filing during the quarter. Foreclosure filings were reported on 214,855 U.S. properties in September, a 6 percent decrease from August and a 38 percent decrease from September 2010. September marked the 12th straight month where foreclosure activity decreased on a year-over-year basis.Complete Story

Here are some of the most recent Investment opportunities in the area.

Pre-Foreclosure

5 Mile Rd NE
Ada,
MI 49301

Amount
N/A
Beds/Bath
Sq. FT
0/0
0

Property Type	Address	Amount	Default	Sq. Ft.
Bank-Owned	Whitneyville Ave SE, Alto, MI 49302	$220,000	N/A	3,911	GET DETAILS
Auction Auction Date: 11/2/11	Egypt Valley Ave NE, Belmont, MI 49306	$53,712	N/A	0	GET DETAILS

View more properties in Kent County

Slideshow: Why Isn't Real Estate Rebounding?

By Jim Saccacio, RealtyTrac CEO

In this presentation given to the North Dallas Chamber of Commerce, RealtyTrac CEO James Saccacio shows how the real estate recovery has been stalled by low consumer confidence, weak demand, government intervention, sloppy foreclosure practices and the infamous shadow inventory. The presentation digs into the true numbers behind the shadow inventory and proposes one simple solution from Saccacio to erase a big chunk of the shadow inventory without heavy-handed government intervention. Complete Story

FORECLOSURE TRENDS : AUGUST, 2011

NATIONAL		MICHIGAN	KENT CTY
NODs	40,765	5,065	254
NTSs	63,347	3,942	182
NFSs	21,058	0	0
LISs	38,115	0	0
REOs	64,813	4,009	318

Notice of Default (NOD)

A non-judicial document filed by a trustee that starts the foreclosure process.More about NOD

Lis Penden (LIS)

Notification of pending lawsuit. A judicial document filed by an attorney or trustee that starts the foreclosure process. More about LIS

Auction / Notice of Trustee's Sale (NTS)

A filing by notice announcing a public auction. More about NTS

Notice (Judgment) of Foreclosure Sale (NFS)

An order signed by a judge directing to sell the property at public auction.More about NFS

Real Estate Owned (REO)

The final step in foreclosure process in which property ownership returns to lender. More about REOs

What's the difference between Short Sale & Foreclosure?

2011-10-13T14:35:00.000-07:00

What is the difference between a Short Sale & Foreclosure?

One of the most frequently ask questions is, "What is the difference between a foreclosure and a short sale?". Let's take a few minutes to explore this question.

Foreclosure: A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances. See: efanniemae.com

Short Sale: A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage within 2 years.
Foreclosure: An investor who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances. See: efanniemae.com

Short Sale: An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed investment mortgage within 2 years (see page two for LTV ratios).
Foreclosure: With any Mortgage Company on any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed-in-lieu thereof in the last 7 years?” This will affect future rates.

Short Sale: With any Mortgage Company there is no similar declaration or question regarding a short sale. FHA – If current at the close of short sale, a homeowner may apply for an FHA loan immediately. If homeowner is late before close of short sale closing, will be eligible for FHA loan after 3 years.

Next time we will review how this effects credit scores. Stay tuned.

To Your Success!
Donna Tashjian
www.DonnaHelpsHomeowners.INFO
616-803-9456

Renewed Trust For Tough Times

2011-10-13T14:31:00.000-07:00

Renewed Trust for Tough Times

Does it feel like trust is one of the major casualties of the economic meltdown of 2008 – followed by the “Great Recession,” the “Jobless Recovery” and now the threat of a “Double Dip Recession?”
Weren’t we assured that home values were destined to go up and up and up?
There have been lots of promises that help is on the way—and lots of warnings of scams and schemes that have only served to confuse the matter. So where’s a homeowner who’s underwater or overleveraged to turn?
Here’s the bottom line: the choices that homeowners make when they feel they are at the end of their rope will have ramifications for years to come on their ability to qualify for credit, their job prospects, their security clearance and their overall finances. When a family’s financial trajectory is rapidly heading in a negative direction, there’s no substitute for the helping hand of a knowledgeable expert who has the integrity, the experience and the training to reverse the course—someone who is tapped into regulatory initiatives and can separate fact from fiction.
It is my mission to serve as a credible source of information and perspective to homeowners who have found themselves in a tough situation and need help sorting through their options. That’s why I sought out the Certified Distressed Property (CDPE) designation—the most renowned and recognized credential in the distressed property field, and it’s why I continue to stay on top of regulatory and industry developments that impact options available to homeowners who are struggling with their current financial situations.
My message to homeowners who do not know where to turn: there is hope. Foreclosure is not inevitable and neither the government nor your bank wants to see that happen. No one expected to find themselves on the brink of foreclosure, but I have worked with countless clients who have managed to turn their financial trajectory around and get on a path of financial recovery.
It CAN be done! And it would be my privilege to help.

To your Success!
Donna Tashjian
www.DonnaHelpsHomeowners.INFO

U.S Treasury Updated HAFA Guidelines

2011-04-13T15:57:00.000-07:00

The U.S. Treasury Department has updated its Home Affordable Foreclosure Alternatives (HAFA) program guidelines. The changes take effect June 1, 2011. New policies include a new acknowledgment requirement. The servicer must send written confirmation to the borrower within 10 business days following the receipt of a request for either a short sale or deed-in-lieu to acknowledge the request.
This timeline is now no more than 45 calendar days (not business days) from the date of the borrower’s request. Within that 45 days, servicers have to give the borrower a written approval, denial or alternative offer as well as a copy of the executed sales contract and any supporting documents dealing with subordinate liens. If the mortgage loan servicer fails to do this, it must at least send the borrower a written status notice within that same time period, along with written updates every 15 calendar days until the final decision is made.
In addition, servicers will now be able to approve short sales to non-profit organizations with the stated purpose that the property will be resold or rented to the borrower. This was previously prohibited by the program’s “arm’s length” requirement.
So Realtor's, what do you think of these changes? Will it help make HAFA more effective? Or are these new guidelines just words on paper until they get fully implemented?
Stay tuned we will keep you updated!

To Your Success!

Why Do Short Sales Take Sooo Long?

2011-04-12T09:56:00.000-07:00

Learn what goes on behind the scenes in short sales.

Most folks these days know what a short sale is, but here’s a quick review: A short sale is when a home is bought for less than what the seller owes the bank.

The lender being “shorted," or getting paid less than they are owed, has to agree with the terms of the new buyer and the purchase price being offered. For more information, check out Mortgage News Daily’s explanation here: What is a Short Sale and how do they work?

Simple?, right? Wrong.

Anyone who has ever been involved in a short sale, regardless of whether they were the buyer or seller, can tell you that there is nothing easy, quick, or short, about a short sale.

A typical short sale will probably last between three to six months (after a new buyer has made an offer) and there have been cases where the transaction lasted close to two years.

No, that is not a typo. Two years.

Most people don’t understand the biggest question related to the long length of a short sale, which is: Why does it take so long? "Short sale" seems like a misnomer.

There are many reasons why a particular short sale would take so long. Some examples include the amount of sales transactions an individual bank negotiator might have in their pipeline at any given time. I’ve heard the stack can be several hundred at a time.

It could take days, if not weeks, for this person to get to the file. Another reason is the amount of documentation required (er, requested) by the lender.

It could take another couple of weeks sending emails and overnight packages back and forth before the bank accepts(not yet even approved) the new submitted offer initially, simply because the “package” isn’t how they want it to be.

The reasons above are the obvious examples of why a short sale takes so long. And, quite frankly, the perception is that these reasons are the dominant factors. There is another cause, though, that is actually more important and “eye-opening” than any other reason listed here. It's one that most people never even conside, or are even aware exists. It is, in fact, the most important reason for the delay of a short sale.

For the explanation, I’m going to use Bank of America as the example, primarily because these statistics are actually their numbers. Of the millions of home loans that Bank of America services, it is reported that only 15 percent of them are actually “held” by Bank of America. The other 85 percent are sold on the Mortgage-Backed Security (MBS) secondary market.

The secondary market allows Bank of America to replenish the cash reserves so they can originate more mortgages to more consumers. The 85 percent of “sold” loans are comprised of approximately 500 investors on Wall Street. Of these 500, only about 50 are the big public banks and thrift institutions. The other 450 are private investors and hedge funds.

Confused yet? Now, let’s go back to the beginning of a short sale transaction.

After the buyer’s offer has been successfully submitted to the bank for “approval," the bank negotiator has to then turn around and hand it to the entity holding the note. So, in Bank of America’s case, only 15 percent of the time can they keep this negotiation in house and get an answer quickly. Some 85 percent of the time they have to go outside the institution to get the approval from the investor holding the note.

Once the offer has been taken outside Bank of America for approval, the negotiator now has to deal with this third party investor and convince them that the offer on the table is the best they’re going to get, and to validate the value of the property (and the offer) to the investor.

Now, for those investors with hundreds of millions or even billions of dollars under management, having to lose some cash on a short sale is not a big deal, or at least it’s an acceptable loss under the circumstances.

But what happens if the investor is not a big bank? What if the investor is a smaller entity? For example, picture this scenario: Back in 2005, the Hillside Unified School District pension fund (made-up school district for our illustration) decided to invest in the MBS market, sold on the great returns that the MBS market was achieving as home values continued to skyrocket. The HUSD Pension fund took $2 million of the cash and invested into the market.

Now, fast-forward to March this year, where home values have dropped by as much as 50 percent or more nationwide. And now, you have a homeowner needing to sell their home “short," say, $200,000 less than the mortgage owed.

The nice polite bank negotiator from Bank of America now has the lovely job of trying to convince the HUSD pension fund that they are going to have to accept a big loss on their investment.

What do you think the HUSD Pension fund says to the negotiator? NO.

That’s right, the retirees of the HUSD don’t want to agree to losing $200,000 (just on this one deal), and so they decline the first offer they get, hoping to get more.

The negotiator then comes back to the listing agent with the official decline, telling them to up their offer. The listing agent turns around and tells the buyer’s agent, etc.

The buyer, of course, says, “but the comparables in the neighborhood don’t support anything higher…” and may decide to walk away.

OR, even if the buyer is willing to up their purchase price, the appraisal probably won’t support the new, revised offer, and the run-around starts all over between buyer, buyer’s agent, seller’s agent, bank negotiator, and investor. Ugh.

While this little scenario doesn’t relieve the utter anguish involved in today’s new short sale process, I hope it certainly explains the "why" a little better.

With all of the red tape, Rapid Real Estate Solutions and many professionals are closing short sales every day. It is important to work with professionals who know the system and what each lender is looking for in their packages.

To Your Success!

2010 Foreclosures up 1.7%

2011-02-01T18:29:00.000-08:00

Foreclosure data company RealtyTrac recently released its 2010 year-end data indicating a 1.7% increase in U.S. property foreclosure-related filings. Sorry, Las Vegas, but you received the dubious honor of being #1 for foreclosure filings, with a whopping 1 in 9 properties.

Foreclosure activity also increased in 149 of the 206 metro areas exceeding a population of 200,000.

RealtyTrac CEO James J. Saccacio said in a statement, "Foreclosure levels remained five to 10 times higher than historic norms in most of those hard-hit markets, where deep faultlines of risk remain and could potentially trigger more waves of foreclosure activity in 2011 and beyond."

Agents, turn this into an opportunity to help distressed homeowners BEFORE they get to the point of foreclosure. It is Rapid Real Estate Solutions goal to help agents assist distressed homeowners facilitate short sales in Grand Rapids and all over Michigan.

You may visit our website for solutions.

www.RRES-ManageMyShortSale.com and www.ShortSaleRRES.com

Let us know your questions!

To Your Success!

7 Million Homes in Shadow Inventory Will Take 40 Months to Clear

2010-11-05T18:58:00.000-07:00

Global rating company Fitch Ratings has released its figures about the amount of shadow inventory in existence. It estimates 7 million homes make up the shadow inventory. Based on the current liquidation trends, an inventory of this size will take 40+ months to clear. That’s nearly three and a half years! And the U.S. housing market has already been absorbing these distressed properties for the last two years.
For the 23 judicial foreclosure states, it will take more than the 40 months estimated due to the lengthier foreclosure process. For nonjudicial foreclosure states, the inventory will clear slightly faster than the projected 40 months.

Fitch defines its shadow property supply as any loans which are delinquent, in foreclosure or are already bank-owned (REOs). The firm acknowledges that the volume of newly delinquent mortgages has started showing signs of improvement. However, the rate of liquidation for already existing distressed properties has not improved due to limited demand and expanded initiatives by mortgage servicers to attempt loan modifications for homeowners in trouble.

“While the reduced volume of distressed sales since 2009 has temporarily helped home prices, Fitch believes that the extension in foreclosure and liquidation timelines is simply prolonging the housing correction underway,” the agency said in its report issued at the start of November. “Recent concerns about the title-transfer process for foreclosed homes could further weigh on demand.”
Real estate investors will also be happy to note that Fitch is estimating an additional 10% home price decline nationally before this market correction can completely work itself out.

Rapid Real Estate Solutions serving in Michigan located in Grand Rapids
To Your Success!

Short Sale Tricks

2010-10-30T18:32:00.000-07:00

Halloween may be just around the corner, but you hear short sale horror stories all year. Do you ever wonder if you need to ask Trick-or-Treat before showing a short sale? Not if you are working with an experienced short sale agent.

What makes an agent an experienced short sale agent? Is it the number of listings? Trick. Is it the number of closed short sales? Or is it the number of short sales closed with different lenders and lender combinations? Treat.

As an experienced short sale agent, I have to understand how Lender A works with Lender B. I just closed a short sale the first of October where I knew that Lender A on the first mortgage would be fairly easy to get approved. I also knew what percentage (5%) of the second mortgage loan balance they would approve. Sounds simple, but not so fast. The second mortgage in this instance was for $325,000 and Lender B requires 20% of their loan balance.

So what needs to be pulled out of your agent bag of tricks to get this deal closed?

Step 1. The property needs to be marketed for a cash-heavy buyer.
Step 2. Have buyer’s agent call you before showing.
Step 3. Qualify the agent’s buyer before letting them show.
Step 4. Only show to qualified buyers.
By implementing these same steps above, I was able to find the right match to buy this property. Total time on the market? Six months with less than 60 days from pending to closed!

NAR Supports Bill in Congress Proposing Short Sale Speed-Up…When Will Everyone Learn?

2010-09-23T16:39:00.000-07:00

Okay, so has no one learned yet that the government is not the place to turn for positive effects on the housing crisis? Seriously, we have now been through a couple of years of highly ineffective programs. More votes, more bills, more directives….yada yada yada…are not going to fix our housing mess.
Apparently NAR and Congressional Representatives Robert Andrew and Tom Rooney, have not been kept up to speed. They are trying to push HR 6133, “Prompt Decision for Qualification of Short Sale Act 2010” through Congress. The Bill would require lenders to provide a response to short sale requests within 45 days.
I have to give the guys props for “caring” about speeding up the short sale process. I just don’t appreciate more tax dollars being spent to create, manage, and watch-dog a program that will be as lackluster as MHA’s HAMP and HAFA and not to mention the many other programs hanging out there.
Do I think lenders need to speed up their short sale review? Of course I do. I get as frustrated as anyone when a lender does not move efficiently to provide a short sale offer response.
According to data released by NAR, the number of properties on the market that are listed as potential short sales is rising. In Grand Rapids, MI it is increasing like most markets in Michigan and across the nation.
Lengthy lender response times make short sales a MLS pariah. Buyers hate to wait through the process and worse often avoid them. Housing recovery will only come through an increase in sales. If one quarter to one third of available listings are truly short sales, then buyers need to be given some assurance the short sale process will move along quickly to get those properties off the market. Of course, our omnipotent government has the answer.
Whoa….stop the presses.
As much as I must agree with our Congressional Representatives and with NAR that the lenders need to get moving. I must also point out some other obvious flaws to timely short sale approval that are simply the fault of un-proactive homeowners, untruthful homeowners, and inexperienced agents.
If it walks like a duck, don’t tell people it’s a horse. (huh??) The number one reason that buyers bail on a short sale offer is not the lender’s slow response time. There are two main reasons that go hand in hand. One, no one set proper expectations with the buyer about the process. Two, no one screened for a buyer that would best meet the terms of the transaction. What do I mean by terms? They understand the time-frame and have no issues with financing or liquidity to meet the final approval.
To properly vest a buyer to a short sale, an agent should know their lender profiles or work with a third party short sale facilitator that knows how to look at the lenders, number of liens, seller financial issues, and investors behind the note, to analyze and predict the best course of action.
In our personal listings we have a high buyer ‘vest’ rate. We analyze the deal ahead of marketing and then spend time screening for a buyer that will ‘stick’ to the end of the process.
Should the HR 6133 Bill pass Congress, we can all hope the lenders actually jump to follow its requirements. No different than other programs, most lenders will be provided too many loop-holes and will not comply. What desperately underwater homeowners need are highly trained short sale professionals, not more legislation. You may visit our website for more information.
To Your Success!
Rapid Real Estate Solutions
Donna Tashjian with help from Short Sale Daily News
http://www.RRES-ManageMyShortSale.com

Homeownership in REO's versus Short Sales?

2010-09-23T16:37:00.000-07:00

Okay, so I have driven into the ground a hundred times the issue around home ownership in a REO versus a short sale. But, today I have had to do it again twice.
Please people….It is simple. In a short sale, the homeowner owns the home until closing. The bank does not own the home, but has to allow (approve) receiving a net less than they are owed. In a REO, the lender has foreclosed and taken title. In a REO, the bank owns the home…the bank is the seller.
Buyers are the worse for expecting an offer made on a short sale to be submitted to the lender for review whether or not the seller has already accepted an offer. Newsflash, the seller will be shown all offers made on a listing because they own the home. However, once they accept an offer, only the accepted offer is sent to the lender for review for short sale approval because the lender does not own the home.
If a buyer presents an offer at the same time that other offers have been presented, and no offer has yet been accepted, then we are in a multiple offer situation. A multiple offer situation with a short sale is handled no different than in a standard retail sale. The seller chooses the offer to accept. The offer accepted on a short sale listing is the one sent to the lender. It is on the agents to make sure everyone understands this.
This is important to remember in short sale transactions. As always Rapid Real Estate Solutions helps to simplify the short sale process. Our helpful website is www.RRES-ManageMyShortSale.com
To Your Success!

Is the Short Sales End in Sight?

2010-09-02T17:42:00.000-07:00

Now is the time to build your short sale business more than ever. Why? Short Sales are NOT going anywhere for a long time to come. As agents, over 50% of your potential closings will likely include a short sale transaction. As investors, a short sale offers more control of the discount process than an REO buy. As investors and agents who have also optimized your business with added income streams through working with loss mitigation for real estate professionals, the next two years will be the catalyst for immense growth.

According to recent reports, there are nearly 2.4 million prime loan Borrowers across the U.S. that are seriously delinquent on their mortgages. According to the Center for Responsible Lending, there are 9 million homeowners predicted to go to foreclosure between the start of 2009 and the end of 2012. Realtytrac predicts 3 million foreclosure filings by the end of 2010 and over 1 million bank repossessions.

RealtyTrac just reported that residential foreclosures fell in the first half of 2010 by 5% from the last half of 2009, but only because the percentage of lender APPROVED short sales and loan modification applications went up during the same time period. Despite this perceived decrease in foreclosures, the total number of properties up for foreclosure for the first half of 2010 is 8% higher than the first half of 2009.

Last month, June 2010, was the 16^th straight month that foreclosure filings exceeded 300,000. Since the beginning of the year there have been over 1.9 million foreclosure filings.
The 10 states with the highest rates of housing units receiving at least one foreclosure filing in 12 months: Nevada at nearly 6% of housing units, Arizona at 3.36% of housing units, Florida at 3.15%, California at 2.54%, Utah at 1.91%, Georgia at 1.79%, Michigan at 1.73%, Idaho at 1.68%, Illinois at 1.61%, and Colorado at 1.4%.

With unemployment still hovering in a bad place and consumer and business confidence still on shaky legs, housing prices will not regain and more and more borrowers will remain with few options should they ‘must’ sell.

Borrowers who do not qualify for a loan modification or other repayment option when in default should always weigh the benefits of a short sale before allowing foreclosure.

As real estate professionals, it is our job and advantageous for our business to educate consumers in our area about their options. The more consumers deem you a credible authority the more homeowners will turn to you when they need to sell.

NOW IS THE TIME to work with a loss mitigation company and help more people. Short sales are a means to income for a long time coming!

To Your Success!
excerpts from Short Sale Daily News

What does the future show for Short Sales?

2010-05-25T12:28:00.000-07:00

It’s official. Foreclosures have lost their luster at the same time that the banks are going to unload piles of them onto the market.

According to a Trulia and RealtyTrac on-line survey, the number of U.S. consumers who would consider buying a foreclosed property has dropped from 55% in May 2009 to only 45% this year.

This is just as banks are getting ready to dump thousands of properties into the market. In the first quarter, banks repossessed a record of nearly 258,000 properties. Last year’s annual total of 918,000 properties repossessed was a record on its own. At this pace the lenders are going to blow past the last year’s annual number before the World Series final game.

We have already reported on the 4+ million homeowners who are in a seriously delinquent position right now. Of those that actually avoided foreclosure last year using the HAMP program, 10 families lost their home. How many will it be this year?

Now, too many foreclosures will water down the drinks.

Buyer hurdles: Lending restrictions are still tighter than you know what, no more tax credits, and despite a few local buyer grant programs it is tough to find a buyer that out-right qualifies.

Now those that do qualify are losing interest in the properties we are flush with. Why? I gander that the decrease in interest in likely due to non-responsive contract processes, bidding wars, hidden costs, repairs needed that limit available financing, and possible renovation costs. The groups most likely to still buy a foreclosure despite the issues are first time buyers or investors.

The more properties entering the market while consumer interest wanes, means longer days on market or the servicers will have to sell them at investor levels. Buying a foreclosure can mean dramatic savings. Investors will always buy for the lowest percentage, as they should.

Short Sales are Still the Way to Go

For those of us in the short sale business: An REO flush market and low investor purchases will definitely justify discount offers. Buyers who are unhappy with the risks of an REO purchase should be encouraged to buy a short sale. Short sales are often still cared for by the owner-occupant, come with a seller’s disclosure, do not come with long-winded bid processes, all while providing the buyer the most controlled opportunity to buy at true market value.

Is Tax Credit warping the view?

2010-05-25T12:23:00.000-07:00

Thank you National Association of Realtors for keepin’ it real. According to data released today, April saw a 7.6% increase in resale of homes. In a rush to beat the tax credit deadline, there are currently 5.77 million buyers rushing to the closing table. But, before touting “economic health regained”, NAR also reported that available inventory jumped 4.04 million, or 11.5%, in April too.

April’s inventory surge cannot just be blamed on the season. The rise was much higher than normal. At the April sales pace, that means an 8.4 month supply of homes is just sitting on the market.

Lawrence Yun, NAR’s chief economist, pointed out that “distressed” sales, including foreclosures and short sales, accounted for 33% of sales in April. This was actually down from 45% a year ago. He suggests that the increase in available homes is likely due to investors needing cash flow or homeowners who may have been apprehensive to sell are giving selling a whirl.

Housing prices have risen 4% over the last year and the trend in sales price has stayed stable over the last four months. However, current numbers are still sitting at or near the bottom. REO inventory is on the rise and tens of thousands of homes are in the default pipeline. So, there will be dips in future pricing or at least prices will be weighed down.

Without the tax credit incentive, mortgage applications are down. In fact, the Mortgage Bankers Association reported purchase applications down 27% last week despite low rates.
It is painfully evident that the surge in “pending” home sales in April was directly related to the tax credit. I think the rest of the spring buying season was spent early.

Some cool NAR stats to define your business direction:

Single-family home sales rose 7.4% in April and are up 21% from last year
Condo sales went up 9.1% in April and are up 42% from last year – bring back condos!
First-time buyers were 49% of April sales, BUT all-cash buyers accounted for 26% of sales.
Existing home sales are up 23% over last year.

Overall we are not out of the woods. Keep your compass handy and we work to help people together!
To Your Success!

2010-04-29T15:31:00.000-07:00

The Federal Reserve board voted Wednesday to keep the target range for its federal funds rate at 0 to 0.25 percent and maintain that level “for an extended period.”

The central bank has said since December 2008 that economic conditions call for the benchmark rate to beheld “exceptionally low,” and its board continues to hold true to that stance despite concerns among some economists and policymakers that if the rate doesn’t rise, the near-zero level will give rise to inflation.

At least one board member agrees. Thomas M. Hoenig, head of the Kansas City Federal Reserve Bank, was the only dissenting vote on the interest rate action. Hoenig said that “continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted” because it could lead to a build-up of future imbalances and increase risks to long-term financial stability, while limiting the Fed’s flexibility to begin raising rates modestly.

Analysts were looking for any kind of semblance of change in the central bank’s wording of its monetary policy statement, but it was déjà vu as the Fed remained guarded in its outlook and careful phrasing. One area, though, that did get a bit of a lift was the jobs market.

At its March meeting, the Federal Reserve board said: “…economic activity has continued to strengthen and…the labor market is stabilizing.”

By Wednesday, that assessment had shifted to: “…economic activity has continued to strengthen and…the labor market is beginning to improve.”

Fed officials cautioned that the pace of economic recovery is “likely to be moderate for a time,” and noted that while bank lending continues to contract, financial market conditions remain supportive of economic growth. They pointed to the same economic stumbling blocks as posing the biggest risks to improving stability – declines in commercial real estate investing, modest income growth, lower housing wealth, and employers’ reluctance to add to payrolls.

In emailed commentary regarding the Fed’s policy meeting, IHS Global Insight pointed out that the central bank’s exit from the mortgage debt markets at the end of March went surprisingly smooth.

“In fact, there was no evidence of any sustained upward pressure on mortgage rate spreads during the transition – on the contrary, risk spreads on average continued to edge downwards,” said Brian Bethune, IHS’ chief U.S. financial economist.

The Fed’s statement, though, made no mention of what it plans to do with the $1.25 trillion in assets it added to its balance sheet from purchases of the GSEs’ mortgage-backed securities (MBS) over the past year.

Some Fed officials in recent months have spoken out in favor of selling off the mortgage bonds into the marketplace a little at a time, up to $25 billion each month.

A panel of financial experts from academia called theShadow Financial Regulatory Committee put forth their own proposal for the Fed’s MBS disposition this week. The group says the central bank should consider transferring the securities back to the GSEs.

Given that Fannie Mae and Freddie Mac have been placed in conservatorship and the Treasury has confirmed that their debt is now guaranteed by the U.S. government, the Shadow committee says, “The Treasury could simply issue Treasury debt to Freddie and Fannie with the offsetting accounting transaction being an IOU to the U.S. Treasury. Freddie and Fannie could then swap the acquired Treasury debt for MBS held by the Federal Reserve.”

The group outlined several benefits to this type of transaction. First, it would place housing debt on the books of Freddie and Fannie where it belongs and remove the Fed from financing U.S. housing policy, the members of the Shadow Financial Regulatory Committee said.

“This would also help to re-establish Federal Reserve independence from the Treasury and fiscal policy,” they said in the proposal.

And secondly, “it would free the Fed to device strategies to reduce its balance sheet by engaging in more traditional asset sales in the much deeper Treasury market where the pricing impacts would be smaller and would accommodate a more rapid reduction in excess reserves,” according to the Shadow Financial Regulatory Committee.

6 Short Sale Myths Rectified in short order

2010-04-29T13:47:00.000-07:00

Short sales can be a tall order, but as their numbers increase, better trained professionals working the deal are getting wise to what's needed to make them a success -- in short order.
More competent short sale professionals are also helping bust some of the myths that have surrounded the lesser-used foreclosure alternative, according to Grand Rapids, MI based
Rapid Real Estate Solutions-Manage My Short Sale helps Homeowners, Realtor’s, Lenders, Attorneys and Investors negotiate and close short sale transactions.
If done right, the short sale is a winning proposition for all, including the lender because the costs involved are certainly lower than that of foreclosing.
A short sale occurs when the bank allows the sale of a home for less than the existing mortgage balance, typically provided there's a qualified buyer in the wings. Such homes are often held by home owners struggling with "underwater" mortgages -- mortgages with balances larger than the value of the home.
First American Core Logic says more than 11.3 million home owners are underwater on their mortgages.
Mortgage modifications and federally sponsored refinancing programs, to date, have been the go-to tools to help struggling home owners.
All are strategies to avoid foreclosure, but banks have been more likely to refinance, modify or foreclose, rather than taking the short sell route.
That's because short sale bids can come in well below the last appraisal and banks don't want to take a loss. After sellers seal the deal, they can be left with a bill that's the difference between the selling price and the mortgage balance. Real estate agents and buyers fear a six month or longer transaction period that could end in a no-sale scenario that comes with the cost of lost time.
A major reason why a short sale fails is the length of time it takes to get the lender’s approval. Long delays frequently cause the buyer to drop out of escrow and buy another home. Also it is vital how the purchase offer is submitted; missing documents cause delays as well.
However, as their numbers have grown, more attention is making the deals easier to close.
First American Core Logic's first monthly Distressed Sales Report released in April reveals January's short sales nationwide were 8 percent of all resale home sales, up from 7 percent in December and 5 percent a year ago. Their numbers are much higher in areas hit hardest like Michigan.
Effective April 5, the Obama Administration rolled out Making Home Affordable Plan Home Affordable Foreclosure Alternatives (HAFA)streamlined short sale effort to give qualifying home owners up to $3,000 to defray the cost of moving. Servicers can also get $1,500 each for short sale deals that pencil.
With short sales getting more federal support and greater know-how from professionals who work them, myths about short sales are flying out the window, according to Rapid Real Estate Solutions, which is helping to set the record straight on common short sale myths.

Myths Rectified:

You must be default on your mortgage to negotiate a short sale. Short sales are not a function of default status on a mortgage. They are the result of the bank mitigating a potential default situation that, in the long run, will cost more money to the investors. Defaulting is not a short sale requirement under the HAFA plan.
Short sales are embarrassing. Home owners who "avoid" short sale "embarrassment" could face a foreclosure disaster and much greater heartache. Emoting through tough financial situations won't make the problem go away, says RRES.ManageMyShortSale.com
Buyers aren't interested in short sale properties. Perhaps not as many as are interested in foreclosures, but the number of short sales is up, according to First American Core Logic. That's because short sale properties are often available at bargain prices compared to similar homes on the market and given the owner remains until the sale is closed, short sale properties may also be in better shape than abandoned foreclosures. "Search for a buyer, especially those who have expressed an interest in buying short sale properties. The buyer must be willing to deal with extended deadlines and additional demands made by your lender," said Donna Tashjian a Keller William Realtor and of the new Certified Short-Sale & Foreclosure Professiona l (SFR) designation.
There's not enough time to negotiate a short sale before foreclosure. Federal guidelines come with paid incentives for lenders demand that lenders consider a short sale before moving to foreclosures, especially if a refinance or mortgage modification hasn't worked out. A good negotiator takes into account the timeline affiliated with a foreclosure. There is always a chance that a short sale can be negotiated. However, the only way to know for sure is to try. An organized and complete short sale proposal minimizes the back-and-forth delays," said Donna Tashjian.
The bank would rather foreclose than complete a short sale. The bank would rather have the full mortgage paid on time. If a lender can strike a better deal with a short sale than a foreclosure, they'll go for the short sale when possible. It costs the bank money and liability risk to carry foreclosed homes. The sooner a home is off the books for the most amount of money, the better. Wherever possible, banks are seeking other loss mitigation options before foreclosure.
Short sales are impossible and never get approved. Short sales can be complicated, but again, according to First American, short sales are increasing.

"We negotiate short sale approvals every day," reports Rapid Real Estate Solutions-Manage My Short Sale.

Existing Home Sales Jump 6.8% in March

2010-04-24T11:14:00.001-07:00

Sales of previously-owned homes rose higher than expected in March, reversing a three-month slide. The National Association of Realtors (NAR) said Thursday that existing-home sales jumped 6.8 percent to a 5.35 million-unit annual sales rate.

Year-over-year, sales are up 16.1 percent. According toNAR, the March numbers are just the beginning of what will be a strong spring season. Lawrence Yun, NAR’s chief economist, called the latest report a sign of “broad home sales recovery in nearly every part of the country.”
The surge last month was largely attributed to buyers racing to make the window for the homebuyer tax credit. Borrowers must be under contract by April 30 to take advantage of the government incentive. First-time buyers, who are eligible for the larger $8,000 tax break, purchased 44 percent of homes in March, according to a separate NAR study.
By Carrie Bay

2010-02-14T13:50:00.000-08:00

Do you owe more than what your property is worth? Are you lacking behind on payment front and have a feeling of not affording your home any further? Are you not sure of paying a broker to sell your home due to financial crunch in your bank account? If your mortgage sum is more than the current value of your property, you may finally to consider Short Sale with the help of Short Sale Realtor.

Current economic scenario is tough these days and many people have already lost their job because of the distributed financial trouble. But these days with so many people losing job, with the savings and low monthly income one can’t manage to pay for all the monthly responsibility.

To define Short Sale - A short sale is a transaction where the seller's bank has lien(s) against the property for more than what the property is worth and the seller request that the bank release the lien for a sale price that would not ordinarily be enough to pay off the lien in full. In other terms Short Sale is when the lender on the property will acknowledge less than the full amount outstanding on their loan value when the property is sold. Lenders will opt for lower sum of money to evade the spending and time of a foreclosure. Broadly speaking a short sale occurs when the loan amount on a property is more than what the property can be sold for. The short sale is a possibility for property owner who is not in a position to afford to keep their mortgage payment and is looking to evade foreclosure.

Using a Realtor that works with us and is familiar with Short Sales is crucial. The fees are generally paid by the lender out of the sale proceeds making our service free of charge to you. Lenders are willing to do this because if they have to property for foreclosure, they still would have to pay a broker to sell the property.

How does a property owner Short Sale their property (Get their bank to take less?)
Short Sale is not easy. The lender must be convinced that the value of the property is less than what is owed and that the foreclosure will only take more time and yield less than the short sale. That is where our Short Sale Realtor and a Loss Mitigation company as a team of professionals come in to help prove that point.

Many property investing people are interested in purchase of short sales property in order to get a property they are wishing at a much down to earth price. However, just that the short sale property is listed with terms does not conclude that the lender will approbate the buyers' proposal. The sellers' lender will be looking into many parameters in deciding whether to certify a short sale. Here a role of a Short Sale Realtor and a Loss Mitigation Company comes handy.

To define Foreclosure:
Foreclosure is termed as a legal action taken by the lender (bank) who uses their security or liens in order to claim the actual possession of the property. The lender can sell or do the auction of the property in accordance to get back the money once the property owner disqualifies to pay the mortgage amount. Foreclosure can happen for property owner at the time they won't be expecting and an advice from Foreclosure Realtor come handy. There have been rising cases of financial difficulties these days which put the property owner at risk of facing a foreclosure. Foreclosure Realtor will show your lender that foreclosure is more costly & they are not likely to do any better foreclosure & remarketing. These Foreclosure cases usually come at the time of job loss, unexpected medical bills and many others unusual
circumstances.

There are plentiful of reasons why we should avoid a foreclosure with the help of Foreclosure Realtor. Foreclosure is a public preceding that property owner risks your own social status. Secondly, Foreclosure can make you leave your home you have been living with your family all these happy years. Foreclosure affects your credit rating. During this time it is important to expert advice. You may 616-328-5127 for answers to your questions. You can also visit this website at http://www.RRES.ManageMyShortSale.com

Loan Modifications: Are they helping?

2010-01-23T10:16:00.000-08:00

The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.

It has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief. Critics increasingly argue that the program, Making Home Affordable, has raised false hopes among people who simply cannot afford their homes.

As a result, desperate homeowners have sent payments to banks in often-futile efforts to keep their homes, which some see as wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some borrowers have seen their credit tarnished while falsely assuming that loan modifications involved no negative reports to credit agencies.

Some experts argue the program has impeded economic recovery by delaying a wrenching yet cleansing process through which borrowers give up unaffordable homes and banks fully reckon with their disastrous bets on real estate, enabling money to flow more freely through the financial system.

“The choice we appear to be making is trying to modify our way out of this, which has the effect of lengthening the crisis,” said Kevin Katari, managing member of Watershed Asset Management, a San Francisco-based hedge fund. “We have simply slowed the foreclosure pipeline, with people staying in houses they are ultimately not going to be able to afford anyway.”
Mr. Katari contends that banks have been using temporary loan modifications under the Obama plan as justification to avoid an honest accounting of the mortgage losses still on their books. Only after banks are forced to acknowledge losses and the real estate market absorbs a now pent-up surge of foreclosed properties will housing prices drop to levels at which enough Americans can afford to buy, he argues.
“Then the carpenters can go back to work,” Mr. Katari said. “The roofers can go back to work, and we start building housing again. If this drips out over the next few years, that whole sector of the economy isn’t going to recover.”
The Treasury Department publicly maintains that its program is on track. “The program is meeting its intended goal of providing immediate relief to homeowners across the country,” a department spokeswoman, Meg Reilly, wrote in an e-mail message.
But behind the scenes, Treasury officials appear to have concluded that growing numbers of delinquent borrowers simply lack enough income to afford their homes and must be eased out.
In late November, with scant public disclosure, the Treasury Department started the Foreclosure Alternatives Program, through which it will encourage arrangements that result in distressed borrowers surrendering their homes. The program will pay incentives to mortgage companies that allow homeowners to sell properties for less than they owe on their mortgages — short sales, in real estate parlance. The government will also pay incentives to mortgage companies that allow delinquent borrowers to hand over their deeds in lieu of foreclosing.
Ms. Reilly, the Treasury spokeswoman, said the foreclosure alternatives program did not represent a new policy. “We have said from the start that modifications will not be the solution for all homeowners and will not solve the housing crisis alone,” Ms. Reilly said by e-mail. “This has always been a multi-pronged effort.”

Whatever the merits of its plans, the administration has clearly failed to reverse the foreclosure crisis.

In 2008, more than 1.7 million homes were “lost” through foreclosures, short sales or deeds in lieu of foreclosure, according to Moody’s Economy.com. Last year, more than two million homes were lost, and Economy.com expects that this year’s number will swell to 2.4 million.

“I don’t think there’s any way for Treasury to tweak their plan, or to cajole, pressure or entice servicers to do more to address the crisis,” said Mark Zandi, chief economist at Moody’s Economy.com. “For some folks, it is doing more harm than good, because ultimately, at the end of the day, they are going back into the foreclosure morass.”

Mr. Zandi argues that the administration needs a new initiative that attacks a primary source of foreclosures: the roughly 15 million American homeowners who are underwater, meaning they owe the bank more than their home is worth.

Increasingly, such borrowers are inclined to walk away and accept foreclosure, rather than continuing to make payments on properties in which they own no equity. From its inception, the Obama plan has drawn criticism for failing to compel banks to write down the size of outstanding mortgage balances, which would restore equity for underwater borrowers, giving them greater incentive to make payments. A vast majority of modifications merely decrease monthly payments by lowering the interest rate.

Under the current program, the government provides cash incentives to mortgage companies that lower monthly payments for borrowers facing hardships. The Treasury Department set a goal of three to four million permanent loan modifications by 2012.

“That’s overly optimistic at this stage,” said Richard H. Neiman, the superintendent of banks for New York State and an appointee to the Congressional Oversight Panel, a body created to

keep tabs on taxpayer bailout funds. “There’s a great deal of frustration and disappointment.”

As of mid-December, some 759,000 homeowners had received loan modifications on a trial basis typically lasting three to five months. But only about 31,000 had received permanent modifications — a step that requires borrowers to make timely trial payments and submit paperwork verifying their financial situation.

The government has pressured mortgage companies to move faster. Still, it argues that trial modifications are themselves a considerable help.

“Almost three-quarters of a million Americans now are benefiting from modification programs that reduce their monthly payments dramatically, on average $550 a month,” Treasury Secretary Timothy F. Geithner said last month at a hearing before the Congressional Oversight Panel. “That is a meaningful amount of support.”

But mortgage experts and lawyers who represent borrowers facing foreclosure argue that recipients of trial loan modifications often wind up worse off.

In Lakeland, Fla., Jaimie S. Smith, 29, called her mortgage company, then Washington Mutual, in October 2008, when she realized she would get a smaller bonus from her employer, a furniture company, threatening her ability to continue the $1,250 monthly mortgage payments on her three-bedroom house.

In April, Chase, which had taken over Washington Mutual, lowered her payment to $1,033.62 in a trial that was supposed to last three months.

Ms. Smith made all three payments on time and submitted required documents, Chase confirms. She called the bank almost weekly to inquire about a permanent loan modification. Each time, she says, Chase told her to continue making trial payments and await word on a permanent modification.

Then, in October, a startling legal notice arrived in the mail: Chase had foreclosed on her house and sold it at auction for $100. (The purchaser? Chase.)

“I cried,” she said. “I was hysterical. I bawled my eyes out.”

Later that week came another letter from Chase: “Congratulations on qualifying for a Making Home Affordable loan modification!”

When Ms. Smith frantically called the bank to try to overturn the sale, she was told that the house was no longer hers. Chase would not tell her how long she could remain there, she says. She feared the sheriff would show up at her door with eviction papers, or that she would return home to find her belongings piled on the curb. So Ms. Smith anxiously set about looking for a new place to live.

She had been planning to continue an online graduate school program in supply chain management, and she had about $4,000 in borrowed funds to pay tuition. She scrapped her studies and used the money to pay the security deposit and first month’s rent on an apartment.

Later, she hired a lawyer, who is seeking compensation from Chase. A judge later vacated the sale. Chase is still offering to make her loan modification permanent, but Ms. Smith has already moved out and is conflicted about what to do.

“I could have just walked away,” said Ms. Smith. “If they had said, ‘We can’t work with you,’ I’d have said: ‘What are my options? Short sale?’ None of this would have happened. God knows, I never would have wanted to go through this. I’d still be in grad school. I would not have paid all that money to them. I could have saved that money.”

A Chase spokeswoman, Christine Holevas, confirmed that the bank mistakenly foreclosed on Ms. Smith’s house and sold it at the same time it was extending the loan modification offer.
“There was a systems glitch,” Ms. Holevas said. “We are sorry that an error happened. We’re trying very hard to do what we can to keep folks in their homes. We are dealing with many, many individuals.”

Many borrowers complain they were told by mortgage companies their credit would not be damaged by accepting a loan modification, only to discover otherwise.

In a telephone conference with reporters, Jack Schakett, Bank of America’s credit loss mitigation executive, confirmed that even borrowers who were current before agreeing to loan modifications and who then made timely payments were reported to credit rating agencies as making only partial payments.

The biggest source of concern remains the growing numbers of underwater borrowers — now about one-third of all American homeowners with mortgages, according to Economy.com. The Obama administration clearly grasped the threat as it created its program, yet opted not to focus on writing down loan balances.

excerpts from the NY Times by Peter Goodman

Making Money in Today's Real Estate Market

2009-12-13T17:57:00.001-08:00

Private Money Real Estate Investing

Are you currently earning the return you want on your investment dollars? If not, you should be, and you can with private lending in real estate! Private money lending is a great alternative to the stock market, especially in these tough economical times. RREScapital.com can get you started in private money lending and investing in real estate easily. You too can enjoy the benefits of great returns through private money lending in real estate.

Interested to find out how you can earn the returns you want, secured and insured, right now? Click the link below and find out more about becoming a private money lender, and find out how you can build toward a fantastic retirement through private lender real estate investments.

http://www.RREScapital.com CLICK FOR MORE INFORMATION

Lending Conditions Continue To Tighten

2009-11-13T10:50:00.000-08:00

The future of loan originators and housing recovery is hanging by a credit thread. According to the Federal Housing Finance Agency (FHFA), the credit composition of originated loans within the Government Sponsored Enterprises’ (GSE) portfolio is showing a tightening trend. From their latest press release: “The increase in the number of loans with 660 or higher credit score and decrease in loans with less than 660 credit score at origination reflect actions taken by both Enterprises (FN/FRE) to increase the credit quality of new business and continues a trend seen over the past year.

The trend is in response to rising delinquencies. The delinquencies are forcing the GSE’s to cut back on taking any loans on their books that do not meet high credit standards.

Where will this push borrowers? Well, if borrowers cannot get a conventional product due to credit issues, they will likely head towards FHA. Can FHA handle any more of the ‘uglier’ side of the mortgage market? According to recent reports of FHA’s struggles to stay out of default, the answer would be “no.”

There have long been discussions on fair and proper credit reporting. With such a large portion of the borrowers now making late payments or defaulting on debts due to unemployment, underwater house values, and general stresses, there will need to be a new FICO model. Without changes in credit measure, there will be exponentially fewer Americans qualifying for credit. The current credit restrictions are putting up roadblocks for many borrowers. Fewer borrowers, means even slower economic growth.
*

We welcome your comments and contributions or you can ask our experts any related question.
To Your Success

http://www.RRES4u.com

The Revised Tax Credit-- Moving Forward

2009-11-13T10:12:00.000-08:00

The Tax Credit extension was officially signed into law over the weekend. With over 36% of all home sales in 2009 involving the tax credit, proponents assume that the extension will continue to drive home sales. Realtor® Magazine went as far as to estimate that the extension will drive another $22 billion into the economy. Over 2 million people have used the tax credit so far.

The new deal: Contracts have to be signed by April 30 and close by June 30, Income limits have been increased to $125k for individuals and $225k for couples, homeowners who have been in one home for 5 out of the last 8 years are eligible for $6250, home price cap is $800k, and first-timers still qualify for $8k.

For more information you may visit this useful link below:

http://www.federalhousingtaxcredit.com/home.html

Bank of American and Short Sales

2009-11-11T14:03:00.001-08:00

One of the many questions that clients ask when attempting a short sale is, ‘how long is it going to take?’ The short answer is that short sale processing time is different from one bank to the next. The answer requires a detailed analysis of the bank’s process system. There are hundreds of banks in the world we are going to examine just a few of the major ones in order to demystify the process for distressed homeowners.

Since Bank of America (NYSE:BAC) is one of the more popular banks it seems fitting to start an analysis with them. If the Bank of America short sale process could be summed up in one slogan it would be, “Catch-22”. BOFA, tends to be pretty economical when considering to approve a short sale or not. They are not the most generous bank in regards to requests for seller/buyer credits and second lien payoffs. However, they are not the greediest bank either. If Bank of America’s short sale process could be compared to a financial savings instrument it would be considered a bond. The process is less volatile in the long run than some of the other banks (i.e. few quick approvals, but also few high payoff demands).

The catch with their short sale process is that because they are such a large bank they handle a lot of short sale requests. The massive amount of recent short sale requests has made the approval process slow. During the process the file is assigned to several different, “negotiators”.

1. The first phase negotiators are the data collectors. They are responsible for making sure the file is complete before being submitted to upper management. During this phase an appraisal should be ordered if needed.

* Times vary during this phase. If within 15 days there has not been any progress it can be moved to a new negotiator. Escalating the file may or may not be in the best interest, it could cause a new time limit to apply,which would extend the short sale process.
* Once the phase 1 negotiator approves the file it’s passed to a 2nd phase negotiator

2, Phase 2 negotiator; Sometimes this is the same person as Phase 1. During this phase the file is reviewed and any extra data that might be needed is collected. (i.e. updated bank statements, paystubs, etc…). After this phase of the negotiations are completed the file is passed to a third and final level of approval.

3. An estimated 15 day wait period is again applied when the file moves to this level before escalation can be considered. A general rule with BOFA is that every time a file changes hands 15 days must pass before the file can be brought to a supervisor. The third negotiator (upper management) double checks all the figures and puts the stamp of approval on the file. Usually, once this level approves the loan the automated BOFA status line changes. The status can be changed to approved without an actual short sale letter being issued. This phase negotiator has about 3 weeks altogether to actually stamp approval on the package and send out a letter.

In terms of communication most of the time the negotiators will not even talk to you. E-mail may work, but it’s not unusual to go several weeks without hearing any news. The actual approvals are mostly specific to one buyer. If you were thinking about substituting a different buyer into the transaction after the approval letter has been generated you will need approval from BOFA management.

Typically, if a new buyer is brought in on the file while the property is in phase 1 the process resets. If the file has progressed to certain levels of phase 2 there is a higher chance that a new buyer may successfully be brought into the transaction without the process resetting itself. If a new buyer(s) have to be substituted you will want to do it at this phase.

Once the file gets to phase three substitution becomes more difficult with BOFA. Some of the other banks, that will be the subject of future posts, allow for buyer substitution because approval letters are ‘non-buyer specific’, however BOFA is a bit more strict on the issue. When they issue an approval letter it is actually stamped with the specific buyer’s name

Stay tuned for more helpful hints. As always you can contact Rapid Real Estate Solutions (RRES) for help with your short sale challenges. You may also call 616-328-5127

Get Ready--New RESPA Rules Are Coming!

2009-11-09T16:50:00.001-08:00

Attention real estate professionals: No more surprises at the closing table. The new Good Faith Estimate (GFE) of settlement charges and the new HUD1 Settlement Statement will be in effect on January 1, 2010. (www.hud.gov/respa) The new procedures and forms stem from a ruling published January of this year. The changes are in direct response to complaints and confusions shared by borrowers.

HUD pushed for the change due to a measured belief that many borrowers have ended up in default because they did not understand their loan. Under the existing rules, settlement charges vary widely between mortgage providers, borrowers rarely see reduced settlement charges on high interest loans, and in-turn, many borrowers who pay points at settlement often do not benefit from lower interest rates. In efforts to preserve homeownership, HUD wants borrowers to be given time and information to shop for loan that best meets their needs and affordability.

The NEW rules and standardized forms will make for lower settlement charges, lower interest rates, and better mortgage products. So, say ‘hello’ to buying incentive from another direction.

Not that I believe that the RESPA rules were the cause of the collapse in housing. The cause is clearly the government itself through the actions of the Federal Reserve, Fannie, Freddie and the FHA that got us in this mess in the first place.

But enough of that—here are some key changes:

Apples to Oranges. Shopping lenders by the GFE: The new Good Faith Estimate will better alert borrowers to the cost differences between their choice to pay upfront settlement charges or to accept a different interest rate. There will be a more thorough disclosure of loan terms including possible increases in interest rates or balances and pre-payment penalties. The over-all structure will give borrowers a simple shopping list to compare lenders from the start.
No Surprises: Once a GFE is provided to a borrower, there will clearly be three categories with restrictions to changes. Some items will not be allowed to change prior to closing, some will be restricted to no more than 10% difference and will be from a laundry list the seller can change, and some will be mutable only because they are not within the controls of the loan originator or borrower.
The HUD1 Make-Over: 1) Borrowers will be able to clearly match-up charges on page 2 to the line items disclosed on the GFE. 2) A new page 3 will contain the “restricted” category items so that a borrower can see if there were any violations. 3) A summary of the final loan terms and monthly escrow will be enumerated on page 3 and the loan originator will be required to complete it.

For further details in your efforts to inform your buyers – go to the HUD.gov’s NEW RESPA Rules Frequently Asked Questions.

By Donna Tashjian

Fannie Mae Announces "Deed For Lease" Program

2009-11-09T16:40:00.001-08:00

In a continuing effort to blunt the impact of foreclosure on families, Fannie Mae has announced a program called “Deed for Lease” (already shortened to “D4L” in industry publications). Deed for Lease allows a homeowner to a guaranteed one-year lease (aka rental agreement) priced at local market rates for voluntarily signing over the property to the lender. The new program improves on a less formal initiative Fannie Mae started last January that let foreclosed homeowners to stay in the house on a month-to-month basis.

The policy is aimed at minimizing the disruption caused by foreclosure proceedings, which put the family out on the street when the property is seized by the lender. With Deed for Lease, the family loses ownership, but can stay in the house. Put another way, they can walk away from the loan without walking away from the house, as they must do in a traditional foreclosure.

"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

The big advantage of the program comes from the money households save when they swap mortgage and other housing expenses for a rental payment. The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification.

Some stipulations of this program are:

The homeowners cannot be eligible for a mortgage modification
The new rent payment cannot be more than 31% of the household’s income
Lease is for 12 months, with the possibility of becoming month-to-month

The questions arise what will happen at the end of 12 months. This does give the homeowner some time to begin to recover financially. On a positive note, it may give the homeowner some time to recover their credit and buy back the property at a reduced price if they can find the cash to make the purchase. Time will tell how this affects our market and if the homeowners who couldn't make the mortgage payment can make the rental payments.

Useful links for more information:

Fannie Mae Deed for Lease Information
Center for Economic and Policy Research
http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media
CEPR Report on Gains from the Right to Rent

Real Facts behind who makes money on Short Sales

2009-10-26T12:26:00.000-07:00

As everyone is well aware of, our economy is not in the best place at the moment. To be able to recover, it will require money to start flowing freely through it. Part of how that can be accomplished is when more money is spent on various goods and services. Every time a short sale is denied and a property goes to foreclosure, there are many providers of goods and/or services that don’t see a penny, and so the economy is unable to receive the boost it needs.

With all the news about who loses money when a bank forecloses on a property as opposed to who loses money when a successful short sale transaction occurs. However, we seem to forget how many people and businesses actually stay in business when the a short sale transaction occurs. We don’t realize the complex engine that makes up the real estate industry, and that is isn’t just agents and attorneys that make money, but so many other related industries as well. And if these thousands of short sale transactions aren’t able to close, then many of these industries are in danger of having to close their doors, and thus the economy suffers.

What the bank doesn’t realize are all of the facts that go along with the above scenario, such as when a rehabber or landlord seeks to purchase a property by way of a short sale. Let me break down the facts that everyone, especially the government, is missing!

Here are some of the related industries who make money off of a successful short sale:

Foreclosing Lender (they make far more in a short sale then when they foreclose)
Listing Agents and Buying Agents
Attorneys and Title Companies
Mortgage Broker/Direct Lender
Fannie Mae, Freddie Mac, FHA or whomever buys this loan in the secondary market
The Appraiser
The Home Inspector
Plumbers
Contractors
Electricians
Cities and Towns
Insurance Company
The IRS
Accountants
Marketing Companies (Direct Mail and Signs)
Printing Shops
Etc

And so it can be plainly seen that whether it be rehabbers, landlords, or other buyers…that the successful closing not only benefits them, but also all of the industries that are also part of the real estate industry, the foreclosing lender(s), but more importantly…the economy.

By Donna Tashjian
with information from
http://www.RealEstateBusinessmentors.com

What's New!

2009-10-17T16:53:00.000-07:00

It has been quite a while since I last posted. I have been so busy that I haven't been back here. Rapid Real Estate Solutions is exploding. I will need to hire more staff soon, which is a good thing. As a Realtor, I changed companies since I last posted as well. I am now with Keller Williams. This have been a very exciting and profitable move for me and my clients. I have a new website for this part of my business if you would like to check it out. http://www.DonnaTashjian.com

Time is running out for the first time home buyers tax credit. But there are still incredible deals available. The interest rate to buy has not been this low in a very long time.

As always, we are here to serve if you,your friends or neighbors need ANY real estate services. Until next time....Make it an Amazing Day!

Underwater Today Has A NEW Meaning,,,,

2009-09-30T12:18:00.000-07:00

14 million Americans are currently “underwater”, according to an executive at Deutsh Bank last week. The same executive went on to forecast that home prices will likely fall another 14% before bottoming out. So, as prices continue to fall, the number of over-leveraged mortgagors could reach 25 million. That would mean that over 48% of ALL mortgagors have negative equity. (Full interview @ CNNMoney.com)

The foreclosure filings for July were 7% higher than June and 31% higher than July of 2008 according to RealtyTrac. That is the third time in 5 months that there has been a record set.

But isn’t the Obama Plan Working?

Simple answer is NO. Banks are not moving fast enough to make the modification programs effective for the millions promised relief. Bank of America for instance has modified the loans of ONLY 4% of their eligible borrowers since the program was unleashed months ago. What is worse after struggling through red-tape, run-arounds, and delays, the majority of home-owners that successfully modify end up becoming a short sale candidate in months. What are the banks that received bail-out money using the money for?

The rest of the programs are not set to bring long-term economic repair either. Cash for Clunkers will only bring car part and car price inflation while encouraging more Americans to open lines of credit they cannot afford. The Cap–n–Trade Bill will only cause housing inflation, more over-leveraged property, and unnecessary tear down of properties that meet the price criteria for first-timers and rehabbers. The bill will also bring even more unemployment. Taxpayers who have managed to maintain employment now have to work harder to earn less and pay more taxes. ...and Never before has a government mandated program stood to unravel the very basis of American Capitalism and our historical economic strength like the health bill. We are not facing an end of the recession that should be left to occur organically by free trade and an investor driven market, but are instead facing mandated government pocket picking that is building a hollow future.

One solution we can bring to this situation is short sales. Short sales solve a problem and fill a need.

 Seller ends up with a better situation: out from under debt and credit salvaged

 Lenders NET MORE versus REO sale

 Neighborhood values are not as impacted

 Less vacancies and vandalism

 Municipalities get their tax money

For those of us in the Real Estate Industry finding a team to work to bring more Short Sales to close is vital. One solution is Loss Mitigation. There all types of loss mitigators to review so choose carefully. You may wish to check out http://www.RRES.ManageMyShortSale.com.

>>TIME IS RUNNING OUT>>>>

2009-09-29T16:26:00.000-07:00

Time is running out on the $8000 Tax Credit. The average time to close a home is 45 days now. So to take advantage of the Tax Credit a purchase offer should be accepted by October 15, 2009 to close by the November 30th deadline.

Review the highlights below:

March 19, 2009 -- The American Recovery and Reinvestment Act of 2009 was just signed into law. One of the major provisions provides an $8,000 tax credit to qualified First Time Home Buyers defined as those who have not owned a home in the last three years.
$8000 tax credit highlights:

• The $8000 tax credit or 10% of the home’s purchase price, whichever is less, is available only for first time home buyer defined as those who have not owned a home in the last three years.

• There is a $75,000 adjusted gross income limit for tax filers filing as single and $150,000 limit for joint return filers. It is available only for primary residence.

• The tax credit does not require a repayment in most cases. The tax credit does have a repayment provision if the homeowner does not occupy the property for a minimum of 3 years from the closing date.

• The home buyer must purchase a home between January 1, 2009 and close by November 30, 2009

• The $8000 tax credit is received when you file your tax return. Home buyers may file an amended 2008 tax return with a 1040X form. You should consult with a tax ad visor to ensure you file this return properly.

Successful Short Sales Benefit Many & Help Stimulate the Economy

2009-09-22T17:01:00.000-07:00

Every time a short sale does not close & goes into foreclosure many people & industries that provide goods & services don’t see a penny. This continues the downward spiral to the US economy instead of boosting it. Successful short sales get money moving back into the economy.
Nobody benefits when a home goes into foreclosure. The Bank owns a property they don’t want. The property owner loses any equity they had in the property. They also get a poor credit score, preventing them form making another purchase in the near future. Also neighbors home values depreciate.
Many people benefit from a successful short sale. It doesn’t matter if a real estate investor, landlord, or a prospective homeowner makes a successful short sale transaction. They are putting money back into the economy. This is something the Banks & the government don’t see. Many industries make money with each short sale completed.
 Bank makes more on short sale than on foreclosure
 Realtors & Real Estate Companies
 Lawyers & Title Companies
 Mortgage Brokers & Lending Companies
 Appraisal Companies
 Home Inspectors
 Electricians
 Plumbers
 Contractors
 Hardware & Home Supply Stores
 County, Town, & City Government. Taxes are paid up & tax base increases.
 Insurance Companies
 Neighbors (their home value began to stabilize)
The successful closing of a short sale not only benefits the new property owner. It creates jobs and puts money into local business large & small, that are also involved in the industry. Every successful short sale is putting money back into our economy.

Fannie Man supports Short Sale Borrowers to Buy Again!

2009-09-09T19:13:00.000-07:00

Homeowners have a multitude of questions when facing the possible loss of a home. The main two questions we here are: “How will a short sale affect my credit?” … and “when will I be able to buy another home. Did you know that Fannie Mae wants homeowners who short sale to own another home as soon as possible?

When every a homeowner ask you a financial or legal questions it is imperative that you advise them to seek the advice of professionals unless you are one. Some of the professionals they may speak to are major credit reporting bureaus, lawyers, mortgage professionals and even a financial advisor. Then communicate Fannie Mae policies on those who choose a short sale as an alternative to a foreclosure or deed in lieu.

Fannie Mae desires short sale borrowers to own again. In as little as two years those who have had a short sale may be considered for any type of loan program without restrictions. Homeowners that choose the deed in lieu option must wait 4-7 years before being consider for another loan. Borrowers that permitted their home to go to foreclosure must wait between 5-7 years before they are eligible for a loan for a primary residence with a sizable down-payment and strong credit score.

Here is the principal message Fannie Mae will loan to a borrower who took the short sale option faster and with less restrictions than those who choose foreclosure or deed in lieu. Short Sales save the homeowner, the lender and help the community.

This does not mean that Fannie Mae loans are fast to process as short sales. Fannie Mae’s should compel servicers to become more efficient in their review and processing of short sales. Fannie Mae preference of short sales is not reflected in their control on servicers handling the short sale reviews.

Short Sales help the homeowner, the lender and our community! Welcome your feedback!

[Based on information released by Fannie Mae in 08 and Short Sale Daily News]

More Sellers Are Becoming LandLords!

2009-09-03T13:27:00.000-07:00

More people are becoming landlords in an economy where selling a home can be challenging.

The nation’s second-largest home insurer, Allstate Corp., says the number of homeowners converting their homeowners insurance to landlord policies rose 27 percent in the first quarter of 2009.

Many Real Estate companies are beginning to offer property-management services for absent owners, many of whom are convinced it will be easier to sell in a couple of years.

Holding on probably isn’t the best answer, says economist Edward Leamer, director of the UCLA Anderson Forecast. Leamer suggests negotiating a short sale instead. “Better to take your losses and move on.”

But with good property management it can be a solution for distressed homeowners.

Another factor to consider is whether renting will reduce or eliminate the value of the capital-gains tax exclusion. Federal tax law requires living in the home at least two of the previous five years to qualify for the full capital-gains tax exclusion when the house is sold. Of course, if there is no profit to be had, then this isn’t a problem.

As always Rapid Real Estate Solutions are here to assist you with complicated real estate challenges. You may call us at 616-328-5127.

STOP Foreclosures!, But HOW?

2009-08-30T18:58:00.000-07:00

Our market has changed drastically. For example look at the following stats:

1 in 4 listed homes are a Short Sale
1 in 5 people NEED TO LIST their home as a Short Sale
Foreclosure rates are hitting historic highs
The credit crisis is affecting our buyers

National Association of Realtors, President Richard Gaylord stated, "Homeowners who are struggling to make their mortgage payments must have more options available to them to avoid foreclosure. Short sales can benefit not only the homeowners in question, but also buyers, Lenders and the surrounding community. With their established lender relationships and insights into complicated real estate transactions, Realtors can add real value for both sellers and buyers interested in short sales."

Realtors are being faced with this crisis. They have struggled to adapt the the market changes. The amount of work that has been placed on their shoulders can be staggering. I began to search for a way to help relieve some of the work load that Realtors carry. In my search I have discovered a incredible service. This service will help homeowners, Realtors, Lenders and investors. It is called RRES.ManageMyShort Sale.com

What RRES.ManageMyShortSale.com will do for you:

Provide lender specific requirements
Create Short-Sale Packages for you
Handle ALL Lein Holder Negotiations
Assist with Buyers Expectations--Unique to each deal
HUD-1 Settlement statements

..........Save Time and Frustrations.........Most of all have More Closings

You owe it yourself and your clients to check out this service. Their contact information is: http://www.RRES.ManageMyShortSale.com or you can call 616.929.7304. You will be glad you did!