Closes HAFA Short Sale with Bank of America on 1-27-2012

Short Sale time frames will most definitely vary depending on the number of loans and who services the loans.

Below is an outline of the time frame for closing a short sale. This property qualified for, and was approved as a HAFA short sale.  The property is located in Milpitas, California.

San Jose short sale agent helps another homeowner avoid foreclosure with a Bank of America HAFA short sale.

• List Date: 8/19/2011
• List Price: $369,000
• Price Reduced:  $358,888 on 9/3/2011
• Sale Date: 9/15/2011
• Number of Offers: 3
• Days on Market: 27
• Price Increase 12/2/2011:  $370,800 – mandated by AMS Servicing policy
  
• Conditional Lender Approval 1^st Lien with Bank of America: 12/22/2011
• Lender Approval 2^nd Lien with Wells Fargo: 1/6/2012
• Final HAFA Approval with Bank of America: 1/23/2012
• Sales Price: $358,888
• Close of Escrow: 1/27/2012
• List to Close: > 5.0 months
• HAFA Incentive to Borrower: $3,000.00
• Bank of America HAFA short sale servicer:  AMS-Servicing

Working with AMS Servicing was extremely challenging. Without Bank of America escalation support this file would not be closed today.

A proven strategy for a successful short sale is to require the purchase agreement time line to begin the day following receipt of the the first lien approval.  As shown on the short sale time frame above, the file was ready to be closed by the time the final approval letter was issued. The file was closed within 3 days of receiving the final approval.

You can save your home from foreclosure. Get the help you need now. Don’t wait until you run out of time. Call your local San Jose short sale agent who is trained, certified, experienced, with a track record of helping homeowners avoid foreclosure.

Call 1-800-972-1822 today!

On December 31, 2012 the Mortgage Debt Forgiveness Act of 2007 is scheduled to expire. As a San Jose Real Estate Agent-Broker, who manages many San Jose short sales, I recommend signing the petition to extend the Mortgage Debt Forgiveness Act of 2007. 

“The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.” Source: irs.gov

With mortgage forgiveness and debt cancellation the income realized by a modification of the terms of the mortgage (short sales modify the terms of a mortgage) is excluded. In other words, the debt relief act allows the exclusion of income on certain cancelled debt on a principal residence. 

Mortgage Forgiveness and Debt Relief relates to taxes.  Therefore, to fully understand if you qualify to exclude income on cancelled debt on a principal residence, you definitely need to consult with a licensed tax adviser who is well versed in foreclosure tax laws.  San Jose short sale agents are not licensed to give tax or legal advice.

IRS Publication 4681 – Rev. 1/24/2011 – Cancelled Debts, Foreclosures, Repossessions, and Abandonments (for individuals) in preparing 2011 Tax Returns.

Avoid Foreclosure – get the help you need now! 

Call San Jose short sale agent, Kathleen Daniels today for a free consultation!

1-800-972-1822

Bank Of America Short Sales

Short Sale time frames will most definitely vary depending on the number of loans and who services the loans.

Below is an outline of the time frame for closing a San Jose short sale. This property did not qualify for a HAFA short sale. The property is located in the Evergreen Community in San Jose, CA.

• List Date: 10/15/2011
• List Price: $399,999
• Number of Offers: 1
  
• Sale Date: 10/20/2011
• Days on Market: 6
  
• Lender Approval 1^st Lien with Bank of America: 12/8/2011
• Lender Approval 2^nd Lien with Bank of America: 12/2/2011
• Sales Price: $400,000 – Cash Purchase
  
• Close of Escrow: 1/6/2012
• List to Close: <3 months

You can save your home from foreclosure. Get the help you need now. Don’t wait until you run out of time. Call your local San Jose short sale agent who is trained, certified, experienced, with a track record of helping homeowners avoid foreclosure.

Call 1-800-972-1822 today!

HAFA Short Sales

Short Sale time frames will most definitely vary depending on the number of loans and who services the loans.

Below is an outline of the time frame for closing a San Jose short sale. This property qualified for, was approved as, and closed as a HAFA short sale.

• List Date: 10/2/2011
• List Price: $368,888
• Number of Offers: 3
• Sale Date: 10/12/2011
• Days on Market: 10
• Lender Approval 1^st Lien with Bank of America: 12/9/2011
• Lender Approval 2^nd Lien with Bank of America: 12/10/2011
• Sales Price: $370,000
• HAFA Incentive to Borrower: $3,000.00
• Close of Escrow: 1/6/2012
• List to Close: 3 months
• Bank of America HAFA short sale servicer:  UTLS

Working with UTLS was extremely difficult.  Thankfully Bank of America is now managing their HAFA short sales in-house provided there is an offer on the property at the time the short sale is initiated. 

You can save your home from foreclosure. Get the help you need now. Don’t wait until you run out of time. Call your local San Jose short sale agent who is trained, certified, experienced, with a track record of helping homeowners avoid foreclosure.

Call 1-800-972-1822 today!

What does this mean for California and the increasing number of homeowners in financial distress who want to avoid foreclosure and find short sales to be a dignified option?

Senate Bill 931 was filed with the Secretary of State and approved by Governor Schwarzenegger on September 30, 2010.  This new law became effective January 1, 2011.

Governor Approves SB 931

Senate Bill 931 adds a new provision to California’s Anti Deficiency Statutes, Code of Civil Procedure Section 580e.  Section 580e provides that a lender who holds a first deed of trust on residential property and agrees to a short sale is not allowed to seek a deficiency judgment or otherwise attempt to collect the balance of the loan after agreeing to approve a San Jose short sale.

This is an important piece of legislation even though it did not receive much fanfare. Many lenders that previously agreed to short sales would “reserve their rights” as to any deficiency, as a condition of the short sale approval. Reserving the right leaves the question of whether or not a lender, after a short sale closes, could seek to recover the balance of the loan after they had agreed to accept less in the short sale.

The provision of the code does not limit the ability of the first deed of trust or first mortgage to seek damages if the Trustor commits fraud with respect to the sale or waste with respect to the real property.

The section does not apply if the Trustor is a corporation or political subdivision of the state.

There is no mention as to if Section 580e of the Code of Civil Procedure is retroactive, or not. Short sale agents and/or negotiators best practice would be to ensure language to the effect that the lender is forgiving the balance is included on short sale approval letters scheduled to close before the end of 2010.

I was talking with a buyer’s agent on one of my short sales. The buyer’s agent and I have a good rapport. He is very responsive to phone calls, emails and quickly returns documents that require signatures.  As a San Jose short sale agent, I appreciate a responsive buyer’s agent. 

The agent expressed his appreciation for how I manage my short sales.  I explained why I do not use a third party negotiator.  My reasons resonated with him as he experienced the same issues with the negotiator he hires to manage his short sales.  However, he simply does not like managing the short sale so he hires the task out.  I believe this practice ultimately compromises the sellers in exchange for his personal comfort.  

I strongly believe San Jose short sale agents need specialized training in order to be effective. Unfortunately, training is not required by the California Department of Real Estate. One only need a real estate license to transact short sales.

Agents who are not trained and/or who do not want to negotiate the short sales should focus on non-short sale activity. I’ve been listing and closing short sales long enough to know what happens when an agent attempting a short sale does not know what they are doing. Ultimately, it serves no one except possibly the agent if they manage to get the approval and close the sale.

The Buyer’s asked me if I offered short sale negotiations as s service.  I explained the reason why I do not. It’s essentially the same reason I don’t hire out the service.  I have little control over the transaction when someone else is tasked with dealing with the lenders and servicers. Conversely, as a third party negotiator, I have no control over the sellers. Control meaning setting realistic expectations upfront, keeping lines of communication open, and ensuring full cooperation with the process.

My clients hire me to list, market, negotiate and close the short sale.

Even though I do not necessarily enjoy dealing with the lenders and/or servicers and their broken short sale process, I do not believe there is anyone who can do a better job than me.  My short sale success fully supports that statement.

If you need a San Jose short sale agent, then hire an agent qualified to do their job which is to help you avoid foreclosure and ensure your best interests are being served at all times. 

Call today for a free, no obligation consultation. 

800-972-1822

As a San Jose short sale agent, I want to learn more to better understand how and why our nation is where it is today with the Federal Reserve, the banking cartel, and how banks make money even when the lender approves short sales at a so-called “loss.”

Although the take on Facebook was originally intended as a spoof we all need to understand that big brother is watching. How much truth is in the spoof? That is up to each of us to decide. I’m deciding as I continue to read Money and Power, The Secret History.

I feel the manner in which lenders and servicers treat homeowners and the San Jose short sale agents that represent them is absolutely shameful. There really needs to be laws against it.  If we are going to enact laws, then we need laws to protect the people not the big bad banks who shamelessly profit from struggling tax paying citizens.

“If you want to know who controls the world, just follow the money.” New York Congressman, Allard K. Lowenstein.

If all short sales were processed like Wachovia short sales then this short sale agent would enjoy managing short sales! Truthfully, short sales are work, work and more work. No one really knows how much work goes into processing a short sale until one actually processes a short sale.

Below is an outline of the time frame for this Blossom Valley home short sale. It was not a HAFA short sale. The property was an investment property and not the sellers primary residence.

• List Date: July, 4, 2011
  
• List Price: $153,000
• Sale Date: July 8, 2011
• Days on Market: 4
  
• Lender Approval: July 18, 2011
  
• Number of Days to Obtain Approval: 7 days
  
• Close of Escrow: August 8, 2011
• Sales Price: $145,000
• List to Close: 5 weeks to the day!
  

Documents Required:

• 1 page Wachovia Fast Track Form which took approximatley 1 minute to complete.
  
• Non-HAFA participation letter. This was to ensure the file was not automatically routed to HAFA and slow the process down.
• Third Party Authorizaton
• Listing Agreement
• Purchase Agreement
• HUD
  
• Buyers Proof of Funds

That’s all folks. No tax returns; No pay stubs; No bank statements; and No B.S.

BUT WAIT, THERE’S MORE!

Seller Incentive if closed within 30 days of approval: $3,000.

Agent Incentive if closed within 30 days of approval: 1% of Sales Price or $1,450.00

Wachovia Short Sales – This Short Sale Agent’s Dream Come True!

You can save your home from foreclosure. Get the help you need now. Don’t wait until you run out of time. Call your local short sale agent who is trained, certified, experienced, with a track record of helping homeowners avoid foreclosure.

Call 1-800-972-1822 today!

My clients who closed on their HAFA short sale at the end of last month sent them.

Thank you Mr. and Mrs. Client for your trust and confidence in me.  It means more to me than words can express.  There is so much beauty in the flowers and in you!  You are an inspiration to me to continue to do what I do. Serving people like you adds a greater purpose to my life. 

Thank you!

I am one blessed San Jose Short Sale Agent to have had the honor of helping you avoid foreclosure!