I’m Doing A Short Sale, Can My Lender Take My Retirement?

I’m Doing A Short Sale, Can My Lender Take My Retirement?

One of the top questions we get asked is what happens to the retirement accounts when doing a short sale? Here is the info:

401ks, 403bs and Pensions

Your lender is not permitted to “raid” or liquidate employer-sponsored 401k, 403b or pension plans thanks to ERISA, the Employee Retirement Income Security Act. In fact, other than the IRS or former spouses, these accounts are protected from all creditors. It is never considered advisable to liquidate or borrow against your retirement savings to save your home. If you recently rolled over money from an employer-sponsored plan into an IRA, that money is protected as well. Be sure to save your account statements that show the rollover.

For more information about short sales please ask for Kristine Halverson of Prudential at 310-737-8173


California Foreclosure Timeline, Yes, Santa Monica Applies

In California, lenders who intend to foreclose on a property when the loan is delinquent typically use the nonjudicial foreclosure process also known as a trustee’s sale.  This process is less expensive for the lender than the judicial foreclosure process.  A nonjudicial foreclosure doesn’t require a court proceeding and, thus, is a more expeditious process.  From here on, whenever the term “foreclosure” is used, it is referring to a trustee’s sale. (This includes Santa Monica)

With foreclosures being so prevalent and with so many homeowners being at risk of losing their homes to foreclosure, we need to be able to assess whether we have sufficient time to market the property and close escrow before the property is lost to foreclosure.  Therefore, this article provides a foreclosure timeline to assist us in their assessment of the time remaining before a possible foreclosure occurs.

FORECLOSURE TIMELINE FOR LENDERS

Loans Made Between Jan. 1, 2003 and Dec. 31. 2007 on Residential One-to-Four Unit Owner-Occupied Properties Other Loans
DAY 1: CONTACT THE BORROWERUnder Cal. Civ. Code § 2923.5(a) the lender must contact the borrower by phone or in person to assess the borrower’s financial situation and explore options for avoiding foreclosure.  During the conversation, the lender must inform the borrower of the right to meet with the lender within 14 days.  The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency.Note:  In the 2010 case, Mabry v. Aurora Loan, the court held that a borrower can file an injunction to postpone the foreclosure sale if the lender doesn’t comply with this law, but cannot overturn the foreclosure sale once it has been conducted.
DAY 31:  RECORD THE NODThe NOD must be filed in the county where the property is located. The language of the NOD can be found in Cal. Civ. Code § 2924c(b)(1).The NOD must include the lender’s declaration that it has contacted the borrower to explore options for avoiding foreclosure, tried with due diligence to contact the borrower, or the borrower has surrendered the property (Cal. Civ. Code § 2923.5(b)).Within 10 days after recordation of the NOD: A copy of the NOD must be mailed by registered or certified mail to the borrower/trustor and to any parties with a recorded Request for Notice as indicated in Cal. Civ. Code § 2924(b)(1).  (Cal. Civ. Code § 2924b(b).)Within 30 days after recordation of the NOD: the lender must mail a statutory notice to the borrower as described in Cal. Civ. Code 2924f(c)(3). DAY 1:  RECORD THE NODThe NOD must be filed in the county where the property is located.   The language of the NOD can be found in Cal. Civ. Code § 2924c(b)(1).Within 10 days after recordation of the NOD: A copy of the NOD must be mailed by registered or certified mail to the borrower/trustor and to any parties with a recorded Request for Notice as indicated in Cal. Civ. Code § 2924(b)(1).  (Cal. Civ. Code § 2924b(b).)

Within 30 days after recordation of the NOD: the lender must mail a statutory notice to the borrower as described in Cal. Civ. Code 2924f(c)(3).

DAY 116 – 121:  RECORD THE NOTICE OF TRUSTEE’S SALEThe Notice of Trustee’s Sale must set forth the date, time, and place of the Sale.  It must also include the total amount of the unpaid balance and reasonably estimated costs, expenses, and advances at the time of the initial publication of the Notice.  It must be recorded, posted, published, and also mailed by registered or certified mail as well as first class mail to the borrower (Cal. Civ. Code § 2924f).25 days prior to Trustee’s Sale:  Notice of Sale sent to IRS in case there is an IRS lien recorded more than 30 days before the date of the Sale (Cal. Civ. Code § 2924b(c)(4); 26 U.S.C. 7425(b)).20 days prior to Trustee’s Sale:  Notice of Trustee’s Sale must be recorded at least 20 days prior to Sale (Cal. Civ. Code § 2924f(b)).20 days prior to Trustee’s Sale: Notice of Sale publication begins (must run once a week for 3 consecutive weeks in a newspaper of general circulation) (Cal. Civ. Code § 2924f(b)).

20 days prior to Trustee’s Sale:  Notice of Sale must be mailed by registered or certified mail to everyone who is entitled to receive a NOD.  In addition, the Notice of Sale must also be mailed by 1 st class mail to the borrower (Cal. Civ. Code § 2924b(b)-(c)).

DAY 86 – 91:  RECORD THE NOTICE OF TRUSTEE’S SALEThe Notice of Trustee’s Sale must set forth the date, time, and place of the Sale.  It must also include the total amount of the unpaid balance and reasonably estimated costs, expenses, and advances at the time of the initial publication of the Notice.  It must be recorded, posted, published, and also mailed by registered or certified mail as well as first class mail to the borrower (Cal. Civ. Code § 2924f).25 days prior to Trustee’s Sale:  Notice of Sale sent to IRS in case there is an IRS lien recorded more than 30 days before the date of the Sale (Cal. Civ. Code § 2924b(c)(4); 26 U.S.C. 7425(b)).20 days prior to Trustee’s Sale:  Notice of Trustee’s Sale must be recorded at least 20 days prior to Sale (Cal. Civ. Code § 2924f(b)).20 days prior to Trustee’s Sale: Notice of Sale publication begins (must run once a week for 3 consecutive weeks in a newspaper of general circulation) (Cal. Civ. Code § 2924f(b)).

20 days prior to Trustee’s Sale:  Notice of Sale must be mailed by registered or certified mail to everyone who is entitled to receive a NOD.  In addition, the Notice of Sale must also be mailed by 1 st class mail to the borrower (Cal. Civ. Code § 2924b(b)-(c)).

DAY 135:  LAST DAY TO CURE DEFAULTUp to 5 business days before the Trustee’s Sale, the borrower may reinstate the loan (bring the loan current) by paying the missed payments plus allowable costs. Note:  If the Sale is postponed the date that the borrower may reinstate is postponed accordingly. (Cal. Civ. Code § 2924c(e).) DAY 105:  LAST DAY TO CURE DEFAULTUp to 5 business days before the Trustee’s Sale, the borrower may reinstate the loan (bring the loan current) by paying the missed payments plus allowable costs. Note:  If the Sale is postponed the date that the borrower may reinstate is postponed accordingly. (Cal. Civ. Code § 2924c(e).)
DAY 141:  TRUSTEE’S SALE FORECLOSUREAfter the last day to cure the default, the borrower still has the right to redeem the property but he/she must pay the entire debt, plus interest and costs before the bidding begins at the Sale (Cal. Civ. Code §§ 2903, 2905).At the Trustee’s Sale, the property is sold through a public auction to the highest bidder.  Title is transferred to the successful bidder by Trustee’s Deed. DAY 111:  TRUSTEE’S SALE FORECLOSUREAfter the last day to cure the default, the borrower still has the right to redeem the property but he/she must pay the entire debt, plus interest and costs before the bidding begins at the Sale (Cal. Civ. Code §§ 2903, 2905).At the Trustee’s Sale, the property is sold through a public auction to the highest bidder.  Title is transferred to the successful bidder by Trustee’s Deed.

 

Bottom Line:  The minimum time for a trustee’s sale foreclosure (nonjudicial foreclosure) is 110 days after the NOD is recorded for most loans (plus 30 days for loans made between Jan. 1, 2003 and Dec. 31, 2007 on owner-occupied residential one-to-four unit properties).

If you are facing a trustee’s sale on your Santa Monica home. For a no obligation consulatation please contact Kristine Halverson, a Santa Monica short sale specialist, 310-737-8173.

How Can a California Short Sale Specialist Help Troubled Homeowners?

How Can a California Short Sale Specialist Help Troubled Homeowners?

Even with moving assistance and financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Santa Monica short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.

If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a California short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Santa Monica short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Santa Monica may be sold today at $1,000,000. Unfortunately, your home used to be worth $1,20,000 and in fact you have mortgaged it to the hilt and thus owe the bank $1,200,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.

  • $1,200,000 Original value of your home or the amount of your mortgage balance
  • $1,000,000 Present market value of your home
  • $200,000 Negative balance if you sell your home at its present market value

This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $1,200,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Santa Monica short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden:

Prepare a short sale package to convince your creditor about the rightness of short selling your home
Find a buyer for your short sale home
Obtain the best possible post-short-sale condition for the remaining $200,000 balance of your mortgage
Expedite the process for selling your home to prevent foreclosure

Fore more information contact Kristine Halverson of Prudential CA Realty, at 310-737-8173

Bank Of America Short Sales Approved, Without Recourse! SOLD!!

Short Sale, Distressed Properties, Alternatives To Foreclosure

We successfully negotiated and closed 2 short sales with Bank Of America. Our Seller was so excited to finish this right before the holidays and New Year. Also, the funny thing is that after closing. Our buyer admitted that he did not believe the short sale would get approved for him to purchase. He had other agents and friends that said it couldn’t be done. My response was it the glass half empty or half full? We worked really hard and quickly, it was approved in 6 weeks.

Short sales can be done successufully with a win-win for Seller and Buyer. If you need help or have questions pick up the phone and call. Find out what you need to know, 310-737-8173 Kristine.

Please have a Happy Holiday!

$79 Million Dollar Strategic Default, Mortgage Bankers Association

The Mortgage Bankers Association defaulted on their loan & walked away from it’s Headquarters in Washington DC. They purchased the building 3 years ago for $79 million dollars with 5% as a down payment.

Sound familiar? Many homeowners over the past 3 years have had this same issue…with their HOME not office. They have felt terrible, guilty and ashamed. The CEO, John Courson of the Mortgage Bankers Association shamed people in a previous interview for walking away from their mortgages which in the industry is known as a Strategic Default. He said that it was a “moral imperative” that homeowners need to continue to make their payments. They have now defaulted on their headquarters loan!

Am I advocating Strategic Defaults? Absolutely not. My main message is that if you are in trouble with your mortgage and it’s becoming more like debt than a mortgage. Sit down with yourself or your family and get real. Create a plan that will be solid for the future instead of sitting and waiting for things to happen. This is what homeowners are doing and so are businesses. My first blog post is about getting real. We help homeowners everyday, 310-737-8173, Kristine.

Watch the report about the Mortgage Bankers Association Strategic Default. It’s about 5 minutes and worth it.

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
Mortgage Bankers Association Strategic Default
www.thedailyshow.com
Daily Show Full Episodes Political Humor Rally to Restore Sanity

Free Home Buying Webinar

Free Webinars On Home Buying, save time and gas watching these in the privacy of your home.

A few of the classes: 20 Things You Must Know Before Buying a Home, and 10 Secrets to Sell Your Home Fast…Even in a Down Market!.

Click on Crest For More Info:

HBU Crest

Bank of America ‘Secret’ Mortgage Program | New BofA HPO Short Sale Program

New Help For Homeowners & Their Mortgages

I’m totally shocked at this news. I have been waiting a long time. So long that I actually gave up and was sarcastic whenever our clients and the media mentioned Mortagage help. However, I’m now starting to believe…and maybe they are too. It only makes sense to help homeowners that owe more than their home is worth.

It hasn’t been officially announced yet, but here is as much info as I have on the Bank of America ‘Secret’ Short Sale Program | New BoA HPO Short Sale Program.

This is a new program is being quietly introduced, using only a hand-selected group of top short sale agents across the country.

Here are the details to help homeowners:

* No pre-qualifying, no hardship required. Being upside down in the house IS the hardship.

* No documentation.

* No bank statements.

* No tax returns.

* No financial worksheets.

* No deficiency judgement.

* No financial contribution from the seller of any kind will be requested.

* Only requirements? -A listing contract -A purchase contract -An appraisal, though we’ve been told the appraisal will not have an adverse bearing on the final acceptance.

* 2 WEEK approvals.

What’s the catch I asked myself when hearing about this program. The bank wants the homeowner to stay in the home and maintain it until sold. We all know that homes sell quicker and for more money when the lights are on and it’s furnished. Unlike most foreclosures. I’m amazed that someon in Bank Of America picked up on this home selling tip.

Also, the homeowner will be cleared of the remaining balance and may qualify for $3,000 cash move out expense from Bank Of America.

Hope this helps someone, please foward to a friend. There are many people that have toxic mortgages or just having a hard time financially.

Contact us for a confidential call: 310-737-8173. Ask for Kristine. 🙂

Have a great week, be proactive not reactive. Take control of your life even when you think you can’t. We can help! We can make the bank stop callling you. Thank you.

What You Need To Know About Deed In Lieu Of Foreclosure…

There are quite a few homeowners that are unfortunately mis-informed about deed-in-lieu of foreclosure. The deed-in-lieu of foreclosure means exactly how it sounds. The homeowner gives the deed to the bank just in time to save the crushing blow of a foreclosure. Right?, Wrong…and let me tell you why.

We are working with a very wealthy client that is in foreclosure on 2 of their high end homes. They decided to not do a foreclosure and called their bank. They offered to give them the deed to their homes. The bank would not accept the deeds. The homeowners were shocked and stunned. They couldn’t understand why the bank would not willingly take the deeds instead of going through the expensive foreclosure process.

The bank wanted the homeowners to find a buyer for their homes. In other words, Short Sale. The bank did not want any part of the debt on these 2 homes. The homeowner then contacted us to handle the short sale. They have successfully completed a short sale on their investment property. The other home is their primary residence which will be sold by the middle of next month.

Let me add more information to why banks are not taking deed-in-lieu. They want a deed free and clear of all liens. An example of what some common liens are, IRS for unpaid taxes, property taxes, unpaid HOA dues, and contractors lien. This is why they don’t do deed-in-lieu of foreclosure. They want a clear deed.

This is current information gained from a “HAFA” certification I went to last week. Doing my best to keep you informed with current bank information.

If you are reading this and know of someone that may need our help please send this to them, or call 310-737-8173 for a confiential call.

We help people move gracefully out of uncomfortable financial situations with their homes.

Kristine 🙂

Relief For Homeowners, Pre-Approved Short Sales, Move-Out Money too..

I have been super busy this week training and testing at California Asssociation of Realtors “CAR” for the HAFA Certification.  It was really educational and as one of the first Realtors to take this program I’m excited to share…

This is called the “HAFA” Home Affordable Foreclosure Alternatives program.  This is a “Making Home Affordable” Initiative. 

Benefits to Homeowners in need are:

  • Avoiding Foreclosure
  • Satisfying the outstanding balance on your Loan
  • Receiving a cash payment in the amount of $3,000 to use toward moving or other expenses.

Lender will agree to release its mortgage lien on the home when it receives the proceeds from the sale of the property, even though the proceeds are less than the mortgage loan balance

What does this mean for homeowners?  It’s a standardized system for pre-foreclosure, short sales should you be in a homeowner needing assistance with your mortgage.  In this program there are timelines, and approved short sales!  This take a lot of the guess work for people involved in a short sale.  This is huge for Sellers & Buyers knowing that they will get answers in a timely manner.

Avoid Foreclosure–Respond Today

Don’t Delay.  Take advantage of this program, make the best of your situation as much as possible. 

Call Kristine, 310-737-8173 for more info about the HAFA program.

Thank you, here is my CAR approved, HAFA desgination:

HAFA, Help For America's Homeowners

Is A Mortgage Modification For Me?

There are more and more homeowners of ALL income levels struggling to make their payments.

They are not able to sell their home without a significant loss.

For some people $10,000 is a lot of money to shell out to sell their home.

Others it’s $100,000. Quite a few homeowners would need somewhere betweeen $200,000-$500,000.

This year we are starting to notice it’s well over $500,000.

There are 3 options,

1. Short Sale, bank and homeowner settle the difference between what is owed. Most cases it’s $0 contribution from the Homeowner.

2. Mortgage Modification, the homeowner is qualified based on income, assets and debt. Few qualify. Few stick with the modified loan.

3. Foreclosure, homeowner walks away from the home. Bank reposses. This is costly for the bank. High credit and deliquency cost to homeowner are long term.

The solution is to take a few minutes, remove all distractions and have a conversation with yourself.

Ask yourself, “Is This Mortgage Working For Me? Is It Helping Me Leverage My Future? Is It Manageable?” Answering these few simple questions directly with your self and/or spouse can save a lot of time & money, & STRESS.

Also, spend time thinking about new ways to generate income. There are really good business people out there making money from just a computer out of their bedroom. Here is a link from someone who did just that, Click Here

He talks about starting a business based on something you already know…maybe it’s your current experience with a toxic mortgages? You want to educate and help other homeowners in your situation. Maybe you just want to move on from this and you have something else you know really well? This system will walk you step by step into your new info business.

Basically, we notice that homeowners facing these situations tend to focus on debt. It’s understandable but, not going to help. Check out a new way of doing business and making income with barely any overhead costs.  Use the answers from your questions about your mortgage to take action, move foward and add to your income.