Mother & Daughter Blog

Fannie Mae offers - Deed for Lease Program instead of immediate foreclosure. this is another option rather than foreclosure or Short Sale.

If you do not qualify for a loan modification or have failed a loan modification plan you may be in luck to get in this Fannie Mae Deed for Lease Program.  If your property is a Fannie Mae property you may qualify for the Deed for Lease Program that Fannie Mae just announced.  This program can prove to be very useful and a stress reliever for homeowners that need more time to get their finances in order before completely moving out of their home.  It beats a foreclosure no matter how you look at it.

Borrower must be willing to transfer their property to the lender by completing a deed in lieu of foreclosure and then lease back the house at a market rate.

There are some guidelines that you must meet - here they are in a nutshell: In order to qualify you must meet these basic requirements:  If you answer yes to the questions below, contact your Fannie Mae representative to see if you can get started with this program to avoid foreclosure and evictions.

1.  Is this a Fannie Mae property - Don't know?  Go to: http://loanlookup.fanniemae.com/loanlookup/

2.  Are you living in your property and is it your primary resident?  ** TENANTS may qualify for this program as well

3.  Can you afford to pay a monthly rental that is no more than 31% of your gross income.  Also, that you are willing to take the commitment to pay the rental - on time.

4.  Do you have a second lien and are you able to get them to release you from any obligation of that loan?

Need more information on this program?  Go to www.efanniemae.com.  This is another avenue/option of options to avoid foreclosure? 

 

 

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I've been so busy working on the listing side, I have not been noticing the variety of Agent Confidential remarks that are popping up on the listings these days.

This one is one that is becoming more popular and annoying:

Buyer must be pre-approved with the "seller's sponsored mortgage company" - not required to use this lender, can use your own.  This requirement can delay a buyer from putting in an offer in time to be considered, the way properties are moving into Pending these days!  While the buyer is trying to get in touch with the bank's sponsored Mortgage consultant, the property is now in Pending!!!

It works better or faster when the seller require that the buyer is pre-approved by a direct lender -- doesn't it???  And I wonder when this will catch on with short sales too - or will it?

 

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Dear Listing agents:

Can one of you please explain to me why it is necessary to have the buyer bring the earnest money deposit to you PRIOR to placing the offer?  Is this a way to tie up the buyer's money, with a strong probility that their offer will not be accepted by the seller in the first place and this can delay them from being able to accept another offer and have their earnest money handy to send in to escrow and get the transaction moving on something their offer was accepted???

And will this catch on with Short Sales later on? 

Is this fair to buyers that don't even know if their offer is going to be accepted?

Please advise.

Signed concerned agent.

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News release:  CIT has filed for bankruptcy.  OK this might not be a surprise, but has anyone figured out what they did with the $$$$ Millions they got just a few months ago.  Did they too get bonuses all distributed and spent and then went into bankruptcy?

Now what about all the homeowners are caught up in this bank and where are all the mortgage loans going or are they already sold away.... and if yes - where did that money go?  What role did this bank play in the foreclosure/Mortgage crisis?  How many short sale requests did they deny?

These and many many more questions, we will probably never get the answers to.  And now all we can do is wonder which bank will be the next to fall?  And how long will it take it rise it head again?

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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Just some quick reminders that there are few basic behaviors that us agents need to continue to do - no matter what the situation is.  In real estate... Haunting time is not just at Halloween if you get too loose with your procedures.

• Buyer Repair Bills - Remember Buyers are quick to agree to purchase AS IS - WHERE IS: But after purchase and the repair bills start to kick in, they forget the AS IS WHERE IS and start looking to blame someone for all the problems they are having with the property! So to protect your buyers and all others...

Recommend that the buyer request from the seller or they GET A HOME PROTECTION PLAN

* Old Republic Home Protection Plan is a good one.

• Buyers not getting a Home Inspection???   Remember buyers tend to forget that you "bugged" them about getting an inspection after the purchase.  So to protect your buyers and all others involved....

Recommend, recommend the buyer to get an inspection FIRST.. if they refuse (have them sign a waiver)

• Buyers would not get a Termite Inspection?? Remember buyers say it doesn't matter, but it will later on!

Recommend, recommend the buyer to get an inspection FIRST.. if they refuse (have them sign a waiver)

• Buyers not asking for more from the seller... ie. 1/2 escrow fees, transfer fees (escrow & closing fees): When its time to close, the buyer begain to feel they are paying too much to close???  That the seller should make more repairs - or all repairs even costmetics????

Recommend that they ask for what they want upfront in the initial offer submitted.  Do not try to ask for less in order to get the offer and then bumbard the seller with addendums to increase the concessions.  MIGHT NOT work - then you run the risk of loosing your deposit if you do not go through with the sale.

These are just a few of the "Haunting" situations that buyers find themselves in after they have submitted the offer, purchased the property and have no place to turn or no one to blame.... but they will!

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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If you feel you may be in need of a short sale, you should do your homework on what you will need to have to provide to the agent.  ADVICE:  Choose an agent that knows how Short Sales work, have experience with short sales and is willing to do a short sale.  In addition it is always a good idea to show your identification to the agent to be sure they know that you have the right to sign to list and sell the property.

First thing to do:  Contact your lender and request a loan modification or other options.

Here are some items, questions that you will need to know the answers to:

• Name, Address of all borrowers on the property......
• Are you in current hardship......?
• Have you contacted your lender to ask for a loan modification or other options?  If yes, what did they tell you....?
• What do you owe on your mortgage.....?
• Are you in default....?  If yes, when did you go into default and do you have the paperwork?
• How Many Lenders or Lienholders do you have? 
• Who are the lenders?  1^st and 2^nd Lienholders?
• Are you serious about doing a short sale?
• The agent should tell you that you will the following:  Do you a problem getting any of the following

Current pay checks stubs (last 2 at least)

W2s for last year

Tax forms for last year

Hardship letter in your own words

Financial statement * you can use the one you used to request the loan modification

• Is this your primary resident?
• Do you have other properties that are/are not in trouble?
• When can you meet?

Your agent may have other questions but will be really relieved if you have these questions already answered for them.  It will save time.

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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The majority of the bank/lenders have pre-determined criteria for submitting a short sale.  I am still not convenience that they all have pre-determined criteria for short sale approval.  Most are willing to entertain a short sale approval or at least will take the time to make it seem that the file is being reviewed ** some take months!

However, there is still a large number of foreclosures still going on and a great deal of those properties were short sale listed prior to foreclosure - had offers into the bank/lender and did not get an approval or in some case not even a sign of negotiation

Here is some of the information that I believe most banks/lenders have in common:

• Require the borrower to be in HARDSHIP LETTER and to submit it in writing (see Hardship Sample Letter:  
• Require a Financial Statement, Income Statement, W2s, Current paycheck stubs, some will ask for last year's income tax statement, retirement information, bank accounts (it varies what they will ask for).
• They all require a signed by borrower and buyer offer
• They will need a Short Sale package from the agent to include all the items that they tell the agent they need
• Short Sale - incurs a smaller financial less than foreclosure or non-payment of mortgage
• Short Sale is typically faster, less expensive than a foreclosure
• Most bank/lenders have a loss mitigation/foreclosure department
• Majority of the bank/lenders will not take the listing agent evaluation and will get their own (either an Appraisal or Broker Price Opinion (BPO)
• Times are changing and short sales can be approved even if the loan is not in default (but most will not entertain if there no obvious hardship) ** please note: Hardship must be true information
• Most are willing to entertain a short sale approval or at least will take the time to make it seem that the file is being reviewed ** some take months!  Agent must be aggressive about requesting that Trustee Sales date be postpond if it is approaching because bank/lender will not automatically do it - they will just let it go to the sale
• Bank approved short sale does not guarantee acceptance!  ** EVERYTHING must be in writing.  Without a written agreement .... you have nothing
• First Lien holder does not have the power to approve a junior lien  ** agent must negotiate with both lienholders (all lienholders)
• Regardless of the bank/lender if a short sale is approved and completed, it will remain on the borrower's credit for seven (7) years
• When bank/lenders approve short sale it allows the borrowers to feel good that they made a decision to be brave and request the short sale instead of just leaving the property.  In the long run.. it will be better for the borrower.
• There is no uniform Short Sale package -- it all depends on the individual bank/lender requirements

Still and all... no bank is the same and really no negotiator within the same bank/lender is the same!  Do not anticipate what a bank will or will not do --- be like Nike and JUST DO IT and see!

 

For more information... Check out our Website and our Blog... - Website: http://www.motheranddaughterrealtyteam.com - Blog: http://activerain.com/brooksrm2042 - Check me out on Facebook

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This may be a good time to take a review of where short sales are now, with only 2 more months left in 2009.

The Short Sale is still the most economical solution to avoid a possible foreclosure.  This does not mean it is the easiest.  It does not mean that you will not endure some stress while going through this process and it surely does not mean you will not need to have a barrel of patience in order to complete this process.

The market is loaded with Short Sale listings.  Some listings are new, but most have been on the market for over 30-45 days and holding.  There are plenty of the short sale listings that are now in short sale contingent status.  Short Sale Contingent means that the agent has received and presented at least 1 offer to the bank/lender for short sale approval.  In most cases, when the status of the listing is Short Sale Contingent you can still submit offers to the agent.  It will depend on where the agent feels the negotiations are if that agent will submit your offer right away or if it will be presented later on -if the offers that the bank/lender have before them  not making them  happy enough to approve the sale.

So while there are deals out there, when making an offer for a Short Sale listing keep in mind that the bank is probably not going to approve an offer that is way below the market value of the property.  Some agents will list the property at least 10% below the low end of the market value, but that does not mean the bank/lender will accept an offer with that strategy.  You can bet the bank/lender will be looking more at the higher offers.

The bank will not rely on the listing agent's evaluation of the property.  They will hire their own appraiser or agent to do a Broker Price Opinion.  So if your offer is lower than either, the bank/lender may counter your offer or simply deny it.  Rarely will they approve it if it is far lower than the evaluations they have obtained.

I have received calls asking which bank I think is the hardest to get a short sale.  I cannot answer that question because it depends on not just bank - it's the negotiator and how much of a workload, concern, knowledge, care, or time they have to put in on the file.  GMAC does have tricks that they use (at least in my experience), they take forever to review the file, claim that they did not get documents that you know that you faxed or sent to them a couple of times, then they will not contact you personally until the time is almost up for the trustee sale and ask you for all these documents that will probably take you longer than what time is left.  But... hold on!  Bank of America, Wells Fargo, National City, etc will do the same!

So in summary... where are the short sales here at the end of October 2009? They are increasing and we will see more and more short sales coming on the market  -- the big question still WHEN WILL THE BANKS Stream-line their short sale process and treat these requests seriously?

 

For more information... Check out our Website and our Blog...

- Website: http://www.motheranddaughterrealtyteam.com

- Blog: http://activerain.com/brooksrm2042

- Check me out on Facebook

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If you want me to Short Sale your property... please be accessible! Don't get lost where even I can't find you! 

Homeowners, we know that being up side down with your property is stressful.  We are sensitive to what you and your family is going through.  We are here to help.  But we need a little help from you. 

 We need you to be available to us when we try to get in touch with you - especially if you are still living in the home and we need to show the property or have questions from the lender in order to continue negotiating the short sale request.

Nothing worst than to have the lender call with a questions during negotiating and the agent cannot find the buyer! Nothing worst... unless you consider agent getting the short sale approved and in writing and then the agent cannot locate the homeowner in a timely manner!!!

Not good.

Communication is very important in the short sale process.  Don't let your agent down.  Be available.

 Need a short sale specialist? 

Rosemary Brooks

866-543-0461. 

Website:  motheranddaughterrealtyteam.com

Email:  rosemary2042@gmail.com

Ok we're told you about the buyers that may not be serious about buying! But what about the buyer that cannot make up their mind to put in an offer on a property that they like?  What about the buyer that seem to like to have you drive them around, look at properties and never can decide if they really like the property or if they should put in an offer.

I am all for a buyer being sure, but with the market as it is ... they really need to make up their minds quicker.  Once you see the property you really like... you'd better go on and put that offer in or the property will be gone to the next buyer that could make up their mind.

The process of buying is:

• Get qualified
• Make a list of area *location, features you are looking for and find yourself a good real estate agent
• Give the agent the specs for your new home
• Go out and view the property, take your list and if you like, slightly like or think it is the home for you -- put in an offer!  Do not wait for a long time and then tell the agent to put in an offer... because the property is probably in pending by then

** some agents urge their buyers to put in an offer as soon as they figure out they like the property so that they can have a chance at purchasing the property

This is one of the main steps of making an offer: Be real in your offered price.  Low balling is almost a think of the past.  Nowadays offers are coming in at least (at least)... 3% over the list price.  That is "at least".  Being competitive is the way to go.

Buyers you have to get a move on.... if you really want the property!

Our Website:  motheranddaughterrealtyteam.com