No Short Sale Deficiencies: Lender Cannot Pursue Deficiency Judgement

New California Law for 2011:

No Short Sale Deficiencies: Starting January 1, 2011, a seller’s first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931.

To view the full text of the following bill, go to www.leginfo.ca.gov.

Comparing Impact Of Short Sale and Foreclosure To Homeowner's Credit

Short Sale

How short sale is reported will affect credit score.

After short sale, lender can report as:

1. Paid in full – paid as agreed

2. Paid – settled

3. Paid – unrated

If the owner is current with other payments, a short sale may only lower score by 50 points.

Foreclosure

1. Can lower credit score by 200 points or more.

2. Foreclosure remains a public record and on credit history for 7 years.

What our clients have experienced is a 50-125 point decrease. The lower end is missing mortgage payments for a short sale. The higher end is missing mortgage payments, and other debt. The solution is to discuss credit repair with a professional that specializes in these types of credit repair. They have increased our clients score close to what it was before the short sale. We are happy to share this resource with you. Just ask, 888-746-6428 x115, Thank you, Kristine

Source: Short Sales And Foreclosure, my SFR certification from National Association Of Realtors.

Foreclosure Alternatives, Good To Know…

It’s time to stop the foreclosure process. There are other options than foreclosure and we’re here to help you gain a better understanding.

Protect your credit from futher degredation.
Present a solution to your lender and negotiate favorable terms.
Help minimize your debt obligations.
Allow yourself and your family to get a fresh start.
Expedite the process with a fast resolution.

Confidential Call, Kristine: 1-888-746-6428 x115
Not you? If you know someone, please pass this on.

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.

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

Top 7 Short Sale Tips, Make Sure The Person Buying Your Home Is Qualified…

I’m sharing part of our secrets to getting short sales closed successfully for our clients. We use a Buyer Short-Sale Checklist for the homes we represent.  This adds an extra level of protection for our Sellers.

Here is the checklist of questions, Yes or No answer to each one:

1. Is the buyer pre-approved?

2. Is the buyer a cash buyer and willing to submit proof of funds?

3. Is the buyer willing to make a reasonable offer?

4. Does the buyer have realistic expectations of the time-frame?

5. Can the buyer be flexible on their closing date?

6. Will the buyer lock in their interest rates thru to closing?

7. Is the buyer willing to spend money on the following to make this happen?

  • Mortgage application
  • Inspections
  • Attorney fees

Go to fullsize imageAny “No” answers to the above questions?

If there are, seriously consider not taking this buyer’s offer or as a client.

We do use this checklist and everytime we have an offer on our short sale listings or are representing our own buyer. We follow it exactly and it’s a huge success for all involved!  The only area where there can be some flexibility is locking the rate thru to closing.  We have our preferred lenders lock the rate immediatly after approval. 

Information is provided from my desginataion, SFR, Short Sales & Foreclosures: What Real Estate Professionals Need To Know.

What Is A Short Sale?

I’m going to share with you a definition of a short sale.  This is directly from my Short Sales And Foreclosures, certification with the National Asssociation Of Realtors, “NAR”.  A short sale is a situation in which the seller (1) owes more money on the loan than the sale of the property will likely produce on the market and (2) is unable or unwilling to bring money to closing.  The seller may or may not be in pre-foreclosure.

Let me breakdown a bit more for you.

The most common reasons our clients are doing a short sale is based on a financial hardship:

*Job Loss

*Business Failure

*Payment Increase Or Mortgage Adjustment

*Divorce Or Death Of A Spouse

*Illness

*Relocation

*Reduced Income

*Mortgage Fraud

*Predatory Lending

These homeowners are also unable to sell their homes on their own without involving the bank.  Due to the homeowners bank note being larger than current market value.  Therefore, the bank that owns the note on the home will have to take a discount.  This is what the term short sale, or short pay in industry lingo is referring too.