Considering a Short Sale? What To Expect From the Bank

Considering a Short Sale? What To Expect From the Bank

If you are considering a short sale on your home in Santa Monica, and anywhere else, you must receive bank approval to move forward with any buyer for your home.

The bank will be taking a loss, and prior to approving a short sale will request document from you. Why are they wanting all of this personal information from you? Similar to when you applied for the loan, they need to document your finances. With your financial statements, and hardship letter your lender will be able to document the loss on their end.

We are in the process of gaining short sale approval with Wells Fargo. Listed below are the items you can expect Wells Fargo to ask you for.

 

We can help you understand your options if you’re facing payment challenges. To identify possible solutions we’ll need some details about your financial picture, including:

Employment

  • Employment status (employed, self-employed, or unemployed)
  • Occupation
  • Employer

Monthly income

  • Pre-tax pay (your salary or wages before any taxes or deductions)
  • Take-home pay (your net pay—the amount you actually receive)
  • Child support or alimony received (providing this information is voluntary)
  • Unemployment benefits
  • Disability benefits
  • Social Security benefits
  • Rental income (any income you receive from rent payments)
  • Interest and dividends (any income you receive from investments or annuities)
  • Any other income

Household expenses

  • The number of people living in your household
  • The number of vehicles owned or leased by members of your household
  • Estimated monthly spending on:
    • Food
    • Utilities
    • Transportation
    • Cable, internet
    • Clothing, dry cleaning
    • Tuition, school expenses
    • Child care
    • Child support or alimony payments (not including payments that are automatically deducted from your paycheck)
    • Medical expenses
    • Property maintenance
    • Homeowners association fees
    • Homeowners insurance (monthly amount, if not included in your mortgage payment)
    • Property taxes (monthly amount, if not included in your mortgage payment)
    • Personal loans
    • Lines of credit

For more information on short sales with Wells Fargo, please visit their website or you can contact us directly at 310-737-8173.

We have been helping homeowners avoid a foreclosure via short sale in Santa Monica, Venice Beach, West LA, Culver City, Playa Vista, and Los Angeles since 2008. For a private consultation to see if a short sale is right for you, call Kristine at 310-737-8173.

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


Top Question Asked When Buying A Short Sale, Who Pays For Closing Costs?

Buyers and sellers want to know who pays the closing costs in a short sale? As a buyer you want to ask your agent this question before you write an offer. The best time to ask it is during your first meeting. In a short sale all terms, conditions and closing costs are subject to lender approval. Sounds pretty vague, right?
Let me tell you what closing costs you should ask for when writing a contract. Then I will tell you what they actually pay.

Buyer should ask the Seller to pay:

  • Sellers escrow fees
  • Sellers title insurance
  • Property taxes-including any back taxes
  • County taxes
  • City Required Reports
  • Retrofitting
  • Natural Hazard Disclosure
  • Termite Report & Repairs
  • Home Warranty
  • HOA transfer fee
  • HOA documents
  • HOA back dues if any

Here is what the seller’s lender typically approves to pay:

  • Sellers escrow fees
  • Sellers title insurance
  • Property taxes-including any back taxes
  • County taxes
  • Natural Hazard Disclosure (Sometimes)
  • Termite Report & Repairs (Credits)
  • HOA back dues if any (Sometimes)

Each lender is different and has their own policies on what they are approved to pay. That’s why it’s a good idea to ask for these closing costs to be paid. Keep in mind that short sales are a great opportunity to get a discount on a property. Chances are some of the closing costs will not be paid. So be prepared when you receive the lender approval for your offer, all the fees might not be covered by the Seller and their lender.
For more information on selling or buying short sales, contact Kristine with Prudential CA Realty, Santa Monica -Short Sale Specialist,  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

Short Sales in Santa Monica, More Streamlined?

Short Sales in Santa Monica, More Streamlined?

In April of this year, the Federal Housing Finance Agency (FHFA) set out new guidelines to Fannie Mae and Freddie Mac in order to streamline short sales in the hopes of helping borrowers and communities hard hit by the housing market decline.  These guidelines take effect in June.

The FHFA has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure.  The changes coming in June set out new timelines for actions by mortgage servicers with regard to short sales.

The new requirements require a mortgage servicer to:

 

1.           Acknowledge receipt of a short sale offer within 3 day business days

 

2.           Notify a borrower within five business days if the information packet provided by the  borrower is incomplete.

 

3.           Review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.

 

4.           Provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days

 

5.           Make and communicate final decision to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

It is anticipated that additional enhancements regarding borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance will be out by the end of 2012.

As always, feel free to contact Kristine with any questions you may have, 310-737-8173

Santa Monica Luxury Short Sale Specialists, Press Release

FOR IMMEDIATE RELEASE Santa Monica, California, United States of America (Free-Press-Release.com) January 4, 2011 — Santa Monica, CA (January 4, 2011) –

Members of the Institute for Luxury Home Marketing, Short Sale Experts Kim & Kristine Halverson are beginning to sell multi-million dollar homes and estates through the short sale process.

With extensive training, the real estate sisters are helping other families avoid foreclosure and provide a legal option for sellers who owe more than their home is worth, also known as a short sale or pre-foreclosure: Kim & Kristine are Short Sale and Foreclosure Resource, HAFA Certified, and Prudential Short Sale Specialists.

“One thing is for sure, short sales are the dignified way for sellers to release their home when the market is lower than what is owed on the loan.” Kim Halverson says.

“We’ve sold dozens of short sales since 2008, and are seeing more sellers in high end communities affected by the economic downturn.” Kristine Halverson states, “Selling via short sale is a valid option for sellers underwater with their home.”

About The Institute for Luxury Home Marketing

The Institute for Luxury Home Marketing exists to help real estate professionals around the world provide high quality service to buyers and sellers of luxury properties. Institute members have completed special training to build expertise in the marketing of upscale homes and estates and those who meet performance standards may earn the prestigious Certified Luxury Home Marketing Specialist designation. Information and an international membership list can be found at www.CLHMS.org. Members are also listed on the Wall Street Journal’s RealEstateJournal.com website.

Search Homes North Of Montana, Santa Monica, CA (90402)

Contact: Kim Halverson Realtor

Prudential CA Realty

3130 Wilshire Blvd Suite 100

Santa Monica, CA 90403

Telephone: 310-737-8173 Fax: 310-829-7541

Email: Info@KimAndKristine.com

About Kim & Kristine Halverson Kim & Kristine are third generation Realtors living and working in Los Angeles’ Westside communities. Over eighty percent of their business is by referral. They began short sale training when the market began to shift in 2007 and have helped dozens of homeowners avoid foreclosure. More information can be found at www.KimAndKristine.com

Santa Monica Luxury Short Sale Specialists

Short Sale, Distressed Properties, Alternatives To ForeclosureSanta Monica Luxury Short Sale Specialists

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!

How To Help Avoid Short Sale Negotiator Fraud.

I really wanted to share this information with you from a legal article with California Association Of Realtors.  I don’t know if you have heard any rumors about short sale fraud?  But, it’s definitely a concern for the banks.  It usually happens with third party negotiation companies.  Your real estate professional may unknowingly hire a company that is not working in your best interest as a homeowner.  Here is some really good information for you to ask about should your Realtor hire another company to negotiate your sale.

Just as REALTORS® struggled with loan fraud during the subprime heyday, they now face the rampant growth of short sale fraud in the subprime aftermath.  Short sale fraud comes in many shapes and sizes to wreak havoc on the unsuspecting sellers, buyers, and agents, often at the most inopportune time.

This legal article provides legal and practical guidelines for REALTORS® and their clients for dealing with short sale fraud.  This legal article also describes certain types of short sale scams, and explains how REALTORS® and their clients can distinguish between legitimate and illegal short sale activities.

How do I check whether a short sale negotiator is legitimate?

Factors to consider to help ensure that a short sale negotiator is legitimate include, but are not limited to, the following:

• Whether the negotiator and the negotiator’s employing broker if any are both properly licensed with the DRE or registered and bonded as a  foreclosure consultant.

• Whether the negotiator is qualified to perform short sale negotiation services.

• Whether the negotiator actually performs services to facilitate and expedite the short sale process.

• Whether the negotiator’s fee is fully disclosed in a meaningful manner to, and approved by, the parties and lenders involved.

• Whether the negotiator’s fee is reasonable, based upon, among other things, the negotiator’s qualifications to conduct short sale negotiations and the fee charged by other negotiators.

• Whether the individual paying for the negotiator’s services voluntarily agrees to pay for those services, and is given an opportunity to consult with a real estate agent, attorney, accountant, or other professional as deemed appropriate.

• Whether the negotiator does not get paid until after the negotiator fully completes each and every service the negotiator promises to perform.

• Whether the negotiator complies with agency laws, RESPA, laws against fraud, and other laws and MLS rules.

The above list is an illustrative, not exhaustive list of factors to consider for a legitimate short sale negotiator.  Compliance with all these factors does not guarantee that a short sale negotiator is legitimate or qualified.  Similarly, not complying with one or more factor does not necessarily mean, depending on the specific circumstances, that a short sale negotiator is a scam artist, as ultimately decided by a judge, jury, arbitrator, or DRE Commissioner.

We have had some bad experiences when representing buyers and interacting with these types of companies.  That’s why we have designations and current experience in negotiating our clients short sale.  We want to provide the best and direct service.  Also, we partner up with agents in CA & AZ to provide quickly facilitate the short sale.

Our designations, Certified with Prudential CA Realty and National designations below:

Short Sale & Foreclosure NAR certificatioin

$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