BOA short sale update….how they work

I submitted 2 files at the same time. One file is being placed with a phase 2 negotiator already, but the other file has had several issues. They closed out the file for no reason other than to tell me the offer price was too low. When I asked how they came to that conclusion (because I know a BPO was not completed) they quickly informed me they would re-open the file.

Here is a quick update on the phases:
Upload the documents to BOA – always CALL first and confirm where to fax. As the number does change from week to week.
Phase 1 negotiator – could take up to 15 days to assign, once assigned the phase 1 negotiator will review and make sure all the necessary documents are with the file and order the appraisal/BPO.
Phase 2 negotiator – once the phase 1 negotiator sends to phase 2 (takes 3-5 days to assign) then they review the numbers on the HUD and decide what they will or will  not pay.
Then once phase 2 is completed it will go for investor review and PMI review (if applicable)

How they work? This is still TBD. But I will say the process seems to have improved over the last several months.

Feds push mortgage companies to modify more loans

The Obama administration, scrambling to get its main housing initiative on track, extracted a pledge from 25 mortgage company executives to improve their efforts to assist borrowers in danger of foreclosure.

The Treasury Department reached a verbal agreement with the executives for a new goal of about 500,000 loan modifications by Nov. 1 and stressed the program’s urgency.
The sessions came amid concerns that the Obama administration will fall far short of its original goal of helping up to 3 million to 4 million troubled borrowers with modified loans.
As of the end of July only about 200,000 borrowers were enrolled in three-month trial loan modifications, out of about 370,000 who were offered modifications by mortgage companies.

For months, borrowers, housing counselors and activist groups alike have complained that the process is a confusing, bureaucratic nightmare. Housing counselors say borrowers are being charged upfront fees and given inaccurate or confusing information about the program. The delays are long and, in some cases, lenders continue the foreclosure process while loans are being reviewed for a modification.

Recently, an activist group in Minnesota filed a lawsuit seeking to stop home foreclosures in that state. Mark Ireland, an attorney with the Minnesota-based Foreclosure Law Relief Project, said the government has failed to establish the procedures needed to ensure the fair and uniform administration of the program. Loan servicers are not required to tell a homeowner why they were denied a loan modification.

One reason progress has been sluggish is that loan servicers have had to hire and train thousands of employees. The loans have been bundled and sold to hundreds of investors as securities, which often have differing rules about loan modifications. Plus, mortgage companies have been swamped with thousands of calls from borrowers who want to take advantage of the program, and must sort out who is facing a legitimate financial hardship.
Many servicers didn’t get set up to deal with the surge in problem loans and modifications until this year, said Thomas Lawler, a housing economist in Northern Virginia.

Under the program, servicers can pocket up to $4,500 for each loan they modify. But they won’t start to be paid until homeowners have made on-time payments for three months.
If the program doesn’t kick in high-gear soon, the recent optimism about a real estate and economic recovery could fade as mo

“Foreclosures are still rapidly escalating,” said Andrew Jakabovics of the Center for American Progress, a think tank with close ties to the Obama administration. “If we don’t get a handle on that ... the economy is going to have a difficult time recovering.”
Copyright © 2009 The Associated Press, Alan Zibel and Danie Wagner, AP business writers. Associated Press Writer Steve Karnowski contributed to this report from Minneapolis.

Please visit our website for some helpful links for sellers looking for solutions.

Seller Solutions for Troubled Loans

Here are some possible temporary solutions for short-term problems, such as being one or two months behind in your mortgage due to illness. Other more permanent solutions address long-term financial difficulties, such as job lay-offs or long-term unemployment. If you have an FHA-approved loan, special loan modification programs may be available to you--ask your lender about them. Unfortunately, in some cases, keeping your home may not be possible--options for handling that situation are available as well.

Temporary solutions for short-term financial problems:

• Reinstatement: Lenders are often willing to “reinstate” your loan if you make up the back payments in a lump sum by a specific date. A forbearance plan may accompany this option.
• Forbearance: Your lender may be able to provide a temporary reduction or suspension of your mortgage payments for a short period, such as 3 or 4 months. After this time, your lender will work with you to create a repayment plan for the loan. You may qualify for forbearance if you have experienced a reduction in income (for example, if you have become unemployed) or an increase in living expenses (for example, higher medical bills). You must provide information to your lender to show that you will be able to stick with the new payment plan.
• Repayment plan: Your lender may agree to a plan that includes your regular monthly payments plus a portion of the past due payments each month until your payments are caught up.

Long-term solutions or adjustments to your loan:

• Loan modifications: Your lender may be willing to rewrite the terms of your original mortgage loan to address your financial situation. A loan modification is designed to make your monthly payments affordable. Changes to your loan may include extending the number of years to repay and changing the interest rate, including changing an adjustable rate to a fixed rate. You may have to pay a processing fee to obtain a loan modification.
• Partial claim: If your mortgage is insured by a private mortgage insurance firm, your lender might help you file a claim. Some insurers provide a one-time, interest-free loan to bring your account up to date. The interest-free loan is due when you refinance, pay off your mortgage, or when you sell the property.

If keeping your home is not an option, you may want to consider these alternatives:

• Sale: Your lender will usually give you a specific amount of time to find a buyer and pay off the amount you owe on your mortgage. Your lender may require you to use a real estate professional to help you sell the property.
• Pre-foreclosure sale or short sale: If you can’t sell the property for the full amount of the loan, your lender may accept the amount you get for the selling price, even if it is less than the amount you owe. You may owe income taxes on the difference between the amount you owe and the amount you are able to pay back. Check with the Internal Revenue Service for tax information.
• Assumption: A qualified buyer may be allowed to assume (take over) your mortgage. Ask your lender whether this option is available to you.
• Deed-in-lieu of foreclosure: You may be able to “give back” your property to the lender, who then forgives the balance of your loan. Again, there may be income tax consequences, so check with the IRS. This option will not save your home, but it is less damaging to your credit rating. Some lenders impose certain restrictions on taking back property. For example, they may require that you try to sell your home at a fair market value for at least 90 days.

Courtesy of http://www.federalreserve.gov/pubs/brochure.htm

For more information you may also visit our website and click on Help for Sellers.

Countrywide/BOA’s new short sale process?

I called BOA yesterday to get an update on one of my sellers files that was submitted about 10 days prior. They kept informing the seller, “the paperwork is not showing in the system.” For those of us that have worked with BOA in the past know this is a phrase we hear often. So in my call I also wanted to confirm the short sale fax number, because we know this changes on a weekly basis.  The supervisor then shared with me that BOA has initiated a new policy effective end of July.

The seller/borrower will have to call 1-800-669-0102 and explain to the Home Retention Team that they are working with a Realtor and would like to list the property for a short sale.  BOA will then gather basic financial information, input into their system and pre-qualify them to continue with the short sale. Now I have not seen this in action yet, I have a few of my sellers calling this week and can report back.  If you have had any experience with this new system, I would love to hear from you.

According to the supervisor the new process is supposed to help cut down on the time frame for approving the short sales. Some BOA files that have taken 6-8 months so if this policy can cut the time in half I would be very happy!

Contact us if you have any questions.

5 Tips for Protecting your home from Foreclosure

1. Don’t ignore your mortgage problem.

If you are unable to pay--or haven’t paid--your mortgage, contact your lender or the company that collects your mortgage payment as soon as possible. Mortgage lenders want to work with you to resolve the problem, and you may have more options if you contact them early. Call the phone number on your monthly mortgage statement or payment coupon book. Explain your financial situation and offer to work with your lender to find the right payment solution for you. If your lender won’t talk with you, contact a housing counseling agency. You can find a list of counseling resources at NeighborWorks and on the U.S. Department of Housing and Urban Development's (HUD) website.

2. Do your homework before you talk to your lender or housing counselor.

Find your original mortgage loan documents and review them. Review your income and budget. Gather information on your expenses, including food, utilities, car payment, insurance, cable, phone, and other bills. If you don’t feel comfortable talking to your lender, contact a housing or credit counseling agency. Counselors can help you examine your budget and determine the options available to you. They may also advise you about ways to work with your lender or offer to negotiate with your lender on your behalf.

3. Know your options

Some options provide short-term solutions/help, while others provide long-term or permanent solutions. You may be able to work out a temporary plan for making up missed payments, or you may be able to modify the loan terms. Sometimes, the best option may be to sell the house. For information on different options, visit HUD’s website or Foreclosure Resources for Consumers for links to local resources.

4. Stick to your plan.

Protect your credit score by making timely payments. Prioritize bills and pay those that are most necessary, such as your new mortgage payment. Consider cutting optional expenses such as eating out and premium cable TV services. If your situation changes and you can no longer meet your new payment schedule, call your lender or housing counselor immediately.

5. Beware of foreclosure rescue scams.

Con artists take advantage of people who have fallen behind on their mortgage payments and who face foreclosure. These con artists may even call themselves “counselors.” Your mortgage lender or a legitimate housing counselor can best help you decide which option is best for you. For tips on spotting scam artists, visit the Federal Trade Commission's website, Foreclosure Rescue Scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Consumer Action Website.
Courtesy of http://www.federalreserve.gov/pubs/brochure.htm
For more information you may also visit our website and click on Help for Sellers.

Windermere Stats as of August 1, 2009

Windermere is located in Southwest Orlando and nestled between numerous large lakes that form the Butler Chain of Lakes. Windermere was established in 1889 and works hard to maintain that small town feel. For instance, many local streets are still dirt roads. Windermere has expanded to include newer subdivisions such as Lakes of Windermere, Keene’s Pointe, Summerport, and Glenmuir. Below is a snapshot of the current state of the market in Windermere.

As of August 1, 2009 there are currently 591 properties listed in the MLS ranging in price from a two bedroom/two bathroom condominium in The Lakes of Windermere at $89,000 (Short Sale) to $12.5 Million estate home in Islesworth that is 9 bedrooms/8 bathrooms over 10,000 square feet. Here is the breakdown:

ACTIVE = 591:  118 are pre-foreclosure/short sales/bank-owned (making up 20% of the inventory).
HOME
530 TOTAL: 82 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
61 TOTAL: 36 are pre-foreclosure/short sales/bank-owned

PENDING = 190: 131 are pre-foreclosure/short sales/bank-owned, making up 69% of the pending inventory.
HOMES
153 TOTAL: 108 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
37 TOTAL: 23 are pre-foreclosure/short sales/bank-owned

SOLD (July 2nd to August 1st)= 46: 26 are pre-foreclosure/short sales/bank-owned, making up 56% of the pending inventory.
HOMES
44 TOTAL: 25 pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
2 TOTAL: 1 are pre-foreclosure/short sales/bank-owned

If you would like a Market Analysis for your home, please contact us directly.

We look forward to serving you.

Celebration stats as of August 1, 2009

Celebration offers a combination of condominiums, townhomes and single family homes.  Here is a brief snapshot of the current state of the market here in Celebration.

As of August 1, 2009 there are currently 350 properties listed in our MLS system ranging in price from a two bedroom/one bathroom condominium in Siena at $74,900 (Bank Owned) to $3.9 Million for an estate home in Aquila Reserve that is over 8100 square feet.
ACTIVE = 350:  68 are pre-foreclosure/short sales/bank-owned (making up 19% of the inventory).
HOMES
172 TOTAL: 32 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
178 TOTAL: 36 are pre-foreclosure/short sales/bank-owned

PENDING = 102: 61 are pre-foreclosure/short sales/bank-owned, making up 60% of the pending inventory.
HOMES
44 TOTAL: 25 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
58 TOTAL: 36 are pre-foreclosure/short sales/bank-owned

SOLD (July 2nd to August 1st)= 21: 7 are pre-foreclosure/short sales/bank-owned, making up 33% of the pending inventory.
HOMES
8 TOTAL: 2 pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
13 TOTAL: 5 are pre-foreclosure/short sales/bank-owned

If you would like a specific Market Analysis for your home, please contact us directly.

We look forward to serving you.

Pricing your home for the market

It is important to price your home right when you first list it. his along with a solid marketing plan can allow you to get the best price within the time frame you need.

It is important to know that statistics show that an overpriced home on the market more than 60 days is likely to sell at a lower price than a home priced for a quick sale.  For example, lets say a home is priced at $220,000 – 10% over the $200,000 comparable market price. Three months later, the seller drops the price by 10% to $198,000, BUT the market price fell an additional 10% to $180,000 from the original market price of $200,000 just 60 days before. So unfortunately the home is still overpriced. 

If you would like a market analysis for your home, or would like to schedule an appointment, we would be more than happy to help. 

June new home sales rise 11 percent in the U.S.

WASHINGTON (AP) – July 27, 2009 – New U.S. home sales rose by the largest amount in more than eight years last month, in another sign the housing market is finally bouncing back from the worst downturn in decades.
The Commerce Department said Monday that sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.
It was the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
Sales have risen for three straight months. The median sales price of $206,200, however, was down 12 percent from $234,300 a year earlier and down nearly 6 percent from $219,000 in May.
Last Thursday, the National Association of Realtors reported that home resales posted a monthly increase of 3.6 percent in June.
There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007.
Courtesy of the Florida Association of Realtors and The Associated Press, Alan Zibel, AP real estate writer.

Please contact us if you would like a market analysis of your area.  We look forward to serving you.

Timing vs. Activity

 

• Timing is extremely important in the real estate market.

• A property attracts the most activity from the real estate community and potential buyers when it is first listed.

• It has the greatest opportunity to sell when it is new on the market.

Would you like a market analysis for your neighborhood? Please contact us. We look forward to serving you.

Simple Tips for Better Home Showings

1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don’t forget to clean out the garage, too.
2. Wash your windows and screens. This will help get more light into the interior of the home.
3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It’s worth hiring a cleaning service if you can afford it.
4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help.
5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements. Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.
6. Don’t disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained.
7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. For added curb appeal, place a pot of bright flowers near the entryway.
8. Patch holes. Repair any holes in your driveway and reapply sealant, if applicable.

9. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.

10. Buy a flowering plant and put it near a window you pass by frequently.

11. Make centerpieces for your tables. Use brightly colored fruit or flowers.

12. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.

13. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.

14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers there if it’s not in use.

15. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.

16. Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they’ll be to eliminate surprises.

17. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it’s impossible to watch everyone all the time.

18. Leave the home. It’s usually best if the sellers are not at home. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.
Reprinted from REALTOR® magazine (REALTOR.org/realtormag)

If would like more information or would like us to prepare a market analysis for your home, please let us know.

April foreclosures rise 32 percent

According to RealtyTrac the number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates. More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month.

While total foreclosure activity was up, the number of repossessions by banks was down on a monthly and annual basis to their lowest level since March of last year, RealtyTrac said.  After banks take over foreclosed homes, they usually put them up for sale at deep discounts. Nationwide, sales of foreclosures and other distressed properties made up about half of the market in the first quarter, the National Association of Realtors reported.

On a state-by-state basis in Florida, one in every 135 households received a filing in April.

Help might be on the way. The Obama administration announced a plan in March to provide $75 billion in incentive payments for the mortgage industry to modify loans to help up to 9 million borrowers avoid foreclosure. But the extent of the relief remains unclear, with questions lingering about how much the lending industry will cooperate in modifying loans.
Note: Stats courtesy of NAR and RealtyTrac

If you have questions about what is happening in your area, please contact us.

 

Dispute your assessed value?

With the steep slide in property values many homeowners are trying to fight their assessed values with the Value Adjustments Board (VAB). 

Market values have come down, and many homeowners feel their properties shouldn’t be assessed at the levels they’re seeing. But a key point to remember is that property assessments aren’t based on today’s values; they look backward. That means tax bills for 2008 reflected property values in 2007. But 2009 assessments will be based on property values between Jan. 2, 2008, and Jan. 1, 2009.

Property owners sometimes save thousands of dollars by appealing to the Value Adjustments Board. There are quite a few cases that warrant adjustments, so it may be worth the effort.  One caveat about winning a VAB appeal: Property appraisers, relying on computer-assisted mass assessments, often jack up an assessed value again the next year after someone wins an appeal.

To find your local county office, click here.

Just a few steps to help sell your home…

1. Look at your home through the buyers eyes.
2. Visit open houses in your neighborhood. Are similar homes priced lower? Selling prices may have dropped since your first comparative market analysis. You want to stay ahead of the competition. If you do lower your asking price, consider a figure slightly below those of other comparable homes if you are interested in a speedy sale.
3. Don’t be present for the showings. The presence of sellers can make it difficult for prospective buyers to take their time or talk openly with their partner and agent.
4. Ask your Realtor to talk to other buyer agents that have shown your home. The feedback from their clients can guide you in making home repairs, toning down your décor, making landscaping improvements and the like.
5. Neutralize your color scheme. Most buyers prefer pale, neutral colors that make it easier to imagine a new home as their own.
6. Take every offer seriously! Determine the lowest price you find acceptable, and consider anything more as icing on the cake. In a longstanding dry market you may even have to sell at a loss. You don't want to alienate a potential buyer who has solid financing because you've set your sights unrealistically high.
If you are thinking of selling, we would me more than happy to provide you a market analysis of what the properties are selling for. There are some great websites out there, but we can give you up to the date information on which properties are selling and for how much.
We look forward to assisting you.