Why can’t I cash in money from my 401K and give it to a friend to buy my property which is in foreclosure with no sale date; then have the friend sign the deed back over to me?  What difference does it make if I know the buyer or if I don’t?

Wendy (more…)

I called Bank of America for one of my sellers today and learned that she qualifies for the $5,000 incentive program they are offering for Florida properties.  Can’t be a lot loan and certain investors are not participating.  In her case, she had a Freddie Mac loan so she was good to go.  If you have a Bank of America serviced loan and want to know if you qualify for the new program of $5,000 to $20,000 cash incentive to the seller at closing then the number at BofA to call is (877) 459-2852.

Of course, if the property is located in Pinellas, Hillsborough, Manatee, or Pasco counties then send me an email: paul @ brokencredit.com

Hello Paul, 

Freddie Mac will require a $15k promissory note over 120 months at 0% interest = $125/month or $7500 cash contribution at closing instead of promissory note.  The loss to Freddie Mac is very large, so they will require one of these two things to consider approving this transaction.  Please let me know what the seller agree to so we can try and wrap this up.

Thanks,

Clueless Ken
Fifth Third Bank 
Homeowners Assistance Specialist (more…)

Servicers completed 10,438 short sales through the government’s Home Affordable Foreclosure Alternatives program since it launched in April 2010, according to the Treasury Department.

HAFA was designed to provide an incentive to servicers for completing short sales and deeds-in-lieu of foreclosure for loans that fail out of the larger Home Affordable Modification Program. Through June, servicers started 21,412 short sales and DILs, up 20% from the month before. A total of 10,754 were completed, up 25%.

JPMorgan Chase (JPM: 36.03 0.00%) is the programs leading performer, completing nearly 3,600 through the program, including nearly 1,000 in June alone.

Wells Fargo (WFC: 24.55 0.00%) was second, completing more than 3,100 since the program launched and roughly 700 in June.

Bank of America (BAC: 7.40 0.00%) completed 1,873 HAFA transactions, an increase of roughly 200 in the month.

Pam Marron, a senior loan officer with Gold Start Mortgage Financial Group in Tampa Bay, Fla., said more and more homeowners in negative equity view a short sale as their only way out. Many, she said, are defaulting because banks require them to do so in order to qualify for a short sale.

“The growing problem in Florida is the alarming increase in the number of short sale listings that are coming onto the market. These people are still employed but severely underwater and are having to short sale because they are not able to pay the vast difference owed between the mortgage amount and the value of these homes,” Marron said. “Banks are requiring homeowners to default in order to qualify for the short sale.” (more…)

Hello Paul!

Can you tell me how short selling 3 rental homes will affect our credit? Our scores are 750 currently.  Haven’t found any information on the impact of 3 homes compared to doing just one. Is it true that actual missed payments on the loans is what hurts your credit more then the short sale itself? I currently have offers on all 3 and am about to be 60 days past due on the loans. We have two rentals in AZ (a non-forgiving state) and one in CA.

Just wondering if we should try and make arrangements with the collection dept to lessen the impact on our credit report or does this not even matter? Once it goes to collections, it is done? Do you know that if we do pay on the loans, will this affect the lenders decision to accept the short sale?

Any advice you can give would be great. Thanks so much for your time and expertise.

Gina (more…)

Hi Paul…
I was told to email you because of all people out there talking abotu credit, you would be the one to answer my question…

I have heard a lot of talk about what to do when we get a 1099c.  What about if we *don’t* get a 1099c?

I am currently in the process of negotiating a shortslae with my lender, CHASE.  I am using a very qualified third party negotiator (law firm) to help me.  So far, we have gotten acceptance of our offer and all of the terms we wanted *except* the release.  In other words, the “investor” who owns my loan says they will not sign a release for the debt amount if I go through with the short sale which means there is a very good chance I will *not* get a 1099c and therefore my debt is not “cancelled”. 

So, my question is, if my first mortgage debt is still hanging out there and is not cancelled, what effect will that have on my credit??  I happen to know that lenders are not currently pursuing borrowers for outstanding debt…YET.  If they were, they would start sending me letters and asking for payments and eventually, if I don’t pay, send the whole thing to collections where it could potentially be “charged off”.  However, lenders aren’t doing that…and my lender has said they won’t cancel my debt either.  So, without a cancellation or charge off, what do I have?  What happens to my credit?  Do I just have this open credit line hanging out there with no payments against it?  By the way, we are talking about nearly $100K in debt in the state of Florida.  And this is not my primary residence.  Supposedly, the “investor” is Wells Fargo…even though the loan is serviced by CHASE.

I may still have some negotiating room with the lender because nothing has been officially signed yet.
THANKS!
Greg (more…)

Two of the nation’s largest lenders are quietly offering some delinquent homeowners a deal.

JPMorgan Chase & Co. and Wells Fargo & Co. say they give select borrowers behind on their mortgage payments $10,000 to $20,000 for agreeing to short sales, which means the homes are sold for less than what’s owed on the mortgages.

Most banks figure they’re doing homeowners a favor simply by signing off on short sales and forgiving the amount owed. But in some cases, Chase and Wells Fargo borrowers receive that and cash at the closing.

Lenders routinely hand homeowners a few thousand dollars if they leave the properties in good shape after foreclosure. That’s known as “cash for keys.” Also, homeowners are entitled to $3,000 of government money if they complete short sales through the Home Affordable Foreclosure Alternative program.

But real estate agents and other industry observers say they aren’t aware of other major lenders offering such sizable incentives for successful short sales.

“It looked, to me, like it was a come-on,” said Allison Adler, an agent for the Keyes Co. in Weston.

But Adler checked and discovered it was legitimate. Her client, Sara Horowitz, received $10,000 last week from Chase when she completed a short sale of her Davie townhouse. (more…)

I’m curious if anyone has any short sale second mortgage or collection or worse stories in dealing with Real Time Resolutions.  In working with the following folks: Brian Gramlich, Grant Mones, Eric Luna, or Eric Ordinerio.

Please post what you’re finding with the following:

brian.gramlich@rtresolutions.com grant.mones@rtresolutions.com eric.luna@rtresolutions.com eric.ordinerio@rtresolutions.com

214-599-6390 877-469-7325 214-599-6460 214-599-6441

Let the people speak!  What say ye?

HI!

We listed our home for sale July 2009 with one agent with 4 total showings and 3 open houses with ZERO attendees. (lovely, eh…). We re-listed with her as of Feb 1, 2010==but as I learned two weeks ago she did NOT receive the paperwork (what the?…..) and has NOT listed the house since Feb 1, 2010.

I called mortgage holder in January-EverHome Mortgage- and asked what to do. Was told that I was NOT a candidate for loss mitigation since I was current on my payments, the only way to get attention is to be late on payments, “Although I’m not telling you NOT to pay your mortgage.”

Right.

So we stopped paying.

Three months behind, foreclosure notice sent with payment four. Paid it, and got the financial package paperwork to move forward with deed in lieu, short sale–something.

Found a new agent last week, signed him and he has shown the property four times in the last week including a possible rental. There is ONE interested family looking to initially offer 250,000 on the home and our mortgage is 277,900.

Ok, so now do we accept the short sale and go through that process with Everhome and take the credit hit, and request the full release from extra debt? Or do we take out a 40,000 personal loan (if we can even get one….) to cover the difference?

Will it STILL show as short sale if we bring the $$ to the table to cover the difference? What if we accept the 250,000 from the buyers and pay the difference?

Sharon (more…)